MURIEL BOWSER
MAYOR
April 2, 202
5
The H
onorable P hil Mendelson
C
hairman
C
ouncil o f the District of Columbia
John A. Wilson B
uilding
13
50 Pennsylvania Avenue, N.W., Su ite 504
Washington, DC 20004
De
ar Chairman Mendelson:
Enclosed for c
onsideration and a doption by the Council of the District of Colum bia is a b ill
e
ntitled "Malcolm X Exten sion of D isposition Authority a nd Term Sheet Amendment Act of
2025".
Th
is bill will extend t he time for the Mayor to d ispose of District-owned real p roperty known as
Ma
lcolm X, located at 1 3 51 Alabama A v enue, SE, a nd authorize the disposition p ursuant to an
amended term sh
eet that updates the schedule of p erformance and mo difies the number of units
t
o be delivered.
The proposed development of t
he property will t ransform t his site in Ward 8 into a m ixed-use
building c
ontaining approximately 150 one-, t wo-, and three-bedroom rental ho using u nits with
g
round floor commercial space, i ncluding 7 ,500 square feet of daycare s pace, 2,000 square fee t
of co
mmunity-serving retail s pace, and a healthy food r etailer, a s well as approximately 43
par
king spaces. All of the rental units in the bu ilding will be a ffordable t o households e arning
30%
, 50%, or 60% of the m edian f amily income.
In
cluded with t his proposed leg islation is a detaile d status report describing the r easons for the
i
nability to dispose of t he property within the two-year t ime period autho rized by the Mal colm X
S
urplus D eclaration a nd Disposition Approval A ct of 2022.
I urge t
he Council t o take prompt and favorable a ction on th e enclosed bill.
Enc osures ; ~~
3 at the request of the Mayor
4
5
6
7 AN ACT
8
9
10
11 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
12
13
14
15 To amend the Malcolm X Surplus Declaration and Disposition Approval Act of 2022 to
16 extend the time limit for the disposition of certain District-owned real property
17 located at 1351 Alabama Avenue, S.E., and to approve an amendment to the term
18 sheet for the disposition of the property.
19
20 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA,
21 That this act may be cited as the "Malcolm X Extension of Disposition Authority and
22 Term Sheet Amendment Act
of 2025".
23 Sec. 2. The Malcolm X Surplus Declaration and Disposition Approval Act of
24 2022, effective March 10, 2023 (D.C. Law 24-316; 70 DCR 3547) is amended as follows:
25 (a) Section 3 is amended as follows:
26 (1) Subsection (i)
is amended by striking the phrase", as further described
27
in the executed term sheet and draft land disposition and development agreement
28 documents transmitted by the Mayor to the Council with this act" and inserting the phrase
29 "under which the Developer will deliver a mixed-use building containing approximately
30 180 residential units, 7,500 square feet
of daycare space, and 2,000 square feet ofretail
31 space, as further described in the amended term sheet and draft land disposition and
32 development agreement transmitted by the Mayor
to the Council with the Malcolm X 2
Extension of Disposition Authority and Term Sheet Amendment Act of 2025” in its 33
place. 34
(2) Subsection (j) is amended by striking the phrase “transmitted by the 35
Mayor with this act” and inserting the phrase “transmitted by the Mayor with the 36
Malcolm X Extension of Disposition Authority and Term Sheet Amendment Act of 37
2025” in its place. 38
(d) Section 4(c) is amended by striking the phrase “2 years after the effective 39
date” and inserting the phrase “4 years after the effective date” in its place. 40
Sec. 3. Fiscal impact statement. 41
The Council adopts the fiscal impact statement in the committee report as the 42
fiscal impact statement required by section 4a of the General Legislative Procedures Act 43
of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 44
Sec. 4. Effective date. 45
This act shall take effect following approval by the Mayor (or in the event of veto 46
by the Mayor, action by the Council to override the veto), a 30-day period of 47
congressional review as provided in section 602(c)(1) of the District of Columbia Home 48
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-49
206.02(c)(1)), and publication in the District of Columbia Register. 50 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Executive Office of the Mayor
Office of the Deputy Mayor for Planning and Economic Development
DATE: March 13, 2025
TO: Council of the District of Columbia
FROM: Nina Albert
Deputy Mayor for Planning and Economic Development
SUBJECT: Status Report on the Disposition of Malcolm X
This report describes the status of the disposition of the Malcolm X property pursuant to the
Malcolm X Extension of Disposition Authority and Term Sheet Amendment Act of 2022,
effective March 10, 2023 ( D.C. Law 24-316; 70 DCR 3547) (the “Malcolm X Disposition Act”).
Once completed, the development will include 180 rental units, all of which shall be affordable
for households earning ≤60% of median family income; 43 parking spaces; and ground- floor
neighborhood- serving retail and a daycare center.
The Mayor has determined that the Malcolm X property, located at 1351 Alabama Avenue SE,
and known for tax and assessment purposes as Lot 9 in Square 5914 (the “Property”), cannot be
disposed of within the two years of disposition authority provided under the Malco lm X
Disposition Act and is therefore request ing that the disposition authority for the Property be
extended by two years to March 10, 2027.
To date, the developer has worked diligently to meet all deadlines set forth in the schedule of performance included in the Land Development and Disposition Agreement, which was executed with the District on April 12, 2024.
However, the developer has not yet been able to complete the milestones in the design and pre-
construction phase because the approved development plan relie d on removal of the highway
plan and building r estriction l ine along the west side of the Property on the Congress Street, SE,
frontage. The building restriction line that was in place when the Malcolm X Disposition Act was
approved cut through the footprint of the proposed development and limited the development
potential of the Property. While waiting for resolution of this issue, the Developer was unable to
pursue the plans and specifications to completion without certainty on its ability to design the
improvements consistent with the approved development plan and concept plan.
The Removal of the Highway Plan and Building Restriction Line from Lot 9 in Square 5914
along the West Side of Congress Street, S.E., S.O. 22- 01642, Act of 2024, which became
effective on December 17, 2024, has now given the Developer the necessary certainty needed to
pursue the design and pre-construction phase and progress toward closing.
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Executive Office of the Mayor
Office of the Deputy Mayor for Planning and Economic Development
In addition, after awarding the Request for P roposals, DMPED was made aware of a “Heritage
Tree,” as defined by D.C. Official Code § 8-651.02(3A), within the footprint of the proposed
development (the “Heritage Tree”). DMPED alerted the Developer, which engaged an arborist to
provide a tree survey report establishing the critical root zone of the Heritage Tree where no
construction can take place. The DC Department of Transportation (DDOT) Urban Forestry
Administration confirmed the Heritage Tree is protected from removal, and a study of potential
sites of relocation found no viable options. The presence of the Heritage Tree requires the
Developer to revise its development plan and revise previously completed iterations of the plans
and specifications for the improvements to accommodate and protect the Heritage Tree.
The Developer is currently retooling its funding plan to account for current affordable housing
financing resource constraints. After the milestones in the schedule of performance are
completed, the disposition will proceed when the Developer has secured and is prepared to close
on construction financing and has met the other conditions to closing in the development and
disposition agreement. EXECUTIONVERSION031722
AMENDEDTERMSHEET
DispositionofPortionofMalcolmXSchoolParcel
Date Mareh24,2022_November15,2024
Lessor DistrictofColumbia(the“District”),actingbyandthroughthe
OfficeoftheDeputyMayorforPlanningandEconomic
Development(“DMPED”).
Lessee ‘CongressParkCommunityPartnersLLC,anditssuccessors,
assignsandaffiliates(the“Developer”),asapprovedby
DMPEDorpermittedundertheLDA(definedbelow).
RealProperty Therealproperty,locatedat1351AlabamaAvenueSEin
Washington,D.C.,comprisedofapproximately1.0599acresof
realproperty(approximately46,170squarefeet)beingepertion-
efLot0009inSquare5914(the“Property”).
LandDispositionAgreementAllofthetermsandconditionsofthedispositionoftheProperty
willbegovernedbythetermsofaLandDispositionand
DevelopmentAgreement(“LDA”)byandbetweentheDistrict
andtheDeveloper.
MethodofDisposition ThePropertywillbeconveyedbygroundlease(“Ground
Lease”)withatermof99yearsbytheDistricttotheDeveloper
pursuanttoD.C.OfficialCode§10-801(b)(8)(C).
Consideration BaserentundertheGroundLease(“BasicRent”)shallbeOne
Dollar($1.00)peryear,exceptasotherwiseprovidedinthe
LDA.
TheProject TheDeveloperintendstoredevelopthePropertyintoamixed-
usebuildingcontainingapproximately1580residentialunits,
7,500squarefeetofdaycarespace,and2,000squarefeetof
retailspace(collectively,the“Project,”).Changesmadetothe
developmentplanfortheProjectaresubjecttotheapprovalof
theDistrict.
AffordableHousing TheDeveloperwillcomplywithD.C.OfficialCode§10-801er
seq(2012Supp),asamended,withregardstoprovisionof
affordablehousingunits.
ClosingConditions
TheDistrict’sobligationtogroundleasethePropertytothe
Developershallbeconditionedontheconditionstoclosingas
setforthintheLDA.
EARCEHONVERSION034722
GreenBuildingRequirementsTheDevelopershallconstructtheProjectinaccordancewiththe
GreenBuildingActof2006,D.C.OfficialCode§6-1451.01,et
seq,asamended,andtheregulationspromulgatedtherewith.
ScheduleofPerformance ThefollowingcontainstermsoftheScheduleofPerformance
withestimateddates,whichmaybeamendedandextendedwith
theapprovalofDMPEDinaccordancewiththetermsoftheLDA.
1,ExecutionoftheLDA~nolaterthan60daysafter
Councilapproval
2.Closing—nolaterthan24yearsafterCouncilapproval
3.CommencementofConstruction~nolaterthan60days
afterclosing
4,SubstantialCompletion~nolaterthan23monthsafter
commencementofconstruction
5.FinalCompletion—nolaterthan2monthsafter
substantialcompletion
Post-ClosingRequirementsAsrequiredundertheLDA,theDevelopershallexecuteat
closingtheConstructionead-tseCovenantandAffordable
HousingCovenantandshallbeboundtocomplywiththe
requirementsofthesamefortheapplicabledurationsidentified
therein,
AsrequiredundertheLDA,theDevelopershalldelivertothe
DistrictatclosingaDevelopmentandCompletionGuaranty
executedbyaguarantorassetforthintheLDA.
CertifiedBusinessEnterpriseTheDevelopershallenterintoaCertifiedBusinessEnterprise
UtilizationandParticipationAgreementwiththeDepartmentof
‘SmallandLocalBusinessDevelopmentgoverningcertain
obligationsoftheDeveloperwithrespecttotheProjectunder
theSmall,LocalandDisadvantagedBusinessEnterprise
DevelopmentandAssistanceActof2005,asamended.
FirstSourceRequirements
TheDevelopershallenterintoaFirstSourceAgreementwith
theDepartmentofEmploymentServicesthatshallgovern
obligationsoftheDeveloperpursuanttoD.C.OfficialCode§§
2-219.03,asamended,andMayor’sOrder83-265(November9,
1983)regardingjobcreationandemploymentgeneratedasa
resultoftheconstructionoftheProject.
AMENDED.
TheDeveloperandDMPEDacknowledgethattheyhavepreparedandsignedthisAmended
TermSheetforthesolepurposeofobtainingtheapprovaloftheCounciloftheDistrictof
Columbia(the“Couneil”)totheproposedmodifiedtransaction.TheDeveloper
acknowledgesthatDMPED'snegotiationoftie--DA-andshepreparation-ofthisAmended,
‘TermSheet,DMPED’ssignatureonthisAmendedTermSheet,andsubmissionofthis,
AmendedTermSheetanc-supportingdocumentstotheCouncilshallnotbindtheDistrict
toexectste-amendtheLDAortoconveythePropertytotheDeveloperpursuanttotheterms
containedherein.TheDeveloperfurtheracknowledgesthat,notwithstandingCouncil
authorizingtheconveyance-ofthe-Propertymodifiedtransaction,theDistricthasno
obligationtode-seproceedpursuanttothetermscontainedhereinabsenttheDistrictand
theDeveloperdulyexecutinganamendmenttotheLDAandthesatisfactionofthe
conditionscontainedtherein.1-the-eventPMPED-ortheMayordeterminein-theirsele
Labsobitedis = subaitis. supp
b ble—for_theDeveloper’s-cosis-and d-in-rek "
P P P
BepersenithePrateet:
2.TheDeveloperacknowledgesthatallapprovalsrequiredoftheCouncilwillbegrantedor
withheldinthesoleandabsolutediscretionoftheCouncilandthat,absentCouncil
approvaloftheproposedmodifiedtransaction,DMPEDhasnoauthoritytoconveythe
PropertytotheDeveloper_pursuanttothetermscontainedinthisAmendedTermSheet.
TheDeveloperacknowledgesthatitissigningthisAmendedTermSheetpriorto
obtainingallnecessaryCouncilapprovals.Intheabsenceofsuchapprovalsandexecution
oftheanamendmenttotheLDA,theDeveloperproceedsatitssoleriskandexpensewith
norecoursewhatsoeveragainsttheDistrict.
3.TheDeveloperandDMPEDagreethatuponreceiptofallnecessaryCouncilapprovals,
theDeveloperandDMPEDintendtofinalizeandexecuteanamendmenttotheLDA
governingalloftheterms-and-eonditions-oftheconveyanceofthe Propertymemorializing
themodifiedtransactionpursuanttothetermsofthisAmendedTermSheet.
4,UntiltheDeveloper-andtheDistrictenterinto-thebindingLDA,both-theDeveloperand
het he-tigh thd-transeheir-sele-and
shitef PFeF
absolutediseretion-UpontheexecutionoftheamendmenttotheLDA,theDeveloperand
DMPEDshallproceedinaccordancewiththetermsoftheLDA,asamended;provided,
however,thattheDeveloperandDMPEDacknowledgeandagreethatanysubstantive
changeinthetermssetforthinthisAmendedTermSheetshallbesubjecttofurther
CouncilreviewandapprovalinaccordancewithD.C.OfficialCode§10-801(b-4).
EXECUTION-VERSION-031722
DMPEDandtheDeveloperhavecausedthisAme
»2024,tobesignedandacknowledg¢
representatives.
TermSheet,datedMaveh—
ytheirrespectivedulyauthorized
THEDISTRICT:
DISTRICTOFCOLUMBIA,byandthroughthe
OfficeoftheDeputyMayorforPlanningand
EconomicDevelopment
By Nira1Albert
basenerator
Name:JehnFaleieehie;NinaAlbert
Title:DeputyMayorforPlanningandEconomic
Development
THEDEVELOPER:
CONGRESSPARKCOMMUNITYPARTNERS
LLC,aDistrict
ofColumbialimitedliabilitycompany
By:BannekerCommunitiesL.L.C.,aDistrict
ofColumbialimitedliabilitycompany,its
ManagingMember
By: QuonKi s0on2024
OmarA.Karim,Manager Government of the District of Columbia
Office of the Chief Financial Officer
Glen Lee
Chief Financial Officer
1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727-2476
www.cfo.dc.gov
MEMORANDUM
TO: The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
FROM: Glen Lee
Chief Financial Officer
DATE: December 20, 2024
SUBJECT: Fiscal Impact Statement – Malcolm X Extension of Disposition
Authority and Term Sheet Amendment Act of 2025
REFERENCE: Draft Bill as provided to the Office of Revenue Analysis on December
18, 2024
Conclusion
Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to
implement the bill.
Background
The Malcolm X Surplus Declaration and Disposition Approval Act of 2022
1 approved the surplus
declaration and disposition of approximately 46,170 square feet of District-owned property located
at 1351 Alabama Avenue, S.E.
2 for purposes of a mixed-use property comprising approximately 180
housing units, a daycare and retail spaces. The property would be ground-leased to Congress Park
Community Partners, LLC (the Developer) and the act required the developer to close on the ground
lease of the property within two years of the act’s effective date.
The bill extends the required closing date by two years, to March 10, 2027. The bill further approves
an amended term sheet with the Developer. In addition to revising the closing date, the amended
terms reduce the required number of housing units to 150.
Financial Plan Impact
Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to
implement the bill. There are no costs associated with revising the required number of units in the
term sheet or extending the parcel’s authorized disposition date.
1
Effective March 10, 2023 (D.C. Law 24-316; 70 DCR 3547).
2
Known for tax and assessment purposes as Square 5914, Lot 9.
1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004 Phone: (202) 724- 5565 Email: benjamin.moskiwitz1@dc.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
BRIAN L. SCHWALB
ATTORNEY GENERAL
Legal Counsel Division
MEMORANDUM
TO: Tomás Talamante
Director
Office of Policy and Legislative Affairs
FROM: Ben Moskowitz
Acting Deputy Attorney General
Legal Counsel Division
DATE: December 23, 2024
SUBJECT: Legal Sufficiency Review of Draft Bill, the “Malcolm X Extension of
Disposition Authority and Term Sheet Amendment Act of 2025”
(AE-24-686)
This is to Certify that this Office has reviewed the above- referenced
legislation and has found it to be legally sufficient. If you have any questions regarding this certification, please do not hesitate to contact me at 724-5565.
_______________________________ Benjamin E. Moskowitz