MURIEL BOWSER
MAYOR
December 9, 2024
The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
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 a
proposed Payment and Release Agreement with John Marshall Bank in the amount of
$13,163,671.41 (including $2,320.60 in closing costs).
Under the proposed agreement, the District will pay to John Marshall Bank the outstanding
principal on a loan provided to the former Eagle Academy Public Charter School, which was
secured by their interest under a ground lease. This payment will allow the bank to remove a lien
on the property located at 3400 Wheeler Road SE. The District will then terminate the ground
lease and bring the property back into the District of Columbia Public Schools portfolio for use as
a swing campus for public schools in Wards 7 and 8 that are undergoing modernization projects.
My administration is available to answer any questions you may have regarding this proposed
agreement. In order to facilitate a response to any questions you may have, 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 consideration of this agreement.
Sincerely,
Muriel Bowser
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
COUNCIL REAL ESTATE CONTRACT SUMMARY
November 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: John Marshall Bank, a Virginia banking corporation
(“Bank”)
Type of Real Estate Contract: Payment and Release Agreement (“Release
Agreement”)
Location of Real Property: 3400 Wheeler Road, SE
Source Selection Method: Non-Competitive
Contract Term: From execution until closing, to occur no later than
January 17, 2025
Consideration to be paid by District: $13,161,350.81
Certificate of Funding Amount: $13,163,671.41 (consideration plus $2,320.60 in
closing costs)
2. The total consideration under the real estate contract is: $13,161,350.81.
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:
N/A (not a lease).
4. A description of the real property to be acquired, developed or leased, including any
applicable improvements (“Property”):
Street Address: 3400 Wheeler Road, SE
Square/Lot Number: Square 5934/Lots 803, 804 and 805
Total Square Footage of Real Property: Approximately 210,736
_________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, DC 20019 • Telephone (202) 727-2800
1
 Description of Improvements: Existing 3-story building with approximately 87,380
square feet of space
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:
DCPS has identified the Property as a school building and grounds needed to serve as a swing
campus for public schools in Wards 7 and 8 undergoing modernization. In order to return the
Property to DCPS’ portfolio, it is necessary to terminate the Ground Lease Agreement between
the District and Eagle Academy Public Charter School (“Tenant”), dated October 17, 2011 (the
“Lease”). In August 2024, Tenant surrendered its charter to the District of Columbia Public
Charter School Board and ceased operations at the Property, which constitutes a default under
the Lease and under Tenant’s loan with John Marshall Bank (the “Bank”). The Bank’s loan to
Tenant is secured by Tenant’s interest under the Lease, as evidenced by a recorded Leasehold
Deed of Trust and other security documents, which constitute a lien on the leasehold interest.
Under the Lease, the District may not terminate the Lease without giving the Bank the right to
foreclose on its security (i.e., the right to replace Tenant with a new tenant under the Lease
with the new tenant having repaid the Bank’s loan), which would result in the Property not
being available for DCPS’ needs for the remaining term under the Lease of up to 61 years. As
such, in order for the District to be able to terminate the Lease and for the Bank to be repaid,
the District and the Bank negotiated a Payment and Release Agreement. Under the Release
Agreement, the District will pay the outstanding principal balance of the loan in the amount of
$13,161,350.81, which does not include any interest, fees or penalties due by Tenant to the
Bank. The Bank will then release its lien on the leasehold interest and the District will terminate
the Lease. Following the termination of the Lease, DCPS will be able to utilize the Property
for its swing space needs.
6. A description of any other contracts the proposed contract party is currently seeking or
holds with the District:
Based upon a certification from the Bank, the Bank is not currently seeking and does not
currently hold any 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:
The Bank is a Virginia banking corporation with locations in the District of Columbia,
Maryland and Virginia. Based upon a certification from the Bank: the Bank has no past or
current contracts with the District, and its principals are Christopher W. Bergstrom – Chief
Executive Officer; Andrew J. Peden, Chief Banking Officer; and Kent D. Carstater – Chief
Credit Officer.
8. Expected outcomes of the proposed real estate contract:
2
 The execution of the Release Agreement is expected to result in the release of the Bank’s lien
on the leasehold interest under the Lease and the District’s termination of the Lease, thereby
allowing DCPS to use the Property as a swing campus for public schools in Wards 7 and 8
undergoing modernization.
9. A statement that suitable space owned by the District is not available or cannot be
reasonably renovated or altered:
The Property is already a District-owned asset which has been renovated and operated by the
Tenant as a school, which is DCPS’ intended use.
10. ANC notice of the proposed real estate contract:
Not applicable.
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 the Bank, the Bank 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:
3
 Based upon a certification from the Bank, the Bank 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 the Bank, the Bank 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 the Bank, the Bank 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 ofthe District ofColumbia
*
*
MEE (Office of the Chief Financial Officer 1101 4% Street, SW
Ollie of Tax and Revenue ‘Washington, DC 20024
Date of Notice: December 3, 2024 Notice Number: 10012949810
JOHN MARSHALL BANK
1943 ISAAC NEWTON SQESTE 100
RESTON VA 20190-5013
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
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 ofClean 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)
§ 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-S048/MyTax.DCgov
 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: December 2, 2024
Agency Budget: Department of General Services (AM0)
Occupying Agency: DC Public Schools (GA0)
Ward: 8
Funds Needed: $13,163,671.41
Project: 201552 – 25.081 subtask
(FY25 Reverse Capital Paygo to Operating Funds – DCPS Eagle Academy Bank
Loan)
Purpose: Funding is needed for the termination of a ground lease agreement at 3400 Wheeler Road, SE
between the District, as landlord, and Eagle Academy Public Charter School, as tenant.
Termination of the ground lease will require the District to pay off Eagle Academy’s loan so that
the lender releases its lien on the leasehold interest. Once the loan is paid and the ground lease
is terminated, DCPS will use the property as a swing space campus for schools in Wards 7 and 8
undergoing modernizations.
Certification: There is a pending reverse capital paygo to operating reprogramming with Council for
$13,671,344.18 for the Eagle Academy Bank Loan. DGS OCFO’s approval is contingent upon
deemed approval by Council of this reprogramming on December 4, 2024. If deemed approved,
FY25 funding will be sufficient for the operating expenditure in the amount of $13,163,671.41.
Cost of Obligation
FY25: $13,163,671.41
for AHB 12/2/24
_________________________ _______________________
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: Katherine Jough
Senior Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for Proposed Payment and Release
Agreement by and between the District and John Marshall Bank for real
property at 3400 Wheeler Road, SE, Washington, D.C. (the “Release
Agreement”)
DATE: November 25, 2024
This is to certify that this Office has reviewed the above-referenced Release Agreement 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.
__________________________
Katherine Jough
Senior Assistant General Counsel, Department of General Services
_________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, D.C. 20019 • Telephone (202) 727-2800
1
 EXECUTION VERSION
PAYMENT AND RELEASE AGREEMENT
This PAYMENT AND RELEASE AGREEMENT (this "Agreement") is dated to be effective as of
the ______ day of ____________________, 2024 ("Effective Date"), and is made by and between JOHN
MARSHALL BANK, a Virginia banking corporation (the "Bank") and the DISTRICT OF COLUMBIA, a
municipal corporation, acting by and through its Department of General Services (the "District of Columbia").
Collectively the Bank and the District of Columbia shall be referred to herein as the “Parties” when no
distinction is required.
RECITALS:
A. The District of Columbia is the Landlord to Eagle Academy Public Charter School, a District
of Columbia non-profit corporation (“Eagle Academy”), as tenant under a certain Ground Lease Agreement
dated of October 17, 2011 (the said Ground Lease Agreement, and all amendments and addenda thereto being
hereinafter collectively referred to as the “Lease”) for the lease and rental of certain parcels and lots of land
having a street address of 3400 Wheeler Road, SE, in the District of Columbia, which are improved by school
buildings and other improvements as more particularly described in the Lease (the “Premises”). The Lease is
the subject of and described in that certain Memorandum of Lease recorded as Instrument No. 2012019470
among the land records maintained by the Office of the Recorder of Deeds for the District of Columbia (the
“Memorandum of Lease”).
B. Pursuant to the terms and provisions of that certain Commercial Promissory Note (Secured
Refinance Term Loan) dated February 1, 2021 (the “Note”) in the original principal amount of $21,500,000
(the “Loan”), made by Eagle Academy to the order of John Marshall Bank, Eagle Academy became
indebted to the Bank under the Note for the Loan. The repayment of the Loan is collaterally secured by a
Leasehold Deed of Trust and Security Agreement dated February 1, 2021 granted by Eagle Academy to the
benefit of the Bank, which is recorded as Instrument No. 2021013217 among the land records maintained
by the Office of the Recorder of Deeds for the District of Columbia (the “Leasehold Deed of Trust”), by
a Collateral Assignment of Ground Lease, and Tenant Estoppel dated February 1, 2021 granted by Eagle
Academy to the Bank, and recorded as Instrument No. 2021013218 among the land records maintained by
the Office of the Recorder of Deeds for the District of Columbia (the “Collateral Assignment”), and by a
Financing Statement from Eagle Academy to the Bank recorded on February 2, 2021 among the land
records maintained by the Office of the Recorder of Deeds for the District of Columbia as Instrument No.
2021013219 (the “Financing Statement”), the said security instruments encumbering the leasehold of
Eagle Academy under the Lease to the Premises (the “Leasehold Collateral”) as is more particularly
described therein.
C. As a consequence of the public announcement of Eagle Academy on August 20, 2024 that
it would surrender its charter to the District of Columbia Public Charter School Board, and the public
anno