Summary: The total cost of the proposed new convention center in the District of Columbia is now estimated at about $650 million. The District has enough money from dedicated taxes to pay for the $40 million in projected predevelopment costs, and it plans to issue revenue bonds backed by dedicated taxes to pay for part of the construction costs. However, current tax revenues will not cover the debt required to fund the project's construction costs. Current earmarked tax collections would support a revenue bond issuance of $423 million. By adding $51 million in interest from the investment of bond proceeds and $30 million in cash on hand from dedicated taxes as of July 1997, the District estimates that total revenue will reach $504 million. However, this would still leave a shortfall of about $106 million. The District has been exploring various financing options, such as additional funds from the city, federal funding, and the sale of the existing convention center to supplement the dedicated tax revenues. Before the project can move forward, the National Capital Planning Commission must approve the design as well as address community concerns about the project. Since GAO's report last year, the estimated completion date has slipped a year to December 31, 2000, but even this date is uncertain.
