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AN ACT
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To approve, on an emergency basis, due to congressional review, the development 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
redevelopment and operation of the downtown arena, to approve a purchase and 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 transfer
and recordation tax exemptions for the downtown arena, and to authorize the issuance of
rules to provide for additional signage on the downtown arena.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the “Downtown Arena Revitalization Congressional Review Emergency Act
of 2025”.
Sec. 2. Approval of development and financing agreement, amended and restated lease,
and purchase and sale agreement for the downtown arena.
(a) Notwithstanding the provisions of the Procurement Practices Reform Act of 2010,
effective April 8, 2011 (D.C. Law 18- 371; D.C. Official Code § 2-351.01 et seq. ), An Act
Authorizing the sale of certain real estate in the District of Columbia no longer required for
public purposes, approved August 5, 1939 (53 Stat. 1211; D.C. Official Code § 10- 801 et seq.),
the Verizon Center Sales Tax Revenue Bond Approval Act of 2007, effective July 12, 2007 (D.C.
Law 17-12; D.C. Official Code § 10- 1604.01 et seq. ), the Public-Private Partnership Act of 2014,
effective March 11, 2015 (D.C. Law 20- 228; D.C. Official Code § 2-271.01 et seq. ), and any
other law, and, as applicable, pursuant to section 451 of the District of Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51), the Council
approves and the Mayor may enter into and effectuate the provisions of the:
(1) Development and Financing Agreement between District of Columbia and DC
Arena L.P., regarding the downtown arena (“Development and Financing Agreement”),
submitted by the Mayor to the Council on October 18, 2024; ENROLLED ORIGINAL
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(2) Amended and Restated Lease by and between the District of Columbia and
DC Arena L.P., regarding the downtown arena (“Amended and Restated Lease”), submitted by
the Mayor to the Council on October 18, 2024; and
(3) Agreement f or the Purchase and Sale of Real Property (Improvements Only)
between District of Columbia a nd DC Arena L.P., regarding the downtown arena (“Purchase and
Sale Agreement”), submitted by the Mayor to the Council on October 18, 2024.
(b) The Mayor may take such actions as are appropriate to implement the Development
and Financing Agreement, the Amended and Restated Lease, and the Purchase and Sale
Agreement.
(c) Notwithstanding the lead- in text of subsection (a) of this section and the dollar value
of government assistance received pursuant to the Development and Financing Agreement, the
following statutory provisions shall apply to the Development and Financing Agreement:
(1) Sections 2, 4(a), (b), (c), (e)(1), (1C), (2), (3), (4), and (5), and 4a of the First
Source Employment Agreement Act of 1984 (“First Source Act”) , effective June 29, 1984 (D.C.
Law 5-93; D.C. Official Code §§ 2- 219.01, 2- 219.03(a), (b), (c), (e)(1), (1C), (2), (3), (4), and
(5), and 2- 219.03a); and
(2) Section 5 of the Amendments to An Act To Provide for Voluntary
Apprenticeship in the District of Columbia Act of 1978, effective March 6, 1979 (D.C. Law 2-
156; D.C. Official Code § 32- 1431).
Sec. 3. Authority to grant easements over the downtown arena property.
Notwithstanding the provisions of An Act Authorizing the sale of certain real estate in the
District of Columbia no longer required for public purposes, approved August 5, 1939 (53 Stat.
1211; D.C. Official Code § 10- 801 et seq.), and any other law, the Mayor may grant easements
over Lot 47 in Square 455 and/or Lot 884 in Square 454 to the owner of property located in
Square 454 or 455, to the Washington Metropolitan Area Transit Authority, to the lessee of Lot
47 in Square 455, or to such other persons as the Mayor determines appropriate to effectuate a
purpose of the Development and Financing Agreement approved pursuant to section 2(a)(1), the
Amended and Restated Lease approved pursuant to section 2(a)(2) , or the Purchase and Sale
Agreement approved pursuant to section 2(a)(3).
Sec. 4. Airspace lease for the downtown arena; exemption from taxation.
(a) Notwithstanding the provisions of the District of Columbia Public Space Rental Act,
approved October 17, 1968 (82 Stat. 1156; D.C. Official Code § 10 -1101.01 et seq. ), sections
4(2) (but only to the extent shown on plans the Mayor has approved pursuant to the Development
and Financing Agreement), (3), (4), (5), and (6), 5(1), (2), (3) (but only to the extent the Mayor
has otherwise approved plans pursuant to the Development and Financing Agreement), (4), and
(5) (but only with respect to the requiremen t to submit a scale model), 7 (but only with respect to
zoning laws and regulations), and 10 of the District of Columbia Public Space Utilization Act, ENROLLED ORIGINAL
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approved October 17, 1968 (82 Stat. 1166; D.C. Official Code §§ 10 -1121.03(2), (3), (4), (5),
and (6), 10- 1121.04(1), (2), (3), (4) and (5), 10-1121.06, and 10- 1121.09), and any other law, the
Mayor may lease the airspace adjacent to Lot 47 in Square 455 and Lot 884 in Square 454, to DC
Arena L.P., or its designee, on such terms as the Mayor deems appropriate, at no other rent or
fee, for so long as the Amended and Restated Lease approved pursuant to section 2(a)(2), as may
be amended from time to time, remains in effect ; provided, that if construction within such
airspace is not subject to the approval of the National Capital Planning Commission pursuant to
section 5 of An Act providing for a comprehensive development of the park and playground
system of the National Capital, approved July 19, 1952 (66 Stat. 787; D.C. Official Code § 2 -
1004), then, notwithstanding the foregoing, section 5(2) and, in its entirety, section 7 of the
District of Columbia Public Space Utilization Act, approved October 17, 1968 (82 Stat. 1167;
D.C. Official Code §§ 10 -1121.04(2) and 10- 1121.06) , shall apply to a lease entered into by the
Mayor under this subsection.
(b) Section 8 of the District of Columbia Public Space Utilization Ac t, approved Oct ober
17, 1968 (82 Stat. 1167; D.C. Official Code § 10 -1121.07), is amended as follows:
(1) Paragraph (1) is amended by striking the phrase “; or” and inserting a
semicolon in its place.
(2) Paragraph (2) is amended by striking the period at the end and inserting the
phrase “; or” in its place.
(3) A new paragraph (3) is added to read as follows:
“(3) Leased pursuant to section 4(a) of the Downtown Arena Revitalization
Congressional Review Emergency Act of 2025, passed on emergency basis on March 4, 2025
(Enrolled version of Bill 26- 146).”.
Sec. 5. Continued exemption of the downtown arena from real property and possessory
interest taxes; downtown arena deed transfer and recordation tax exemptions for transfers with
the District government.
(a) Section 47-1002 of the District of Columbia Official Code is amended as follows:
(1) Paragraph (32)(B) is amended by striking the phrase “; and” and inserting a
semicolon in its place.
(2) Paragraph (33)(C)(iii) is amended by striking the period and inserting the
phrase “; and” in its place.
(3) New paragraphs (34) and (35) are added to read as follows:
“(34) The real property (and any improvements thereon) described as Lot 47 in
Square 455 so long as the Land Disposition Agreement—Ground Lease, by and among t he
District of Columbia Redevelopment Land Agency, t he District of Columbia, and DC Arena,
L.P., dated as of December 29, 1995, and recorded with the Recorder of Deeds on January 5,
1996, as instrument number 9600001285, as may be amended from time to time, remains in
effect; and ENROLLED ORIGINAL
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“(35) The real property (and any improvements thereon) described as Lot 47 in
Square 455 and Lot 884 in Square 454 (and any adjacent air space leased pursuant section 4(a) of
the Downtown Arena Revitalization Congressional Review Emergency Act of 2025, passed on
emergency basis on March 4, 2025 (Enrolled version of Bill 26- 146)), so long as the lease for
such real property approved by section 2(a)(2) of the Downtown Arena Revitalization
Congressional Review Emergency Act of 2025, passed on emergency basis on March 4, 2025
(Enrolled version of Bill 26- 146), as may be amended from time to time, remains in effect .”.
(b) Section 47- 1005.01 of the District of Columbia Official Code is amended by adding a
new subsection (c-2) to read as follows:
“(c-2) This section shall not apply to the real property (and any improvements thereon)
described as Lot 47 in Square 455 so long as the Land Disposition Agreement —Ground Lease,
by and among t he District of Columbia Redevelopment Land Agency, t he District of Columbia,
and DC Arena, L.P., dated as of December 29, 1995, and recorded with the Recorder of Deeds on
January 5, 1996, as instrument number 9600001285, as may be amended from time to time, nor
shall it apply to the real property (and any improvements thereon) described as Lot 47 in Square
455 or Lot 884 in Square 454 (or to any adjacent air space leased pursuant section 4(a) of the
Downtown Arena Revitalization Congressional Review Emergency Act of 2025, passed on
emergency basis on March 4, 2025 (Enrolled version of Bill 26- 146)) so long as the lease
approved by section 2(a) (2) of the Downtown Arena Revitalization Congressional Review
Emergency Act of 2025, passed on emergency basis on March 4, 2025 (Enrolled version of Bill
26-146), as may be amended from time to time, remains in effect .”.
(c) Section 47-902 of the District of Columbia Official Code is amended by adding a new
paragraph (29) to read as follows:
“(29) Transfers with respect to the real property (and any improvements thereon)
described as Lot 47 in Square 455 and Lot 884 in Square 454 (and any adjacent air space leased
pursuant section 4(a) of the Downtown Arena Revitalization Congressional Review Emergency
Act of 2025, passed on emergency basis on March 4, 2025 (Enrolled version of Bill 26- 146)), to
the extent such transfer is a transfer between the District and DC Arena L.P. , or its designee,
pursuant to the lease or purchase and sale agreement approved by section 2(a) of the Downtown
Arena Revitalization Congressional Review Emergency Act of 2025, passed on emergency basis
on March 4, 2025 (Enrolled version of Bill 26 -146), as may be amended from time to time, or a
lease authorized by section 4(a) of the Downtown Arena Revitalization Congressional Review
Emergency Act of 2025, passed on emergency basis on March 4, 2025 (Enrolled version of Bill
26-146).”.
(d) Section 302 of the District of Columbia Deed Recordation Tax Act, approved March
2, 1962 (76 Stat. 11; D.C. Official Code 42 -1102), is amended as follows:
(1) Paragraph (35) is amended by striking the phrase “; and” and inserting a
semicolon in its place. ENROLLED ORIGINAL
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(2) Paragraph (36)(B) is amended by striking the period and inserting the phrase
“; and” in its place.
(3) A new paragraph (37) is added to read as follows:
“(37) Deeds with respect to the real property (and any improvements thereon)
described as Lot 47 in Square 455 or Lot 884 in Square 454 (and any adjacent air space leased
pursuant section 4(a) of the Downtown Arena Revitalization Congressional Review Emergency
Act of 2025, passed on emergency basis on March 4, 2025 (Enrolled version of Bill 26- 146)), to
the extent such deed conveys an interest between the District and DC Arena L.P. , or its designee,
pursuant to the lease or purchase and sale agreement approved by section 2(a) of the Downtown
Arena Revitalization Congressional Review Emergency Act of 2025, passed on emergency basis
on March 4, 2025 (Enrolled version of Bill 26- 146), as may be amended from time to time, or a
lease authorized by section 4(a) of the Downtown Arena Revitalization Congressional Review
Emergency Act of 2025, passed on emergency basis on March 4, 2025 (Enrolled version of Bill
26-146).”.
(e)(1) Section 3 of the Arena Tax Amendment Act of 1994, effective September 28, 1994
(D.C. Law 10- 189; D.C. Official Code §§ 47-1005, 47- 1007, 47- 1009, notes), is repealed.
(2) This subsection shall apply as of the effective date of the Downtown Arena
Revitalization Emergency Act of 2024, effective December 17, 2024 (D.C. Act 25- 653; 71 DCR
15803).
Sec. 6. Authority to amend signage regulations.
Section N 101.19.16 of Title 12A of the District of Columbia Municipal Regulations (12-
A DCMR § N101.19.16) is amended by striking the phrase “, upon review and active approval
by the Council” and inserting the phrase “. The amendments to the rules may include, but need
not be limited to, provisions authoriz ing additional outdoor signs, visuals, digital displays, and
static canvas displays placed on the Verizon Center. Rules proposed to be issued under this
section shall be submitted to the Council for a 45- day period of review . If the Council does not
approve or disapprove the proposed rules, by resolution, within the 45- day period, the rules shall
be deemed approved.” in its place.
Sec. 7. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report for the Downtown
Arena Revitalization Act of 2024, enacted on February 3, 2025 (D.C. Act 25- 718; 72 DCR
1109), as the fiscal impact statement required by section 4a of the General Legislative
Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-
301.47a).
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Sec. 8. 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), and shall remain in effect for no longer than
90 days, as provided for emergency acts of the Council of the District of Columbia in section
412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;
D.C. Official Code § 1-204.12(a)).
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Chairman
Council of the District of Columbia
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Mayor
District of Columbia