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Chairman Phil Mendelson 2
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A BILL 6
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 10
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To, on an emergency basis, due to congressional review, approve the development and financing 15
agreement for the redevelopment of the downtown arena; approve an agreement for the 16
disposition by lease of certain real property owned by the District government for the 17
redevelopment and operation of the downtown arena; approve a purchase and sale 18
agreement for the downtown arena; authorize the granting of certain easements related to 19
the downtown arena property; authorize airspace leases associated with the downtown 20
arena; continue and provide for property tax abatements and deed transfer and 21
recordation tax exemptions for the downtown arena; and authorize the issuance of rules 22
to provide for additional signage on the downtown arena. 23
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 25
act may be cited as the “Downtown Arena Revitalization Congressional Review Emergency Act 26
of 2025”. 27
Sec. 2. Approval of development and financing agreement, amended and restated lease, 28
and purchase and sale agreement for the downtown arena. 29
(a) Notwithstanding the provisions of the Procurement Practices Reform Act of 2010, 30
effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code § 2-351.01 et seq.), An Act 31
Authorizing the sale of certain real estate in the District of Columbia no longer required for 32
public purposes, approved August 5, 1939 (53 Stat. 1211; D.C. Official Code § 10-801 et seq.), 33
the Verizon Center Sales Tax Revenue Bond Approval Act of 2007, effective July 12, 2007 34
(D.C. Law 17-12; 54 DCR 5151), the Public-Private Partnership Act of 2014, effective March 35 2
11, 2015 (D.C. Law 20-228; D.C. Official Code § 2-271.01 et seq.), and any other law, and, as 36
applicable, pursuant to section 451 of the District of Columbia Home Rule Act, approved 37
December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51), the Council approves and the 38
Mayor may enter into and effectuate the provisions of the: 39
(1) Development and Financing Agreement between District of Columbia and DC 40
Arena L.P., regarding the downtown arena (“Development and Financing Agreement”), 41
submitted by the Mayor to the Council on October 18, 2024; 42
(2) Amended and Restated Lease by and between the District of Columbia and 43
DC Arena L.P., regarding the downtown arena (“Amended and Restated Lease”), submitted by 44
the Mayor to the Council on October 18, 2024; and 45
(3) Agreement for the Purchase and Sale of Real Property (Improvements Only) 46
between District of Columbia and DC Arena L.P., regarding the downtown arena (“Purchase and 47
Sale Agreement”), submitted by the Mayor to the Council on October 18, 2024. 48
(b) Notwithstanding any other provision of law, the Mayor may take such actions as are 49
appropriate to implement the Development and Financing Agreement, Amended and Restated 50
Lease, and Purchase and Sale Agreement. 51
(c) Notwithstanding the lead-in text of subsection (a) of this section and the dollar value 52
of government assistance received pursuant to the Development and Financing Agreement, the 53
following statutory provisions shall apply to the Development and Financing Agreement: 54
(1) Sections 2, 4(a), (b), (c), (e)(1), (1C), (2), (3), (4), and (5), and 4a of the First 55
Source Employment Agreement Act of 1984 (“First Source Act”), effective June 29, 1984 (D.C. 56
Law 5-93; D.C. Official Code §§ 2-219.01, 2-219.03(a), (b), (c), (e)(1), (1C), (2), (3), (4), and 57
(5), and 2-219.03a); and 58 3
(2) Section 5 of the Amendments to An Act To Provide for Voluntary 59
Apprenticeship in the District of Columbia Act of 1978, effective March 6, 1979 (D.C. Law 2-60
156; D.C. Official Code § 32-1431). 61
Sec. 3. Authority to grant easements over the downtown arena property. 62
Notwithstanding the provisions of An Act Authorizing the sale of certain real estate in the 63
District of Columbia no longer required for public purposes, approved August 5, 1939 (53 Stat. 64
1211; D.C. Official Code § 10-801 et seq.), and any other law, the Mayor may grant easements 65
over Lot 47 in Square 455 and/or Lot 884 in Square 454 to the owner of property located in 66
Square 454 or 455, to the Washington Metropolitan Area Transit Authority, to the lessee of Lot 67
47 in Square 455, or to such other persons as the Mayor determines appropriate to effectuate a 68
purpose of the Development and Financing Agreement, Amended and Restated Lease, or 69
Purchase and Sale Agreement. 70
Sec. 4. Airspace lease for the downtown arena; exemption from taxation. 71
(a) Notwithstanding the provisions of the District of Columbia Public Space Rental Act, 72
approved October 17, 1968 (82 Stat. 1156; D.C. Official Code § 10-1101.01 et seq.), sections 73
4(2) (but only to the extent shown on plans the Mayor has approved pursuant to the Development 74
and Financing Agreement), (3), (4), (5), and (6), 5(1), (2), (3) (but only to the extent the Mayor 75
has otherwise approved plans pursuant to the Development and Financing Agreement), (4), and 76
(5) (but only with respect to the requirement to submit a scale model), 7 (but only with respect to 77
zoning laws and regulations), and 10 of the District of Columbia Public Space Utilization Act, 78
approved October 17, 1968 (82 Stat. 1166; D.C. Code §§ 10-1121.03(2) (but only to the extent 79
shown on plans the Mayor has approved pursuant to the Development and Financing 80
Agreement), (3), (4), (5), and (6), 10-1121.04(1), (2), (3) (but only to the extent the Mayor has 81 4
otherwise approved plans pursuant to the Development and Financing Agreement), (4) and (5) 82
(but only with respect to the requirement to submit a scale model), 10-1121.06 (but only with 83
respect to zoning laws and regulations), and 10-1121.09), and any other law, the Mayor may 84
lease the airspace adjacent to Lot 47 in Square 455 and Lot 884 in Square 454, to DC Arena L.P., 85
or its designee, on such terms as the Mayor deems appropriate, at no other rent or fee, for so long 86
as the lease for the real property approved by section 2(a) of the Downtown Sports Arena 87
Revitalization Act of 2024, as may be amended from time to time, remains in effect; provided, 88
that if construction within such airspace is not subject to the approval of the National Capital 89
Planning Commission pursuant to section 5 of An Act providing for a comprehensive 90
development of the park and playground system of the National Capital, approved July 19, 1952 91
(66 Stat. 781; D.C. Official Code § 2-1004), then, notwithstanding the foregoing, section 5(2) 92
and, in its entirety, section 7 of the District of Columbia Public Space Utilization Act, approved 93
October 17, 1968 (82 Stat. 1166; D.C. Code §§ 10-1121.04(2) and 10-1121.06), shall apply to a 94
lease entered into by the Mayor under this subsection. 95
(b) Section 8 of the District of Columbia Public Space Utilization Act, effective October 96
17, 1968 (82 Stat. 1167; D.C. Official Code § 10-1121.07), is amended as follows: 97
(1) Paragraph (1) is amended by striking the phrase “; or” and inserting a 98
semicolon in its place. 99
(2) Paragraph (2) is amended by striking the period at the end and inserting the 100
phrase “; or” in its place. 101
(3) A new paragraph (3) is added to read as follows: 102
“(3) Leased pursuant to section 4(a) of the Downtown Arena Revitalization Act of 103
2024.”. 104 5
Sec. 5. Continued exemption of the downtown arena from real property and possessory 105
interest taxes; downtown arena deed transfer and recordation tax exemptions for transfers with 106
the District government. 107
(a) Section 47-1002 of the District of Columbia Official Code is amended as follows: 108
(1) Paragraph (32)(B) is amended by striking the phrase “; and” and inserting a 109
semicolon in its place. 110
(2) Paragraph (33)(C)(iii) is amended by striking the period at the end and 111
inserting the phrase “; and” in its place. 112
(3) New paragraphs (34) and (35) are added to read as follows: 113
“(34) The real property (and any improvements thereon) described as Lot 47 in 114
Square 455 so long as the Land Disposition Agreement—Ground Lease, by and among the 115
District of Columbia Redevelopment Land Agency, the District of Columbia, and DC Arena, 116
L.P., dated as of December 29, 1995, and recorded with the Recorder of Deeds on January 5, 117
1996, as instrument number 9600001285, as may be amended from time to time, remains in 118
effect; and 119
“(35) The real property (and any improvements thereon) described as Lot 47 in 120
Square 455 and Lot 884 in Square 454 (and any adjacent air space leased pursuant section 4(a) of 121
the Downtown Sports Arena Revitalization Act of 2024), so long as the lease for such real 122
property approved by section 2(a) of the Downtown Sports Arena Revitalization Act of 2024, as 123
may be amended from time to time, remains in effect.”. 124
(b) Section 47-1005.01 of the District of Columbia Official Code is amended by adding a 125
new subsection (c-2) to read as follows: 126 6
“(c-2) This section shall not apply to the real property (and any improvements thereon) 127
described as Lot 47 in Square 455 so long as the Land Disposition Agreement—Ground Lease, 128
by and among the District of Columbia Redevelopment Land Agency, the District of Columbia, 129
and DC Arena, L.P., dated as of December 29, 1995, and recorded with the Recorder of Deeds 130
on January 5, 1996, as instrument number 9600001285, as may be amended from time to time, 131
nor shall it apply to the real property (and any improvements thereon) described as Lot 47 in 132
Square 455 or Lot 884 in Square 454 (or to any adjacent air space leased pursuant section 4(a) of 133
the Downtown Sports Arena Revitalization Act of 2024) so long as the lease approved by section 134
2(a) of the Downtown Sports Arena Revitalization Act of 2024, as may be amended from time to 135
time, remains in effect.”. 136
(c) Section 47-902 of the District of Columbia Official Code is amended by adding a new 137
paragraph (29) to read as follows: 138
“(29) Transfers with respect to the real property (and any improvements thereon) 139
described as Lot 47 in Square 455 and Lot 884 in Square 454 (and any adjacent air space leased 140
pursuant section 4(a) of the Downtown Sports Arena Revitalization Act of 2024), to the extent 141
such transfer is a transfer between the District and DC Arena L.P., or its designee, pursuant to 142
the lease or purchase and sale agreement approved by sections 2(a) of the Downtown Sports 143
Arena Revitalization Act of 2024, as may be amended from time to time, or a lease authorized by 144
section 4(a) of the Downtown Sports Arena Revitalization Act of 2024.”. 145
(d) Section 302 of the District of Columbia Deed Recordation Tax Act, approved March 146
2, 1962 (76 Stat. 11; D.C. Official Code 42-1102), is amended as follows: 147
(1) Paragraph (35) is amended by striking the phrase “; and” and inserting a 148
semicolon in its place. 149 7
(2) Paragraph (36)(B) is amended by striking the period at the end and inserting 150
the phrase “; and” in its place. 151
(3) A new paragraph (37) is added to read as follows: 152
“(37) Deed with respect to the real property (and any improvements thereon) 153
described as Lot 47 in Square 455 or Lot 884 in Square 454 (and any adjacent air space leased 154
pursuant section 4(a) of the Downtown Sports Arena Revitalization Act of 2024), to the extent 155
such deed conveys an interest between the District and DC Arena L.P., or its designee, pursuant 156
to the lease or purchase and sale agreement approved by section 2(a) of the Downtown Sports 157
Arena Revitalization Act of 2024, as may be amended from time to time, or a lease authorized by 158
section 4(a) of the Downtown Sports Arena Revitalization Act of 2024.”. 159
(e)(1) Section 3 of the Arena Tax Amendment Act of 1994, effective September 28, 1994 160
(D.C. Law 10-189; 41 DCR 5357), as amended by section 30 of the Technical Amendments Act 161
of 2006, effective March 2, 2007 (D.C. Law 16-191; 53 DCR 6794), and section 7021 of the 162
Verizon Center Recordation Tax Clarification Amendment Act of 2008, effective August 16, 163
2008 (D.C. Law 17-219; 55 DCR 7670), is repealed. 164
(2) This subsection shall apply as of the effective date of the Downtown Sports 165
Arena Modernization and Downtown Revitalization Act of 2024. 166
Sec. 6. Authority to amend signage regulations. 167
Section 101.19.16 of Appendix N of Title 12A of the District of Columbia Municipal 168
Regulations is amended by striking the phrase “, upon review and active approval by the 169
Council” and inserting the phrase “. The amendments to the rules may include, but need not be 170
limited to, provisions authorizing additional outdoor signs, visuals, digital displays, and static 171
canvas displays placed on the Verizon Center. Rules proposed to be issued under this section 172 8
shall be submitted to Council for a 45-day period of review. If the Council does not approve or 173
disapprove the proposed rules, by resolution, within the 45-day period, the rules shall be deemed 174
approved.” in its place. 175
Sec. 7. Fiscal impact statement. 176
The Council adopts the fiscal impact statement in the committee report as the fiscal 177
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 178
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 179
Sec. 8. Effective date. 180
This act shall take effect following approval by the Mayor (or in the event of veto by the 181
Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 182
90 days, as provided for emergency acts of the Council of the District of Columbia in section 183
412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 184
D.C. Official Code § 1-204.12(a)). 185