Nyasha Smith Secretary of the Council 1350 Pennsylvania Avenue NW Washington, DC 20004 February 23, 2023 Dear Secretary Smith: Today, I am introducing the “Friendship Heights Business Improvement District Amendment Act of 2023”. This legislation would create the District’s twelfth Business Improvement District (BID) to support the revitalization of the Friendship Heights neighborhood in Northwest DC along the Maryland border. A signed copy of the bill is enclosed. Driven by property owners, businesses, and community leaders, the new BID will advance the revitalization of Friendship Heights through on- the-ground economic development efforts like placemaking, capital improvements, expanded security and maintenance, and promotion for local businesses. The BID model has long been successful in DC, and the proven local business-driven effort in Friendship Heights will support a robust economic recovery in the coming years. By establishing a Business Improvement District in Friendship Heights, the District can support the revitalization of the neighborhood and pursue expanded economic opportunity for businesses and residents along the corridor. Sincerely, Matthew Frumin Councilmember for Ward 3 1 2 ___________________________ 3 Councilmember Matthew Frumin 4 5 6 A BILL 7 8 _______________ 9 10 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 11 12 ________________________ 13 14 15 To amend the Business Improvement District Act of 1996 to authorize the establishment and 16 administration of the Friendship Heights Business Improvement District. 17 18 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 19 Act may be cited as the “Friendship Heights Business Improvement District Amendment Act of 20 2023”. 21 Sec. 2 The Business Improvement District Act of 1996, effective May 29, 1996 (D.C. 22 Law 11-134; D.C. Official Code § 2- 1215.01 et seq .), is amended by adding a new section 212 to 23 read as follows: 24 “Section 212. Friendship Heights BID. 25 “(a) Subject to review and approval by the Mayor under §§ 2- 1215.05 and 2- 1215.06, the 26 formation of the Friendship Heights BID, including nonexempt real property within the 27 geographic area set forth in subsection (b) of this section, is authorized and the BID taxes 28 imposed in subsection (c) of this section shall be imposed through the earlier of the expiration of 29 this subchapter or the termination or dissolution of the BID. 30 “(b) The Friendship Heights BID shall be comprised of the geographic area bounded by a 31 line that starts beginning at the intersection of the southeast line of Western Avenue, N.W. and 32 the northeast line of Wisconsin Avenue, N.W., said beginning also being the northwest corner of 33 Square 1661; w ith said southeast line of Western Avenue, N.W., Northeasterly, to the south line 34 of Military Road, N.W.; thence continuing w ith said south line of Military Road, N.W., East, to 35 the west line of 43rd Street, N.W.; thence continuing w ith said west line of 43rd Street, N.W., 36 South, to a northeast corner of former Lot 31, Square 1661; thence continuing w ith a 37 southeasterly line of former Lot 31, Square 1661, Southwesterly, to a northeast corner of Lot 38 855, Square 1661; thence, continuing w ith an easterly line of said Lot 855, Square 1661, 39 Southerly, to a point of curve ; thence continuing along an east boundary of said Lot 855, Square 40 1661, 39.13’ on the arc of a curve to the left of radius 103.08’, to a point of tangent; thence 41 continuing along an east boundary of said Lot 855, Square 1661, Southeasterly, to a point of 42 curve; thence continuing along an east boundary of said Lot 855, Square 1661, 27.71’ on the arc 43 of a curve to the right of radius 73.04’, to a point of tangent; thence continuing along an east 44 boundary of said Lot 855, Square 1661, Southerly, to a north line of Lot 817, Square 1661; 45 thence, continuing with a north line of Lot 817, Square 1661, Easterly, to the northeast corner of 46 said Lot 817, Square 1661; thence w ith the east line of said Lot 817, Square 1661, South, to the 47 north line of Jenifer Street, N.W. ; thence running across Jenifer Street, N.W., Southeasterly, to 48 the intersection of the south line of Jenifer Street, N.W. and the west line of 43rd Street, N.W., 49 said intersection also being the northeast corner of Square 1659; thence w ith said west line of 50 43rd Street, N.W., South, to the north line of Ingomar Street, N.W., said intersection also being 51 the southeast corner of Square 1659; thence r unning across Ingomar Street, N.W., Southeasterly, 52 to the northeast corner of Lot 10, Square 1665, and the southwest line of a 15’ public alley in 53 Square 1665; thence w ith said southwest line of 15’ public alley, Southeasterly, to the south line 54 of a 15’ public alley in Square 1665; thence w ith said south line of 15’ public alley, East, to a 55 corner of former Lot 11, Square 1665; thence w ith a west line of said former Lot 11, Square 56 1665, Southeasterly, to a corner of said former Lot 11, Square 1665; thence w ith a northwest line 57 of said former Lot 11, Square 1665, Southwesterly, to the north most corner of Lot 2001, Square 58 1665; thence with an east line of said Lot 2001, Square 1665, Southeasterly, to a corner thereof;; 59 thence with an east line of said Lot 2001, Square 1665, South, to the north line of Harrison 60 Street, N.W.; thence running across Harrison Street, N.W., Southeasterly, to the intersection of 61 the south line of Harrison Street, N.W., and the west line of 42nd Street, N.W., said intersection 62 also being the northeast corner of Square 1666; thence with said west line of 42nd Street, N.W., 63 South, to the north line of Garrison Street, N.W. and the southeast corner of Square 1666; thence 64 running across Garrison Street, N.W., Southwesterly, to the northeast corner of former Lot 37, 65 Square 1669 and the southwesterly line of a 10’ public alley in Square 1669; thence w ith said 66 southwesterly line of 10’ public alley, Southeasterly, to the southeast corner of Lot 34, Square 67 1669; thence running across said public alley in Square 1669, Southeasterly, to the northeast 68 corner of Lot 26, Square 1669, and the west line of 42nd Street, N.W.; thence, w ith said west line 69 of 42nd Street, N.W., South, to the north line of Fessenden Street, N.W.; thence w ith said north 70 line of Fessenden Street, N.W., West, to the northeast line of Wisconsin Avenue, N.W.; thence 71 running across Wisconsin Avenue, N.W., Westerly, to the intersection of the north line of 72 Fessenden Street and the southwest line of Wisconsin Avenue, N.W.; thence w ith said north line 73 of Fessenden Street, N.W., West, to a southwest corner of Lot 11, Square 1655; thence w ith the 74 boundary of said Lot 11, Square 1655, North, to a corner of said lot; thence continuing along the 75 boundary of said Lot 11, Square 1655, West, to another corner of said lot; thence continuing 76 along the boundary of said Lot 11, Square 1655, North, to another corner of said lot; thence 77 continuing along the boundary of said Lot 11, Square 1655, West, to another corner of said lot; 78 thence continuing along the boundary of said Lot 11, Square 1655, South, to another corner of 79 said lot; thence continuing along the boundary of said Lot 11, Square 1655, West, to another 80 corner of said lot; thence continuing along the boundary of said Lot 11, Square 1655, North, to 81 another corner of said lot; thence continui ng along the boundary of said Lot 11, Square 1655, 82 East, to another corner of said lot; thence continuing along the boundary of said Lot 11, Square 83 1655, North, to the southwest corner of Lot 9, Square 1655; thence w ith the west line of said Lot 84 9, Square 1655, North, to the south line of Garrison Street, N.W.; thence r unning across Garrison 85 Street, N.W., Northwesterly, to the southwest corner of Lot 9, Square 1656, and the east line of 86 16’ public alley in Square 1656; thence w ith said east line of public alley, North, to the south line 87 of Harrison Street, N.W.; thence r unning across Harrison Street, N.W., Northeasterly, to 88 southwest corner of Lot 23, Square 1657 and the intersection of the north line of Harrison Street 89 and the northeasterly line of 20’ public alley in Square 1657; thence w ith said northeasterly line 90 of 20’ public alley, Northwesterly, to the east extension of the north line of a 16’ public alley in 91 Square 1657; thence w ith said east extension and said north line of a 16’ public alley in Square 92 1657, West, to the east line of 44th Street, N.W.; thence crossing said 44th Street, N.W., 93 Southwesterly, to a southeast corner of Lot 33, Square 1580; thence w ith the south line of said 94 Lot 33, Square 1580, West, to the east line of 45th Street, N.W.; thence w ith said east line of 95 45th Street, N.W., North, to a corner of Lot 33, Square 1580; thence w ith the northeast line of 96 45th Street, N.W., Northwesterly, to the southeast line of Western Avenue, N.W.; thence w ith 97 said southeast line of Western Avenue, N.W., Northeasterly, to the southwesterly line of Jenifer 98 Street, N.W.; thence crossing Jenifer Street, N.W., Northeasterly, to the west most corner of Lot 99 811, Square 1660, said corner also being the intersection of the southeast line of Western 100 Avenue, N.W. and the northerly line of Jenifer Street, N.W.; thence with said southeast line of 101 Western Avenue, N.W., Northeasterly, to the southwest line of Wisconsin Avenue, N.W.; thence 102 running across Wisconsin Avenue, N.W., Northeasterly, to the intersection of the northeast line 103 of Wisconsin Avenue, N.W. and the southeast line of Western Avenue, N.W., and the place of 104 beginning. 105 “(c)(1) The BID taxes for nonexempt properties in the Friendship Heights BID shall be as 106 follows: 107 (A) The amount of $0.165 per square foot for each net rentable square foot for 108 Class 2 Properties, excluding hotels; 109 (B) The amount of $120 per hotel or motel room annually; and 110 (C)(i) The amount of $120 per unit annually of Class 1 property that 111 contains 5 or more residential units available for rental for non- transient residential dwelling 112 purposes that were placed in service after the effective date of the Rental Housing Act of 1985, 113 effective July 17, 1985 (D.C. Law 6- 10; D.C. Official Code § 42- 3501.01 et seq.). All other 114 Class 1 property is exempt from this BID tax. 115 “(ii) If a residential unit is restricted to residents based upon income pursuant to a 116 Federal or District affordable housing program, the BID tax due on the unit shall be computed by 117 applying the percentage of area median income eligible residents must meet to participate in the 118 affordable housing program to the amount of the BID tax which would otherwise be due. 119 “(2) To the extent that a building that is subject to the BID tax is constructed pursuant to 120 a ground lease on land that is exempt from real property taxes, the assessed value of the real 121 property for purposes of the BID tax shall include the value of the building and the leasehold 122 interest, possessory interest, beneficial interest, or beneficial use of the land, and the lessee or 123 user of the land shall be assessed the corresponding BID tax, which shall be collected in the same 124 manner as possessory interest taxes under § 47- 1005.01, or as otherwise provided in this 125 subchapter. 126 “(3) If a residential unit is restricted to residents based upon income pursuant to a Federal 127 or District affordable housing program, any residential unit with a household income of 100 128 percent or less of the Area Median Income shall be exempt from BID tax that would otherwise 129 be due on the unit. 130 “(4) Subject to the requirements of § 2- 1215.08(b) , a 3% annual increase in the BID taxes 131 over the current tax year rates specified in paragraph (1) of this subsection is authorized.” 132 Sec. 3. Fiscal impact statement. 133 The Council adopts the fiscal impact statement in the committee report as the fiscal 134 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 135 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 136 Sec. 4. Effective date. 137 This act shall take effect following the approval by the Mayor (or in the event of a veto 138 by the Mayor, action by the Council to override the veto), a 30-day period of congressional 139 review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved 140 December 24, 1973 (87 Stat. 813; D.C. Official Code § 1- 2602.02(c)(1)), and publication in the 141 District of Columbia Register. 142