B 23-0473 — MLK Gateway Real Property Tax Abatement Congressional Review Emergency Amendment Act of 2019

ENROLLED ORIGINAL AN ACT 23-139____________ D.C.IN THE COUNCIL OF THE DISTRICT OF COLUMBIA ________________________ To amend, on an emergency basis, due to congressional review, Chapter 46 of Title 47 of the District of Columbia Official Code to provide an abatement of real property taxes for property located at 1201-1215 Good Hope Road, S.E., and known for tax and assessment purposes as Lots 1017, 847, 867, 866, and 864 in Square 5769.

ACTBE INIT ENACTED BY THE COLTNCILCOUNCIL OF THE DISTRICT OF COLUMBIACOLUMBIA, oGTOBERThat 23,2019this Toact amend,may onbe ancited emergencyas basis,the dueto“MLK congressionalGateway review,Real ChapterProperty 46Tax ofAbatement Title47Congressional oftheReview DistrictEmergency ofColumbiaAmendment OfficialCodeAct toprovide an abatement of real2019”. propertytaxes for property locatedat 120l-1215 Good Hope Road, S.8., and known for tax and assessment purposes as Lots 1017, 847,867,866, and 864 in Square 5769.

BESec. IT ENACTED BY THE COL]NCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited asthe "MLK Gateway Real Property Tax Abatement Congressional Review Emergency Amendment Act of 20I9".

Sec.2.2.

Chapter 46 of Title47Title 47 of the DistrictofDistrict of Columbia OfficialCodeOfficial Code is amended as follows:

(a) The table ofcontentsof isamendedcontents is amended by adding a new section designation to read as follows:

"EҤ 47-4671.

MLK Gateway real property tax abatement.".abatement.”.

(b) A new section 47-461147-4671 isaddedis added to read asfollows:as follows:

"5Ҥ 4747-4671. -4671.

MLK Gateway real property taxabatement.tax abatement.

"(a)“(a) For the purposes of thissection,thethis section, the term:

"(l)"CBE"“(1) “CBE” means a certifiedbusinesscertified enterpriseorjointbusiness enterprise or joint venture certified pursuant to theCBEthe CBE Act.

"(2)"CBE“(2) Act"“CBE Act” means the Small and Certified Enterprise Development and Assistance Act of 2005, effectiveOctobereffective October 20, 2005 (D.C.

OfficialCodeOfficial {Code § 2- 218.01 et seq.).

"(3)"Developer"“(3) “Developer” means MLK Gateway Partners LLC, aDistricta ofColumbiaDistrict of Columbia limited liabilitcompany,liability company, with a business address of 3401 8th Street,N.E.,Street, N.E., comprised oftheof the Menkiti Group, with a business address of340lof 3401 8th StreetN.E.,Street N.E., or itssuccessors,orits successors, or one of its affiliateoraffiliates or assignees and Enlightened Inc.,withInc., with a business address of Il0l1101 Connecticut Avenue, N.W., Washington D.C.

20036, or itssuccessors,orits successors, or one of itsaffiliateorits assignees,asaffiliates or assignees, as approved by the Mayor.

"(4)“(4) "FirstSource“First Agreement"Source Agreement” means an agreement with theDistrictgovemingthe certainobligationsDistrict ofthegoverning certain obligations of the Developer pursuant to section 4ofthe4 FirstSourceof the First Source Employment Agreement Act of 1984, effectiveJuneeffective June 29, 1984 (D.C.

Law 5-93;D.C.5-93;

OfficialCodeD.C. g 2- I ENROLLED ORIGINAL 219.03), and Mayor's Order 83-265, dated November 9, 1983, regarding job creation and employment generated as a resultofthe construction on the Properfy.

"(5)"Project"Official meansCode a§ mixed-use2- commercialENROLLED project,includingORIGINAL renovating219.03), theand historicstorefronts,Mayor’s newOrder officeand83-265, retailspace,dated November 9, 1983, regarding job creation and anyemployment ancillarygenerated usesas alloweda underresult applicableof law.the construction on the Property.

"(6)“(5) "Property"“Project” means a mixed-use commercial project, including renovating the realpropertyhistoric describedstorefronts, asnew 1201-1215office Goodand Hoperetail Road.space, and any ancillary uses allowed under applicable law.

“(6) “Property” means the real property described as 1201-1215 Good Hope Road, S.E., known lbrfor taxandtax and assessment purposes as LorsLots 1017.1017, 847, 867, 866, and 864 in Square 5769, and any improvements on that real property.

847.867,866.“(b)(1) Beginning with the tax year immediately following the tax year during which a certificate of occupancy (whether temporary or final) is issued authorizing Enlightened Inc., or another locally owned and operated business with employees in the District of Columbia approved by the Mayor, any use of the Property, the tax imposed by Chapter 8 of this title on the Property, subject to funding, shall be abated for 15 real property tax years.

andThe 864total inamount Squareof 5769,the andabatement anyshall improvementsnot onexceed that$3 realproperty.million.

"(b)(l)“(2) BeginningThe withProject thetaxshall yearbe immediatelyexempt followingfrom thetaxrecordation yeartaxation during which a certificateofoccupancy (whether temporary orfinal) isissued authorizing Enlightened Inc.,or another locallyowned and operated business with employees inthe Districtof Columbia approved by the Mayor, any useof the Property, thetax imposed bypursuant to Chapter 811 of thistitleonTitle the42. Property, subject to lunding, shallbe abated for l5 realpropefty tax years.

“(3) The totalProject amountshall ofbe theexempt abatementfrom shalltransfer notexceedtaxes million.imposed pursuant to Chapter 9 of this title.

$3“(4) "(2)Notwithstanding Theparagraph Project(1) shallof bethis exemptsubsection, fromin recordationno taxationcase imposedshall pursuantthe toabatement Chapterprovided 11in paragraph (1) of Titlethis 42.subsection begin before October 1, 2020.

"(3)“(c) TheFor Projectthe shallProperty beto exemptreceive liomthe transferabatement taxesdescribed imposedin pursuant to Chapter 9 of this title.section, the:

"(4)“(1) NotwithstandingDeveloper paragraphshall (1)maintain ofthisa subsection,lease innoagreement casewith shallEnlightened Inc., or another locally owned and operated business with employees in the abatementDistrict providedof inparagraphColumbia (1)approved ofthisby subsectionthe beginMayor, beforefor Octoberapproximately l,2020.20,000 square feet of office space within the Project.

"(c)For“(2) theProject Propertyshall toinclude receive35% theCBE abatementparticipation; described in thissection, the:

"(l)“(3) DeveloperProject shall maintaincomply a leaseagreement with Enlighteneda Inc.,orFirst anotherSource locallyHiring ownedAgreement; and operated business with employees in theDistrict ofColumbia approved by the Mayor, for approximately 20,000 square feetofoffice space within the Project.

Projectand "(2)“(4) shallincludeDeveloper 35%shall CBEconduct participation;2 employment fairs in Ward 8 to encourage local participation in the redevelopment of the Property and make local residents aware of job opportunities in the redevelopment of the Property and in the businesses that will occupy the Property after completion of the redevelopment.

"(3)“(d)(1) ProjectThe shallcomplyMayor withshall acertify FirstSourceto Hiringthe Agreement;Office of Tax and Revenue the Property’s eligibility for the abatement provided pursuant to this section.

andThe "(4)Mayor’s Developercertification shall conductinclude: 2 employment fairs in Ward 8 to encourage local participation in the redevelopment ofthe Property and make localresidents aware ofjob opportunities in the redevelopment ofthe Property and inthe businesses that will occupy the Property aftercompletion of the redevelopment.

"(d)(1)The“(A) MayorA shalldescription certifytoof theOfficethe ofTaxProperty andby Revenuestreet theaddress, Property'ssquare, eligibilityforthesuffix, abatementand providedlot, pursuantand tothisthe section.Thedate Mayor'sthe certilicationabatement shallbegins include:and ends;

"(A)“(B) AThe descriptiondate ofthea Propertycertificate byof streetoccupancy address,square,for suffix,andEnlightened lot,andInc., theor dateanother theabatementlocally beginsowned and ends;operated business with employees in the District of Columbia as approved by the Mayor, authorizing any use of the Property was issued;

"(B)“(C) TheA datestatement athat certificateofoccupancythe forEnlightenedconditions Inc.,specified or another locallyowned and operated business with employees in thesubsection Districtof(c) Columbiaof asthis approvedsection byhave thebeen Mayor,satisfied; authorizing any use ofthe Property was issued;

"(C)and A statement that the conditions specifiedin (c) subsection ofthis section have been satisfied;and ENROLLED ORIGINAL "(D)“(D) Any other information that theMayorthe Mayor considers necessary or appropriate.

"(2)“(2) IfatIf at any time the Mayor determines that the Property has become ineligible for the abatement provided pursuant tothisto section,thethis section, the Mayor shall notifonotify the Office ofTaxof Tax and Revenue and shall specify the date thatthethat the Property became ineligible.Theineligible. entireProperty shall ineligible be forthe abatement on the firsday ofthe tax year following the date when ineligibilityoccurred.