MURIEL BOWSER
MAYOR
May 22, 2023
Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1-
204.51 ), enclosed for consideration and approval by the Council of the District of Columbia is
an amendment to extend the term of an in-lease agreement with 1225 Eye Street, N.W.
Associates LLC for 24,810 square feet of office space located at 1225 Eye Street, NW. The
leased premises is occupied by the Health Benefit Exchange Authority.
If you have any questions regarding this contract, please contact Delano Hunter, Acting Director,
Department of General Services, at (202) 727-2800.
I look forward to the Council's favorable consideration of this contract.
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
May 3, 2023
Please note that any capitalized term used but not defined in this Summary shall have the meaning
given to such term in the proposed real estate contract.
1. The name of the proposed lessor, lessee, grantor or other party to the proposed real estate
contract, the type of real estate contract, the source selection method, the primary term
of the real estate contract (if applicable), and the consideration to be paid by the District
(for leases, the total annual rent for the first year and the fiscal years set forth in the
Funding Certification):
Contract Party Name: 1225 Eye Street, N.W. Associates LLC, a Delaware
limited liability company
Type of Real Estate Contract: Amendment to In-Lease Agreement (District is
tenant) (the “Amendment”)
Location of Real Property: 1225 I Street, NW
Source Selection Method: Non-Competitive as to Amendment
Primary Term (if applicable): 10 years with an option to extend by 5 years under
In-Lease Agreement. The Amendment would extend
the primary term by 5 years.
Consideration to be paid by District under Amendment:
First Lease Year Annual Rental (FY 25): $1,327,790.10
2. If the real estate contract is a lease amendment, a breakdown of the Annual Rental for
the first Lease Year set forth above under the lease, as amended by the proposed
amendment, the scheduled escalations thereof and known first Lease Year Additional
Rent obligations (e.g., parking and supplemental HVAC costs):
Components of $/RSF Total Amount for Annual Escalations after First Lease
Annual Rental First Lease Year Year under Amendment
under Amendment
Net Rental $31.24 $776,064.00 2.0%
Initial $10.12 $251,077.00 CPI-based
Operating Costs
_________________________________________________________________________________________________
2000 14th Street, NW, 8th Floor, Washington, DC 20009 • Telephone (202) 727-2800 • Fax (202) 727-7283
1
Initial Real $8.85 $219,568.00 Based on actual increases in Real Estate
Estate Taxes Taxes
Tenant $0.00 $0.00 N/A
Improvements
Allowance
Amortization
Total Annual $50.21 $1,245,710.00 N/A
Rental
Known Additional Rent Obligations for First Lease Year under Lease as amended by
Amendment
Parking for 24 $285.00 monthly $82,080.00 total 3.0% annual escalation
unreserved per space
spaces
Overtime HVAC $68.00/hour Will depend on usage 3.0% annual escalation
Costs
3. If the real estate contract is a lease amendment, a description of any extensions of or
options to renew the primary lease term set forth above, the contract amount for any
extension or option period (and an explanation of any difference), and a description of
any options to purchase the real property:
The Amendment would extend the 1 0 y e a r primary term under the existing In-
Lease Agreement by 5 years pursuant to an extension option. The District does not have any
remaining rights under the existing In-Lease Agreement to further extend the term. There is no
option to purchase the real property in the In-Lease Agreement or the Amendment.
4. A description of the real property to be acquired, developed, or leased, including any
applicable improvements:
Street Address: 1225 Eye Street, NW
Square/Lot Number: 0285 / 0047
Total RSF of Building: 217,287
Total RSF of Premises: 24,810
Under the Amendment, the Health Benefit Exchange Authority (“HBX”) will continue to
occupy 24,810 square feet of office space in the Building. HBX will also continue to have the
use of 24 unreserved parking spaces.
5. A description of the District’s specific real property need associated with the proposed
real estate contract and the selection process, including the number of offerors, the
evaluation criteria, and the evaluation results, including price, technical or quality, and
past performance components:
2
HBX has requested that the District exercise the extension option under the In-Lease
Agreement in order to remain at 1225 I Street, NW, as the premises continues to meet HBX’s
programmatic and space needs.
6. The background and qualifications of the proposed contract party, including its
organization, financial stability, personnel; performance on past or current real estate
contracts with requirements similar to those of the proposed contract; and a description
of any other contracts the proposed contract party is currently seeking:
1225 Eye Street, N.W. Associates LLC, a Delaware limited liability company, is the owner of
1225 I Street, NW. Landlord has no employees. Landlord has performed satisfactorily to date
under the existing In-Lease Agreement. Landlord is not currently seeking any other contracts
with the District.
7. Expected outcomes of the proposed real estate contract:
The execution of the Amendment is expected to result in the continued occupancy by HBX of
the subject space for 5 additional years.
8. A statement that suitable space owned by the District is not available nor can be
reasonably renovated or altered:
Based upon an evaluation of space owned by the District, there is no suitable space owned by
the District, either as-is or which can reasonably be renovated or altered, which would meet
the needs of HBX under the Amendment.
9. ANC notice of the proposed real estate contract:
ANC notice is not required for the Amendment, as HBX currently occupies the premises under
an existing In-Lease Agreement and the Amendment does not increase the premises.
10. A certification that the proposed real estate contract is within the appropriated budget
authority for the agency for the fiscal year and is consistent with the financial plan and
budget adopted in accordance with §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified the availability of funds for the proposed
real estate contract. Please see the attached Funding Certification.
11. A certification that the proposed real estate contract is legally sufficient:
The Office of the General Counsel for the Department of General Services has certified that
the proposed real estate contract is legally sufficient. Please see the attached Legal Sufficiency
Certification.
12. A certification as to whether the proposed contract party has any currently pending legal
claims against the District:
3
According to the District’s Office of the Attorney General and based upon a certification from
Landlord, other than appeals of the Office of Tax and Revenue’s real estate tax assessments on
the Property, Landlord does not have any legal claims currently pending against the District.
13. A certification that the Citywide Clean Hands database indicates that the proposed
contract party is current with its District taxes:
The proposed contract party is current with its District of Columbia taxes. Please see the
attached Citywide Clean Hands certificate.
14. A certification from the proposed contract party that it is current with its federal taxes,
or has worked out and is current with a payment schedule approved by the federal
government:
Based upon a certification from Landlord, Landlord is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government.
15. A certification that the proposed contract party has not been determined to be in
violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011, passed on
2nd reading on December 4, 2018 (Enrolled version of Bill 22-107):
Based upon a certification from Landlord, Landlord has not been determined to be in violation
of section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011, passed on 2nd reading on December
4, 2018 (Enrolled version of Bill 22-107).
16. A certification from the proposed contract party that it currently is not and will not be
in violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011, passed on
2nd reading on December 4, 2018 (Enrolled version of Bill 22-107):
Based upon a certification from Landlord, Landlord currently is not and will not be in violation
of section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011, passed on 2nd reading on December
4, 2018 (Enrolled version of Bill 22-107).
17. The status of the proposed contract party as a certified local, small, or disadvantaged
business enterprise, as defined in subchapter IX-A of Chapter 2 of title § 2-218.01 et seq.:
The proposed contract party is not a certified local, small, or disadvantaged business enterprise.
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Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: April 6, 2023 Notice Number: L0009382110
1225 EYE STREET NW ASSOCIATES LLC FEIN: **-***9236
5565 GLENRIDGE CONNECTOR STE 450 Case ID: 1488370
ATLANTA GA 30342-4788
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
PY
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
GOVERNMENT OPERATIONS CLUSTER
OFFICE OF FINANCE & RESOURCE MANAGEMENT
Antoinette Hudson Beckham Angelique Rice
Agency Fiscal Officer Associate Chief Financial Officer
Date: May 1, 2023
Agency Budget: Department of General Services (AM0)
Occupying Agency: DC Health Benefit Exchange (HI0)
Ward 2
Funds Needed: $0.00
Purpose: $0.00 funds are needed in FY23 and FY24 to extend the lease for DC Health
Benefit Exchange’s (HBX) current headquarters at 1225 Eye Street, NW.
$1,327,790.10 is subject to approval in the District’s FY2025 Budget and Financial
Plan.
Cost of Obligation FY23: $0.00
Cost of Obligation FY24: $0.00
Cost of Obligation FY25: $1,327,790.10
Term: 5 Years
_________________________ 05.01.2023
_________________________
Antoinette Hudson Beckham Date
Cc: Angelique Rice, Associate Chief Financial Officer, GOC
441 4th Street, NW – Suite 890 North - Washington, DC 20001
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
Office of the General Counsel
MEMORANDUM
TO: Thomas Wells
Director, Office of Policy and Legislative Affairs
THROUGH: Xavier Beltran
General Counsel, Department of General Services
FROM: Kimberly Jones
Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for Proposed Second Amendment to Award
of In Lease by and between the District and 1225 Eye Street, N.W. Associates
LLC for premises at 1225 I Street, NW, Washington, DC (the “Amendment”)
DATE: May 3, 2023
This is to certify that this Office has reviewed the above-referenced Amendment and that we have
found it to be legally sufficient, subject to the submission of any required materials and Council
approval.
If you have any questions, please do not hesitate to contact me at (202) 727-2800.
__________________________
Kimberly Jones
Assistant General Counsel, Department of General Services
________________________________________________________________________________________________
2000 14th Street, NW, 8th Floor, Washington, DC 20009 • Telephone (202) 727-2800 • Fax (202) 727-7283
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EXECUTION VERSION
SECOND AMENDMENT TO AWARD OF IN LEASE
THIS SECOND AMENDMENT TO AWARD OF IN LEASE (this “Second
Amendment”) is made and entered into as of this ___ day of ________, 2023 (the “Second
Amendment Effective Date”) by and between the DISTRICT OF COLUMBIA, a
municipal corporation, by and through its Department of General Services (“Tenant”), and
1225 EYE STREET, N.W. ASSOCIATES LLC, a Delaware limited liability company
(“Landlord”). Landlord and Tenant are each referred to hereinafter as a “Party” and
collectively referred to as the “Parties”.
WITNESSETH:
WHEREAS, pursuant to that certain Award of In Lease, by and between Landlord
and Tenant, with Lease Commencement Date of July 18, 2014 (the “Base Lease”), as
amended by that certain First Amendment to Lease, by and between Landlord and Tenant,
with an effective date of April 26, 2016 (the “First Amendment”, and such First
Amendment together with the Base Lease being the “Original Lease”, and such Original
Lease together with this Second Amendment being the “Lease”), Tenant leases from
Landlord, and Landlord leases to Tenant, those certain Premises located at 1225 I Street,
N.W., in Washington, D.C., as is more particularly set forth in the Original Lease; and
WHEREAS, the Parties desire to amend the terms of the Original Lease as set forth
herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Incorporation of Recitals and Exhibits. The above recitals and any exhibits
hereto are incorporated in, and made a part of, this Second Amendment.
2. Defined Terms. Capitalized terms used but not defined herein shall have
the meanings given to them in the Original Lease.
3. Extension Term. Notwithstanding anything in the Original Lease to the
contrary, including the provisions of Section 6 of the Base Lease, the Parties hereby
acknowledge and agree that the Lease Term is hereby extended by the Extension Term,
which shall commence on October 10, 2024 (the “Extension Term Commencement
Date”) and expire at 11:59 p.m. on October 31, 2029. In addition, notwithstanding
anything in the Lease to the contrary, the Parties hereby agree to the following:
(a) Parking. Commencing on the Extension Term Commencement
Date, Tenant’s annual Parking Fee for each unreserved Parking Space shall be
Three Thousand Four Hundred Twenty and 00/100 Dollars ($3,420.00), to be paid
in accordance with the terms of the Original Lease and subject to the annual
escalation (i.e., 3%) set forth in Section 2.3 of the Base Lease.
(b) Net Rental. Commencing on the Extension Term Commencement
Date, the Net Rental for the Premises (which is the combined Net Rental for the
Original Premises and Additional Premises) shall be as set forth in the schedule
attached hereto “Exhibit A” and made part hereof, and paid in accordance with the
terms of the Original Lease, subject to the terms set forth in Section 3(c) below. For
the avoidance of doubt, no amount shall be due or payable by Tenant under the
Lease for the amortization of any Tenant Improvement allowance during the
Extension Term.
(c) Additional Premises Credit. Notwithstanding any provision of the
Original Lease to the contrary, no Annual Rental shall be due or payable by Tenant
to Landlord for the Additional Premises (i.e. the 5,764 RSF leased by the District
on the 11th floor of the Building) for the first six (6) months of the Extension Term
(the “Additional Premises Credit”).
(d) Improvements. Landlord, at Landlord’s sole cost and expense, shall
(i) repaint the Original Premises and Additional Premises utilizing Building
standard paint in an “in stock” color to be reasonably selected by Tenant, and (ii)
profe