MURIEL BOWSER
MAYOR
November 14, 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
in-lease agreement with 2201 Shannon Place LLC for 18,023 rentable square feet of office and
training space located at 2201 Shannon Place SE. The leased premises will be occupied by the
District’s Department of Employment Services for use by the District of Columbia Infrastructure
Academy.
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.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
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: 2201 Shannon Place LLC, a District of Columbia
limited liability company (“Landlord”)
Type of Real Estate Contract: In-Lease Agreement (District is tenant)
Location of Real Property: 2201 Shannon Place, SE, Washington DC
Source Selection Method: Non-Competitive
Primary Term (if applicable): 15 years
Consideration to be paid by District:
- First Lease Year Annual Rental:$1,009,288.00
- Certificate of Funding
Fiscal Year 2024: $0.00
2. If the real estate contract is a lease, a breakdown of the Annual Rental for the first Lease
Year set forth above, 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
Annual Rental First Lease Year Lease Year
Net Rental $28.47 $513,114.81 2.25%
Initial Operating $7.70 (net of $138,777.10 CPI-based
Costs electrical)
Initial Real $7.50 $135,172.50 Based on actual increases in Real
Estate Taxes Estate Taxes
Tenant $12.33 $222,223.59 N/A
Improvements
Allowance
Amortization
Total Annual $56.00 $1,009,288.00 N/A
Rental
_________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, DC 20019 • Telephone (202) 727-2800 • Fax (202) 727-7283
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Known Additional Rent Obligations for First Lease Year
1 Reserved Fleet $339.00/space $4,068.00 total 2.5% annual escalation
Vehicle Parking monthly
Space
5 Unreserved $150.00/space $9,000.00 total 2.5% annual escalation
Fleet Vehicle monthly
Parking Spaces
3. If the real estate contract is a lease, a description of any options to renew the primary
lease term set forth above, the contract amount for the primary lease term and each
option period (and an explanation of any difference), and a description of any options to
purchase the real property:
The proposed lease includes one option for the District to extend the primary term by 5 lease
years. The annual rental during the primary lease term is described above. The annual rental
for the extension term cannot be determined at this time, but is not anticipated to be equal to
the annual rental during the primary term. This is primarily due to the fact that the net rental
rate for the first lease year of the extension term shall be equal to the then fair market rental
rate for comparable premises in the District of Columbia, as determined by Landlord and the
District. In addition to the payment of the new net rental rate applicable to the first lease year
of the extension term, the District shall continue to pay for escalations in net rental, operating
costs and real estate taxes during the extension term, as such escalations are described in
Section 2 above. The lease does not include any option to purchase the real property.
4. A description of the real property to be acquired, developed or leased, including any
applicable improvements:
Street Address: 2201 Shannon Place, SE
Square/Lot Number: 5784 / 0901
Total RSF of Building: 250,000 RSF
Total RSF of Premises: 18,023 RSF
Description of improvements: The existing building is a 250,000 RSF multi-tenant office
building located on 60,734 square feet of land. The District’s Department of Employment
Services (“DOES”) will occupy 18,023 RSF of space within the building. The District will
also have access to 6 parking spaces for government use during the Lease Term (11
additional spaces are being made available for employee use, at no cost or expense to the
District under the lease).
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:
DOES currently operates the District of Columbia Infrastructure Academy (“DCIA”) at the
former Wilkinson Elementary School located at 2330 Pomeroy Road SE. While this location
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has provided training and services to over 1,500 District residents, the infrastructure of the
current location is not sustainable for long term use as a training center. As such, plans to
relocate DCIA to a newly constructed portion of the former Spingarn High School in Ward 5
are underway. In addition to this new facility, it is critical for DOES to maintain a satellite
DCIA center in Ward 8 to advance equity and access for Ward 8 residents, who experience the
second highest unemployment rate in the District.
Although 2201 Shannon Place, SE will serve as the new headquarters for DC Health starting
in the first quarter of 2024, there remained approximately 18,000 RSF of unoccupied,
contiguous space in the building. This Ward 8 space offers a unique opportunity to advance
DCIA’s mission by providing entry-level and advanced IT training programs. Additionally,
this location will be the only training facility in Ward 8 that has an “earn-as-you learn” program
model. These models provide high-quality training, while eliminating barriers such as food
insecurity, transportation challenges, and access to childcare. The facility will connect Ward 8
residents to various trainings in their neighborhood that can lead to industry-recognized
credentials at family sustaining wages. Increasing access to opportunities while removing
barriers in Ward 8 aligns with Mayor Bowser’s vision to give every Washingtonian an
opportunity to prosper, including those who have been historically and systemically excluded
from the District’s economic growth.
6. A description of any other contracts the proposed contract party is currently seeking or
holds with the District.
Landlord currently holds a lease agreement with the District for DC Health’s new headquarters
at 2201 Shannon Place, SE.
7. 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:
As stated above, Landlord currently holds a lease agreement with the District for DC Health’s
new headquarters at 2201 Shannon Place, SE. Landlord has performed satisfactorily to date
under such existing lease. Landlord has no employees.
8. Expected outcomes of the proposed real estate contract:
The execution of the proposed real estate contract is expected to result in the occupancy by
DOES of the subject space for 15 Lease Years, and possibly an additional 5 Lease Years
pursuant to the extension option described above.
9. A statement that suitable space owned by the District is not available or cannot be
reasonably renovated or altered:
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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 the District under the proposed real estate contract.
10. ANC notice of the proposed real estate contract:
DGS provided written notice, dated July 19, 2023, to ANC 8A and Councilmember Trayon
White regarding the proposed real estate contract, as required by applicable law. The notice
provided the ANC with an opportunity to provide written recommendations regarding the
proposed contract within thirty (30) business days (such date being August 30, 2023). Pursuant
to applicable law, DGS would then give great weight to the issues and concerns raised in any
ANC recommendations and provide a written response to the ANC addressing those issues and
concerns. On July 20, 2023, the ANC requested that DGS and DOES attend the ANC’s
September meeting to discuss the proposed real estate contract (we note that the ANC did not
include any recommendations in its request). DGS reached out to the ANC numerous times
by email and telephone in order to coordinate DGS and DOES attendance at the September
meeting. However, the ANC did not respond to those attempts. DGS has since continued to
reach out to the ANC about attending a meeting to discuss the proposed contract, but the ANC
has not responded. DGS and DOES remain at the ready to attend a future ANC meeting if
requested in order to discuss the proposed contract.
11. 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.
12. 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.
13. A certification as to whether the proposed contract party has any currently pending legal
claims against the District:
According to the District’s Office of the Attorney General and based upon a certification from
Landlord, Landlord does not have any legal claims currently pending against the District.
14. 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.
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15. 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.
16. 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:
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).
17. 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:
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).
18. 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: October 16, 2023 Notice Number: L0010394730
2201 SHANNON PLACE LLC FEIN: **-***4765
1055 THOMAS JEFFERSON ST NW STE 210 Case ID: 1680877
WASHINGTON DC 20007-5256
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
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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: October 21, 2023
Agency Budget: Department of General Services (AM0)
Occupying Agency: Department of Employment Services (CF0)
Ward 8
Funds Needed: $0.00
Purpose: Funding will be needed in FY 2025 for a new lease for the Department of
Employment Services to operate a District of Columbia Infrastructure Academy
located at 2201 Shannon Place, SE. Funding will not be needed in FY 2024 for the
lease.
Certification: This is to certify that $0.00 is needed for FY 2024 and $937,159.67 in FY 2025 is
subject to approval in the District’s Budget and Financial Plan.
Cost of Obligation FY 2024: $0.00
Cost of Obligation FY 2025: $937,159.67
Term: 15 Years
_________________________ October 21, 2023
_________________________
Antoinette Hudson Beckham Date
Cc: Angelique Rice, Associate Chief Financial Officer, GOC
441 4th Street, NW – Suite 890 North - Washington, DC 20001
EXECUTION VERSION
D.C. DEPARTMENT OF GENERAL SERVICES
IN-LEASE AGREEMENT 1. LEASE NO. ____________
AWARD OF IN-LEASE (L-100)
2. BUILDING NAME AND ADDRESS (No., street, city, state, and zip code)
2201 Shannon Place, S.E.
Washington, DC 20020
3. Your offer is hereby accepted. THIS AWARD CONSUMMATES THE LEASE WHICH CONSISTS OF THE FOLLOWING DOCUMENTS:
(a) this DC DGS Form L-100 (Award of In-Lease),
(b) DC DGS Form L-102 (Accepted Proposal to Lease Space),
(c) DC DGS Form L-105 (In-Lease Agreement Definitions and Standard
Clauses and Provisions),
(d) Exhibit A (Depiction of Premises),
(e) Exhibit B (Legal Description of Land),
(f) Exhibit C (Work Exhibit for Tenant Improvements),
(g) Exhibit D (Form of Declaration of Delivery),
(h) Exhibit E (Rent Schedule of Net Rental),
(i) Exhibit F (Form of SNDA),
(j) Exhibit G (Form of Tenant Estoppel Certificate), and
(k) Exhibit H (Form of Declaration of Final Accounting)
(l) Exhibit I (Janitorial and Cleaning Services Specifications)
(collectively, this “Lease”)
In the event of conflict, the order of priority between the documents comprising this Lease shall be in
the order above, unless otherwise specifically set forth in this Lease.
4a. LANDLORD'S NOTICE AND PAYMENT ADDRESS:
Notice Address:
2201 Shannon Place LLC
1805 7th Street, N.W., Suite 800
Washington, D.C. 20001
Attention: John Gerber
Email address: jgerber@fourpointsllc.com
Payment Address or Wire/EFT Instructions:
2201 Shannon Place LLC
1805 7th Street, N.W., Suite 800
Washington, D.C. 20001
4b. DISTRICT'S NOTICE ADDRESS:
Government of the District of Columbia
Department of General Services
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