Evening star., 1936-08-02
BY JAMES e. CHINE.

Automobile owners are pouring
about $850,000 a year into the Golfers
Of the operators of Washington's pri-
vate parking lots.
At the same time, the District gov
eminent is losing badly needed rev.
enue as a result Of the demolition Of
the buildings that once stood on these
lots. But, as the old adage goes, its
an Ill wind that blows nobody good;
the actual owners of the property, in
most cases, are getting a greater re-
turn from the operators of the lots
than they did from rental of the old
buildings that were razed.
The situation has created quite an
economic problem in so far as the
District government is concerned, and
the minds of half a dozen officials
are trying to work out a solution-a
solution that will at least recover some
OF the revenue that is being lost on
the now unimproved parcels of prop
erty.
In High-VaIue Section.
One of the serious features in con-
nection with the growth of the pri-
vate parking lots is that most of them
are located in the high-value business
section-the section on which the Dis
trict government relies for the great
est portion Of its tax revenue.
A recent check by the Department
OF Vehicles and Trafic revealed the
existence of 135 private parking lots,
scattered around the business district
and closely surrounding it. A few
years ago these lots served as sites
for various types of buildings that
produced revenue through taxation
for the District. but now, in their
unimproved state. are yielding far less
! for the tax pot.
| Upon these lands, not more than
three years ago, there was sl.O89 900
worth OF improvements taxable by the
District at the usual rate The de-
struction of these buildings has re.
/ suited in an annual loss to the Dis
trict of $4,000.
Ford Property Transformation.
An example of what has happened
Is reflected in the transformation of
the valuable Henry Ford-owned prop
erty on the northeast corner of
Thirteenth street and Pennsylvania
avenue into an automobile parking
lot An old hotel, the Sterling, stood
on that site for many years, in addi-
ton to group of smaller buildings,
that often remained unoccupied for
long periods.
Ford purchased the property,
oStensibly to erect on it a modern
building for his Washington head
quarters. But he changed his plans.
razed the buildings and leased the site
to the operator of parking lot. For
the purposes of taxation. it was then
unimproved property. The tax as
SCISSOR had to reaSSeSS it on that basis,
and in the process reduced the assess
ment $4,000.
Some buildings on the Heurich prop
erty adjoining the parking lot later
were demolished to make way for
another of1-street harbor for automo-
biles, and the assessor slaShed $4,000
OF the former assessment. Similar
treatment was given the Mclean
owned property on Vermont avenue,
between Fifteenth and H and streets,
when It was converted into a parking
lot. The assessment there was cut
SIS, ZOO.
And another old landmark, the
building which stood on the Stilson-
HItPhinC aCfQfn tho eli ~
Thirteenth street, between G and H
streets, went down in recent years so
automobiles might be stored on its
site, and the assessment went down
with 1t to the extent of $50,000.
Land Owners Get More.
As has been pointed out, owners Of
the parking lots, in most instances,
are now receiving a larger return on
the property than when buildings
stood on the sites. In nearly all cases,
the buildings that were razed were
obsolete and unoccupied. and, of
course, produced no return. Yet the
owner continued to pay the usual
real estate tax on the improved prop
| erty. Now, with the buildings de-
stroyed, he pays lesser tax-on the
land alone-and at the same time re-
ceives an income from the operator
of the parking lot.
One of the best illustrations of
such cases involves a valuable site in
the vicinity of the Army and Navy
Club, on which an unoccupied build
ing stood. The land was assessed at
$246, ,246, and the building $44,6OO,
making total of $290,084 on which
| the owner paid the District 1882 a
year in taxes. The building was razed
and the land converted into parking
lot. The lot, now classified as unim-
proved, is assessed at $246,246, on
which the owner pays annual taxes
Of $3,693. Coupled with a reduction
of 1863 q year in taxes, the income
of the owner Of the property has
jumped from zero to $1,000 a year,
which the parking lot operator pays in
rental.
The area of downtown land occu-
pied by parking lots totals 773,9l1
square feet and Is assessed at $8,905. =
211. In all of the instances the lands
are bare, except for so-called shack"
used by employees. Their assessed
value is $20,7
Considered Eyesores.
All the lots are visible from the
public streets, together with the
masses of parked cars-a condition
that has been branded as anything
but esthetic by both Federal and
District officials vitality concerned with
the Identification of the Nations Cap
ital.
It Is estimated that 10000 cars are
parked on the privately-owned lots
each day. the owners Of which pay