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Councilmember Jack Evans
Councilmember
Harold Brazil
AMENDMENT IN THE NATURE OF A SUBSTITUTE - DRAFT
COMMITTEE OF THE WHOLE
NOVEMBER 9, 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, 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". Except as
provided in §10-1203.07, Tthe 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. 103. Bond issuance;
(a) Definitions.
For the purposes of sections 103(a) through 103(j), 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.
(E) Provided, however, that the funds expended for the purposes
enumerated in Clauses A through C of this section shall not exceed
$550,000,000.
(b) Approval of Bonds and allocation of monies for payments.
(1) The Council authorizes the
issuance by the Mayor of one or more series of Bonds in a total amount not to exceed $550 million
for payment of the costs of the Project.
(2) 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.
(c) Terms and execution.
(1) 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
(A) 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;
(B) The principal amount of the
Bonds to be issued and the denominations of the Bonds;
(C) The rate or rates of interest
on, and the method or methods of determining the rate or rates of interest on, the Bonds;
(D) The date or dates of issuance,
sale, and delivery of, the payment of interest on, and the maturity date or dates of, the Bonds;
(E) Whether the Bonds are to be
sold at a competitive or negotiated sale and the terms and conditions of such sale;
(F) 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;
(G7) Provisions for the registration, transfer, and exchange
of each series of the Bonds and the replacement of mutilated, lost, stolen, or
destroyed Bonds;
(H) The creation of any reserve fund,
sinking fund, or other fund with respect to the Bonds and the determination of the priority
thereof;
(I) The time and place of payment of the
Bonds;
(J) Whether the Bonds will be taxable, tax-exempt, or a
combination thereof;
(K) 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
(L) Actions necessary to qualify the Bonds under the
blue sky laws of any jurisdiction where the Bonds are marketed.
(M) The terms and types of credit enhancement under
which the Bonds may be secured.
(2) 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)).
(3) 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.
(4) The official seal of the District,
or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the Bonds.
(5) 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:
(A) 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:
(i) The application, investment,
deposit, use, and disposition of the proceeds of Bonds and the other monies, securities and
property of the District;
(ii) The assignment by the District of
its rights in any agreement;
(iii) The terms and conditions upon which
additional Bonds of the District may be issued;
(iv) 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
(v) 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;
(B) 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;
(C) 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
(D) Provide for any other matters of
like or different character that in any way affects the security for or
payment on the Bonds.
(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) Llimits of liability.
(1) 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.
(2) 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.
(i) 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) At
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.
(j) 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, 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 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 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.
"(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, for the allocation
of monies for payments of the Bonds, as defined by Section 103(b) of
the Ballpark Omnibus Financing and Revenue Act of 2004, the Chief
Financial Officer shall compute the amount of the ballpark fee under
the schedule set forth in subsection (b)(1) through (7) of this
section needed to provide estimated revenue in the next fiscal year
equal to $26 million by applying the same percentage increase to each
amount of then-current ballpark fee under the schedule set forth in.
subsection (b)(1) through (7) of this section. The Chief Financial
Officer shall notify the Council, the Mayor, and the taxpayers off
the new schedule and, upon such notice, the amount of the ballpark fee
under the schedule set forth in subsection (b)(1) through (7) of this section
shall be increased as of October 1 of the following 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.
"(f) Except in the case of street vendors described
in §2002.01, the Chief Financial Officer may require taxpayers
subject to the taxes and fees imposed by §§2002.05 and 2562 to
make payments of those taxes and fees electronically if the amount of
a payment due for a period exceeds $25,000."
"(g) Provisional Rules for Payments Under Ballpark Omnibus Financing
and Revenue Act of 2004. Until such time as the Chief Financial
Officer or his delegate shall promulgate regulations implementing the
revenue-collection provisions of the Ballpark Omnibus Financing and
Revenue Act of 2004, any promoter of any event at which gross receipts
from the sale of tickets, tangible personal property, or services are
potentially subject to the taxes imposed by §2002.05 shall comply
with the requirements of §2002.04 as if such event were a special
event."
"(h) Regulations.
The Chief Financial Officer or his delegate shall prescribe such
regulations as may be necessary and appropriate to carry out the revenue-collection purposes
of this Act, including regulations relating to the determination of
District gross receipts and electronic filing and payment of sales
taxes and fees."
"§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,
Chapter 42 (except §§4211(b)(1)(B), 4214, and 4215 shall not apply),
and Chapter 43 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
the Equal Opportunity for Local, Small and Disadvantaged Business
Enterprises requirements of Title 2, Chapter 2, Subchapter VIII IX of the District
of Columbia Official Code.
(b) Notwithstanding the requirements of Title 2, Chapter 2, subchapter
VIII of the District 19 of Columbia Official Code, the Mayor shall
take all measures as shall be reasonably necessary to 20 assure that
all contracts entered into by the District or any agency or
instrumentality of the 21 District with respect to each major phase of
the development and construction of the Ballpark, as that term is defined by
§47-2002.05(a)(2)(i) of the District of
Columbia Official Code, including contracts for architectural,
engineering, and construction services, shall provide that at least
50% of the work in the aggregate under such contracts shall 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.; of the
percentage of the work required by this section to be awarded to local business enterprises, small
business enterprises or disadvantaged business enterprises, 35% of such work shall be awarded
to small business enterprises or disadvantaged
business enterprises, as such terms are defined in §2-217.01 of the District of Columbia Official Code, provided that achieving the 35%
requirement does not create significant adverse impact to the cost or timely completion of the
overall project.
(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 development and construction of the Ballpark, as
that term is defined by §47-2002.05(a)(2)(i) of the District of
Columbia Official Code, shall comply with First Source Employment
requirements of Title 2, Chapter 2, Subchapter X of the 16 District of
Columbia Official Code.
(d) 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 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 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 D.C. Apprenticeship laws and the 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 set forth by the District Government and applicable
laws.
(d) 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 development and
construction of the Ballpark, as that term is defined by §47-2002.05(a)(2)(i) of the District of Columbia Official Code, shall
comply with the Voluntary Apprentices requirements of Title 32,
Chapter 14 of the District of Columbia Official Code.
(e) The Mayor will encourage the owner of any professional baseball
franchise that operates in the Ballpark to enter into broadcast media
rights agreements with broadcast media companies that are local
business enterprises and disadvantaged business enterprises as such
terms are defined in §2-217.0121.7.01 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 Anacostia Waterfront Corporation, for
use by the Sports and Entertainment Commission to satisfy its responsibilities
under this Act, 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, if this site
shall be unavailable or infeasible for the timely completion of a
ballpark on or prior to March 1, 2008 relying only on the funding
authority provided in Title I of this Act, any designated alternative
site in the District of Columbia, including the site for Robert F.
Kennedy Stadium as defined in District of Columbia Official Code §3-1402(4),
that the Mayor determines, subject to the approvals required in
Section 4.01 of the Baseball Stadium Agreement as defined in District
of Columbia Official Code $3-1402(7), will be available and feasible
for the timely completion of a ballpark relying only on the funding
authority provided in Title I of this Act; provided that if the
designated
alternative site is not within the Anacostia Waterfront, as that term
is defined in the Anacostia Waterfront Act of 2004, such alternative
site shall be conveyed directly to the Sports and Entertainment Commission;
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.
"(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.".
"(c) In lieu of any other provision of law, any contract of
the Sports and Entertainment Commission to carry out the development,
construction, or leasing of the Ballpark which is required to be
approved by the Council under section 451 of the District of Columbia
Home Rule Act, approved December 24, 1973 (87 Stat. 803; D.C. Official
Code §1-204.51), may be approved in accordance with the procedure set
forth in this subsection. A proposed contract shall be deemed approved
if, within the 5-day period after it is submitted to the Council, a
resolution of disapproval has not been signed and introduced by at
least a majority of the members of the Council. If a resolution of
disapproval has been introduced by at least a majority of the members
of the Council within the 5-day period, the period of Council review
shall be extended by an additional 15 days from the date of
submission. The extended 15-day period shall not include a Saturday,
Sunday, or legal holiday. If the resolution of disapproval has not
been approved within the 15-day extended period, the proposed contract
shall be deemed approved.
(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.".
"(d) Coordination with the Anacostia Waterfront Corporation
(i) The Sports and Entertainment Corporation and the Anacostia
Waterfront Corporation shall promptly enter into a memorandum of
understanding which shall address these agencies' shared
responsibilities for development the master urban site plan and exterior
design guidelines for the Ballpark and parcels adjacent to the Ballpark
Site within the Anacostia Waterfront; and
(ii) Subtitles F and G of Title I of the Anacostia Waterfront
Corporation Act of 2004 shall not apply to the Ballpark and the Robert
F. Kennedy Stadium.
"(5) The Ballpark, as that term is defined by
§47-2002.05(a)(2)(i) of the District of Columbia Official Code, should
be designed and constructed in a manner to promote (1) minimizing the
life cycle cost of the facility and dependence on petroleum-based buels
by utilizing energy efficiency, water conservation, and solar or other
renewable energy technologies and (2) minimizing waste production, water
pollution, and storm water runoff from the facility, taking into account
applicable criteria of the Leadership in Energy and Environmental Design
Green Building Rating System for New Construction and Major Renovation,
LEED-NC version 2.1, as defined by the U.S. Green Building
Council.
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. Such funds shall remain available until expended.
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. Any working capital or operating expenses permitted by this
section shall be derived from sources from which such monies may be
authorized. In addition to the purposes set forth above, of the monies
deposited in the Community Benefit Fund, there shall be the following
expenditures made from the Fund,
subject to appropriation:
(i) Up to $5,000,000 shall be made available to the
Department of Parks and Recreation for capital investment for a
"Learning and Sports Center" facility to be located adjacent
to Fort Greble Recreation Center;
(ii) $5,000,000 shall be available for school-based
athletics. Such funds shall be allocated to the Sports and Entertainment
Commission and expended based upon. a needs assessment prepared by the
Superintendent of the District of Columbia Public Schools;
(iii) $5,000,000 shall be available for future allocation
to projects located within the boundaries of Ward 6;
(iv) $5,000,000 shall be available for future allocation
to projects located within the boundaries of Ward 7;
(v) $2,000,000 shall be available for equipment and
supplies at McKinley Technology High School to deliver the specialized
curriculum in biotechnology, information technology and broadcast
technology;
(vi) $10,000,000 shall be made available to assess the
feasibility of, and begin planning for, the National Capital Medical
Center on the grounds of the former D.C. General Hospital.;
(vii) Ten percent of the revenue generated by the bonds
authorized pursuant to Section 204(b) of this Act shall be allocated to
the Department of Housing and Community Development for commercial
development in specified areas including the Good Hope Road, South
Capital. Street, Martin Luther King Jr. Avenue, and Minnesota Avenue
corridors; provided that boundaries for the aforementioned development
shall be designated by the Office of Planning within 120 days of the
effective date of this Act.
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.
"§205. Community
Investment Plan
(a) The Mayor shall make a request for an appropriation
for expenditures from the Fund, based on a community investment plan,
which shall be:
(1) Developed with input from. Advisory Neighborhood
Commissions, community groups, the faith community, representatives of
the labor community, representatives of the business community, and
other community stakeholders;
(2) Submitted to the affected Advisory Neighborhood
Commissions, community groups, the faith community, representatives of
the labor community, representatives of the business community, and
other community stakeholders for a comment period of one month;
(3)
Submitted by the Mayor to the Council for a 30-day period of review,
excluding Saturdays., Sundays, legal holidays, and days of Council
recess. If the Council does not approve or disapprove the proposed plan,
in whole or in part, by resolution within this 30-day review period, the
proposed plan shall be deemed approved.
(b) The request shall be
designed to ensure that expenditures from the Fund are used to
supplement, rather than supplant, capital dollars already appropriated
to District of Columbia agencies for similar purposes. The plans shall
also seek to coordinate the expenditures of capital dollars already
appropriated to District of Columbia government agencies to support
community investment goals.
(c) The request shall outline how funds will be used to
develop, maintain, and improve physical. facilities and infrastructure
owned by the District of Columbia, particularly for Projects or
improvements in community plans that do not qualify for capital budget
funding.
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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