D.C. Council member Vincent Orange (D-Ward 6) said Wednesday that a recent proposal by the city to raise $250 million from equity lenders has the potential to create millions of jobs in the District.
Orange said in a statement that the money is a “game changer” that will create more than 1,000 new jobs and create “the most diverse community in the country.”
He said the money will help the city “focus on jobs, the economy and growth” and will be “the biggest infusion in the city’s economy since the financial crisis.”
Orange’s office has been promoting a new equity lending proposal that calls for an initial $250,000 to $300,000 loan for each company to help them expand and improve their operations.
The plan is expected to be voted on by the council in December.
The city is trying to attract private equity firms to help finance the development of a large, $1.4 billion stadium, hotel, convention center and retail center.
Under the plan, the new equity lenders would take over the equity loan from the city and buy out the debt.
Orange’s office said the investors would then pay the city a “commission” that would be paid out over time.
Currently, the city has two equity lenders.
One is the Washington Capital Corporation, which is led by President Mike Pence and has $2.2 billion in assets.
The other is Blackstone Group, which owns $1 billion of the city bonds.
As part of its plan, D.E.C., the city-owned corporation, will also create a “revenue sharing” fund that will pay out a portion of any bonds issued.
That fund, which was originally envisioned as a way to raise revenue to help the mayor and council pay for the stadium, will instead be used to build affordable housing and other projects in the region.
Blackstone Group and its affiliates are expected to have a total of $1,900 million in assets under the plan.