PR 24-0571 — East Capitol Gateway Eminent Domain Authority Emergency Declaration Resolution of 2022

MURMAYORWSERENROLLED Jnury7,222ORIGINAL TheonralePilMendelsonA JhnA.WlsnBuldngDsrctfColumbiaRESOLUTION 130PenylanaAvnu,NW,Sute5424-387 Wshngon,DCIN 004THE DearCOUNCIL ChairmanOF Mendelson:THE DISTRICT OF COLUMBIA February 1, 2022 To declare the existence of an emergency with respect to the need to authorize the Mayor to exercise eminent domain to acquire the real property known as East Capitol Gateway, known for tax and assessment purposes as Lot 0110 in Square 5246 and Lots 807, 808, 809, and 7000 through 7014 in Square 5273.

EclsedorosieatonndaprvalytheonclofteDsrctfColumbisheEatRESOLVED, CptolGatewainetDomainuhriyEmergenctf2022,heEatCaiolGatewayBY EinntDomainuhriyTemporartof22,”te“EstaptlGatewaminntTHE DomaintortyAtof222”andheEatCpiolGatewamnetDomainuhoiyCOUNCIL troghheeecseofmientomin,cetanralpoeryknownsEstaptlGaewy,OF inTHE WardDISTRICT 7.OF COLUMBIA, That this resolution may be cited as the “East Capitol Gateway Eminent Domain Authority Emergency Declaration Resolution of 2022”.

The Districtgovernment has a significant need to expand economic opportunities forresidents of Ward7 and theirneighbors in surrounding wards.

The communities eastof theAnacostia River, priualyrgrdngccssohelhyfodotos.Thelnnddevelopmetaitl, Gatewayhasbtledsince2016whenWal-martcancoopea oeasteanchor tnntfrtepoet.

Thedevelopercodniyasitbereplacementtenantand peprdtheaclforog-eminciiy.

Givhelckoffrtonheatofhedvloe, tishighlyunlhtteproperilbedevelopedabsenttheioftheititt governmentandwithuhriytoexerciseeminentdomainbytheMayor.

TrgeheCucilotkepomptndfvralecionnthenloedlgsain.Asawys,f yuhavenyqetinsbottisonrc,peaecnactrkaStele,egsaiveiecor frteDeutyMayorrPanigandEconomiveopen,ateia.atrledegvor 22-27183.

Sneel, Maypr ser Enclosures n Chairman, Phil Mendelson a atherequestoftheMayor u s A PROPOSED RESOLUTION i w IN THE COUNCIL OF THE DISTRICT OF COLUMBIA e ul TodelaeteeiseceofnemrgncyithesettoheeedoauhrieteMayoro eecseeinntdomaioaqureheelprprtyknowsEatCpiolGteay, known for tax and assessment purposes as Lot 0110 in Square 5246 and Lots 807, 808, 89,ad700—7014nSqare27.

RESOLVED,BYTHECOUNCILOFTHEDISTRICTOFCOLUMBIAhttis resolutionmay becitedasthe“EastCapitolGateway EminentDomainAuthorityEmergency Decaaionesltinof02”.

Sc..()TheomuntiseatofheAaosiaRvr,ncuingherasaonghe EatCaiolSretorio,aeunesevedorealotos,priualyrgrdngccsso heltyfodoton.

()TheoletonofaclsknownsastaitlGatewaereetsn ngingppruntyoprvdemucheeedcmmrcaladreilcivtyoanndrsrvd community.

()ThearesaecotoledyCGMaretlaeLLC(heJontenur”), hihisownednqalsaesbyausiiryofheititofColumbiusngAthrty ndA&R/THCMretlce,LLC,aiateeeopr.

ThontVntrehsmadeoefotto otiueodeelptepaclsadhasxlctysttdteprelsereeigcovrtdto lngtemiatvt”.

()Duetotheleoftheeisiggroundas,thesarescouldremain undeveloprageeaton,xaeratngheieqitbelakofrtilpiosforeidnsof hspatofthesrit,pciialyWard.

e)Theaces,ocedeelpd,wllfrtermanymprantpbicprpses includingthe removal ofunsafe and unsanitaryconditioofcrime,ction ofthe incidence andheremovalofgarbagthreysre.

()Theares,onceeelpe,wilexpandeconompotuitesfrrsdets of Ward 7 and theirneighbors inWards 5,6,and 8,includingmuchneeded job opportunities.

()Oncedveopd,tepaclswllfrhraidnreucngfoodneurtynan underserved neighborhood and providerevitalization inan economically distressed community.

()GiventhelackfotontheatftheJitVenturetshighlyunlikely hattherelsilbedevelopedabsenttheinvolvemitictgovernmentandwithout the authority to exercise eminent domain by the Mayor.

3.The2. Councilof the DistrictofColumbia determines thatthe circumstances enumerated inSection2constituteemergencycirtnecessarythattheEast CapitolGatewayEminentDomainAuthorityEmef2022beadoptteraigle eain.

(a) The communities east of the Anacostia River, including the areas along the East Capitol Street corridor, are underserved by retail options, particularly access to healthy food options.

(b) The collection of parcels known as East Capitol Gateway represents an ongoing opportunity to provide much needed commercial and retail activity to an underserved community.

(c) The parcels are controlled by CG Marketplace LLC, which is owned in equal shares by a subsidiary of the District of Columbia Housing Authority and A&R/THC Marketplace, LLC, a private developer (“Joint Venture”).

The Joint Venture has made no effort to continue to develop the parcels and has explicitly stated the parcels were being converted to “long-term inactivity”.

(d) Due to the length of the existing ground lease, these parcels could remain undeveloped for a generation, exacerbating the inequitable lack of retail options for residents of this part of the District, specifically Ward 7.

(e) The parcels, once developed, will further many important public purposes, including the removal of unsafe and unsanitary conditions, reduction of the incidence of crime, and the removal of garbage and other eyesores.

(f) The parcels, once developed, will expand economic opportunities for residents of Ward 7 and their neighbors in Wards 5, 6, and 8, including much needed job opportunities.

(g) Once developed, the parcels will further aid in reducing food insecurity in an underserved neighborhood and provide revitalization in an economically distressed community.

ENROLLED ORIGINAL (h) Given the lack of effort on the part of the Joint Venture, it is highly unlikely that the parcels will be developed absent the involvement of the District government and without the Mayor’s authority to exercise eminent domain.

3.

The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the East Capitol Gateway Eminent Domain Authority Emergency Act of 2022 be adopted after a single reading.

Sec.

This resolution shalltakeshall effectimmediately.take effect immediately.

Government ofthe DistrictofColumbia Officeofthe ChiefFinancial Officer a e a FitzroyLee ‘cighifFnnilOfcr MEMORANDUM T:

TheHonorablilMendelson Chairman,Councilofthe DistrictofColumbia FROM:

Fitzroy P 6 7 L e x ActiChiefFinancial Officer DATE:

January22,2022 SUBJECT:

FsalImpactStatemeastaptolGatewayEminentDomain AuthorityEmergencf2022 REFERENCE:

DaftilasprovideothefieofRevenueAnalysisonJa,uary4 Conclusion implemenebl.TheilutorzesheMayoroxecseeminentdomautdosnoteqire teMayortoctuponheutoizton,TheMayorhadniiedealy$21ilintoeerise eminentdomifhechooseoctuponisuhriy.

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