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Current through October 23, 2012
(a) Notwithstanding any other provision of law, the Mayor may grant a lease to Marriott International, Inc., or its designee, of the real property described as a portion of Lot 26 (formerly known as Lots 18, 21, 801 through 806, 830 through 839, 843, and 845), Square 370, including all public alleys to be closed within these lots, on the following terms and conditions:
(1) The lease term shall be 99 years, with lease payments beginning on the 3rd anniversary of operations; provided, that the commencement of the lease payments may be extended as mutually agreed by the parties.
(2) Annual lease payments shall be in an amount to be negotiated by the parties; provided, that the present value of the lease payments during the lease term discounted at 6% shall equal at least $70.2 million.
(3) Repealed.
(4) Lease payments shall be payable from cash available after the developer's debt service payments on debt financing as permitted under the Hotel Development and Funding Agreement and lease.
(5) A right of first refusal and an option to acquire the District's fee interest in the real property during the lease term.
(6) The lease may be subordinated to a leasehold mortgage securing development financing for the developer and may permit the issuance of a new lease upon foreclosure on the same terms and conditions as the prior lease.
(b) Notwithstanding any other provision of law, the Mayor may assign the annual lease payments required by subsection (a) of this section to the Authority.
(Sept. 28, 1994, D.C. Law 10-188, § 222, formerly § 702, as added Sept. 19, 2006, D.C. Law 16-163, § 201, 53 DCR 5430; Apr. 15, 2008, D.C. Law 17- 144, § 3(c), 55 DCR 2527; Mar. 21, 2009, D.C. Law 17-339, § 2(a), 56 DCR 947; renumbered Mar. 25, 2009, D.C. Law 17-353, § 122(e), 56 DCR 1117; Oct. 22, 2009, D.C. Law 18-78, § 2(e), 56 DCR 6959.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-144 rewrote the section which had read as follows:
"The Mayor may grant a lease to Marriott International, Inc., or its designee, of the real property described as lots 62, 838, 839, 848, 859, and 878, square 369, and lots 18, 21, 22, 24, 801 through 806, 830 through 836, 837, 838, 839, 843, and 845, square 370, including all public alleys to be closed within these lots, on the following terms and conditions:
"(1) The lease term shall be 99 years, with no lease payments during the 3 year construction period and during the 1st 3 years of operation of the New Convention Center Hotel, up to a maximum of 6 years.
"(2) A lease payment of $885,000 shall be paid during the 4th year of operation in equal monthly installments of $73,750.
"(3) An annual lease payment of $3.572 million shall be paid in monthly installments during the 5th year of operation and shall increase annually by 2.5% each year until the end of the lease term.
"(4) Lease payments shall be payable from cash available after the developer's debt service payments on a loan for the new convention center hotel.
"(5) The lease may be subordinated to a leasehold mortgage securing development financing for the developer."
D.C. Law 17-339 added par. (6).
D.C. Law 17-353, in the credit, renumbered the section designation from § 702 to § 222.
D.C. Law 18-78 designated the existing text as subsec. (a); in the lead-in text of subsec. (a), substituted "a portion of Lot 26 (formerly known as Lots 18, 21, 801 through 806, 830 through 839, 843, and 845), Square 370" for "Lots 18, 21, 801 through 806, 830 through 839, 843, and 845 in Square 370"; in subsec. (a)(1), substituted "on the 3rd anniversary of operations" for "in the 4th year of operations"; in subsec. (a)(4), substituted "debt financing as permitted under the Hotel Development and Funding Agreement and lease" for "a loan for the new convention center hotel"; and added subsec. (b).
Temporary Amendments of Section
Section 2(a) of D.C. Law 17-228 added par. (6) to read as follows:
"(6) The lease may be subordinated to a leasehold mortgage securing development financing for the developer and may permit the issuance of a new lease upon foreclosure on the same terms and conditions as the prior lease.".
Section 5(b) of D.C. Law 17-228 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary (90 day) addition, see § 201 of New Convention Center Hotel Omnibus Financing and Development Emergency Act of 2006 (D.C. Act 16-404, June 26, 2006, 53 DCR 5404).
For temporary (90 day) amendment, see § 2(a) of New Convention Center Hotel Technical Amendments Emergency Amendment Act of 2008 (D.C. Act 17-412, June 18, 2008, 55 DCR 7026).
For temporary (90 day) amendment of section, see § 2(a) of New Convention Center Hotel Combined Technical Amendments Emergency Amendment Act of 2008 (D.C. Act 17-604, December 16, 2008, 56 DCR 17).
For temporary (90 day) amendment of section, see § 2(a) of New Convention Center Hotel Technical Amendments Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-28, March 16, 2009, 56 DCR 2319).
For temporary (90 day) amendment of section, see § 2(e) of New Convention Center Hotel Emergency Amendment Act of 2009 (D.C. Act 18-186, August 12, 2009, 56 DCR 6967).
Legislative History of Laws
For Law 16-163, see notes following § 10-1202.21
For Law 17-144, see notes following § 10-1202.01.
Law 17-339, the "New Convention Center Hotel Technical Amendments Act of 2008", was introduced in Council and assigned Bill No. 17-774 which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on December 2, 2008, and December 16, 2008, respectively. Signed by the Mayor on January 6, 2009, it was assigned Act No. 17-657 and transmitted to both Houses of Congress for its review. D.C. Law 17-339 became effective on March 21, 2009.
For Law 17-353, see notes following § 10-1016.
For Law 18-78, see notes following § 10-1202.01.
