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Ballpark Omnibus Finance and Revenue Act of 2004
Substitute bill drafted but not offered by Council Chairman Linda Cropp, November 9, 2004
Bill 15-1028

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COUNCIL OF THE DISTRICT OF COLUMBIA
1350 Pennsylvania Avenue, N.W.
Washington, D.C. 20004

Memorandum

To: Members of the Council of the District of Columbia
From: Chairman Linda W. Cropp
Date: November 8, 2004
Subject: Fiscal Impact of Building a Baseball Stadium Adjacent to RFK Site

Attached is a fiscal impact statement prepared by the Chief Financial Officer which estimates that building a stadium adjacent to RFK Stadium Would be nearly $125 million less costly than building a stadium at the South Capitol site. This 23% savings would grow further if the South Capitol site incurs higher than estimated land acquisition costs, relocation costs, environmental remediation costs, and costs for providing more parking than 1,100 vehicles, and from parking revenues that would be generated to the District from the RFK site.

Attached is a draft amendment in the nature of a substitute to Bill 15-1028, the "Ballpark Omnibus Finance and Revenue Act of 2004," which would designate RFK rather than South Capitol as the primary ballpark site. This proposal lowers the proposed debt service and ballpark fee for the stadium financing bonds, and allows the ballpark fee to sunset earlier from an earlier defeasement of the bonds.

I urge your support of a substantially less costly proposal to the District of Columbia. 

Attachments

cc: Secretary 
General Counsel 
Budget Director

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GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
1350 Pennsylvania Avenue, NW • Suite 209 • Washington, DC 20004 • (202) 727-2476
http:// www.dccfo.com 

Natwar M. Gandhi 
Chief Financial Officer

NOV 8 2004

The Honorable Linda W. Cropp
Chairman, Council of the District of Columbia 
Council of the District of Columbia 
1350 Pennsylvania Avenue, NW, Suite 504 
Washington, DC 20004

Dear Chairman Cropp:

Building a new baseball stadium at the RFK site could reduce the estimated cost from $534.8 million at the Southeast location to about $410.0 million, or roughly 23%. The attached table compares the costs at the two sites. The major differences are in land, infrastructure, and contingency costs. Land costs are reduced by about $45 million. Infrastructure costs are reduced by about $40 million and contingency costs are reduced by about $12 million.

The debt service on $410 million would be about $26 million per year. This amount would require approximately $21 million annually from a reliable tax source.

The following points are also important in considering the RFK site:

The risk of not completing the stadium by 2008 is reduced compared to the Southeast site because the District does not have to purchase the RFK property. However, Congressional approval is required for constructing a new stadium at this site. The time required to obtain approval is difficult to estimate.

There is the possibility of increased parking revenues available to the District based on 13,000 existing spaces versus the proposed 1,100-space garage. Because there would be more parking available at the RFK site, we expect more people will drive, even taking into account the loss of spaces due to the construction of the new ballpark. These spaces may result in additional parking revenue of up. to $2.5 million annually.

I am available to discuss these estimates with you at your convenience. 

Sincerely,
Natwar M. Gandhi
Chief Financial Officer

Attachment - Comparison of Stadium Estimates

Comparison of Stadium Estimates
($ in millions)

Baseball Stadium Agreement Southeast Location Office of the CFO Estimate Southeast Location Office of the CFO Estimate RFK Location
1 New Ballpark $279.4 $279.4 $279.4
2 Land 65.0 65.01 20.05
3 RFK 13.0 18.52 19/5
4 RFL Additional Contingency 0.0 5.5 5.5
5. Parking 16.5 16.5 0.0
6 Infrastructure 0.0 50.03 10.0
7 Cost Over-run (contingency) 21.3 51.34 39.34
8 Unestimated risk
9 Conditions contained in agreements not yet drafted 0.0 n/a n/a
10 Penalties for not completing stadium by 2008 0.0 n/a n/a
11 Total project Cost Estimates $395.2 $486.2 $372.7
12 Estimated issuance cost and reserves 39.56 48.66 37.36
13 Total Cost $434.7 $534.8 $410.0

(1) Estimate of land cost does not include relocation and site remediation costs

(2) The original RFK estimates assumed a summer start date. Renovations will not begin until November 2004. Much of the increase in cost is a result of the delayed start coupled with a fixed completion date of April 2005.

(3) A variety of infrastructure needs warrant the $50 million estimate For example, the District Department of Transportation estimates that basic road improvements will cost $15 million. If the Navy Yard metro station needs to be expanded, WMATA estimates the cost to be up to $45 million. Since baseball is not the only reason for increasing the size of the station, the District should not have to pay the full expansion cost. These costs should be shared with the federal government and regional partners. Water and sewer costs cannot be estimated at this time. According to WASA the cost of relocation will be in the millions. In addition, relocation work will need to be coordinated with the stadium construction, which could add delays and result in unforeseen cost increases.

(4) The District is responsible for all cost overruns which are not the result of changes requested by Major League Baseball. A conservative estimate is about 10% of potential construction cost overruns coupled with possible additional costs in other areas.

(5) The RFK site requires land remediation due to lead. A study completed in 1994 estimated the lead remediation costs at $8 million. EPA has increased standards for lead remediation since that time. Given inflation and the stricter standards we estimate remediation costs will be about $20 million.

(6) Estimated at 10% of total project costs.

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COMMITTEE PRINT
COMMITTEE ON FINANCE AND REVENUE
NOVEMBER 3, 2004

DRAFT AMENDMENT IN THE NATURE OF A SUBSTITUTE

Chairman Linda W. Cropp 

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, 2004, 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 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. 103a4a. Bond issuance; definitions.

For the purposes of sections 103a4A through 103j4 , the term: 

(1) "Ballpark Revenue Fund" means the Ballpark Revenue Fund established by 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 and 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:

(A) 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 section 47-2002.05(a)(2) of the D.C. Official Code;

(B) Funding of any required deposit to a debt service reserve fund or capitalized interest;

(C) Paying certain costs of issuance such as fees and premiums for any bond insurance or credit enhancement; and

(D) Any costs to which the monies in the Ballpark Revenue Fund may be applied.

Sec. 103b4B. Bond issuance; approval of Bonds and allocation of monies for payments.

(a) The Council authorizes the issuance by the Mayor of one or more series of Bonds in a total amount not to exceed $500 $550 million for payment of the costs of the Project.

(b) 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 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 Ballpark Revenue Fund.

Sec. 103c4C. Bond issuance; terms and execution.

(a) The Mayor may take any action necessary or appropriate in accordance with this act in connection with the preparation, execution, issuance, sale, delivery, security for and payment of the Bonds of each series, including determinations of

(1) The final form, content, designation, and terms of the Bonds, including a determination that the Bonds may be issued in certificated 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, tendered, 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 the 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 Bonds 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. 

(13) The terms and types of credit enhancement under which the Bonds may be secured. 

(b) The Bonds shall contain a legend, which shall provide that the Bonds are special obligations of the District, are without recourse to the District, are not be a pledge of, and do 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), do not constitute a debt of the District, and do 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)).

(c) 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.

(d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the Bonds.

(e) 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.

Sec. 4D103d. Bond issuance; tax status of the Bonds.

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.

Sec. 103c4E. Bond issuance; pledge of non-impairment. 

The District hereby pledges and covenants and agrees 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.

Sec. 4F103f. Bond issuance; pledges, liens, and security.

Consistent with section 490(a)(4)(B) of the Home Rule Act (D.C. Official Code § 1204.90(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 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. 

Sec. 103g4G. Bond issuance; event of default. 

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 having any claim of any kind in tort, contract or otherwise against the District, whether or not 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. 

Sec. 103h4H. Bond issuance; limits of liability. 

(a) Neither the members of the Council, the Mayor, or any person executing any of the Bonds shall be personally liable on the Bonds by reason of the issuance thereof. 

(b) 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 Ballpark Revenue Fund or any other security authorized by this act) shall not be pledged to secure the payment of the Bonds.

Sec. 103i4I. Bond issuance; contracting with local, small, and disadvantaged business enterprises and District resident hiring. 

The Mayor shall enter into contracts for the construction of the ballpark and related expenses so that:

(1) At least 35% of the contracts financed through the proceeds of the bonds authorized by this section shall be entered into, or subcontracted, with certified local, small, or disadvantaged business enterprises;

(2) Good faith efforts are made to ensure that aAt least 51% of the new jobs created by the ballpark construction and related projects financed through the proceeds of the bonds authorized by this section are held by District residents.

Sec. 4J103j. Bond issuance; competitive underwriting.

The Mayor shall select the underwriter for the bonds authorized by this section through a competitively bid request for proposals.

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 adjacent to Robert F. Kennedy Stadium, 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 of 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. 

"§47-276.1. 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 § 5 1-101 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 bBeginning October 1, 2004, and each fiscalcalendar year thereafter until and including the fiscalcalendar year beginning October 1, 2038January 1, 2039, 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 11 fee that shall be based upon the annual District gross receipts of the feepayer for the feepayer's 12 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 business income for the feepayer's preceding fiscal calendar 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.

"(1) Each feepayer with annual District gross receipts of $3,000,000 to $4,000,000 shall pay $3,300; 

"(2) Each feepayer with annual District gross receipts of $4,000,001 to $8,000,000 shall pay $5,000; 

"(3) Each feepayer with annual District gross receipts of $8,000,001 to $10,000,000 shall pay $8,500;  

"(4) Each feepayer with annual District gross receipts of $10,000,001 to $15,000,000 shall gay $12,000;  

"(5) Each feepayer with annual District gross receipts of $15,000,001 to $30,000,000 shall pay $20,000, and 

"(6) Each feepayer with annual District gross receipts greater than $30,000,001 shall pay $38,000. 

"(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 $2621 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 $2621 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.defease the bonds earlier than would otherwise occur. 

"§ 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 50% 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 a site adjacent to Robert F. Kennedy Stadium, 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 a site adjacent to Robert F. Kennedy Stadium, 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 non-binding 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, provided that: 

"(1) The provision in the Baseball Stadium Agreement that limits use of the Ballpark by the Sports and Entertainment Commission to a specific number of event days per year shall not be incorporated within the lease agreement; and 

"(2) The lease agreement shall include provisions and remedies necessary to ensure the MLB Team's requirement to maintain its MLB Team's franchise at the Ballpark for the term of the lease, such as: 

"(A) Covenants requiring that the MLB Team play its games at the Ballpark and prohibiting the MLB Team from relocating or undertaking any negotiations or efforts towards relocating; 

"B) Provisions stating that any violation of such convenants would cause irreparable harm to the Sports and Entertainment Commission and the District, and specifically permitting the Sports and Entertainment Commission and the District to seek and entitling the Sports and Entertainment Commission and the District to obtain a court injunction to prevent such relocation and order of specific performance to assure compliance with the non-relocation covenant; 

"(C) Provisions entitling the Sports and Entertainment Commission and the District to recover a predetermined amount of liquidated monetary damages, calculated to include amounts sufficent to repay amounts incurred in connection with the construction of the stadium, amounts approximating the lost net revenues or profits of the Sports and Entertainment Commission and the District, including rent payments and taxes on tickets or concessions, and additional amounts to compensate the Sports and 20 Entertainment Commission and the District for lost opportunity costs; 

"(D) Provisions permitting the Sports and Entertainment Commission to exercise foreclosure rights pursuant to a lien on the lessor MLB Team's franchise or other assets securing the non-relocation covenant;

"(E) Provisions granting the Sports and Entertainment Commission and the District certain rights in connection with a sale of the team to assure that the buyer will adhere to the non-relocation and home game play requirements; and 

"(F) Provisions permitting the Sports and Entertainment Commission and the District to accelerate or terminate obligations of the MLB Team under the lease.

"(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.".  

Sec. 107. Notwithstanding any other provision of this act or any other act, the District government or any agency; entity, or instrumentality of the District government, any developers, contractors, and subcontractors engaged in this project as defined herein, shall exercise its procurement and contracting authority in such a way as to meet the contracting and procurement goals in a way to make a good faith effort to provide no less than 50% of the contracting opportunities to business enterprises subject to the ballpark fee or otherwise based in the District of Columbia. Any developers, contractors, and subcontractors on projects associated with the ballpark shall be responsible for complying with the requirements of these provisions and the District's Apprenticeship laws and First Source Employment Agreement Act of 1984 and shall exercise its procurement and contracting authority in such a way as to meet the contracting and procurement goals as forth by the District government and applicable laws. 

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 PC 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 tine 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 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 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. 3201 .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. 3202. 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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