District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-1082 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	ENROLLED ORIGINAL
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7		-	A RESOLUTION
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9		-	25-748
10		-
11		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
12		-
13		-	December 3, 2024
14		-	To declare the existence of an emergency with respect to the need to approve the development
15		-	and financing agreement for the redevelopment of the downtown arena; to approve an agreement for the disposition by lease of certain real property owned by the District government for the use and operation of the downtown arena; to approve a purchase and
16		-	sale agreement for the downtown arena; to authorize the granting of certain easements related to the downtown arena property; to authorize airspace leases associated with the downtown arena; to continue and provide for property tax abatements and deed trans fer
17		-	and recordation tax exemptions for the downtown arena;
18		-	and to authorize the issuance of
19		-	rules to provide for additional signage on the downtown arena.
20		-
21		-	RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
22		-	resolution may be cited as the “Downtown Arena Revitalization Emergency Declaration
23		-	Resolution of 2024” .
24		-
25		-	Sec. 2. (a) The Mayor and DC Arena L.P. (DCALP) are proposing to enter into
26		-	agreements whereby the District will acquire the existing Capital One Arena building, lease the
27		-	arena building and underlying land to DCALP, and provide funds to support the renovation of the
28		-	arena in order for it to remain a world-class sports and entertainment space.
29		-	(b) Under the agreements, DCALP will fully renovate the inside and outside of the arena
30		-	to improve the fan experience and will contribute $372.5 million to the renovation project. The
31		-	agreements will ensure that DCALP will keep the Wizards and Capitals in the District through at
32		-	least 2050.
33		-	(c) Together, the District and DCALP are committing approximately $800 million in
34		-	project investment to revitalize the a rena and surrounding environs. The renovated arena will
35		-	help revitalize the Chinatown/Gallery Place neighborhood, create quality new jobs for District
36		-	residents, and strengthen a commitment to community and fan engagement.
37		-	(d) In order for the District and DCALP to move forward with the project, the Council
38		-	must approve the agreements and enact conforming legislation .
39		-	(e) Emergency legislation is necessary to allow for the commencement of work on the
40		-	project on an expedited basis.
41		-	ENROLLED ORIGINAL
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	7	+
	8	+
	9	+	MURIEL BOWSER
	10	+	MAYOR
	11	+
	12	+	November 25, 2024
	13	+
	14	+	The Honorable Phil Mendelson
	15	+	Chairman
	16	+	Council of the District of Columbia
	17	+	John A. Wilson Building
	18	+	1350 Pennsylvania Ave. NW, Suite 504
	19	+	Washington, DC 20004
	20	+
	21	+	Dear Chairman Mendelson:
	22	+
	23	+	I am pleased to introduce the “Downtown Arena Revitalization Emergency Declaration Resolution of
	24	+	2024” and the “Downtown Arena Revitalization Emergency Act of 2024” for your approval of the
	25	+	development and financing agreement for the redevelopment of the Capital One Arena, approval of the
	26	+	purchase and sale agreement for the Capital One Arena, and approval of a lease agreement.
	27	+
	28	+	The renovation and modernization of the Capital One Arena represents a major commitment and
	29	+	investment by both the District and MSE in Downtown DC. The total direct public and private investment
	30	+	in construction is $800 million; our economic impact study estimates the total economic activity of this
	31	+	project will be over $1 billion. The project is expected to result in 4,900 construction jobs and $21 million
	32	+	in new tax revenue over the three-year construction period.
	33	+
	34	+	The surrounding neighborhood will also benefit directly from a modernized building exterior, new
	35	+	entrances, and improved public realm that are worthy of the vision set for the future of Downtown DC.
	36	+	Monumental Sports and Entertainment has been working closely with the Gallery Place/Chinatown Task
	37	+	Force and will increasingly engage local businesses, institutions and residents to ensure a beautiful,
	38	+	vibrant and lasting exterior and streetscape and this project is an investment in the continued vibrancy of
	39	+	Downtown and growth of the DC economy.
	40	+
	41	+	In March of this year, the DC Council and I shared the stage with Mr. Leonsis and Monumental Sports
	42	+	and Entertainment announcing that we had reached an agreement and had a plan that would allow the
	43	+	teams to expand as they needed to in Washington, DC. Subsequently, the DC Council voted unanimously
	44	+	to fund $515 million for the renovation and modernization of the Capital One Arena. MSE and we are
	45	+	now ready to execute the agreements before you and I urge the DC Council to pass the “Downtown Arena
	46	+	Revitalization Act of 2024” this Council period so that we may continue to focus on the bright future of
	47	+	the District of Columbia!
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	82	+	A PROPOSED RESOLUTION
	83	+	~~
	84	+	Chairman Phil Mendelson
	85	+	at the request
	86	+	of the Mayor
	87	+	IN THE COUNIL OF THE DISTRICT
	88	+	OF COLUMBIA
	89	+	To declare the existence of an emergency with respect to the need to approve the development
	90	+	and financing agreement for the redevelopment
	91	+	of the downtown arena; approve an
	92	+	agreement for the disposition
	93	+	by lease of certain real property owned by the District
	94	+	government for the use and operation
	95	+	of the downtown arena; approve a purchase and
	96	+	sale agreement for the downtown arena; authorize the granting
	97	+	of certain easements
	98	+	related
	99	+	to the downtown arena property; authorize airspace leases associated with the
	100	+	downtown arena; continue and provide for property tax abatements and deed transfer and
	101	+	recordation tax exemptions for the downtown arena; and authorize the issuance
	102	+	of rules to
	103	+	provide for additional signage on the downtown arena.
	104	+	RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
	105	+	resolution may
	106	+	be cited as the "Downtown Arena Revitalization Emergency Declaration
	107	+	Resolution
	108	+	of 2024".
	109	+	Sec.
	110	+	2. (a) The Mayor and DC Arena L.P. (DCALP) are proposing to enter into
	111	+	agreements whereby the District will acquire the existing Capital One Arena building, lease the
	112	+	arena building and underlying land to DCALP, and provide funds to support the renovation
	113	+	of the
	114	+	arena in order for it to remain a world-class sports and entertainment space.
	115	+	(b) Under the agreements, DCALP will fully renovate the inside and outside
	116	+	of the arena
	117	+	to improve the fan experience and will contribute $372.5 million to the renovation project. The
	118	+	agreements will ensure that DCALP will keep the Wizards and Capitals
	119	+	in the District through at
	120	+	least 2050.
	121	+	1 2
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47		-	Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute
48		-	emergency circumstances making it necessary that the that the Downtown Arena Revitalization
49		-	Emergency Act of 2024 be adopted after a single reading.
	123	+	(c) Together, the District and DCALP are committing approximately $800 million in 34
	124	+	project investment to revitalize the a rena and surrounding environs. The renovated arena will 35
	125	+	help revitalize the Chinatown/Gallery Place neighborhood, create quality new jobs for District 36
	126	+	residents, and strengthen a commitment to community and fan engagement. 37
	127	+	(d) In order for the District and DCALP to move forward with the project, the Council 38
	128	+	must approve the agreements and enact conforming legislation . 39
	129	+	(e) Emergency legislation is necessary to allow for the commencement of work on the 40
	130	+	project on an expedited basis. 41
	131	+	Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute 42
	132	+	emergency circumstances making it necessary that the that the Downtown Arena Revitalization 43
	133	+	Emergency Act of 2024 be adopted after a single reading. 44
	134	+	Sec. 4. This resolution shall take effect immediately. 45 MONUMENTALSPORTS.COM
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51		-	Sec. 4. This resolution shall take effect immediately.
	136	+	Dear Mayor Bowser:
	137	+	Monumental Sports and Entertainment (MSE) agrees to the terms contained within the
	138	+	attached Amended and Restated Ground Lease, Development and Financing Agreement,
	139	+	and Purchase and Sale Agreement and requests that you transmit the bill and documents
	140	+	to the DC Council for their approval of our partnership agreements.
	141	+	With DC Council approval, MSE will be in Washington, DC through 2050, with five renewal
	142	+	options of four years each, for a potential additional twenty years beyond 2050, if
	143	+	exercised. An evolution of the deal since the Term Sheet is that the District and MSE have
	144	+	determined that it is most beneficial for the District to own the Capital One Arena building
	145	+	and lease it back to MSE. Under this structure, MSE will continue to operate and maintain
	146	+	the building consistent with its operations over the last 27 years. Finally, the Development
	147	+	and Financing Agreement provides the conditions under which the District will provide the
	148	+	public funding for the renovation of the Capital One Arena.
	149	+	The $800 million combined public and private investment for this transformational project
	150	+	will modernize both the Capital One Arena and portions of the area directly adjoining the
	151	+	arena known as Gallery Place. Of that total, the District is providing $515 million (including
	152	+	the purchase price for the building, which will be invested in the project) and MSE has
	153	+	committed to a minimum of $285 million and taken on responsibility for any cost overruns.
	154	+	As part of this project, MSE will meet the city’s requirements for 35% Certified Business
	155	+	Enterprises (CBE’s) participation, and we are setting an ambitious goal to go beyond
	156	+	requirements to achieve 50% CBE engagement. We also have reached a Memorandum of
	157	+	Understanding with the building trades and will enter into a Project Labor Agreement. MSE
	158	+	will begin construction immediately upon passage by the Council.
	159	+	Last but not least, Monumental Sports is committed to the health and vibrancy of this
	160	+	arena, neighborhood, and city and even prior to completing these documents, I announced
	161	+	the most ambitious charitable effort the company has ever undertaken- District of
	162	+	Play. This multi-million-dollar investment is designed to break down the barriers that
	163	+	prevent kids in D.C. from playing sports by providing safe play spaces, empowering players
	164	+	and engaging parents, coaches and the community. Monumental’s plan is to transform
	165	+	access and opportunity in youth sports as Capital One Arena undergoes its own
	166	+	transformation.
	167	+	Thank you for your partnership and I look forward to working with you and the DC Council
	168	+	to accelerate DC’s Comeback and secure DC as the media, sports and entertainment
	169	+	capital!
	170	+	Sincerely,
	171	+	Ted Leonsis