D.C. Law 21-119. Walter Reed Development Omnibus Act of 2016.

D.C. Law 21-119. Walter Reed Development Omnibus Act of 2016.

AN ACT

To authorize the Mayor to acquire and dispose of a portion of the former Walter Reed Army Medical Center, located at 6900 Georgia Avenue, N.W., to establish the Walter Reed Reinvestment Fund into which certain funds received in connection with the site shall be deposited, to establish the Walter Reed Redevelopment Fund into which certain possessory interest tax revenues shall be deposited, and to authorize the provision of grants by the Deputy Mayor for Planning and Economic Development in connection with the redevelopment and operation of the site; and to amend An Act To provide for the abatement of nuisances in the District of Columbia by the Commissioners of said District, and for other purposes to exempt the buildings on the site from vacant building registration requirements for a certain period of time.

New subchapter XV of Chapter 12 of Title 2

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Walter Reed Development Omnibus Act of 2016".

New § 2-1227.01

Sec. 2. Definitions.

For the purposes of this act, the term:

(1) "Army" means the United States Department of the Army.

(2) "Administration Payments" means those payments from the Developer and Component Developers to the District to reimburse the District for certain costs associated with the Walter Reed Redevelopment Site and the redevelopment thereof in accordance with the terms of the LDA.

(3) "Base Closure Act" means the Defense Base Closure and Realignment Act of 1990, approved November 5, 1990 (104 Stat. 1485; 10 U.S.C. § 2687, note).

(4) "Certified Business Enterprise" means a business enterprise or joint venture certified pursuant to the Small, Local and Disadvantaged Business Enterprise Development and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.01 et seq.).

(5) "Component Developer" means an entity approved by the Mayor pursuant to the terms of the LDA, who shall agree to construct a portion of the Vertical Development on the Walter Reed Redevelopment Site.

(6) "Developer" means TPWR Developer LLC, a joint venure comprised of Hines WR LLC, UAD Walter Reed LLC (Urban Atlantic), and Triden Development Group, LLC and any such successor or assigns as may be approved by the Mayor.

(7) "EDC Agreement" means the agreement between the District and the Army for the Economic Development Conveyance of the Army’s fee simple interest in the Walter Reed Redevelopment Site to the District.

(8) "First Source Agreement" means an agreement governing certain obligations of the Developer and each Component Developer pursuant to section 4 of the First Source Employment Agreement Act of 1984, effective June 29, 1984 (D.C. Law 5-93; D.C. Official Code § 2-219.03) , and Mayor’s Order 83-265 (November 9, 1983), regarding job creation and employment generated as a result of the construction of the Horizontal Development and the Vertical Developments.

(9) "Horizontal Development" means development and construction of the horizontal and infrastructure work on the Walter Reed Redevelopment Site as required under the LDA.

(10) "LDA" means the Land Disposition Agreement between the District and Developer that memorializes the terms of the disposition of the Walter Reed Redevelopment Site, which shall be consistent with the Term Sheet and this act.

(11) "Legally Binding Agreement" means an agreement between the District, as the Walter Reed LRA, and a homeless assistance provider that commits the provider to implement and operate certain homeless assistance services on the Walter Reed Redevelopment Site, as approved by the U.S. Department of Housing and Urban Development.

(12) "Memorandum of Agreement" means an agreement between the District, as the Walter Reed LRA, and a public benefit provider for the potential transfer of real property on the Walter Reed Redevelopment Site.

(13) "Term Sheet" means the amended term sheet dated January 28, 2016, executed by the Developer and the Office of the Deputy Mayor for Planning and Economic Development.

(14) "Vertical Development" means the development and construction of buildings and associated improvements to the Walter Reed Development Site pursuant to the LDA.

(15) "Walter Reed Common Area Association" means the "Owners’ Association" created pursuant to the terms of the LDA to manage the operations of the Walter Reed Redevelopment Site.

(16) "Walter Reed LRA" means the District of Columbia government, the local redevelopment authority created by Mayor's Order No. 2006-21 and recognized by the Office of Economic Adjustment on behalf of the Secretary of Defense.

(17) "Walter Reed Redevelopment Site" means approximately 66.27 acres of land located on a portion of the area bounded by Fern Street, N.W., and Alaska Avenue, N.W., to the north, 16th Street, N.W., to the west, Aspen Street, N.W., to the south, and Georgia Avenue, N.W., to the east, known as Parcel 0319/0004 and a portion of Parcel 0319/0005.

(18) "Walter Reed Reuse Plan" means the Walter Reed Local Redevelopment Authority Reuse Plan approved by Council pursuant to section 4 of the Walter Reed Army Medical Center Base Realignment and Closure Homeless Assistance Submission Approval Act of 2012, effective October 16, 2012 (D.C. Law 19-175; 60 DCR 7581).

New § 2-1227.02

Sec. 3. Findings.

(a) The Walter Reed Redevelopment Site has been declared surplus and closed by the Department of Defense pursuant to the procedures and authorities of the Base Closure Act.

(b) The District of Columbia government was recognized as the Walter Reed LRA by the Office of Economic Adjustment on behalf of the Secretary of Defense for developing and implementing the Walter Reed Reuse Plan.

(c) The Council approved the Walter Reed Reuse Plan and the Legally Binding Agreements pursuant to section 4 of the Walter Reed Army Medical Center Base Realignment and Closure Homeless Assistance Submission Approval Act of 2012, effective October 16, 2012 (D.C. Law 19-175; 60 DCR 7581).

(d) The Walter Reed Reuse Plan envisions a dynamic campus integrated into the existing Ward 4 community through the provision of expanded retail opportunities, preservation of open space, creative reuse of historic assets into cultural and educational uses, the creation of a range of jobs, and the development of various housing options to support the needs of District residents.

(e) The Council approved the Walter Reed Army Medical Center Small Area Plan pursuant to the Walter Reed Army Medical Center Small Area Plan Approval Resolution of 2013, effective April 30, 2013 (Res. 20-105; 60 DCR 12813), which supports the development program recommendations in the Walter Reed Reuse Plan.

(f) Pursuant to Zoning Commission Order 14-22, the Zoning Commission for the District of Columbia adopted the text and map amendments to the zoning regulations to create and implement the Walter Reed zone for the Walter Reed Redevelopment Site.

(g) The Mayor and the Secretary of Army, through their representatives, have negotiated the terms by which the Army will convey fee simple title to the Walter Reed Redevelopment Site to the District as the Walter Reed LRA, as memorialized in the EDC Agreement.

(h) After conducting a competitive and public solicitation process, the Office of the Deputy Mayor for Planning and Economic Development selected the Developer to redevelop the Walter Reed Redevelopment Site in furtherance of the Walter Reed Reuse Plan.

(i) Upon the District’s acquisition of fee simple title to the Walter Reed Redevelopment Site, the Mayor intends to ground lease the Walter Reed Redevelopment Site to the Developer for master development of the site, construction of the Horizontal Development, and sublease of a portion of the site for occupancy by the selected homeless assistance providers and public benefits providers pursuant to the Legally Binding Agreements and Memoranda of Agreement, respectively, subject to the terms of the LDA. Upon termination of the Developer’s ground lease, the Mayor will assume the subleases and extend the lease terms to the public benefits providers, if requested by the public benefits providers, to permit the public benefits providers to continue operating their parcels consistent with the terms of their respective Memoranda of Agreement, subject to the terms of the LDA.

(j) Subject to the conditions identified in the LDA, the District will convey fee simple title to certain portions of the Walter Reed Redevelopment Site to:

(1) Component Developers to construct the Vertical Developments;

(2) The Walter Reed Common Area Association to manage and operate the common areas on the Walter Reed Redevelopment Site;

(3) The homeless assistance providers to continue operating their premises pursuant to the terms of their respective Legally Binding Agreements; and

(4)(A) The Developer, if the Developer purchases the tenant’s leasehold under the Housing Lease, as defined in the LDA; or

(B) If the Housing Lease remains in effect as of the date on which the final phase of Horizontal Development is substantially complete, to the Walter Reed Common Area Association to manage the existing lease for the buildings known as Buildings 8 and 9.

(k) The Developer and each Component Developer shall enter into a First Source Agreement with the District that shall govern certain obligations of the Developer and each Component Developer regarding job creation and employment as a result of the construction of the Horizontal Development and Vertical Developments.

(l) The Developer and each Component Developer shall enter into an agreement that shall require the Developer and each Component Developer, at a minimum, to contract with Certified Business Enterprises for at least 35% of the contract dollar volume of the Horizontal Development and each Vertical Development and shall require at least 20% equity and 20% development participation of Certified Business Enterprises.

(m) At least 20% of the residential units constructed at the Walter Reed Redevelopment Site shall be reserved, sold, or leased as affordable units pursuant to Zoning Commission Order 14-22. Each Component Developer who shall construct a Vertical Development that contains residential units shall enter into an affordable housing covenant memorializing these affordable unit requirements.

New § 2-1227.03

Sec. 4. EDC Agreement approval.

Consistent with section 451(b) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51(b)), the Mayor shall transmit the EDC Agreement to the Council for its approval.

New § 2-1227.04

Sec. 5. Approval of disposition of Walter Reed Redevelopment Site.

Notwithstanding 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 Mayor is authorized to dispose of:

(1) The Walter Reed Redevelopment Site pursuant to the terms of the Term Sheet by ground lease for a term of less than 30 years to Developer;

(2) Portions of the Walter Reed Redevelopment Site by ground lease to the selected public benefit providers and homeless assistance providers;

(3) Portions of the Walter Reed Redevelopment Site in fee simple to Component Developers, the Walter Reed Common Area Association, and the selected homeless assistance providers; and

(4) Portions of the Walter Reed Redevelopment Site by easement to public utilities to the extent necessary for the development of the Horizontal Development and Vertical Development.

New § 2-1227.05

Sec. 6. Walter Reed Reinvestment Fund.

(a) There is established as a special fund the Walter Reed Reinvestment Fund ("Fund"), which shall be administered by the Office of the Deputy Mayor for Planning and Economic Development and used solely for the purposes set forth in subsection (c) of this section.

(b) The Chief Financial Officer shall deposit into the Fund all proceeds from the sale, lease, or equivalent use of the Walter Reed Redevelopment Site, including the Administration Payments, except for:

(1) Proceeds that are used to pay the Army consideration due under the EDC Agreement; and

(2) Funds received from the Developer to reimburse the District for payments to the Army made pursuant to the EDC Agreement.

(c) The Fund shall be used solely:

(1) To support job creation and economic development of, or related to, the Walter Reed Redevelopment Site, including to pay for:

(A) Road construction;

(B) Transportation management facilities;

(C) Storm and sanitary sewer construction;

(D) Police and fire protection facilities and other public facilities;

(E) Utility construction;

(F) Building rehabilitation;

(G) Historic property preservation;

(H) Pollution protection equipment or facilities;

(I) Demolition;

(J) Disposal of hazardous materials and hazardous waste generated by demolition;

(K) Landscaping, grading, and other site or public improvements; and

(L) Planning for or the marketing of the redevelopment or use of the Walter Reed Redevelopment Site;

(2) For other purposes permitted by the EDC Agreement; and

(3) To make payments due to the Army required under the EDC Agreement during the first 7 years after the date the District acquires the Walter Reed Redevelopment Site from the Army and thereafter for the purposes stated in this section and the economic development goals or activities of the District.

(d) The Office of the Deputy Mayor for Planning and Economic Development shall have the authority to make grants from the Fund to recipients in furtherance of the purposes set forth in subsection (c) of this section

(e)(1) The money deposited into the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

New § 2-1227.06

Sec. 7. Walter Reed Redevelopment Fund.

(a) There is established as a special fund the Walter Reed Redevelopment Fund ("Fund"), which shall be administered by the Office of the Deputy Mayor for Planning and Economic Development and used solely for the purposes set forth in subsection (c) of this section.

(b) The Chief Financial Officer shall deposit into the Fund all funds received pursuant to D.C. Official Code § 47-1005.01 attributable to the Developer’s lease of the Walter Reed Redevelopment Site for the period ending on the last day of the tax year that is 10 years after the date on which the Developer commences the demolition of Building 2 on the Walter Reed Redevelopment Site in accordance with the requirements of the LDA.

(c) The Fund shall be used solely to support the maintenance, operation, and construction activities on the Walter Reed Redevelopment Site.

(d) The Office of the Deputy Mayor for Planning and Economic Development shall have the authority to make grants from the Fund to recipients in furtherance of the purposes set forth in subsection (c) of this section.

(e)(1) The money deposited into the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

Amend § 42-3131.06

Sec. 8. Section 6(b) of An Act To provide for the abatement of nuisances in the District of Columbia by the Commissioners of said District, and for other purposes, effective April 27, 2011 (D.C. Law 13-281; D.C. Official Code § 42-3131.06(b)), is amended as follows:

(a) Paragraph (7) is amended by striking the word "or" at the end.

(b) Paragraph (8) is amended by striking the period and inserting the phrase "; or" in its place.

(c) A new paragraph (9) is added to read as follows:

"(9) Located on the Water Reed Redevelopment Site, for so long as the building and the land on which the building sits is subject to the ground lease to the Developer.".

Sec. 9. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report 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).

Sec. 10. 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), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code §1-206.02 (c)(1)), and publication in the District of Columbia Register.