Code of the District of Columbia

§ 10–1603.04. Amendments to ground lease and development agreement.

(a) Notwithstanding subchapter I of Chapter 8 of this title, the Mayor may enter into a ground lease ("revised ground lease") between the District of Columbia and DC Stadium LLC; provided, that:

(1) The revised ground lease amends the ground lease between the District of Columbia and DC Stadium LLC, dated May 23, 2014 ("original ground lease") to:

(A) Not contain any provision to abate District sales tax;

(B) Include the labor peace provisions set forth in subsection (c) of this section; and

(C) Contain modifications to conform the terms of the original ground lease to the provisions of this subchapter;

(2) The Mayor transmits the revised ground lease to the Council for its review not later than 30 days before the effective date of the revised ground lease;

(3) The Mayor transmits simultaneously to the Council for its review pursuant to § 1-204.51, a revised development agreement ("revised development agreement") that amends the development agreement between the District of Columbia and DC Stadium LLC, dated May 23, 2014 ("original development agreement"), for the development of the soccer stadium site and that:

(A) Extends the date by which the District shall acquire control of the soccer stadium site to September 30, 2015;

(B) Extends the dates by which the District shall close streets and alleys, acquire fee title, demolish existing structures, perform infrastructure work (including all District obligations under article V of the original development agreement), and perform environmental remediation work (including all District obligations under article VI of the original development agreement), as such actions are described in articles III, IV, V, and VI of the original development agreement and may be described or referenced in other provisions of the original development agreement, each by 6 months;

(C) Sets a date by which DC Stadium LLC shall complete the construction of a soccer stadium at the soccer stadium site;

(D) Extends other dates as negotiated between the District and DC Stadium, LLC;

(E) Amends section 5.9 of the original development agreement to read as follows: "Land Contribution. Within 30 days of the District's acquisition of either Lot 7 or Lot 802 in Square 605, the Stadium Developer shall pay to the District, or its designee, Two Million Five Hundred Thousand Dollars ($2,500,000.00) to offset Land acquisition costs, unless the District acquires either Lot 7 or Lot 802 in Square 605 by the use of eminent domain and the aggregate price paid by the District for Lot 7 and Lot 802 is less than $25,148,760.";

(F) Amends section 9.1(c) of the original development agreement to read as follows: "Designated Entertainment Area. The District shall grant to the Developer 'signage rights' with respect to the Land, such signage rights to be those rights described in the proposed Chapter 8 of Title 13 of the District of Columbia Municipal Regulations published in the DC Register on August 17, 2012.";

(G) Provides that no fees, proffers, or deposits shall be borne or waived by the District pursuant to section 7.6 of the original development agreement before October 1, 2015; and

(H) Includes the labor peace provisions set forth in subsection (c) of this section; and

(4) The Council does not adopt a resolution of disapproval pertaining to the ground lease within 30 days beginning on the day on which the ground lease is submitted to the Council, excluding days of Council recess.

(b)(1) The revised ground lease and the revised development agreement each may provide an enhanced "Performance Assurance" without increasing the District's financial obligations.

(2) The revised development agreement shall be exempt from § 2-352.02(c).

(c) The District is authorized to agree to terms within the revised ground lease and revised development agreement providing that, notwithstanding any other provision of the revised ground lease or revised development agreement, DC Stadium LLC covenants and agrees:

(1) To enter into a labor peace agreement that conforms in content to the requirements set forth in § 32-853 with each labor organization that requests a labor peace agreement and which represents, or reasonably might represent, food service or concession workers at the soccer stadium to be constructed at the soccer stadium site, workers in any hotel development located on the Adjacent Land (as defined in Exhibit A-2 to the original ground lease), or any group or subgroup of such workers; and

(2) To require, as a condition of any assignment, sublease, or transaction of any kind transferring, in whole or in part, any rights under the revised development agreement or the revised ground lease to any other entity, that such assignee, sublessee, transferee, or other entity:

(A) Adopt and execute any labor peace agreement entered into by DC Stadium LLC pursuant to paragraph (1) of this subsection or, to the extent that DC Stadium LLC has not entered into such a labor peace agreement with any labor organization that requests a labor peace agreement and that represents, or reasonably might represent, workers described in paragraph (1), to enter into such agreement; and

(B) Require adoption and execution of such labor peace agreement (or, to the extent that such agreement has not previously been reached with any labor organization that requests a labor peace agreement and that represents, or reasonably might represent, workers described in paragraph (1) of this subsection, to require entry into such agreement) by any future assignee, sublessee, transferee, or other entity as a condition of any future assignment, sublease, transfer, agreement, or transaction of any kind transferring, in whole or in part, any rights under the revised development agreement or the revised ground lease; and

(3) To entitle any labor organization that has entered into, or has requested to enter into, a labor peace agreement under this subsection to enforce the obligations described in paragraph (1) and paragraph (2) of this subsection as a third-party beneficiary of the contractual provisions described therein, by filing a civil action in the Superior Court of the District of Columbia seeking declaratory and other equitable relief.


(Mar. 11, 2015, D.C. Law 20-233, § 104, 62 DCR 438; Oct. 22, 2015, D.C. Law 21-36, § 2182(d), 62 DCR 10905.)

Effect of Amendments

The 2015 amendment by D.C. Law 21-36 would have rewritten (a) and (b); and would have substituted “The District is authorized to agree” for “DC Stadium, LLC and the District shall agree” in (c).

Applicability

Section 7010 of D.C. Law 22-33 repealed § 301 of D.C. Law 20-233. Therefore the creation of this section by D.C. Law 20-233 has been implemented.

Applicability of D.C. Law 20-233: Section 301 of D.C. Law 20-233 provided (1) that the act shall apply upon the date of inclusions of its fiscal effect in an approved budget and financial plan; (2) that the Chief Financial Officer shall certify the date of the inclusion of the fiscal effect in an approved budget and financial plan, and provide notice to the Budget Director of the Council of the certification; and (3) that the Budget Director shall cause the notice of the certification to be published in the District of Columbia Register and that the date of publication of the notice of the certification shall not affect the applicability of the act.

Emergency Legislation

For temporary (90 days) repeal of § 301 of D.C. Law 20-233, see § 7010 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) repeal of § 301 of D.C. Law 20-233, see § 7010 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 days) addition of this section, see § 101 of the Soccer Stadium Development Emergency Amendment Act of 2014 (D.C. Act 20-557, Dec. 30, 2014, 62 DCR 448, 20 STAT 4467).

For temporary (90 days) amendment of this section, see § 2(d) of the Soccer Stadium Development Technical Clarification Emergency Amendment Act of 2015 (D.C. Act 21-59, May 8, 2015, 62 DCR 5962, 21 DCSTAT 1434).

For temporary (90 days) amendment of this section, see § 2182(d) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2(d) of the Soccer Stadium Development Technical Clarification Temporary Amendment Act of 2015 (D.C. Law 21-17, July 22, 2015, 62 DCR 6876).