For the purposes of this subchapter, the term:
(1) "Available Real Property Tax Revenues" means the revenues resulting from the imposition of the tax under Chapter 8 of Title 47, including any penalties and interest charges, exclusive of the special tax provided for in § 1- 204.81, pledged to the payment of general obligation indebtedness of the District.
(2) "Available Sales Tax Revenues" means the revenues resulting from the imposition of the tax under Chapter 20 of Title 47, including any penalties and interest charges, exclusive of the portion thereof required to be deposited in the Washington Convention Center Fund established pursuant to § 10-1202.08.
(3) "Bonds" means any bonds, notes, or other instruments issued by the District pursuant to § 1-204.90 and secured by Tax Increment Revenues or other security authorized by this subchapter.
(4) "CFO" means the Chief Financial Officer of the District of Columbia.
(5) "Downtown Retail Priority Area" means the record lots that front one of the following street locations: 7th Street, N.W., between Indiana and Massachusetts Avenues, N.W.; 11th Street, N.W., between Pennsylvania Avenue, N.W., and New York Avenue, N.W.; F Street, N.W., between 6th and 15th Streets, N.W.; and G Street, N.W., between 10th and 13th Streets, N.W., and includes portions of the following squares: 223, 224, 225, 252, 253, 254, 288, 289, 290, 319, 320, 321, 322, 346, 347, 348, 376, 377, 403, 406, 408.1, 428, 429, 430, 431, 452, 453, 454, 455, 456, 457, and 458.
(6) "Home Rule Act" means Chapter 2 of Title 1.
(7) "LSDBE" means a local, small, or disadvantaged business enterprise certified by the Small and Local Business Opportunity Commission under subchapter IX-A of Chapter 2 of this title.
(8) "Retail Development Project" means the establishment of a business engaged in direct onsite retail sales to consumers or providing a unique entertainment attraction, including the following activities in connection with such business: acquisition, purchase, construction, reconstruction, improvement, renovation, rehabilitation, restoration, remodeling, repair, remediation, expansion, extension, and the furnishing, equipping, and opening for business. In the case of the Downtown Retail Priority Area, Retail Development Projects shall meet the requirements of § 2-1217.73a, shall be limited to restaurants (on a demonstration basis), grocery and specialty food stores and businesses engaged in sales of home furnishings, apparel, and general merchandise goods to specialized customers, or providing a unique entertainment attraction, and shall specifically exclude:
(A) Liquor stores, nightclubs, hotels, banks, pharmacies, phone stores, and service retail outlets; and
(B) The relocation of a business to the Downtown Retail Priority Area from another location within the District, unless the relocation involves a significant expansion of the size of the business.
(9) "Retail Development Costs" means any costs associated with, arising out of, or incurred in connection with:
(A) A Retail Development Project;
(B) The issuance of, or debt service or any other payments in respect of, the Bonds, including costs of issuance, capitalized interest, credit enhancement fees, reserve funds, or working capital; or
(C) The relocation of any business where the purpose of the relocation is to make space for a Retail Development Project.
(10) "Retail Priority Area" means:
(A) The Downtown Retail Priority Area; and
(B) Any other area or areas of the District so designated by the Mayor and approved by the Council in accordance with this subchapter.
(11) "Rules of Operation" means the rules and procedures, established by the Mayor pursuant to § 2-1217.74, by which Retail Development Projects will be approved as TIF Areas and receive proceeds of Bonds to pay Retail Development Costs.
(12) "Tax Increment Revenues" means the portion of the Available Real Property Tax Revenues, Available Sales Tax Revenues, or both, allocable to one or more tax allocation funds pursuant to § 2-1217.76.
(13) "TIF" means tax increment financing.
(14) "TIF Act" means subchapter IX of Chapter 12 of Title 2 or any successor act.
(15) "TIF Area" means a Retail Development Project that has been approved by the Mayor to receive proceeds of Bonds in accordance with the applicable Rules of Operation for the Retail Priority Area in which the Retail Development Project is located.
(Sept. 8, 2004, D.C. Law 15-185, § 2, 51 DCR 5941; Mar. 2, 2007, D.C. Law 16-191, § 11, 53 DCR 6794; Mar. 20, 2008, D.C. Law 17-129, § 2(a), 55 DCR 1532; Nov. 19, 2008, D.C. Law 17-262, § 2(a), 55 DCR 10887; Mar. 25, 2009, D.C. Law 17-353, § 226, 56 DCR 1117; Mar. 3, 2010, D.C. Law 18-106, § 2, 57 DCR 18; Mar. 3, 2010, D.C. Law 18-111, § 2082(g), 57 DCR 181; Sept. 24, 2010, D.C. Law 18-223, § 7112(a), 57 DCR 6242.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-191 rewrote par. (7) which had previously read as follows:
"(7) 'LSDBE' means a local, small, or disadvantaged business enterprise certified by the District of Columbia Local Business Opportunity Commission under subchapter IX of Chapter 2 of Title 2."
D.C. Law 17-129, in par. (8), substituted "direct onsite retail sales to consumers or providing a unique entertainment attraction," for "direct onsite retail sales to consumers," and substituted "general merchandise goods to specialized customers, or providing a unique entertainment attraction," for "general merchandise goods to specialized customers".
D.C. Law 17-262, in par. (8), substituted "limited to grocery and specialty food stores and" for "limited to".
D.C. Law 17-353 validated a previously made technical correction in par. (8).
D.C. Law 18-106, in par. (5), substituted "15th Streets, N.W." for "14th Streets, N.W.".
D.C. Law 18-111, in par. (2), substituted "Washington Convention Center Fund" for "Washington Convention Center Authority Fund".
D.C. Law 18-223, in the lead-in language of par. (8), substituted "shall meet the requirements of § 2-1217.73a, shall be limited to restaurants (on a demonstration basis)," for "shall be limited to"; and, in par. (8)(A), deleted "restaurants," following "hotels,".
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(a) of Downtown Retail TIF Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-302, February 22, 2008, 55 DCR 2510).
For temporary (90 day) amendment of section, see § 2082(g) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 2082(g) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
For temporary (90 day) amendment of section, see § 7112(a) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Legislative History of Laws
Law 15-185, the "Retail Incentive Act of 2004", was introduced in Council and assigned Bill No. 15-306, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on April 6, 2004, and May 4, 2004, respectively. Signed by the Mayor on May 21, 2004, it was assigned Act No. 15-435 and transmitted to both Houses of Congress for its review. D.C. Law 15-185 became effective on September 8, 2004.
Law 16-191, the "Technical Amendments Act of 2006", was introduced in Council and assigned Bill No. 16-760, which was referred to the Committee of the whole. The Bill was adopted on first and second readings on June 20, 2006, and July 11, 2006, respectively. Signed by the Mayor on July 31, 2006, it was assigned Act No. 16-475 and transmitted to both Houses of Congress for its review. D.C. Law 16-191 became effective on March 2, 2007.
Law 17-129, the "Downtown Retail TIF Amendment Act of 2008", was introduced in Council and assigned Bill No. 17-451 which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on December 11, 2007, and January 8, 2008, respectively. Signed by the Mayor on January 29, 2008, it was assigned Act No. 17-279 and transmitted to both Houses of Congress for its review. D.C. Law 17-129 became effective on March 20, 2008.
Law 17-262, the "Downtown Retail Tax Increment Financing Amendment Act of 2008", was introduced in Council and assigned Bill No. 17-771 which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on July 15, 2008, and September 16, 2008, respectively. Signed by the Mayor on September 29, 2008, it was assigned Act No. 17-513 and transmitted to both Houses of Congress for its review. D.C. Law 17-262 became effective on November 19, 2008.
For Law 17-353, see notes following § 2-218.42.
Law 18-106, the "F Street, N.W. Downtown Retail Priority Area Clarification Amendment Act of 2009", was introduced in Council and assigned Bill No. 18-303, which was referred to the Committee on Finance and Revenue. The bill was adopted on first and second readings on November 3, 2009, and December 1, 2009, respectively. Signed by the Mayor on December 18, 2009, it was assigned Act No. 18-244 and transmitted to both Houses of Congress for its review. D.C. Law 18-106 became effective on March 3, 2010.
For Law 18-111, see notes following § 2-218.50.
For Law 18-223, see notes following § 2-218.76.
Miscellaneous Notes
Short title: Section 7111 of D.C. Law 18-223 provided that subtitle L of title VII of the act may be cited as the "Retail Incentive Amendment Act of 2010".
(a) Bonds shall not be issued pursuant to this subchapter to the extent the issuance will cause the aggregate principal amount of Bonds issued pursuant to this subchapter and the TIF Act to exceed $500 million; provided, that the aggregate amount of TIF bonds for projects in the Central Business District, as defined in Title 11 of the District of Columbia Municipal Regulations, shall not exceed $300 million.
(b) Bonds shall not be issued pursuant to this subchapter after September 30, 2015.
(Sept. 8, 2004, D.C. Law 15-185, § 3, 51 DCR 5941; Mar. 2, 2007, D.C. Law 16-192, § 2003, 53 DCR 6899; Sept. 24, 2010, D.C. Law 18-223, § 7112(b), 57 DCR 6242.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 16-192, in subsec. (a), substituted "$500 million; provided, that the aggregate amount of TIF bonds for projects in the Central Business District, as defined in Title 11 of the District of Columbia Municipal Regulations, shall not exceed $300 million" for "$300 million".
D.C. Law 18-223, in subsec. (b), substituted "September 30, 2015" for "December 31, 2013".
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2003 of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 2003 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 2003 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 7112(b) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
For Law 16-192, see notes following § 2-1217.02.
For Law 18-223, see notes following § 2-218.76.
(a)(1) The Mayor shall identify areas within the District where:
(A) There exist barriers to entry that impede Retail Development Projects; and
(B) The proceeds of Bonds may be used to eliminate these barriers to entry and promote Retail Development Projects.
(2)(A) The Mayor may designate additional Retail Priority Areas by submitting to the Council for a 45-day period of review, excluding weekends, holidays, and periods of Council recess, a proposed resolution, which:
(i) Designates one or more Retail Priority Areas;
(ii) States the maximum aggregate principal amount of Bonds that may be issued with respect to each Retail Priority Area; and
(iii) States the latest date by which the Bonds may be issued with respect to each Retail Priority Area.
(B) In addition to the resolution, the Mayor shall submit to the Council information supporting the Mayor's determinations concerning the use of TIF to promote retail development in each Retail Priority Area, including findings of the CFO that the proposed Retail Priority Area is not inconsistent with the financial plan and budget for the fiscal year of the District and does not exceed the limitations set forth in § 2-1217.72(a).
(C) If the Council does not approve or disapprove the proposed resolution within the 45-day period of review, excluding weekends, holidays, and periods of Council recess, the proposed resolution shall be deemed approved.
(b) In addition to Retail Priority Areas that may be approved pursuant to subsection (a) of this section:
(1) The Downtown Retail Priority Area is designated as a Retail Priority Area;
(2) The issuance of Bonds with respect to the Downtown Retail Priority Area, not to exceed the aggregate principal amount of $25 million, is approved;
(3) The latest date for the issuance of such Bonds is September 30, 2015; and
(4) The base year for the calculation of Available Sales Tax Revenues shall be the fiscal year beginning October 1, 2002 and the base year for the calculation of Available Real Property Tax Revenues shall be the fiscal year beginning October 1, 2003.
(b-1) The maximum aggregate principal amount of bonds that may be issued with respect to the Pennsylvania Avenue, S.E., Retail Priority Area, approved by the Council in section 3(6) of the Great Streets Neighborhood Retail Priority Areas Approval Resolution of 2007, effective July 10, 2007 (Res. 17-257; 54 DCR 7194), is increased from $10 million to $15 million.
(c) The Mayor shall prepare and deliver an annual report to the Council each year on January 1st through the year ending September 30, 2015. The annual report shall contain a listing and description of each Retail Development Project approved as a TIF Area pursuant to this subchapter. Each listing shall contain specific information about the nature of the Retail Development Project, the use of the proceeds of the Bonds, the projected Tax Increment Revenues attributable to each listed TIF Area, and any other information the Council may request regarding such TIF Areas.
(d) If the Mayor determines that a Retail Priority Area is no longer necessary, the Mayor may abolish the Retail Priority Area; provided, that if any Bonds are outstanding with respect to any TIF Area therein, the Mayor shall take no action to abolish the Retail Priority Area or that otherwise will adversely affect the security of the holders of the Bonds.
(e) The Mayor shall identify potential Retail Priority Areas. Within 180 days of September 8, 2004, the Mayor shall submit to the Council resolutions designating as Retail Priority Areas the following areas:
(1) Columbia Heights;
(2) Georgia Avenue;
(3) Minnesota/Benning;
(4) Shaw; and
(5) H Street, NE Corridor.
(Sept. 8, 2004, D.C. Law 15-185, § 4, 51 DCR 5941; Sept. 24, 2010, D.C. Law 18-223, § 7112(c), 57 DCR 6242; Sept. 20, 2012, D.C. Law 19-168, § 2152, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 18-223, in subsec. (b), substituted "September 30, 2015" for "4 years from the date that the Mayor establishes the Rules of Operation for the Downtown Retail Priority Area"; and, in subsec. (c), substituted "September 30, 2015" for "December 31, 2013".
D.C. Law 19-168, in subsec. (b)(2), substituted "$25 million" for "$30 million"; and added subsec. (b-1).
Emergency Act Amendments
For temporary (90 day) amendment of section, see §§ 7112(c) and 7113 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
For temporary (90 day) amendment of section, see § 2152 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) amendment of section, see § 2152 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
For history of Law 19-168, see notes under § 2-218.76.
Resolutions
Resolution 15-775, the "Fort Lincoln Washington Gateway Project Retail Priority Area Approval Resolution of 2004", was approved effective December 7, 2004.
Resolution 15-776, the "Rhode Island Place Project Retail Priority Area Approval Resolution of 2004", was approved effective December 7, 2004.
Resolution 16-430, the "Children's Museum Project Retail Priority Area Approval Resolution of 2006", was approved effective January 18, 2006.
Resolution 17-257, the "Great Streets Neighborhood Retail Priority Areas Approval Resolution of 2007", was approved effective July 10, 2007.
Miscellaneous Notes
Section 7113 of D.C. Law 18-223 provides:
"Sec. 7113. Applicability.
"Section 7112(c) shall apply as of November 21, 2009."
Short title: Section 2151 of D.C. Law 19-168 provided that subtitle P of title II of the act may be cited as "Pennsylvania Avenue, S.E., Retail Priority Area Amendment Act of 2012".
Legislative History of Laws
For Law 18-223, see notes following § 2-218.76.
In the case of the Downtown Retail Priority Area, Retail Development Projects shall include, on a demonstration project basis, one or more restaurants; provided, that the total amount of Bonds available for such demonstration projects shall not be greater than 3% of the aggregate principal amount of Bonds authorized pursuant to § 2-1217.72(a). Notwithstanding the defined boundaries of the Downtown Retail Priority Area, the Mayor shall use best efforts to ensure that at least one demonstration project is located in Ward 7 or 8. Not later than 3 years from the issuance of Bonds for demonstration projects, the CFO shall report to the Mayor and the Council regarding the economic effects on the District of such projects.
(Sept. 8, 2004, D.C. Law 15-85, § 4a, as added Sept. 24, 2010, D.C. Law 18-223, § 7112(d), 57 DCR 6242.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) addition, see § 7112(d) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Legislative History of Laws
For Law 18-223, see notes following § 2-218.76.
(a) Upon approval by resolution pursuant to § 2-1217.73(a) with respect to any Retail Priority Area, or upon September 8, 2004, in the case of the Downtown Retail Priority Area, the Mayor shall establish Rules of Operation with respect to each Retail Priority Area as the Mayor considers necessary or appropriate for:
(1) The approval and certification by the Mayor of Retail Development Projects within the Retail Priority Area as TIF Areas;
(2) The issuance of Bonds secured by the Tax Increment Revenues or any other security authorized by this subchapter which is generated by or relates to the Retail Development Projects;
(3) The allocation of the proceeds of the Bonds to fund Retail Development Costs of the Retail Development Projects; and
(4) Such other matters as the Mayor considers necessary or appropriate to achieve the goals and objectives for the Retail Priority Area.
(b) The Rules of Operation for the Downtown Retail Priority Area shall include the following:
(1) A rating system designed to rank Retail Development Projects based on the following objective criteria:
(A) The likelihood of Bond repayment based on projected Tax Increment Revenues or any other security authorized by this subchapter from or relating to the Retail Development Project;
(B) The uniqueness of the retailer or unique entertainment attraction;
(C) The likelihood that the retailer or unique entertainment attraction will attract other retailers to locate nearby;
(D) The position of the retailer or unique entertainment attraction in its market and whether the retailer or unique entertainment attraction is the first in its market to locate in the Downtown Retail Priority Area;
(E) The extent to which the retailer or unique entertainment attraction promotes the Downtown Retail Priority Area in its advertising;
(F) The vertical integration of the retailer or unique entertainment attraction;
(G) The intention of the retailer or unique entertainment attraction to locate on more than one level of the building in which it is located;
(H) Whether the retailer or unique entertainment attraction builds an expressive storefront;
(I) Whether the retailer or unique entertainment attraction is owned by a District resident or is based in the District;
(J) The amount of space occupied by the retailer or unique entertainment attraction; and
(K) Whether the retailer or unique entertainment attraction is one of multiple retailers or unique entertainment attractions that co-locate in the Downtown Retail Priority Area;
(2) A numeric formula based upon the foregoing rating system that, for any proposed Retail Development Project, will produce a dollar amount of proceeds of Bonds that shall be allocated to the Retail Development Project if it is approved as a TIF Area;
(3) The establishment of a committee comprised of the Mayor, retail brokers and property owners in the Downtown Retail Priority Area, and such other persons as the Mayor shall designate, which committee shall:
(A) Apply the rating system to proposed Retail Development Projects and review and revise the rating system from time to time as necessary to respond to market conditions;
(B) Adjust the formula for the allocation of Bond proceeds as may be necessary or appropriate to maximize the use of Bond proceeds to achieve the purposes of this subchapter;
(C) Recommend Retail Development Projects for designation as TIF Areas to the Mayor; and
(D) Take such other actions as the Mayor may consider necessary or appropriate to facilitate the selection and funding of TIF Areas in the Downtown Retail Priority Area;
(4)(A) A procedure pursuant to which the Mayor shall certify:
(i) The rating of Retail Development Project, based upon the rating system;
(ii) The amount of Bond proceeds that, based upon the allocation formula, may be allocated to Retail Development Projects; and
(iii) Retail Development Projects as TIF Areas; and
(B) The procedure shall permit the Mayor to suspend and re-institute from time to time the designation of TIF Areas pursuant to this subchapter in response to market conditions;
(5) A requirement that the owner of any building or tenant applying for the TIF in which a TIF Area is located enter into a development agreement, satisfactory to the Mayor, that sets forth:
(A) The goals and objectives for achieving the revitalization of retail development in the Downtown Retail Priority Area;
(B) Requirements for the leasing of retail space in the building in a manner that will advance the goals and objectives;
(C) The terms and conditions pursuant to which Bond proceeds will be advanced to pay Retail Development Costs incurred in connection with the TIF Area;
(D) The owner's agreement or tenant's agreement to sign an LSDBE certified business enterprise agreement that establishes a goal of hiring LSDBEs to perform construction or operations work, the costs of which equals 35% of the Bond proceeds.
(E) The owner's agreement or tenant's agreement to require the retailer of the Retail Development Project to execute a first source agreement with the Department of Employment Services that establishes a goal of hiring District residents for at least 51% of the new jobs created by the Retail Development Project;
(F) Such matters as may be required in connection with the issuance of the Bonds; and
(G) Such other matters as the Mayor determines to be necessary or appropriate in connection with such TIF Area;
(6) Requirements that the proceeds of the Bonds issued with respect to any TIF Area shall not be advanced to pay Retail Development Costs until the TIF Area is open for business to the general public; and
(7) Procedures and timetables for the approval of Retail Development Projects as TIF Areas that are designed to facilitate, and not impede, negotiations between building owners and retailers in the Downtown Retail Priority Area.
(c) The Rules of Operation shall be uniformly applied within any given Retail Priority Area, but may vary across different Retail Priority Areas to address the specific needs of each Retail Priority Area.
(Sept. 8, 2004, D.C. Law 15-185, § 5, 51 DCR 5941; Mar. 20, 2008, D.C. Law 17-129, § 2(b), 55 DCR 1532; Nov. 19, 2008, D.C. Law 17-262, § 2(b), 55 DCR 10887; Mar. 25, 2009, D.C. Law 17-353, § 227, 56 DCR 1117.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-129 rewrote subsecs. (b)(1) and (5); and, in subsec. (c), deleted "Notwithstanding anything to the contrary herein, the Rules of Operation shall provide that a Retail Development Project that, either directly or as part of a larger development project, has already received proceeds of Bonds through another TIF program shall not be designated a TIF Area under this subchapter." Prior to amendment, subsecs. (b)(1) and (5) read as follows:
"(1) A rating system designed to rank Retail Development Projects based on the following objective criteria:
"(A) The likelihood of Bond repayment based on projected Tax Increment Revenues or any other security authorized by this subchapter from or relating to the Retail Development Project;
"(B) The uniqueness of the retailer;
"(C) The likelihood that the retailer will attract other retailers to locate nearby;
"(D) The position of the retailer in its market and whether the retailer is the first in its market to locate in the Downtown Retail Priority Area;
"(E) The extent to which the retailer promotes the Downtown Retail Priority Area in its advertising;
"(F) The vertical integration of the retailer;
"(G) The intention of the retailer to locate on more than one level of the building in which it is located;
"(H) Whether the retailer builds an expressive storefront;
"(I) Whether the retailer is owned by a District resident or is based in the District;
"(J) The amount of space occupied by the retailer; and
"(K) Whether the retailer is one of multiple retailers that co-locate in the Downtown Retail Priority Area;"
"(5) A requirement that the owner of any building in which a TIF Area is located enter into a development agreement, satisfactory to the Mayor, that sets forth:
"(A) The goals and objectives for achieving the revitalization of retail development in the Downtown Retail Priority Area;
"(B) Requirements for the leasing of retail space in the building in a manner that will advance the goals and objectives;
"(C) The terms and conditions pursuant to which Bond proceeds will be advanced to pay Retail Development Costs incurred in connection with the TIF Area;
"(D) The owner's agreement to use good faith efforts to use LSDBEs to perform any construction work the cost of which is paid for or reimbursed by Bond proceeds;
"(E) The owner's agreement to require the retailer of the Retail Development Project to execute a first source agreement with the Department of Employment Services that establishes a goal of hiring District residents for at least 51% of the new jobs created by the Retail Development Project;
"(F) Such matters as may be required in connection with the issuance of the Bonds; and
"(G) Such other matters as the Mayor determines to be necessary or appropriate in connection with such TIF Area;"
D.C. Law 17-262, in subsec. (b)(6), substituted "that the proceeds of the Bonds issued with respect to any TIF Area" for "that Bonds shall not be issued with respect to any TIF Area and the proceeds of the Bonds".
D.C. Law 17-353 , in subsec. (b)(1)(K), substituted "retailers or unique entertainment attractions that co-locate" for "retailers that co-locate".
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(b) of Downtown Retail TIF Congressional Review Emergency Amendment Act of 2008 (D.C. Act 17-302, February 22, 2008, 55 DCR 2510).
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
For Law 17-129, see notes following § 2-1217.71.
For Law 17-262, see notes following § 2-1217.71.
For Law 17-353, see notes following § 2-218.42.
(a) When a Retail Development Project is certified as a TIF Area by the Mayor pursuant to this subchapter, the proceeds of Bonds issued with respect to the TIF Area shall be used to pay Retail Development Costs and shall be subject to such terms, conditions, and requirements as the Mayor determines to be in the best interests of the District and will further the purposes of this subchapter. The terms, conditions and requirements shall be included in an agreement entered into between the District and the recipient of the proceeds prior to the advance of the proceeds; provided, that, in the Downtown Retail Priority Area, Tax Increment Revenues or any other security authorized by this subchapter shall be used for the payment of debt service on Bonds issued to Bondholders arranged by the recipient of the proceeds of the Bonds prior to the issuance of the Bonds and the proceeds of the Bonds shall be available to the recipient only after the issuance of a certificate of occupancy for the Retail Development Project. In the case of Bonds issued with respect to the Downtown Retail Priority Area, the recipient of the proceeds of the Bonds shall guarantee the Bonds.
(b) In the case of the Downtown Retail Priority Area, Tax Increment Revenues and the proceeds of Bonds may also be used to pay costs and expenses:
(1) Incurred in connection with the start-up and administration of a TIF program in the Downtown Retail Priority Area (including feasibility studies, market studies, and legal costs), and marketing the TIF program and the Downtown Retail Priority Area to prospective retailers; provided, that the amount expended pursuant to this paragraph shall not exceed $1 million in the aggregate; and
(2) Of establishing, maintaining, and operating a program to support parking for customers of retail businesses in the Downtown Retail Priority Area and providing streetscape and facade improvements in the Downtown Retail Priority Area; provided, that the amount expended pursuant to this paragraph shall not exceed $5 million in the aggregate.
(Sept. 8, 2004, D.C. Law 15-185, § 6, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
(a) Within 60 days after the certification of a TIF Area by the Mayor, the CFO shall provide for the allocation of Tax Increment Revenues within each TIF Area. The CFO shall establish one or more separate tax increment allocation accounts within the General Fund of the District of Columbia for the deposit and application of Available Sales Tax Revenues and Available Real Property Tax Revenues from each TIF Area. Monies shall be transferred from such accounts at the times and in the amounts required pursuant to financing documents relating to any Bonds. Monies held or to be held in a tax allocation account may be used to (1) pay debt service on Bonds, (2) pay other costs due and payable under the applicable financing documents, and (3) to pay any other costs or expenses permitted by this subchapter. Monies in a tax allocation account or in any fund or account established under any financing documents may be pledged as security for the payment of debt service on Bonds.
(b) Notwithstanding any other law, after a TIF Area has been certified by the Mayor, the portion of Tax Increment Revenues that results from the real property and sales tax levied within the TIF Area each year beginning from the date of the certification of the TIF Area shall be paid to the CFO for deposit into one or more of the tax increment accounts established by the CFO pursuant to subsection (a) of this section.
(c) If Bonds have been issued and are outstanding, the amounts, if any, remaining in the tax increment accounts for a TIF Area at the end of each tax year, after provision for the payment of debt service on any Bonds, any costs of credit or liquidity enhancement, other costs, fees, and expenses of administering, carrying, and paying the Bonds and the funds, trusts, and escrows pertaining to them, and providing for reasonably required reserves, all as provided in the financing documents, and after payment of any other costs or expenses permitted by this subchapter, shall revert to the General Fund of the District of Columbia.
(Sept. 8, 2004, D.C. Law 15-185, § 7, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
The issuance of Bonds, including any refunding Bonds, is authorized pursuant to § 1-204.90 to finance Retail Development Costs of TIF Areas certified by the Mayor pursuant to this subchapter. This subchapter constitutes an act of Council authorizing the issuance of Bonds, including refunding Bonds, as required by § 1-204.90. The Bonds shall be secured by Tax Increment Revenues in amounts not to exceed the limits provided for in this subchapter or other security authorized by this subchapter. The issuance of Bonds, including any refunding Bonds in specified aggregate principal amounts, shall be approved by the Mayor in accordance with this subchapter.
(Sept. 8, 2004, D.C. Law 15-185, § 8, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
(a) The Mayor may take any action necessary or appropriate in accordance with this subchapter in connection with the preparation, execution, issuance, sale, delivery, and payment of Bonds, including determinations of:
(1) The final form, content, designation, and terms of the Bonds, including a determination that the Bonds may be issued in certificate or book entry form;
(2) The principal amount of the Bonds to be issued and denominations of the Bonds;
(3) The rate or rates of interest or the method for determining the rate or rates of interest on the Bonds;
(4) The date or dates of issuance, sale, and delivery of, and the payment of interest on the Bonds, and the maturity date or dates of the Bonds;
(5) The terms under which the Bonds may be paid, optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before their respective stated maturities;
(6) Provisions for the registration, transfer, and exchange of each series of Bonds and the replacement of mutilated, lost, stolen, or destroyed Bonds;
(7) The creation of any reserve fund, sinking fund, or other fund with respect to the Bonds;
(8) The time and place of payment of the Bonds;
(9) Procedures for monitoring the use of the proceeds received from the sale of the Bonds to ensure that they are properly applied to their respective eligible project and used to accomplish the purposes of this subchapter; and
(10) Actions necessary to qualify the Bonds under blue sky laws of any jurisdiction where the Bonds are marketed.
(b) The Bonds shall contain a legend, which shall provide that the Bonds shall be special obligations of the District, shall be nonrecourse to the District, shall not be a pledge of, and shall not involve, the faith and credit or the taxing power of the District (other than the Tax Increment Revenues or any other security authorized by this subchapter), shall not constitute a debt of the District, and shall not constitute lending of the public credit for private undertakings as prohibited in § 1-206.02(a)(2).
(c) The Bonds shall be executed in the name of the District and on its behalf by the manual or facsimile signature of the Mayor. The Mayor's execution and delivery of the Bonds shall constitute conclusive evidence of the Mayor's approval, on behalf of the District, of the final form and content of the same.
(d) The official seal of the District, or facsimile of it, shall be impressed, printed, or otherwise reproduced on the Bonds.
(e) The Bonds may be issued at any time or from time to time in one or more issues and in one of more series.
(Sept. 8, 2004, D.C. Law 15-185, § 9, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
(a) A series of Bonds may be secured by a trust agreement or trust indenture between the District and a corporate trustee having trust powers, or secured by a loan agreement or other instrument giving power to a corporate trustee by means of which the District may do the following:
(1) Make and enter into any and all covenants and agreements with the trustee or the holders of the Bonds that the District may determine to be necessary or desirable covenants and agreements as to:
(A) The application, investment, deposit, use, and disposition of the proceeds of Bonds and the other monies, securities, and property of the District;
(B) The assignment by the District of its rights in any agreement;
(C) Terms and conditions upon which additional Bonds of the District may be issued;
(D) Providing for the appointment of a trustee to act on behalf of bondholders and abrogating or limiting the rights of the bondholders to appoint a trustee; and
(E) Vesting in a trustee for the benefit of the holders of Bonds, or in the bondholders directly, such rights and remedies as the District shall determine to be necessary or desirable;
(2) Pledge, mortgage or assign monies, agreements, property or other assets of the District, either presently in hand or to be received in the future, or both;
(3) Provide for bond insurance and letters of credit, or otherwise enhance the credit of and security for the payment of the Bonds; and
(4) Provide for any other matters of like or different character that in any way affect the security for or payment of the Bonds.
(b) Bonds are declared to be issued for essential public and governmental purposes. The Bonds and the interest thereon and the income therefrom, and all monies pledged or available to pay or secure the payment of the Bonds, shall at all times be exempt from taxation by the District, except for estate, inheritance, and gift taxes.
(c) The District does hereby pledge to and covenant and agree with the holders of any Bonds that, subject to the provisions of the financing documents, the District will not limit or alter the revenues pledged to secure the Bonds or the basis on which such revenues are collected or allocated, will not impair the contractual obligations of the District to fulfill the terms of any agreement made with the holders of the Bonds, will not in any way impair the rights or remedies of the holders, and will not modify in any way the exemptions from taxation provided for in this subchapter, until the Bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any suit, action or proceeding by or on behalf of the holders, are fully met and discharged. This pledge and agreement of the District may be included as part of the contract with the holders of any of its Bonds. This subsection shall constitute a contract between the District and the holders of the Bonds authorized by this subchapter. To the extent that any acts or resolutions of the Council may be in conflict with this subchapter, this subchapter shall be controlling.
(d) Consistent with § 1-204.90(a)(4)(B) and, notwithstanding Article 9 of Title 28:
(1) A pledge made and security interest created in respect of any Bonds or pursuant to any related financing document shall be valid, binding, and perfected from the time the security interest is created, with or without physical delivery of any funds or any property and with or without any further action;
(2) The lien of the pledge shall be valid, binding, and perfected as against all parties having any claim of any kind in tort, contract, or otherwise against the District, whether or not such party has notice; and
(3) The security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to the security interest is recorded or filed.
(Sept. 8, 2004, D.C. Law 15-185, § 10, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
If there shall be a default in the payment of the principal of, or interest on, any Bonds of a series after the principal or interest shall become due and payable, whether at maturity or upon call for redemption, or if the District shall fail or refuse to carry out and perform the terms of any agreement with the holders of any of the Bonds, the holders of the Bonds, or the trustee appointed to act on behalf of the holders of the Bonds, may, subject to the provisions of the financing documents, do the following:
(1) By action, writ, or other proceeding, enforce all rights of the holders of the Bonds, including the right to require the District to carry out and perform the terms of any agreement with the holders of the Bonds or its duties under this subchapter;
(2) By action, require the District to account as if it were the trustee of an express trust;
(3) By action, petition to enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the Bonds; and
(4) Declare all the Bonds due and payable, whether or not in advance of maturity and, if all the defaults be made good, annul the declaration and its consequences.
(Sept. 8, 2004, D.C. Law 15-185, § 11, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
(a) The members of the Council, the Mayor, or any person executing Bonds shall not be liable personally on the Bonds by reason of the issuance thereof.
(b) Notwithstanding any other provision of this subchapter, the Bonds shall not be general obligations of the District and shall not be in any way a debt or liability of the District within the meaning of any debt or other limit prescribed by law. The full faith and credit or the general taxing power of the District (other than the Tax Increment Revenues or other security authorized under this subchapter) shall not be pledged to secure the payment of any Bonds.
(Sept. 8, 2004, D.C. Law 15-185, § 12, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
This subchapter shall not adversely affect any actions taken, agreements entered into, pledge of security made or Bonds issued prior to September 8, 2004.
(Sept. 8, 2004, D.C. Law 15-185, § 13, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
The Mayor shall promulgate rules and regulations setting forth the criteria and procedures necessary to implement the provisions of this subchapter.
(Sept. 8, 2004, D.C. Law 15-185, § 14, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
Delegation of Authority
Delegation of Mayor's Rulemaking Authority for the Retail Incentive Second Congressional Review Emergency Act of 2004 and Any Similar Succeeding Legislation, see Mayor's Order 2004-146, August 26, 2004 (51 DCR 9194).
Delegation of Authority-Retail Incentive Act of 2004, see Mayor's Order 2005- 195, December 13, 2005, (53 DCR 700).
This subchapter shall be liberally construed to effect the purposes stated herein.
(Sept. 8, 2004, D.C. Law 15-185, § 15, 51 DCR 5941.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 15-185, see notes following § 2-1217.71.
