Washington D.C. is a government town. A staggering amount of the area's economy is dependent on the government. Defense industry, intelligence, federal LEO, military, and electoral governance account for primary and secondary income streams.
An awful lot of the real estate in and around D.C. is publicly owned so, I can assure you the concept is not novel.
In the days of horse and carriage, the days prior to paved roads and central heat&air, it was easily arguable that a grand ballroom to be used primarily by the government would be best located adjacent to the White House. POTUS and staff could avoid the mud, the heat, the humidity, the rainstorms or the snow and throw a decent enough party.
Whether good, bad or inbetween, those days are gone. Roads are paved and vehicles are heated or cooled as necessary. Loading and unloading can be done inside/under cover. Communications infrastructure - wired, wireless and, internet - makes most everything available most anywhere.
So what could possibly be the reason for co-locating a grand ballroom whose need is questionable and the White House? What could have been so necessary as to justify the demolition of such a historic and storied structure as the East Wing of the White House? I would suggest that the reason(s) for the location of the ballroom, the reason for the destruction of a historic property boil down to "flooding the zone".
Felon47 is willing to destroy your history to continue to obscure his role in crimes committed by, with and under the watchful eye of Jeffery Epstein. The ballroom could have been built anywhere in the D.C. area. An argument could be made that Manhattan would have made more sense as a location for state dinners and parties due to the proximity of the UN and consulates etc. However, building it that way would not have provoked the Epstein obscuring outrage that destroying the East Wing and gardens does.
1600 Pennsylvania Ave does not appear to me to be anywhere near the optimal location of a grand ballroom suitable for state dinners. It is simply the best place to try to change the national conversation, the demands for the release of the Epstein files.
For me, it ain't gonna work.
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