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KLMNO WASHINGTON BUSINESS Deal reached on convention center hotel
by Jonathan O’Connell Capital Business Staff Writer
The JBG Cos. and Marriott
International have reached an agreement in principle to allow construction to begin on the Dis- trict’s planned $550 million con- vention center hotel this fall. The District, with Marriott as a
partner, has been trying to build a dedicated convention center hotel since before the Walter E. Washington Convention Center opened in 2003. The project ap- peared ready to begin last year until JBG, a Chevy Chase-based developer, sued the city alleging an irregular procurement proc- ess, halting the project. JBG has been accused of using
the lawsuit to lean on Marriott for concessions at another prop- erty, the Marriott Wardman Park, which the developer purchased with Los Angeles-based CIM Group in 2005. The city, Marriott and the Washington Convention and Sports Authority then filed lawsuits against JBG. The deal between the two com- panies would allow all the law- suits to be settled and the conven- tion center authority to begin is- suing the bonds needed to finance the 14-story, 1,167-room Marriott Marquis hotel planned for Massachusetts Avenue and Ninth Street NW, according to D.C. Attorney General Peter J. Nickles. The deal was reached in a July
1 meeting at city offices in the John A. Wilson Building among Nickles, D.C. Council member Jack Evans (D-Ward 2) and exec- utives from the two companies. Nickles said that all substan- tive matters have been resolved and that he expected the final sig- natures to be in place in the next day or two. “I have every expecta-
DENNIS BRACK/THE WASHINGTON POST The Marriott Wardman Park is part of the conflict between JBG Cos. and Marriott International.
tion that it will be done in the next 48 hours,” he said. He said Mayor AdrianM. Fenty
(D) had been pushing for the mat- ter to be settled as quickly as pos- sible. “I want a press conference next week,” Nickles said. “The fight is over, the bonds will be is- sued, we’ll break ground, we’ll have 2,000 jobs for city resi- dents.”
JBG Managing Partner Ben Ja- cobs did not respond to requests for comment. Joel Eisemann, ex- ecutive vice president of Marriott International, declined to con- firm a deal. “We may be able to provide additional information sometime in the next week or so,” he said. Last year the D.C. Council and
Fenty committed $272million in public money to the project and agreed to give the development team, led by Quadrangle Devel- opment, a 99-year ground lease on city-owned land.
Evans, who has faced scrutiny over his role in negotiating a set- tlement in the deal because he is a real estate attorney at Patton Boggs, declined to comment. He previously recused himself from council votes on financing for the deal. The lack of a dedicated hotel has forced major convention or- ganizers in the city to rely on shuttle buses to a bevy of loca- tions. Gregory A. O’Dell, presi- dent and chief executive of the convention center authority, said the deal would quickly enhance the authority’s ability to attract major clients. The next steps, he said, were finalizing the deal with the developers, settling the au- thority’s suit with JBG “to make sure there isn’t any future impact over the project” and issuing the bonds.
“Obviously, from our perspec- tive, this will reinforce our ability to move quickly toward a ground-
breaking of the hotel, which is sorely needed,” he said. What Marriott and JBG agreed to in the deal is not known, but the companies’ dispute largely centered around the 1,316-room Wardman Park hotel, at 2660 Woodley Rd. NW in Woodley Park, rather than the planned convention center hotel. Along with CIM Group, JBG purchased Wardman Park — the largest hotel in the city — near the peak of the real estate market, with plans to transform portions into condominiums. But with the housing market sputtering, JBG argued in court that a heavily subsidized deal for Marriott to build a convention center hotel would unfairly harm hotel busi- ness at Wardman Park. In March, a D.C. Superior
Court judge dismissed JBG’s law- suit, weakening the developer’s position.
oconnellj@washpost.com Lockheed seeks to trim its executive ranks through buyout
by Marjorie Censer Capital Business Staff Writer
Lockheed Martin, the Beth- esda-based contracting giant, said Tuesday that it will try to shrink its management team by offering financial incentives to executives to leave the company. The company said the move is
part of efforts to lower costs as government budgets tighten.
According to Lockheed, the voluntary initiative will be ex- tended to employees who leave by Feb. 1, 2011. “We’re taking bold and respon- sible action to address the new reality of our business environ- ment,” Robert J. Stevens, Lock- heed Martin’s chairman and chief executive, said in a state- ment. Last week, Pentagon officials announced they plan to cut $100
Monitor your investments at
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Daily Stock Market Performance Index
Dow Jones Industrial Average
11,600 10,900 10,200 9500 8800 8100
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2600 2300 2000 1700
S&P 500 Index 1250 1175 1100 1025 950 875
1028.06 +0.5 –7.8 2093.88 +0.1 –7.7
billion from overhead spending over the next five years. Lockheed spokesman Jeffery Adams declined to identify how many employees will be offered the program because he said the information is competitive. He said the specific incentives will depend on a given official’s years of service as well as his or her level. Adams declined to say how much money the company hoped to save.
The company has previously said it is looking closely at its spending. Stevens said in June that Lockheed would cut in half its participation at the Farnbo- rough International Airshow, a major aerospace industry exhibi- tion in England, and that he per- sonally would skip the event. Also, Lockheed recently made public its plans to divest two business units.
censerm@washpost.com
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12.9745 16.3790 0.1480
2.2486 0.0204 1.3310 0.0120
Japan ¥
1.2624 0.0114 0.0091
1.3 2.0 1.2
0.8
Britain £ 1.5153
Brazil R$ Canada $ Mexico $ 0.5615
1.2003 0.4447
0.9484 0.0771 0.7513 0.0611
132.6200 49.6145 83.0100 6.7460 0.3706
2.6982 1.5977 0.5920
0.6259 0.0509 1.6890 0.1373 0.0813
19.6594 7.2840 12.3051 Close
62,064.75 11,200.17 31,533.58
242.76
3423.36 5940.98 4965.00
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Commodities Futures
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Value of $1000 invested for the past: Daily
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BasicEnergyServices Integral Systems
Close %Chg $7.81
8.9
Patterson-UTIEnergy $13.73 6.1 GreatAtla&PacTea Catalyst Health Sol CARBO Ceramics StarTek
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WilmingtonTrustCorp $11.77 4.6 Rovi Corp
Kulicke & Soffa Nautilus Inc
Tenet Healthcare Aerovironment Inc Baker Hughes
FMC Technologies ION Geophysical Netgear
KendleInternational Steel Dynamics
EastWest Bancorp
10-year note Yield:
5-year note Yield:
2.93 1.76
4:30 p.m. New York time.
$6.80 8.8 $4.66 5.4 4.9
$4.03 4.7 $39.42 4.5
$7.32 4.4 $1.52 4.1 $4.32 4.1 $22.23 4.0 $43.93 3.9 $56.60 3.8 $4.08 3.6 $18.21 $11.20
Losers
Ruth's Hospt Group Perry Ellis Intl Sonic Solutions MarineMax Quiksilver
Big5SportingGoods Lincare Holdings O'Charleys OfficeMax
Tuesday Morning EthanAllenInteriors Wilshire Bancorp RF Micro Devices Ruby Tuesday
CalifrnaPizzaKitchn Arctic Cat
3.5 3.4
$13.47 3.4 $16.04 3.4
Lexington Realty La-Z-Boy
Monro Muffler K-Swiss
2-year note Yield:
6-month bill Yield:
0.62 0.21
Note: Bank prime is from 10 major banks. Federal Funds rate is the market rate, which can vary from the federal target rate. LIBOR is the London Interbank Offered Rate. Consumer rates are from Bankrate. All figures as of
Close %Chg $3.70 –11.3
Daily
$16.85 –10.6 $6.94 –10.2 $6.36 –9.9 $3.70 –8.6 $11.83 –8.4 $26.43 –8.3 $4.69 –8.0 $12.46 –7.8 $3.53 –7.6 $12.55 –7.6 $6.99 –7.5 $3.71 –7.5 $7.66 –7.4 $13.19 –7.2 $8.18 –7.2 $5.41 –7.0 $6.48 –6.9 $37.08 –6.8 $10.60 –6.8
Treasury Performance Over Past Three Months
Soybeans Sugar Wheat
day $800 $1000 PETER FROMMENWILER/BLOOMBERG NEWS
UBS contracted Virginia’s CSC for network and security services. CONTRACTING
CSC deal with UBS worth $580 million Computer Sciences Corp. said
Tuesday that it signed a contract worth up to $580 million over five years with Swiss bank UBS, to provide network, security and telecommunication services. The contract is subject to reg-
ulatory and other approvals. Shares of Falls Church-based CSC fell 0.9 percent Tuesday, to $43.70.
— Associated Press
General Dynamics unit wins Navy deal
A General Dynamics subsid-
iary has won a $171.8 million U.S. Navy contract to maintain and update design drawings and data for Virginia-class nuclear subma- rines. The Electric Boat division will build each submarine in the class, and it will evaluate new technol- ogy that goes into each new sub. The company said in a state-
ment Tuesday that the contract could be worth $881 million through 2014 if all options are ex- ercised and funded. Shares of Falls Church-based
General Dynamics fell 6 cents on Tuesday, to $58.64.
— Associated Press EXECUTIVES
Novavax names chief scientific officer Drug developer Novavax
named Gregory Glenn, the found- er of Iomia Corp., as its chief sci- entific officer, the Rockville drug developer said Tuesday. Glenn will report to Novavax
chief executive Rahul Singhvi, who said Glenn brings experi- ence in discovering, developing and evaluating a range of vac- cines that prevent diseases such as pandemic influenza, tetanus and cancer. He has also served as an associ-
ate in international health at Johns Hopkins University’s School of Public Health. — Associated Press
MANUFACTURING
Danaher and Cooper form joint venture
Danaher and Cooper Indus- tries have completed the forma- tion of a joint venture to blend some of their tool-manufacturing businesses. The venture, announced in
March, will be named Apex Tool Group. Danaher, the medical equipment maker based in the District, and Houston-based Coo- per will each own a 50 percent stake.
Cooper operates in the indus- trial, residential and commercial tools and electrical products sec- tor. The company expects a sec- ond-quarter loss of about $90 million, or 53 cents per share, af- ter taxes and currency-exchange losses. Excluding that charge, the joint venture isn’t expected to have a material impact on Coo- per’s earnings this year. — Associated Press
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WEDNESDAY, JULY 7, 2010
$1.4735 $17.83
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Close %Chg –2.5 +0.8 +0.2 –0.1 +1.0
Daily
month $1200
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