The District will use a portion of the funds generated by the project to support the theater's operations. "The Lincoln Theatre has an incredible history and great potential," Mayor Adrian Fenty says in a prepared statement. "This is a perfect example of what we can do when we leverage our assets to get better amenities for our neighborhoods."

The District is soliciting development partners for the site. Potential uses could include office, hotel or housing--with 30% of the residential component reserved as affordable housing. Ongoing financial support would be another requirement for the developer, as well as the provision of at least 7,500 sf of flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management. Although owned by the District, the Lincoln Theatre is managed by the non-profit U Street Theatre Foundation, which is slated to receive a five-year license agreement this summer to expand its management.

According to DC's preliminary analysis, office for non profit organizations would be strongest use for the site as it would provide shared parking for the Lincoln Theatre. Housing and boutique hotel uses are also feasible. Bids for the sites are due on July 18.