The Trump Organization is moving ahead with plans to redevelop the Old Post Office building in Washington into a luxury hotel. (Karen Bleier / AFP)
The Trump Organization is moving ahead with plans to redevelop the Old Post Office building in Washington into a luxury hotel, according to an Aug. 5 announcement.
The General Services Administration struck a $200 million deal with the Trump Organization on June 5 to redevelop the property, but Congress had 30 days to nix the deal.
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 be required to maintain the historic characteristics of the building.
Donald Trump, president and chairman of The Trump Organization, said in a press release that he was thrilled to move forward with plans to transform the building.
“The Trump Organization is committed to preserving the architectural integrity of The Old Post Office while creating a hotel that will be peerless both in its amenities and design, and I look forward to sharing details of that design in the weeks to come,” he said.
The plan also will 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 underutilized building as an example of federal waste. Only 225,000 square feet of the facility’s 315,000 square feet are occupied by federal offices and a pavilion of restaurants and shops. The government has taken years to dispose of the marquee property — located only blocks from the White House — 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.