The General Services Administration has finalized a $200 million deal with The Trump Organization to turn the Old Post Office Building in Washington into a luxury hotel. (KAREN BLEIER / AFP via Getty Images)
The General Services Administration has finalized a $200 million deal with The Trump Organization to turn the Old Post Office Building in Washington into a luxury hotel, according to an agency announcement.
Under the agreement, Trump will lease the 114-year-old facility from GSA for 60 years and pay the costs of turning it into a 260-room hotel complete with restaurants, spa and conference facilities. The organization will also be required to maintain the historic characteristics of the building.
Congress has 30 days to review the deal but does not have to approve it before GSA moves forward on the project.
“Redeveloping the Old Post Office with a private sector partner will save millions of taxpayer dollars while restoring a unique and important historic asset,” acting GSA administrator Dan Tangherlini said in a news release.
The plan would relocate about 370 federal employees from the National Endowment for the Arts, National Endowment for the Humanities and several presidential commissions to new office space at Constitution Center in Southwest Washington.
House Republicans have cited the property as an example of waste. Only 225,000 square feet of the facility’s 315,000 square feet are occupied by federal offices, a pavilion of restaurants and shops. The government has taken years to dispose of the excess federal property and meanwhile pays $6 million a year to maintain it.
The hotel redevelopment is expected to start in 2014 with the hotel opening scheduled in 2016. The Old Post Office clock tower will continue to be managed by the National Park Service and remain open to the public, according to GSA.
Ivanka Trump, executive vice president of development and acquisitions at The Trump Organization, said the company had worked with GSA and plans for construction are “virtually complete.”