MURIEL BOWSER
MAYOR
May 21, 2024
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 D.C. Preparatory Academy for approximately 46,792 square feet ofspace
located at 1409 V Street, SE. The leased premises will be used as swing space by the District of
Columbia Public Schools (“DCPS”) for several schools undergoing renovations in Ward 8.
If you have any questions regarding this contract, please contact Delano Hunter, Director,
Department of General Services (“DGS”), or have your staff contact Tiwana Hicks, Associate
Director, Portfolio Management Division, DGS, at (202) 727-2800.
I look forward to the Council's favorable considerationof this contract.
Singyrely.
Murtel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
April 25, 2024
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: D.C. Preparatory Academy, a District of Columbia,
nonprofit corporation (“Landlord”)
Type of Real Estate Contract: In-Lease Agreement (District is tenant) (the “Lease”)
Location of Real Property: 1409 V Street, SE
Source Selection Method: Non-Competitive
Primary Term (if applicable): 10 years
Consideration to be paid by District:
- First Lease Year Annual Rental
July 1, 2025 through
June 30, 2026: $1,567,532.00
- 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 $30.00 $1,403,760.00 2.25%
Initial Operating $2.50 $116,980.00 CPI-based
Costs
Tenant $1.00 $46,792.00 N/A
Improvements
Allowance
Amortization
_________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, D.C. 20019 • Telephone (202) 727-2800
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Total Annual $33.50 $1,567,532.00* N/A
Rental
* Landlord is providing a rent credit which, when applied to FY25, results in no actual rent
payments by the District in FY25.
Known Additional Rent Obligations for First Lease Year
Parking N/A N/A N/A
Overtime HVAC N/A N/A N/A
Costs
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 Lease includes one option for the District to extend the primary term by 3 lease years. The
annual rental during the primary lease term is described above. The annual rental for the
extension term, and the annual escalation thereof, cannot be determined at this time, but the
annual rental 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 properties 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, and annual escalations
thereof, the District shall continue to pay for escalations in operating costs 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: 1409 V Street, SE
Square/Lot Number: 5780 / 0975
Total RSF of Building: 46,792 RSF
Total RSF of Premises: 46,792 RSF
Description of Improvements: The building is a 46,792 RSF school building
complete with classrooms, intervention / break-out
rooms, specialty classrooms (e.g., art and music),
multipurpose / cafeteria, gymnasium, administrative
offices, conference rooms, nurse’s suite, and
lactation / wellness room. The District will also
have exclusive use of the parking lot and the
playground that are adjacent to the building.
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
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evaluation criteria, and the evaluation results, including price, technical or quality, and
past performance components:
In December of 2022, District of Columbia Public Schools (“DCPS”) requested that the
Department of General Services (“DGS”) secure a property that could serve as swing space for
several Ward 8 schools to be renovated over a 10 year period commencing in FY 2026. DGS
evaluated District-owned space as well as large tracts of land that could house a trailer
complex. While DGS was investigating these options, Landlord put its recently renovated
Ward 8 school located at 1409 V Street, SE on the market for sale. In April of 2023, DGS and
DCPS toured the property to determine if it could satisfy DCPS’ swing space needs. DCPS
confirmed immediately that the property would satisfy its swing space needs with the added
advantages of being located in Ward 8 and being turnkey ready. However, given that a
purchase of the property was not necessary for DCPS’ swing space needs, DGS approached
Landlord regarding a 10-year lease. Landlord and DGS proceeded to negotiate a letter of intent
for a 10-year lease to include DCPS’ use of all furniture, fixtures and equipment in place (with
the exception of the student desks and chairs), which letter of intent resulted in the proposed
lease.
6. A description of any other contracts the proposed contract party is currently seeking or
holds with the District.
Landlord is currently a party to two leases with the District: (a) a lease dated January 31, 2014
between the District as landlord and D.C. Preparatory Academy as tenant, for premises located
at 100 41st Street, NE; and (b) a lease dated October 4, 2021 between the District as landlord
and D.C. Preparatory Academy as tenant, for premises located at 2330 Pomeroy Street, SE.
Based upon a certification from Landlord, Landlord is not currently seeking any other contracts
with the District.
7. The background and qualifications of the proposed contract party, including its
organization, principals, financial stability, personnel, and performance on past or
current real estate contracts with requirements similar to those of the proposed contract:
Landlord is a District of Columbia nonprofit corporation and is the owner of 1409 V Street,
SE. Laura Maestas is the CEO and Dan Englender is the COO & CFO. Landlord has
approximately 401 employees in the District of Columbia. As described above, D.C.
Preparatory Academy is currently a tenant of the District under 2 leases, and has performed
satisfactorily to date under such leases.
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
DCPS of the subject space for 10 lease years, and possibly an additional 3 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 November 8, 2023, to ANC 8A05 Commissioner and
Chairperson Jamila White, Office of Area Neighborhood Commissions Executive Director
Kent Boese 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.
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. DGS did not receive any written recommendations regarding the proposed
contract from the ANC.
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:
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.
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:
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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.
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.
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: April 25, 2024 Notice Number: L0011769822
D C PREPARATORY ACADEMY FEIN: **-***0253
707 EDGEWOOD ST NE Case ID: 4477123
WASHINGTON DC 20017-3341
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: April 24, 2024
Agency Budget: Department of General Services (AM0)
Occupying Agency: DC Public Schools (GA0)
Ward: 8
Funds Needed: $0.00
Purpose: Funding is needed for a new Lease Agreement at 1409 V Street, SE. This location
will serve as swing space for Ward 8 school modernizations.
Certification: This is to certify that $0.00 funding is needed for FY 2024 and $0.00 in FY 2025.
Cost of Obligation FY 2024: $0.00
Cost of Obligation FY 2025: $0.00
Term: 10 Years
_________________________ _______________________
April 24, 2024
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: Tomás Talamante
Director, Office of Policy and Legislative Affairs
THROUGH: Xavier Beltran
General Counsel, Department of General Services
FROM: Jennie O’Flanagan
Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for In-Lease Agreement by and between the
District and D.C. Preparatory Academy for premises at 1409 V Street, SE,
Washington, D.C. (the “Lease”)
DATE: April 25, 2024
This is to certify that this Office has reviewed the above-referenced Lease 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.
__________________________
Jennie O’Flanagan
Assistant General Counsel, Department of General Services
________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, DC 20019 • Telephone (202) 727-2800
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EXECUTION VERSION
IN-LEASE AGREEMENT
THIS IN-LEASE AGREEMENT (this “Lease”) is made and entered into as of the ___
day of _______________, 2024 (the “Lease Commencement Date”), by and between D.C.
PREPARATORY ACADEMY, a District of Columbia non-profit corporation (as further defined
below, “Landlord”), and the DISTRICT OF COLUMBIA, a municipal corporation, by and
through its Department of General Services (as further defined below, the “District” or “Tenant”).
Landlord and the District are each referred to hereinafter as a “Party” and collectively referred to
as the “Parties”.
WITNESSETH:
WHEREAS, Landlord owns a certain parcel of real estate located at Square 5780, Lot
0975, with a street address of 1409 V Street, SE, in Washington, DC, as more particularly
described on “Exhibit A”, attached hereto and made a part hereof (the “Land”), including the
improvements located thereon;
WHEREAS, Landlord wishes to lease to Tenant, and Tenant wishes to lease from
Landlord, that certain space in the building located on the Land (the “Building”), consisting of
46,792 rentable square feet (“RSF”), as based upon the “DC Prep Anacostia Elementary Campus”
plans prepared for Landlord by Shinberg Levinas Architects with an Issue for Permit date of
October 13, 2016, and as depicted on “Exhibit B”, attached hereto and made