Budget Oversight Hearing for DEMPED FY27 - April 24, 2026

On April 24, 2026, the Committee on Human Services, chaired by Councilmember Matt Freuman (Ward 3), held a budget oversight hearing for the Office of the Deputy Mayor for Planning and Economic Development (DEMPED) for Fiscal Year 2027. The hearing reviewed DEMPED's proposed budget of $39.6 million in operating funds (down from $50.2 million in FY26) and $296.7 million in capital funds (an 11% reduction). The meeting featured public testimony from over 20 witnesses and extensive questioning of Deputy Mayor Nina Albert and her team.

Public Comments & Testimony

• Capital Pride Alliance: Representatives June Crenshaw, Benjamin Jesse, and Jessica Nyun testified that World Pride 2025 generated $310.7 million in economic impact ($245 million to DC alone). They urged the city to fully cover all fees (estimated at $1.6 million) and provide full in-kind support, warning that without it, the parade and festival may not be viable. They noted that only 20% of fees have been committed for FY27.
• DC Community Wealth Builders: Multiple witnesses (Sam Banar, Kiara McGowan, Carla Yoder, Rachel Hugh, Ricardo Schiller, Sharnell Cheney) advocated for creating a land bank and public bank, and for a full-time employee at DEMPED to study and implement these. They also requested a technical assistance grant for cooperative conversions. They argued that current corporate incentives fail to retain local wealth and that these structures are needed to invest in affordable housing and small businesses east of the river.
• Rift Valley Capital: Stefan Rodiger and Barricade Selassie discussed the Chevy Chase Community Center and Library redevelopment, which has a $40 million funding gap. They requested access to the proposed workforce housing tax abatement and additional capital funding to secure private financing. They expressed hope for a timely land disposition and development agreement (LDDA) package.
• Ruth Hong (GIR Lynch Real Estate Partners): Testified on the Reservoir District (McMillan) tax exemption, urging a technical fix to align inclusionary zoning (IZ) rates with HUD fair market rents. The discrepancy threatens the project's financial feasibility. She asked the council to include the amendment in the Budget Support Act.
• Derek Ford (Washington DC Economic Partnership): Highlighted the partnership's role in business attraction, retention, and marketing. He noted 273 active projects in the pipeline representing 17,000 jobs and 4.5 million square feet. He supported dedicated funding through hotel tax revenues.
• Shira Markov (DC Fiscal Policy Institute): Criticized DEMPED's reliance on corporate tax breaks, arguing they total $191 million in foregone revenue. She urged redirecting funds from ineffective programs like "Office to Anything" to worker supports and safety net programs. She also noted that DC has the highest inequality rate in the country.
• Liz DeBarros (DC Building Industry Association): Supported the mayor's budget, including changes to housing in downtown, office-to-anything, and new tax abatements for workforce housing, WMATA, and federal properties. She urged caution on expanding the mayor's land acquisition authority without a clear definition of "revitalization."
• Robin Bederal (EYA): Testified on the WMATA joint development tax abatement for the Tacoma Metro project. She requested three modifications: allow properties sold by WMATA to remain eligible, limit first source and CBE requirements to private development only, and extend the abatement term from 20 to 25 years.
• Kevin Clinton (Federal City Council): Emphasized the link between economic growth and fiscal health, supported the mayor's investments in economic development, and highlighted the opportunity in former federal buildings. He urged targeted workforce development tied to employer demand.
• Elise Cohen (Long Shots): Proposed authorizing off-track betting (OTB) and historic horse racing (HHR) in DC, estimating $92-130 million in annual recurring revenue. She argued these are controlled, in-person alternatives to iGaming.
• William Jordan: Criticized DEMPED's oversight of the Donatelli fraud at Highland Park, urging recovery of at least $30 million in public funds. He proposed redirecting funds from certain programs to youth inclusion and opportunity zones.
• Justin Zheng (Save Chinatown Solidarity Network): Opposed the elimination of the Chinatown lease incentive grant, requesting an increase to $600,000 yearly and expansion into a legacy business support program. He cited the eviction of legacy businesses and neglect of seniors.
• Cheryl Court (Coalition for Smarter Growth): Supported the Chevy Chase library redevelopment but urged inclusion of more affordable housing, restoring the original Rift Valley proposal with 70 deeply affordable units and 67 workforce units.
• Ashley Ruff (ANC 7): Called for equitable investment east of the river, including funding for the Food Policy Council, grocery stores, and land banks that serve community needs. She questioned how tax abatements could incentivize healthy food retailers in underserved areas.
• Jeremy Sherman and Shira Davidson (ANC 1A): Advocated for economic investment in Columbia Heights, including a lease incentive pilot program, corridor activation funds, and a neighborhood management authority. They noted over 20 years of decline and vacant storefronts.
• Ryan Boss and Sahan Miramini (Capital Pride Alliance): Detailed that fees for city services have risen to over $1.6 million, and without 100% support, the Pride Parade and Festival are at risk. They emphasized that the city's support is foundational for safety and operations.
• Eric Mulada (Dallian Development): Testified on the redevelopment of the former GSA Regional Office Building (ROB). He requested changing the qualification date for the federal property tax abatement from October 1, 2026 to January 1, 2026, and that funds generated be reinvested in the same business improvement district.
• Max Broad: Urged restoring funding for the Food Policy Council, which he said has secured over $200 million in federal and philanthropic support. He argued the council is critical for food systems coordination, especially amid federal cuts to SNAP.

Discussion Items

• Deputy Mayor Nina Albert's Opening Testimony: She outlined DEMPED's FY27 budget, highlighting cuts due to expiring federal funds and one-time council enhancements. She emphasized the "Grow DC" agenda, including dedicated funding for the Washington DC Economic Partnership ($6M from hotel tax), $7M for Vitality and Tech Ecosystem funds, $6.5M for Great Streets and local business grants, and $2M for special events. She also detailed new tax abatements for workforce housing, WMATA joint development, and former federal properties.
• Housing and Downtown Revitalization: Councilmember Freuman and others questioned the shift from HANTA (high area need tax abatement) to a new workforce housing program. Deputy Mayor Albert explained that HANTA is fully subscribed and that the new program targets workforce housing (60-100% AMI) to fill a gap. She noted that current affordable housing programs have sufficient capacity for demand due to high vacancy rates.
• Office-to-Anything and Housing Downtown: The council discussed changes to the Office-to-Anything program, including removing first source requirements for tenant improvements and broadening eligibility to any commercial-to-commercial use. Deputy Mayor Albert stated that these changes are meant to remove barriers and attract tenants, citing examples where confusion over first source and CBE caused deals to fall through.
• Federal Properties and Southwest DC: Deputy Mayor Albert outlined a vision for Southwest DC as a new mixed-use neighborhood, with plans to convert former federal buildings. The federal property tax fund would support abatements, infrastructure, and acquisitions. Councilmember Freuman raised concerns about the pace of federal dispositions and the need for a coordinated plan.
• WMATA Joint Development: The council discussed the tax abatement for five Metro stations. Deputy Mayor Albert acknowledged that the high costs of maintaining transit operations require such incentives. She was open to technical modifications but noted that extending the term to 25 years is not typical.
• Grocery Stores and Food Access: Councilmembers Henderson, Felder, and White questioned the effectiveness of the supermarket tax incentive and the elimination of the Food Policy Council. Deputy Mayor Albert defended the incentive as a conversation starter and noted that the district is exploring smaller-format grocers and mixed-use developments at sites like Capitol Gateway. She acknowledged that many grocers face financial challenges and theft.
• Chinatown and Columbia Heights: Councilmembers Crawford and Nadeau raised concerns about the Chinatown lease incentive grant and the lack of investment in Columbia Heights. Deputy Mayor Albert noted that the grant has awarded three businesses and that the mayor's budget includes $5.4M for a Chinatown alleyway and other public realm improvements. She committed to working with ANC 1A on a Columbia Heights strategy.
• Land Bank and Public Bank: Multiple witnesses and Councilmember Freuman explored the idea of a land bank and public bank. Deputy Mayor Albert was noncommittal but noted that the district has studied both and that a dedicated FTE could be considered.
• Capital Pride Fees: The council pressed Deputy Mayor Albert on the 20% fee commitment for Pride. She acknowledged the economic impact but did not commit to full funding, citing budget constraints.

Key Outcomes

• No votes were taken; the hearing was informational for the committee's budget report.
• Deputy Mayor Albert agreed to provide additional data on the supermarket tax incentive projections, the Commercial Property Acquisition Fund, and the specifics of software subscription increases.
• She committed to working with the council on technical amendments to the WMATA joint development tax abatement (ownership, first source, term length) and the federal property tax abatement (qualification date, fund use boundaries).
• The committee will consider restoring funding for the Food Policy Council and the lease incentive grant in Chinatown.
• The council will review the proposed changes to the Vitality Fund, Office-to-Anything, and the extension of the Tourism Recovery District tax.
• The committee expects a package for the Poplar Point redevelopment (including Therma and the land swap) to come to the council after recess in September.
• Written testimony must be submitted by May 1, 2026 at 5:00 PM.