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|Chairman Vincent C. Gray at the
request of the Mayor
A PROPOSED RESOLUTION IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To approve, on an emergency basis, the disposition of real property
situated in Squares 37 and 50, less and except certain air rights parcels
reserved for the construction and operation of a new public library and
fire station, to Eastbanc, Inc., or an affiliate or assignee of such
company approved by the Mayor.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the "Square 37 Excess Property Disposition
Emergency Approval Resolution of 2007".
Sec. 2. (a)(1) Pursuant to section 1(b)(6) of An Act Authorizing the
sale of certain real property in the District of Columbia no longer
required for public purposes, approved August 5, 1939 (53 Stat. 1211; D.C.
Official Code §10-801(b)(6)), the Mayor transmitted to the Council a
request for approval of the proposed disposition of all of that certain
real property identified for assessment and taxation purposes as lots 836
and 837 in Square 37 and lot 822 in Square 50, less and except certain air
rights parcels reserved for the construction and operation of a new public
library and fire station (such lots less and except said reservation being
the "Property"). The Property is intended to be disposed of to
Eastbanc, Inc., or an affiliate or assignee of such company approved by
the Mayor ("Purchaser"). The Property is further intended to be
developed by Purchaser, in combination with adjoining and other parcels in
proximity to the Property, in a mixed-use residential and commercial
development (the "Project"). The disposition shall be subject to
the following terms and conditions, in addition to such other terms and
conditions as the Mayor deems necessary and appropriate:
(A) Purchaser shall pay consideration equal to fair market value
less the amounts stated in subparagraph (B) of this paragraph
("Purchase Price") for the Property conveyed, as determined
in accordance with an appraisal process that values the Property for
purposes of determining highest and best use and as otherwise
acceptable to the Mayor.
(B) The Purchase Price shall be calculated by making the following
deductions from the appraised value:
(i) Subject to authorizing appropriations, a fixed cost for
constructing a new library to replace the existing West End Library
in accordance with plans and specifications approved by the Board of
(ii) Subject to authorizing appropriations, a fixed cost for
constructing a replacement fire station in accordance with plans and
specifications approved by the Chief of Fire and Emergency Services;
(iii) The value of the public benefits provided by Purchaser
through development of Affordable Units and Work Force Housing
Units, provided that in the event the public benefits deduction
would result in a negative Purchase Price, the numbers of
residential units required to be developed by Purchaser as
Affordable Units or Work Force Housing Units shall be reduced or the
required AMI income levels for such units shall be adjusted as
necessary to ensure a positive Purchase Price.
(C) The District shall reserve to itself:
(i) Air rights as necessary for the construction and maintenance
of a new library to replace the existing West End Library in
accordance with plans and specifications approved by the Board of
Library Trustees; and
(ii) Air rights as necessary for the construction and maintenance
of a replacement fire station in accordance with plans and
specifications approved by the Chief of Fire and Emergency Services.
(D) The District shall reserve such easements, covenants and other
rights in the Property as are necessary and convenient for the
operation of the new library and new fire station and shall grant such
easements, covenants and other rights in, to or over the air rights
which the District has reserved as are necessary and convenient for
the support and operation of the Project. The District shall be
granted easements, covenants and other rights in, to or over the
Project as are necessary and convenient for the operation of the new
library and new fire station, such rights to be on terms and
conditions to be negotiated by the Mayor.
(E) Subject to statutory authorization, Purchaser shall construct
the new library and fire station in accordance with plans and
specifications approved by the Board of Library Trustees or Chief of
Fire and Emergency Services, as applicable, on terms and conditions to
be negotiated by the Mayor.
(F) Purchaser shall prepare a planned unit development ("PUD")
application to implement the Project, which shall include the
locations of the library, fire station and affordable and workforce
housing uses as negotiated by the Mayor, and Purchaser shall develop
the Project in accordance with said PUD application as filed and
approved by the D.C. Zoning Commission.
(G) Purchaser shall deliver a completion guaranty for its
construction obligations, the terms and conditions of which shall be
negotiated by the Mayor.
(H) All predevelopment costs shall be Purchaser’s responsibility
and cost, including, but not limited to, environmental reviews,
assessments, or impact statements, transit and traffic related
studies, security analysis, engineering analysis, and technical
feasibility studies as may be required to obtain any necessary local
or federal approval for the disposition, development or construction
of the Property.
(I) Purchaser and any developer or developers of the Project
selected by Purchaser shall execute a CBE Agreement acceptable to the
Mayor and as required by law. The CBE Agreement shall, require
Purchaser and/or any developer or developers of the Property selected
by Purchaser to contract with and procure from Certified Business
Enterprises (each, a "CBE") for at least 35% of the contract
dollar volume of the Project; and require at least 20% equity and
development participation of local, small and disadvantaged business
enterprises. The equity and/or development participants shall include,
but not be limited to, CS Partners, The Jarvis Company, Spectrum
Management, and RJB Consulting Group Inc., or such affiliated special
purpose entities created by the aforementioned equity and/or
development participants, unless otherwise approved by the Mayor.
Purchaser and any developer or developers of the Property selected by
Purchaser shall establish a Quick Pay Program for all CBE contractors
on this project. Quick Pay Program shall mean the following: (1) the
Purchaser or developer shall hold a meeting with the CBE within 10
calendar days after receiving an invoice from the CBE to discuss any
disputed items and to agree on a final invoice; (2) within 30 days
after the meeting, the CBE participant shall be paid the full amount
of the undisputed portion of the invoice; and (3) if the Purchaser or
developer does not pay the undisputed portion of the invoice within
the 30-day period, the unpaid, undisputed portion shall be subject to
a late fee of 1% per month, calculated on a daily basis, for every day
over said 30-day period that the CBE participant is not paid the
unpaid, undisputed amount. Changes to the
requirements set forth in this paragraph (I) may be made if agreed
upon by the Mayor.
(J) Purchaser and/or any developer or developers of the Property
selected by Purchaser shall execute a First Source Agreement
acceptable to the Mayor.
(K) Purchaser shall cause to be developed on the Property
Affordable Units, and Work Force Housing Units that together shall
comprise not less than 30% of all residential units constructed on the
Property, to be made available exclusively to Qualified Purchasers;
provided, that in the event the public benefits deduction would result
in a negative Purchase Price, the numbers of residential units
required to be developed by Purchaser as Affordable Units or Work
Force Housing Units shall be reduced or the required AMI income levels
for such units shall be adjusted as necessary to ensure a positive
(2) For the purposes of this subsection, the term:
(A) "Affordable Unit" means a unit to be made available
to a household the income of which is equal to, or less than, the
maximum area median income ("AMI"), with AMI being the
periodic AMI calculation provided by the United States Department of
Housing and Urban Development ("HUD") as a direct
calculation without taking into account any adjustments made by HUD
for the program it administers, or as otherwise consistent with
regulations enacted pursuant to the Inclusionary Zoning Implementation
Act of 2006, effective March 14, 2007 (D.C. Law 16-275; D.C. Official
Code § 6-1041 et seq.).
(B) "CBE Agreement" means an agreement with the District
governing certain obligations of Purchaser and any developer of the
Property under the Small, Local, and Disadvantaged Business Enterprise
Development and Assistance Act of 2005, as amended (D.C. Law 16-33;
D.C. Official Code § 2-218.01 et seq.)("CBE Act"),
including, but not limited to, the equity and development
participation requirements set forth in § 2-218.49a of the CBE Act.
"Certified Business Enterprise" means a business enterprise
or joint venture certified pursuant to the Small, Local and
Disadvantaged Business Enterprise Development and Assistance Act of
2005, as amended (D.C. Law 16-33; D.C. Official Code § 2-218.01 et
(C) "First Source Agreement" means an agreement with the
District governing certain obligations of Purchaser and any developer
of the Property pursuant to section 4 of the First Source Employment
Agreement Act of 1984, effective June 29, 1984 (D.C. Law 5-93; D.C.
Official Code § 2-219.03), and Mayor’s Order 83-265 (November 9,
1983) regarding job creation and employment generated as a result of
the construction on the Property.
(D) "Work Force Housing Unit" means a unit to be made
available to a household the income of which is equal to, or less than
maximum AMI pursuant to law or regulation promulgated by the District,
or otherwise as determined by the Mayor.
(E) "Qualified Purchaser" means a household consisting of
one or more individuals that purchases or rents an Affordable Unit or
Work Force Housing Unit as a primary residence, meets the income
requirements of an Affordable Unit or Work Force Housing Unit, as such
income requirements are determined by the Mayor and certifies that he,
she, or they intend(s) to use such unit as his, her, or their primary
(b) The Council finds that the Mayor’s analysis of economic and other
policy factors supporting the disposition of the Property justifies the
conveyance proposed by the Mayor.
(c) The Council finds the Property is no longer required for public
(d) The Council, finding that the Property is no longer required for
public purposes, approves the proposed disposition of the Property
pursuant to the terms of this resolution.
Sec. 3. Council approval of land disposition agreement resolution.
The Mayor will submit to Council a Resolution (the "LDA
Resolution") with a copy of the land disposition agreement negotiated
based on the terms set forth in this Resolution authorizing the
disposition of the Property. If the Council does not approve or disapprove
of the proposed LDA Resolution within 45 days from the date of its
submission, the proposed resolution shall be deemed approved.
Sec. 4. Fiscal impact statement.
The Council adopts the attached fiscal impact statement 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. 5. The Secretary to the Council shall transmit a copy of this
resolution, upon its adoption, to the Mayor.
Sec. 6. This resolution shall take effect immediately.