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COMMITTEE PRINT - DRAFT
COMMITTEE ON FINANCE & REVENUE
NOVEMBER 3, 2004
15-1028
A BILL
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend Titles 2 and 47 of the District of Columbia, Official
Code to create a non-lapsing,
Special Revenue Fund within the governmental funds of the primary
government to be
denominated as the "Ballpark Revenue Fund"; to impose a
ballpark fee on the gross
receipts of certain persons doing business within the District of
Columbia; to impose a
sales tax at the point of sale within the District of Columbia on
tickets of admission to
certain events at a ballpark or arena; to impose a sales tax on
the sale of personal property
and certain services at a ballpark or arena; to provide that the
Ballpark Revenue Fund be
used to pay, or to support debt service on bonds or other evidence
of indebtedness to be
issued to pay, certain costs of the development, construction, or
renovation of a stadium
or arena after October 1, 20D4, that has as its primary purpose
the hosting of professional
athletic team events in the District of Columbia; and to authorize
the issuance of District
of Columbia revenue bonds to pay the construction and related
costs of the ballpark or
arena; to create a tax increment financing district and allocate
the incremental real
property tax revenues and sales tax revenues from such district,
to create a special non-lapsing Special Revenue Fund to be denominated as the
"Community Benefit Fund"; and
to provide that the Community Benefit Fund be used to pay, or to
support debt service
bonds or other evidence of indebtedness to be issued to pay
certain cost of the
development, construction, or renovation of recreation centers,
library improvements,
local small business development incentives, job training and
readiness programs, and
other community benefits and to authorize the issuance of District
of Columbia revenue
bonds to pay the construction and related costs of such
activities.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That
this
act may be cited as the "Ballpark Omnibus Financing and
Revenue Act of 2004".
TITLE I. CONSTRUCTION OF BALLPARK
Sec. 101. The Council of the District of Columbia finds that:
(1) The ownership, construction, development, or renovation of a
publicly Financed stadium or arena in the District of Columbia, after October 1,
2004, for professional athletic team events is a municipal use that is in the interest of, and
for the benefit of, the citizens of the District of Columbia because such a publicly owned stadium or
arena will contribute to the social and economic well
being of the citizens of the District of Columbia and significantly
enhance the economic development and employment opportunities within the
District of Columbia.
(2) In order to further that interest, it is appropriate for the
District of Columbia to pay the cost of constructing, developing, or
renovating a stadium or arena and to that end: to impose a ballpark fee based upon the gross receipts of certain persons
doing business within the District of Columbia; to impose a tax on
the sales of tickets, or rights to admission, to certain events at
the stadium or arena; to impose a tax on sales of personal property and
certain services at the stadium or arena and to utilize the revenues
derived from such fees and taxes to pay the cost of development,
construction, or renovation of the stadium or arena or the debt service
on bonds or other evidence of indebtedness issued to finance the cost
of the development, construction, or renovation of the stadium or
arena; to acquire real property in furtherance of these public
purposes; to lease the stadium or arena to one or more professional
baseball clubs; and for the District of Columbia and any duly
designated District government agency or instrumentality to enter
into binding and enforceable contracts to further these purposes.
Sec. 102. Creation of revenue fund.
(a) There is established within the governmental funds of the primary
government, a segregated, non-lapsing Special Revenue Fund to be denominated as the
`Ballpark Revenue Fund". The Chief Financial Officer of the District of Columbia
shall pay into the Ballpark 1 Revenue Fund all receipts from those fees
and taxes specifically identified by any provision of District of
Columbia law to be paid into such fund. The Chief Financial Officer of
the District of Columbia shall create a sub-account within the
Ballpark Revenue Fund for each type of fee and tax that is to be paid
into such fund and shall allocate the receipts from each type of fee and
tax to the appropriate sub-account. The Mayor, or any District
government agency or instrumentality that has been designated by the
Mayor, may pledge and create a security interest in the monies in the
Ballpark Revenue Fund, or any sub-account or sub-accounts within such
fund, for the payment of the costs of carrying out any of the purposes
described in subsection (3) of this section, for the payment of the
debt service on any bonds or other evidence of indebtedness as well
as any and all fees and charges incurred in connection therewith, for
any and all payments owing under any document or instrument entered
into in connection with such indebtedness, including any credit
enhancement agreement, insurance policy, security agreement, or other agreement or instrument establishing a swap or other derivative
arrangement entered into by the District or any District government
agency or instrumentality, and for any of the purposes described in
subsection (3) of this section, without further action by the Council as
permitted by section 490(f) of the District of Columbia Home Rule
Act, approved December 24, 1973 (87 Stat. 809; D.C. Official Code §
1-204.90(f)). If bonds or other evidence of indebtedness are issued,
such payment will be made in accordance with the provisions of the
documents entered into by the District or any District agency or
instrumentality in connection with the issuance of any such bonds or
other evidence of indebtedness. Notwithstanding D.C. Official Code §
28:9-101 et seq., or any other provision to the contrary, any
security interest created pursuant to this subsection shall be valid, binding and perfected from the time such
security interest is created, with or without the physical delivery of any funds or any other
property, with or without further action, and whether or not any statement, document, or instrument
relating to such security interest is recorded or
filed. The lien created by such security interest shall be valid,
binding and perfected with respect to any person (as defined in D.C. Official Code
§ 47-2001(i)) having claims against the District,
whether or not such person has notice of such lien.
(b) For purposes of this section, "ballpark" shall have the
meaning specified in D.C. Official Code §47-2002.05(a)(2).
(c) The purposes for which the monies deposited in the Ballpark Revenue
Fund may be used are as follows:
(1) To directly pay or to finance the reimbursement of any fund of the
General Fund of the District which has been the source of the payment of any
loan, reprogramming, or
transfer of funds to any District government agency or instrumentality
for the payment of, any and all reasonable and verified predevelopment and development costs
that have been borne by the District or such District government agency or instrumentality for a
ballpark;
(2) To directly pay, or to finance the reimbursement of the District or
any District government agency or instrumentality for, any and all
reasonable and verified predevelopment and development costs that
were borne by the District or such District government agency or instrumentality for a ballpark;
(3) To directly pay, or to finance the reimbursement of the District or
any District government agency or instrumentality for, any or all
costs arising out of or relating to the acquisition of real property,
by purchase, lease, or condemnation in accordance with D.C. Official Code §§16-1311 through 16-1321, or other means of acquiring
or assembling real property or interests in real property, including
rights-of-way or other easements, that will serve as the site for a
ballpark or are otherwise necessary to facilitate the construction of a
ballpark or use of the site for a ballpark;
(4) To directly pay or finance all or any of the costs of the demolition
of buildings located on the future site of a ballpark and the cost of
environmental remediation of the land that is the future site of a
ballpark;
(5) To directly pay or finance all or any of the costs of the design,
development, construction, improvement, furnishing,
and equipping of a ballpark;
(6) To directly pay or finance all or any of the costs of renovating
Robert F. Kennedy Stadium for use as a ballpark until construction of a new
ballpark has been completed;
(7) To directly pay or finance all or any of the costs of any future
renovations, improvements, maintenance or upgrades to Robert F.
Kennedy Stadium or a new ballpark after its construction has been
completed;
(8) To directly pay or finance all or any other costs of the District or
any District government agency associated with the financing,
development, construction or renovation of a ballpark; and
(9) To pay debt service on Bonds issued in accordance with this act.
Sec. 103. Bond issuance. (THIS SECTION REFERRED TO ECONOMIC DEV.)
(a)
Definitions.
(1) "Ballpark Revenue Fund" means the Ballpark Revenue Fund
created in section 3 of this act.
(2) "Bonds" means the District of Columbia revenue bonds,
notes, or other obligations (including refunding bonds, notes and
other obligations) in one or more series, authorized to be issued
pursuant to Section 490 of the Home Rule .Act, as implemented by this act.
(3) "District" means the District of Columbia.
(4) "Home Rule Act" means the District of Columbia Home Rule
Act, approved December 24, 1973 (87 Stat. 809; D.C.
Official Code § 1-201.01. et seq.).
(5) "Project" means the financing, refinancing, or reimbursing
of costs incurred in the site acquisition for, and the development,
design, construction, improvement, furnishing, and equipping of a
Ballpark as such term is defined in D.C. Official Code §
47-2002.05(a)(2) and any other costs to which the monies in the
Ballpark Revenue Fund may be applied; provided, however, that the
funds expended for payment of costs of the Project shall not exceed Five Hundred Fifty Million Dollars ($550,000,000).
(b) Approval of bonds.
The Council hereby approves the issuance of one or more series of Bonds
for payment of the costs off the Project. There is hereby allocated
to the Bonds the monies in the Ballpark Revenue Fund or such portion
of such monies as shall be determined :in accordance with the teens
of the Bonds for the payment of debt service on the Bonds and the
payment of such other costs as are permitted to be paid with monies
from the Ballpark :Revenue Fund.
(c) Bond terms; execution.
The Mayor may take any action necessary or appropriate in
accordance with this act in
connection with the preparation, execution, issuance, sale,
delivery, and payment of Bonds, including determinations of
(1) The final form, content, designation, and terms of the Bonds,
including a
determination that the Bonds may be issued in certificate or book
entry form;
(2) The principal amount of the Bonds to be issued and the
denominations of the
Bonds;
(3) The rate or rates of interest on, and the method or methods of
determining the
rate or rates of interest on, the Bonds;
(4) The date or dates of issuance,, sale, and delivery of, the
payment of interest on,
and the maturity date or dates of the Bonds;
5) Whether the Bonds are to be sold at a competitive or
negotiated sale and the
terms and conditions of such sale;
(6) The terms under which the Bonds may be paid, optionally or
mandatorily
redeemed, accelerated, called or put for redemption, repurchase or
remarketing before their
respective stated maturities;
(7) Provisions for the registration, transfer and exchange of each
series of Bonds
and the replacement of mutilated, lost, stolen, or destroyed
Bonds;
(8) The creation of any reserve fund, sinking fund or other fund
with respect to the
Bond and the determination of the priority thereof,
(9) The time and place off payment of the Bonds;
(10) Whether the Bonds will be taxable, tax-exempt, or a
combination thereof;
(11) Procedures :for monitoring the use of the proceeds received from
the sale of the Bonds to ensure that they are properly applied to the
Project and used to accomplish the purposes of this act; and
(12) Actions necessary to qualify the Bonds under the blue sky laws of
any jurisdiction where the Bonds are marketed.
(d) The Bonds shall contain a legend, which shall provide that the Bonds
shall be special obligations of the :District, shall be nonrecourse to
the District, shall not be a pledge of, and shall not involve, the
faith and credit or the taxing power of the District (other than the
payments from the Ballpark Revenue Fund or any other security
authorized by this act), shall not constitute a debt of the District,
and shall not constitute lending of the public credit for private
undertakings as prohibited by section 602(a)(2) of the Home Rule Act
(D.C. Official Code § 1-206.02(a)(2)).
(e) The Bonds shall be executed in the name of the District and on its
behalf by the manual or facsimile signature of the Mayor. The Mayor's execution and
delivery of the Bonds shall constitute conclusive evidence of the
Mayor's approval on behalf of the District of the final form and
content of the same.
(F) The official seal of the District, or a facsimile of it, shall be
impressed, printed or otherwise reproduced on the Bonds.
(g) The Bonds may be issued at any time or from time to time in. one or
more issues and one or more series and may be sold at public or
private sale. A series of Bonds may be secured by a trust agreement
or trust indenture between the District and a corporate trustee having
trust powers, and may be secured by a loan agreement or other
instrument or instruments by means of which the District may:
(1) :Make and enter into any and all covenants and agreements with
the trustee or
the holders of the Bonds that the District may determine to be
necessary or desirable relating to:
(A) The application., investment, deposit, use, and disposition of
the
proceeds of Bonds and the other monies, securities and property of
the District;
(B) The assignment by the .District off its rights in any
agreement;
(C) The terms and conditions upon which additional Bonds of the
District
may be issued;
(D) The appointment of a trustee to act on. behalf of bondholders
and
abrogating or limiting the rights of the bondholders to appoint a
trustee; and
(E) The vesting in a trustee for the benefit of the holders of
Bonds, or in
the bondholders directly, such rights and remedies as the District
shall determine to be necessary
or desirable;
(2) Pledge, mortgage or assign monies, agreements, property or
other assets of the
District, either in hand or to be received in the future, or both;
(3) Provide for bond insurance, letters of credit, interest rate
swaps or other
financial derivative products or otherwise enhance the credit of
and security for the payment of
the Bonds or reduce or otherwise manage the interest costs off the
Bonds; and
(4) Provide for any other matters of like or different character
that in any way
affects the security for or payment on the Bonds.
(h) The Bonds are declared to be issued for essential public and
governmental purposes.
The Bonds and the interest thereon and the income therefrom, and
all monies pledged or
available to pay or secure the payment of the Bonds, shall at all
times be exempt from taxation by the District, except for estate, inheritance, and gift taxes.
(i) The :District does hereby pledge and covenant and agree with the
holders of the Bonds that, subject to the provisions of the financing documents, the District
will not limit or alter the
revenues pledged to secure the Bonds or the basis on which such revenues
are collected or allocated, will not impair the contractual obligations of the District
to fulfill the terms of any agreement made with the holders of the Bonds, will not in any way impair
the rights or remedies of the holders of the Bonds,
and will not modify in any way, with. respect to the Bonds, the exemptions from taxation provided for in this act, until the Bonds,
together with interest thereon, with interest on any unpaid installment of interest and all costs and
expenses in connection with any suit, action or proceeding by or on behalf of he holders of the
Bonds, are fully met and discharged. This pledge and agreement for the District may be included
as part of the contract with the holders of the Bonds. This subsection constitutes a contract
between the District and the holders of the Bonds. To the extent that any acts or resolutions of the
Council may be in, conflict with this act, this act shall be controlling.
(j) Consistent with section 490(a)(4)(B) of the Home Rule Act (D.C.
Official Code §1-204.90(a)(4)(B)) and notwithstanding D.C. Official Code § 28:9-101 et
seq.
(1) A pledge made and security interest created in respect of the Bonds
or pursuant to any related financing document shall be valid,
binding, and perfected from the time the security interest is
created, with or without physical delivery of any funds or any property
and with or without any further action.;
(2) The lien of the pledge shall be valid, binding and perfected as
against all parties having any claim of any kind in tort, contract or otherwise
against the District, whether or not such party has notice; and
(3) The security interest shall. be valid,
binding and perfected whether or not any statement, document or instrument relating to the security interest is
recorded or filed.
(k) If there shall be a default in the payment of the principal of, or
interest on, any Bonds of a series after the principal or interest shall become due and
payable, whether at maturity or upon call for redemption, or if the District shall fail or refuse to
carry out and perform the terms of any agreement with
the holders of any of the Bonds, the holders of the Bonds, or the
trustee appointed to act on behalf of the holder of the Bonds, may, subject to
the provisions of the financing documents, do the following:
(1) By action., writ or other proceeding, enforce all rights of the
holders of the Bonds, including the right to require the District to
carry out and perform the terms of any agreement with the holders of
the Bonds or its duties under this act;
(2) By action, require the District to account as if it were the trustee
of an express trust;
(3) By action, petition to enjoin any acts or things that may be
unlawful or in violation of the rights of the holders of the Bonds; and
(4) Declare all the Bonds to be due and payable, whether or not in
advance of or at maturity and, if all defaults be made good, annul the declaration and
its consequences.
(l) The members of the Council, the Mayor or any person executing any of
the Bonds shall not be personally liable on the Bonds by reason of the issuance
thereof.
(m) Notwithstanding any other provision of this act, the Bonds shall not
be general obligations of the District and shall not be in any way a debt or
liability of the District within the meaning of any debt or other limit prescribed by law. The hill faith and
credit or the general taxing power of the District (other than monies
in. the :Ballpark Revenue Fund or any other security authorized by
this act) shall not be pledged to secure the payment of the Bonds.
Sec 104. Amendments to Title 47.
(a) Chapter 20 of Title 47 of the District of Columbia Official Code is
amended as follows:
(1) The table of contents is amended by adding the phrase
"47-2002.05. Ballpark sales taxes." after the phrase "47-2002.04. Special event
promoter obligations and penalties.".
(2) A new section 47.2002.05 is added to read as follows:
"§ 47-2002.05. Ballpark sales taxes.
"(a) For the purposes of this section:
"(1) The term "professional athletic team" includes, but
is not limited to, any professional baseball, basketball, football,
soccer, hockey, lacrosse or other athletic team whose members receive
financial compensation from their participation in such team's athletic exhibitions.
"(2) The term "Ballpark" means (i) a stadium or arena
constructed after October 1, 2004 on a site bounded by N Street, SE,
Potomac Avenue, SE, South Capitol Street, SE and 1st Street, SE,
or any designated alternative site in the District of Columbia if the
primary site shall be unavailable, including facilities functionally
related and subordinate thereto and the accompanying infrastructure,
including office and transportation facilities (including parking) adjacent to or serving a ballpark, that has as its primary purpose the
hosting of professional athletic team events and is constructed in
whole or in part with monies deposited in, or bonds or other evidence of indebtedness the debt service upon which is financed
in whole or in part by monies deposited in, the Ballpark Revenue Fund, and (ii) until such time
as the hosting of professional athletic team events for which tickets are sold has
commenced at the aforementioned newly-constructed stadium or arena, the term "Ballpark" shall
also include Robert F. Kennedy Stadium, described as that geographic area of the District of Columbia
consisting of the areas designated as A, B, C, D, or E on the revised map entitled "Map to
Designate Transfer of Stadium and Lease of Parking Lots to the District," prepared
jointly by the National Park Service (National
Capital Region) and the District of Columbia Department of Public Works
for site development and dated October 1986 (NPS Drawing number
831/87284-A) and any other future additions thereto.
"(3) The term "ticket" means any physical, electronic, or
other form of a certificate, documents, or token showing that a fare, admission, or
license fee for a revocable right to enter the Ballpark, or a right to purchase future rights to
enter the Ballpark, has been paid.
"(b) Notwithstanding any other provision of this Chapter relating
to the imposition of sales tax on either a retail sale or a sale at
retail, there is hereby imposed a sales tax of 10% on the gross
receipts of any person from the sale of tickets to any public event
referred to in D.C. Official Code § 47-2001(n)(1)(H) sponsored by
such person (or any affiliate of such person) and to be performed at
the Ballpark, regardless of whether any such ticket is sold to a person
who resells the ticket to another person or to a person who uses the
ticket for admission to the event; provided that with respect to
tickets to events at Robert F. Kennedy Stadium, the tax shall apply only to professional baseball games or professional-baseball-related
events and exhibitions. The sales tax imposed by this section shall be in lieu of any sales tax
imposed on tickets by D.C. Official Code § 47-2001 et seq.
"(c) Notwithstanding any other provision of this Chapter, there is
hereby imposed a sales tax of 10% on the gross receipts of any person from the sale at the
Ballpark during such times as shall reasonably relate to the performance of baseball games at the
Ballpark of tangible personal property or services otherwise taxable under the provisions of this
Chapter, except that the rate shall be 12% of the
gross receipts from the sale of or charge for the service of parking
motor vehicles, and provided that with respect to the sale o£ tangible
personal property or services at Robert F. Kennedy Stadium, the tax
shall apply only to professional baseball games or professional baseball
related events.
"(d) The revenues received by the District of Columbia from the
taxes imposed by this section shall be deposited into one or more accounts within the Ballpark
Revenue Fund."
(b) Title 47 of the District of Columbia Official Code is amended as
follows:
(1) The table of contents is amended by adding the phrase "27B.
Ballpark Fee 47-2761" after the phrase "27A. Special Public Safety Fee
47-2751.".
(2) A new Chapter 27B is added to read as follows:
"Chapter 27B. BALLPARK FEE
"Section 47-2561. Definitions.
"Section 47-2562. Ballpark fee.
"Section 47-2763. Enforcement.
"§ 47-2761. Definitions.
"For the purposes of this chapter, the term:
"(1) "Chief Financial Officer" means the Chief Financial
Officer of the District of Columbia.
"(2) "District gross receipts" means all income derived
from any activity whatsoever from sources within the District, whether
compensated in the District or not, prior to the deduction of any
expense whatsoever connected with the production of such income, except that beginning with the ballpark fee that is required by this title to
be paid in fiscal year 2005 and thereafter, the calculation of such
income shall not include the collection of federal or local taxes on
motor vehicle fuel.
"(3)(A) "Feepayer", except as provided in subparagraph
(B) of this paragraph, means any person, fiduciary, partnership,
unincorporated business, association, corporation. or any other
entity subject to:
"(i) Subchapter VII of Chapter 18 of this title;
"(ii) Subchapter VIII of Chapter 18 of this title; or
"(iii) The provisions of the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946; D.C. Official
Code § 51-101 et seq.), except any employer in the employer's
capacity as a householder as distinguished from an employer in the
pursuit of a trade, occupation, profession, enterprise, or vocation.
"(B) "Feepayer" shall not include a child development
home, as defined in D.C. Official Code §4-401(3).
"§47-2762.
Ballpark Fee.
"(a)(1) For the fiscal year beginning October 1, 2004, and each
fiscal year thereafter until and including the fiscal year beginning October 1, 2038, or such earlier
or later date as all obligations that are payable from or secured by the ballpark fee are
repaid, each feepayer shall remit, on or before June 15 of each year,
a ballpark fee that shall be based upon the annual District gross
receipts of the feepayer for the feepayer's preceding tax year and
computed according to the ballpark fee schedule provided in subsection
(b) of this section.
"(2) For purposes of this subsection, a feepayer that is exempt
from taxation pursuant to D.C. Official Code § 47-1802.01, shall not
be subject to the ballpark fee unless, as provided in D.C. Official
Code §47-1802.01, the feepayer has unrelated business income subject to tax under §511 of the Internal Revenue Code of 1986. If such
feepayer exempt from taxation has such unrelated business income, the
feepayer shall remit the ballpark fee based upon the feepayer's annual
District gross receipts that were associated with the feepayer's
unrelated 1business income for the feepayer's preceding fiscal year.
"(3) The Mayor shall provide the Council with the following
information associated with the Ballpark as that term is defined in D.C. Official
Code §47-2002.05(a)(2):
"(i) A copy of any term sheet, loan commitment and any other
material obligation executed by the District or any District government
agency or instrumentality to finance the District government's costs
associated with the development of a Ballpark;
"(ii) A copy of each material contract executed by the District or
any District government agency or instrumentality for goods or
services associated with the development of a Ballpark; and
"(iii) On or before July 1, 2005, and every 6 months thereafter, a semiannual report which provides an accounting and itemization of all
financial obligations and expenditures of the District government and all revenues generated
to the District government,
associated with the development of a Ballpark.
"(b) The amount of the ballpark fee shall be computed
according to the following
schedule:
"(1) Each feepayer with annual District gross receipts of
$4,000,000 to $8,000,000
shall pay $6,500;
"(2) Each feepayer with annual District gross receipts of
$8,000,001 to
$12,000,000 shall pay $11,800;
"(3) Each feepayer with annual District gross receipts of
$12,000,001 to
$16,000,000 shall pay $18,500; and
"(4) Each feepayer with annual District gross receipts of
$16,000,001 to
$20,000,000 shall pay $25,000;
"(5) Each feepayer with annual District gross receipts of
$20,000,001 to
$25,000,000 shall pay $31,000;
"(6) Each feepayer with annual District gross receipts of
$25,000,001 to
$30,000,000 shall pay $39,000; and
"(7) Each feepayer with annual District gross receipts
greater than $30,000,001
shall pay $48,000.
"(c) On or before December 1 of each year, the Chief
Financial Officer shall certify to the
Council the amount of revenue received by the District from
imposition of the ballpark fee
during the immediately preceding fiscal year and provide an
estimate of the amount of revenue
expected to be received from the ballpark fee in the then current
fiscal year. If the amount
estimated to be collected is less than $26 million, the Mayor shall
increase the rate of the ballpark fee to provide that the estimated
revenue in the then current fiscal year is equal to $26 million. The
Mayor shall notify the Council and feepayers of any new rates in the
ballpark fee.
"(d) The revenues received by the District from the ballpark fee
imposed by this section shall be deposited into the Ballpark Revenue Fund.
"(e) The Chief Financial Officer of the District of Columbia is
authorized to utilize monies in the Ballpark Revenue Fund in excess of
monies for debt service on bonds authorized by this act to securitize
up to $45,000,000 for the purposes authorized under Title II of this
Act.
"§ 47-2763. Enforcement.
"Any feepayer who fails to file a return for or pay the ballpark
fee due as required by D.C. Official Code §47-2755 shall be subject
to the same enforcement provisions and administrative provisions
applicable to the ballpark fee as provided in Chapter 18 and Chapter 41
of this title, but the period of limitations upon assessment and
collection shall be determined by D.C. Official Code §
47-4301.".
Sec. 105. Local, small, and disadvantaged business enterprises and First
Source Employment.
(a) Notwithstanding any other provision of law, the Mayor shall take all
measures as shall be reasonably necessary to assure that all
contracts entered into by the District or any agency or instrumentality of the District with respect to the Ballpark shall
comply with Minority Contracting requirements of Title 2, Chapter 2,
Subchapter VIII of the District of Columbia Official Code.
(b) Notwithstanding the requirements of Title 2, Chapter 2, subchapter
VIII of the District of Columbia Official Code, the Mayor shall take all measures as shall be
reasonably necessary to assure that all contracts entered into by the
District or any agency or instrumentality of the District with respect
to the Ballpark shall provide that at least 35% of the work under such contracts be awarded to local business enterprises, small business
enterprises or disadvantaged business enterprises, as such terms are
defined in § 2-217.01 of the District of Columbia Official Code.
(c) Notwithstanding any other provision of law, the Mayor shall take all
measures as shall be reasonably necessary to assure
that all contracts entered into by the District or any agency or
instrumentality of the District with respect to the Ballpark shall
comply with First Source Employment requirements of Title 2, Chapter 2,
Subchapter X of the District of Columbia Official Code.
Sec. 106. Ballpark development and construction.
(a) For purposes of this section, "ballpark" shall have the
meaning specified in D.C. Official Code §47-2002.05(a)(2).
(b) The Mayor shall:
(1) Acquire and convey to the Sports and Entertainment Commission all
necessary real property, including rights-of-way or other easements,
that shall be required to develop, construct and complete a ballpark
within the site bounded by N Street, SE, Potomac Avenue, SE, South
Capitol Street, SE, and 1st Street, SE, or any designated alternative
site in the District of Columbia if the primary site shall be
unavailable; and
(2) Provide to the Sports and Entertainment Commission all such monies
from the Ballpark Revenue Fund or from the issuance of Bonds secured by the
Ballpark Revenue Fund as shall be required by the Sports and Entertainment Commission for
the development,
construction, completion and leasing of a ballpark on such site in
accordance with D.C. Official
Code § 3-1407A.
(c) Chapter 14 of Title 3 of the District of Columbia Official
Code is amended as follows:
(1) Section 3-1402 is amended by adding new subsections (5), (6),
(7) and (8) as
follows:
"(5) The term "Ballpark Site" means the site
bounded by N Street, SE, Potomac Avenue, SE, South Capitol Street, SE, and 1st Street,, SE, or any
designated alternative site in the
District of Columbia if this primary site shall be unavailable, to
be acquired by the Mayor and
conveyed to the Sports and Entertainment Commission.
"(6) The term "Ballpark" means a baseball-specific
stadium constructed on the
Ballpark Site.
"(7) The term `Baseball Stadium Agreement" means the
Baseball Stadium
Agreement dated as of September 29, 2004 by and among the
Government of the District of
Columbia, the Sports and Entertainment Commission, and Baseball
Expos, L.P., a Delaware
limited partnership.
"(8) The term "MLB Team" means the entity that owns
the Major League
Baseball franchise that will play its home games in the
Ballpark.".
(2) A new section 3-1407A is added following section 3-1407 to
read as follows:
§ 3-1407A. Responsibility to develop, construct and lease new
Ballpark.
"(a) The Sports and Entertainment Commission shall develop
and construct a Ballpark on
the Ballpark Site in accordance with the following requirements:
"(1) The Ballpark shall be a first class, open air baseball stadium
to be constructed on the Baseball Stadium Site, having a natural grass
playing field, a capacity of approximately but at least 41,000 seats,
including approximately but at least 2,000 club seats, approximately but
at least 74 private suites, and market-appropriate concession,
entertainment and retail areas, fixtures, furnishings, equipment,
features and amenities on par with comparable ballparks recently built
in Cincinnati, Detroit, Philadelphia, Pittsburgh, San Diego and San
Francisco.
"(2) The Ballpark shall be designed to comply with all public
safety, accessibility, and urban planning requirements generally
applicable to buildings of such scale, purpose and location in the
District of Columbia.
"(3) The Sports and Entertainment Commission shall enter into a
Construction Administration Agreement with the Mayor and the MLB
Team. The Construction Administration Agreement will require the
Sports .and Entertainment Commission, the Mayor and the MLB Team to
form a Project Coordination Team to perform the following functions: (i)
make recommendations to the Sports and Entertainment Commission and
the MLB Team with respect to the retention of various design,
engineering, construction, consulting and construction management
firms that will assist in the development and construction of the
Ballpark; (ii) receive reports from such firms pertaining to
schedule, budget and other aspects of the development and
construction of the Ballpark; and (iii) make or provide the consents, authorizations, approvals, decisions and other actions expressly
required of the Project Coordination Team, to the extent legally
permitted, under the Construction Administration Agreement. The
Construction Administration Agreement will provide for periodic regular meetings of the Project Coordination Team and for special meetings
upon reasonable prior notice. The Sports and Entertainment Commission and the Mayor together
shall have one vote and the MLB Team shall have one vote on the
Project Coordination Team, and each will have the right to appoint and
replace its voting representative by written notice to the other party.
The voting representative who represents the Sports and Entertainment
Commission and the Mayor shall be chosen jointly by the Sports and
Entertainment Commission and the Mayor. Each voting member of the
Project Coordination Team will have authority to act on behalf of the
party or parties it represents and will be authorized in connection
with the development and construction of the Ballpark to sign
documents, authorize action and otherwise bind the party or parties that
it represents in connection with matters properly before the Project
Coordination Team. The Project Coordination Team will take action only
by unanimous vote of its voting members.
"(4) The Sports and Entertainment Commission shall use a
competitive procurement process in accordance with its procurement
regulations to select and engage the design, engineering,
construction, consulting and construction management firms and shall require such firms to comply with subchapters VIII and X of Chapter 2 of
Title 2, and all successor acts thereto of the District of Columbia
Official Code.
"(b) The Sports and Entertainment Commission shall lease the
Ballpark to the MLB Team pursuant to a lease agreement that has an
initial term of at least thirty consecutive years plus five two-year
renewal options and that is otherwise in accordance with the terms of
the Baseball Stadium Agreement.
"(c) All contracts entered into by the Sports and Entertainment
Commission to carry out the development, construction and leasing of
the Ballpark in accordance with the requirements of this section that
shall be approved by a two-thirds majority of the Board of the Sports
and Entertainment Commission, which majority includes the
representative of the Chief Financial
Officer, shall be deemed to satisfy the requirements of §
1-204.51 of the District of Columbia
Official Code, without any further action by the Council.".
(d) Amendments to Anacostia Waterfront Corporation Act of 2004.
Subsection (1) of Section 101 of Subtitle A of Title I of the
Anacostia Waterfront
Corporation Act of 2004 is amended by adding new subsection (C) as
follows:
"(C) For purposes of this title, the term "Anacostia
Waterfront" does not
include the Ballpark Site as defined in § 3-1402 of the District
of Columbia Official Code.".
TITLE II. COMMUNITY BENEFIT PROJECTS
Sec. 201. The Council of the District of Columbia finds that it is
appropriate that the
District of Columbia seek to utilize the economic benefits that
will be derived from the
construction of the stadium for the benefit and well being of the
citizens of the District.
Sec. 202. Creation of Community Benefit Fund.
(a) There is hereby established within the Governmental Funds of
the primary
government, a segregated, non-lapsing Special Revenue Fund to be
denominated as the
"Community Benefit Fund". The Chief Financial Officer
shall pay into the Community Benefit
Fund all receipts from those fees and taxes specifically
identified by any provision of District of
Columbia law to be paid into such fund. In addition, the Mayor
shall, upon adoption of this act,
identify up to $30,000,000 of District of Columbia funds that may
be lawfully transferred to the
Community Benefit Fund and the Chief Financial Officer shall
certify such funds. Upon such
certification by the Chief Financial Officer, the Mayor shall
transfer such funds to the
Community Benefit Fund. The Chief Financial Officer shall notify
the Council of the sources of the funds so transferred. The Chief Financial Officer shall create a
sub-account within the Community Benefit Fund for each type of fee and
tax that is to be paid into such fund and shall allocate the receipts
from each type of fee and tax to the appropriate sub-account. The Mayor,
or any District government agency or instrumentality which has been
designated by the Mayor, may pledge and create a security interest in
the monies in the Community Benefit Fund, or any sub-account or
sub-accounts within such fund for the payment of the costs of carrying
out any of the purposes described in subsection (b) of this section,
or for the payment of the debt service on any bonds or other evidence
of indebtedness issued by the District, or any District government agency or instrumentality, for any of the purposes described in
subsection (b) of this section, without further action by the Council
as permitted by section 490(f) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 809; D.C.
Official Code 1-204.90(f)). If bonds or other evidence of
indebtedness are issued, such payment will be made in accordance with
the provisions of the documents entered into by the District or any
District agency or instrumentality in connection with the issuance of
any such bonds or other evidence of security interest created
pursuant to this subsection shall be valid, binding and perfected from
the time such security interest is created, with or without the
physical delivery of any funds or any other property and with or
without further action. Such security interest shall be valid, binding and perfected whether or not any statement, document, or instrument
relating to such security interest is recorded or filed. The lien
created by such security interest is valid, binding and perfected
with respect to any person (as defined in § 47-2001 (i)) having claims
against the District, whether or not such person has notice of such
lien.
(b) The purposes for which the monies deposited in the Community Benefit
Fund may be used are to directly pay or to finance the reimbursement
of any fund of the General Fund of the District which has been the
source of the payment of, or any loan, reprogramming or transfer of funds to any District government agency or instrumentality for the
payment of, community area priorities, including, without limitation,
recreation centers, libraries, small business development incentives,
job training and readiness programs, school athletic facilities and such
other projects that the Mayor shall find to be of benefit to any area
of the District.
Sec. 203. Creation of the DC ballpark TIF area.
Title 2 of the District of Columbia Official Code is hereby amended by
adding the following section:
"§2-1217.12. DC Ballpark TIF Area.
(a) Notwithstanding any other provision of this subchapter, there is
hereby created a TIF area denominated the "DC Ballpark TIF
Area", the real property tax increment revenues and the sales
tax increment revenues from which shall be allocated as provided in this
section. The DC Ballpark TIF Area is defined as the area bounded by
South Capitol Street, I Street S.E., First Street S.E., and Potomac
Avenue S.E.
(b) Notwithstanding any other provision of this subchapter, with respect
to the DC Ballpark TIF Area, the initial sales tax amount shall mean
the available sales tax revenue from locations within such area for
the tax year preceding the year in which this act is adopted and the
initial assessed value shall mean the assessed value of each lot of
taxable real property on the date this act is adopted.
(c) Notwithstanding any other provision of this subchapter, the real
property tax increment revenues and the sales tax increment revenues from the DC
Ballpark TIF Area shall be allocated and paid into the Community Benefit Fund, which is hereby
declared to be a tax increment allocation account as
described in § 2-1217.05. The revenues so deposited in the Community Benefit Fund shall be used for any of the purposes described
in section 3 of this act.
(d) Without limiting the generality of this subchapter, including the
ability to apply the real property tax increment revenues and the
sales tax increment revenues to the payment of TIF bonds, the moneys
in the Community Benefit Fund may be used to secure bonds or other evidence of indebtedness issued in accordance with the provisions of §
1-204.90 of the DC Official Code, without regard to any limitations
contained in this subchapter.
(e) Neither the $300 million limitation on the issuance of TIF bonds
contained in §2-1217.02(b) nor the time limitation on the issuance
of TIF bonds contained in such section shall apply to any bonds
supported in whole or in part by real property tax increment revenues or
sales tax increment revenues allocated to the Community Benefit Fund.
Sec. 204. Bond issuance.
(a) Definitions.
(1) "Community Benefit Fund" means the Community Benefit Fund
created in section 3 of this act.
(2) "Bonds" means the District of Columbia revenue bonds,
notes, or other obligations (including refunding bonds, notes and
other obligations) in one or more series, authorized to be issued
pursuant to Section 490 of the Home Rule Act, as implemented by this act.
(3) "District" means the District of Columbia.
(4) "Home Rule Act" means the District of Columbia Home Rule
Act, approved December 24, 1973 (87 Stat. 809; D.C. Official Code § 1-201.01 et
seq.).
(5) "Projects" means the financing, refinancing, or
reimbursing of costs incurred in the site acquisition for, and the
development, design, construction, improvement, furnishing, and
equipping of recreation centers, libraries, small business development
incentives, job training and readiness programs, school athletic
facilities and such other projects to be of benefit to any community
of the District.
(b) Approval of bonds.
The Council hereby authorizes the issuance of one or more series of
Bonds in a total amount not to exceed $450,000,000 for payment of the
costs of the Projects, of which $50,000,000 shall be used for
infrastructure improvements in the DC Ballpark TIF Area. There is hereby allocated to the Bonds the monies in the Community Benefit Fund
or such portion of such monies as shall be determined in accordance
with the terms of the Bonds for the payment of debt service on the
Bonds and the payment of such other costs as are permitted to be paid
with monies from the Community Benefit Fund. The issuance of any
series of bonds shall be approved by resolution of the Council.
(c) Bond terms; execution.
The Mayor may take any action necessary or appropriate in accordance
with this act in connection with the preparation, execution,
issuance, sale, delivery, and payment of Bonds, including
determinations of:
(1) The final form, content, designation, and terms of the Bonds,
including a
determination that the Bonds may be issued in certificate or book
entry form;
(2) The principal amount of the Bonds to be issued and the
denominations of the
Bonds;
(3) The rate or rates of interest on, and the method or methods of
determining the
rate or rates of interest on, the Bonds;
(4) The date or dates of issuance, sale, and delivery of, the
payment of interest on,
and the maturity date or dates of, the Bonds;
(5) Whether the Bonds are to be sold at a competitive or
negotiated sale and the
terms and conditions of such sale;
(6) The terms under which the Bonds may be paid, optionally or
mandatorily
redeemed, accelerated, called or put for redemption, repurchase or
remarketing before their
respective stated maturities;
(7) Provisions for the registration, transfer and exchange of each
series of Bonds
and the replacement of mutilated, lost, stolen, or destroyed
Bonds;
(8) The creation of any reserve fund, sinking fund or other fund
with respect to the
Bond and the determination of the priority thereof;
(9) The time and place of payment of the Bonds;
(10) Whether the Bonds will be taxable, tax-exempt, or a
combination thereof,
(11) Procedures for monitoring the use of the proceeds received
from the sale of
the Bonds to ensure that they are properly applied to the Project
and used to accomplish the
purposes of this act; and
(12) Actions necessary to qualify the Bonds under the blue sky laws of
any jurisdiction where the Bonds are marketed.
(d) The Bonds shall contain a legend, which shall provide that the Bonds
shall be special obligations of the District, shall be nonrecourse to the District, shall
not be a pledge of, and shall not involve, the faith and credit or the taxing power of the District
(other than the payments from the Community Benefit Fund or any other security authorized by this
act), shall not constitute a debt of the District,
and shall not constitute lending of the public credit for private
undertakings as prohibited by section 602(a)(2) of the Home Rule Act (D.C. Official
Code § 1-206.02(a)(2)).
(e) The Bonds shall be executed in the name of the District and on its
behalf by the manual or facsimile signature of the Mayor. The. Mayor's
execution and delivery of the Bonds shall constitute conclusive
evidence of the Mayor's approval on behalf of the District of the final form and content of the same.
(f) The official seal of the District, or a facsimile of it, shall be
impressed, printed or otherwise reproduced on the Bonds.
(g) The Bonds may be issued at any time or from time to time in one or
more issues and one or more series and may be sold at public or
private sale. A series of Bonds may be secured by a trust agreement
or trust indenture between the District and a corporate trustee having
trust powers, and may be secured by a loan agreement or other
instrument or instruments by means of which the District may:
(1) Make and enter into any and all covenants and agreements with the
trustee or the holders of the Bonds that the District may determine to be necessary
or desirable relating to:
(A) The application, investment, deposit, use, and disposition of
the
proceeds of Bonds and the other monies, securities and property of
the District;
(B) The assignment by the District of its rights in any agreement;
(C) The terms and conditions upon which additional Bonds of the
District
may be issued;
(D) The appointment of a trustee to act on behalf of bondholders
and
abrogating or limiting the rights of the bondholders to appoint a
trustee; and
(E) The vesting in a trustee for the benefit of the holders of
Bonds, or in
the bondholders directly, such rights and remedies as the District
shall determine to be necessary
or desirable;
(2) Pledge, mortgage or assign monies, agreements, property or
other assets of the
District, either in hand or to be received in the future, or both;
(3) Provide for bond insurance, letters of credit, interest rate
swaps or other
financial derivative products or otherwise enhance the credit of
and security for the payment of
the Bonds or reduce or otherwise manage the interest costs of the
Bonds; and
(4) Provide for any other matters of like or different character
that in any way
affects the security for or payment on the Bonds.
(h) The Bonds are declared to be issued for essential public and
governmental purposes.
The Bonds and the interest thereon and the income therefrom, and
all monies pledged or
available to pay or secure the payment of the Bonds, shall at all
times be exempt from taxation by
the District, except for estate, inheritance, and gift taxes.
(i) The District does hereby pledge and covenant and agree with
the holders of the Bonds that, subject to the provisions of the financing documents, the District
will not limit or alter the revenues pledged to secure the Bonds or
the basis on which such revenues are collected or allocated, will not
impair the contractual obligations of the District to fulfill the terms
of any agreement made with the holders of the Bonds, will not in any
way impair the rights or remedies of the holders of the Bonds, and
will not modify in any way, with respect to the Bonds, the exemptions
from taxation provided for in this act, until the Bonds, together with
interest thereon, with interest on any unpaid installment of interest
and all costs and expenses in connection with any suit, action or
proceeding by or on behalf of the holders of the Bonds, are fully met
and discharged. This pledge and agreement for the District may be
included as part of the contract with the holders of the Bonds. This
subsection constitutes a contract between the District and the holders of the Bonds. To the extent that any acts or resolutions of the
Council may be in conflict with this act, this act shall be controlling.
(j) Consistent with section 450(a)(4)(B) of the Home Rule Act (D.C.
Official Code § 1-204.90(a)(4)(B)) and notwithstanding D.C. Official Code § 28:9-101 et
seq.:
(1) A pledge made and security interest created in respect of the Bonds
or pursuant to any related financing document shall be valid,
binding, and perfected from the time the security interest is
created, with or without physical delivery of any funds or any property
and with or without any further action;
(2) The lien of the pledge shall be valid, binding and perfected as
against all parties having any claim of any kind in tort, contract or
otherwise against the District, whether or not such party has notice;
and
(3) The security interest shall be valid, binding and perfected whether
or not any statement, document or instrument relating to the security interest is
recorded or filed.
(k) If there shall be a default in the payment of the principal of, or
interest on, any Bonds of a series after the principal or interest
shall become due and payable, whether at maturity or upon call for
redemption, or if the District shall fail or refuse to carry out and
perform the terms of any agreement with the holders of any of the
Bonds, the holders of the Bonds, or the trustee appointed to act on
behalf of the holder of the Bonds, may, subject to the provisions of the
financing documents, do the following:
(1) By action, writ or other proceeding, enforce all rights of the
holders of the Bonds, including the right to require the District to
carry out and perform the terms of any agreement with the holders of
the Bonds or its duties under this act;
(2) By action, require the District to account as if it were the trustee
of an express trust;
(3) By action, petition to enjoin any acts or things that may be
unlawful or in violation of the rights of the holders of the Bonds; and
(4) Declare all the Bonds to be due and payable, whether or not in
advance of or at maturity and, if all defaults be made good, annul the declaration and
its consequences.
(l) The members of the Council, the Mayor or any person executing any of
the Bonds shall not be personally liable on the Bonds by reason of the issuance
thereof.
(m) Notwithstanding any other provision of this act, the Bonds shall not
be general obligations of the District and shall not be in any way a
debt or liability of the District within the meaning of any debt or
other limit prescribed by law. The full faith and credit or the general taxing power of the District (other than monies in the Community
Benefit Fund or any other
security authorized by this act) shall not be pledged to secure
the payment of the Bonds.
TITLE III. FISCAL IMPACT STATEMENT; EFFECTIVE DATE.
Sec. 301. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee
report as the fiscal
impact statement required by section 602(c)(3) of the District of
Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 813; D.C. Official Code §
1-206.02(c)(3)).
Sec. 302. Effective date.
This act shall take effect following approval by the Mayor (or in
the event of veto by the
Mayor, action by the Council to override the veto), a 30-day
period of Congressional review as
provided in section 602(c)(1) of the District of Columbia Home
Rule Act, approved December
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and
publication in the District of
Columbia Register.
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