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Current through October 23, 2012
Notwithstanding any other provision of law, the Authority may lease to Marriott International, Inc., or its designee, the real property described as a portion of Lot 26 (formerly known as Lots 22 and 24), Square 370, on the following terms and conditions:
(1) The lease term shall be 99 years, with lease payments beginning on the earlier of:
(A) The commencement of the 4th year of operation of the New Convention Center Hotel; or
(B) October 1, 2014; provided, that this date 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 $31.5 million.
(3) A right of first refusal and an option to acquire the Authority's fee interest in the real property during the lease term.
(4) The Authority may convey to lessee its fee simple interest to the improvements located on the lots for lessee to own during the lease term.
(5) Lease payments shall be payable from cash available after payment of the developer's debt service on a loan for the new convention center hotel.
(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.
(Sept. 28, 1994, D.C. Law 10-188, § 223, formerly § 703, as added Sept. 19, 2006, D.C. Law 16-163, § 201, 53 DCR 5430; Apr. 15, 2008, D.C. Law 17- 144, § 3(d), 55 DCR 2527; Mar. 21, 2009, D.C. Law 17-339, § 2(b), 56 DCR 947; renumbered Mar. 25, 2009, D.C. Law 17-353, § 122(f), 56 DCR 1117; Oct. 22, 2009, D.C. Law 18-78, § 2(f), 56 DCR 6959.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-144 rewrote the section which had read as follows:
"The Authority may lease to Marriott International, Inc., or its designee, the real property described as lots 22 and 24, square 370, on the following terms and conditions:
"(1) The lease term shall be 99 years, with no lease payments during construction up to a maximum of 3 years.
"(2) An annual lease payment, beginning upon the opening of the new convention center hotel, equal to the debt service costs related to funding the parcel's purchase price, construction period interest, reserves, and issuance costs.
"(3) Commencing in the 31st year of operation of the new convention center hotel, and for each year thereafter during the lease term, the lease payment shall be $500,000, increased every 10 years by 5% thereafter.
"(4) Lease payments shall be payable from cash available after payment of the developer's debt service on a loan for the new convention center hotel.
"(5) The lease may be subordinated to a leasehold mortgage securing development financing for the lease."
D.C. Law 17-339 added pars. (5) and (6).
D.C. Law 17-353, in the credit, renumbered the section designation from § 703 to § 223.
D.C. Law 18-78 substituted "a portion of Lot 26 (formerly known as Lots 22 and 24), Square 370" for "Lots 22 and 24, Square 370".
Temporary Amendments of Section
Section 2(b) of D.C. Law 17-228 added pars. (5) and (6) to read as follows:
"(5) Lease payments shall be payable from cash available after payment of the developer's debt service on a loan for the New Convention Center Hotel.
"(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) additions, 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 of section, see § 2(b) 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(b) 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(b) 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) addition, see § 2(c) 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(f) 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.
For Law 17-339, see notes following § 10-1202.22.
For Law 17-353, see notes following § 10-1016.
For Law 18-78, see notes following § 10-1202.01.
