The proposed bill amends the existing In-Lease Agreement between the District of Columbia and HGIT 1015 Half Street LLC for the property at 1015 Half Street, SE, extending the primary lease term by 11 years, from June 1, 2029, to May 31, 2040. The District will continue to occupy 136,819 rentable square feet of office space, which includes 10,601 square feet on the seventh floor. Key financial benefits of the amendment include approximately $9.7 million in rent abatement and a $15.5 million tenant improvement allowance for enhancing facilities used by various District departments. The amendment also maintains the option for the District to extend the lease for an additional five years at a rental rate determined by fair market value.

Additionally, the bill introduces various provisions related to tenant improvements, including the approval process for budgets and schedules, compliance with the Davis-Bacon Act, and the responsibilities of contractors regarding labor classifications and wage determinations. It emphasizes the importance of Small Business Enterprises and Certified Business Enterprises participation, increasing the required participation rate to 50%. The bill also outlines the procedures for handling Excess Costs associated with change orders, ensuring that any additional costs incurred without proper approval will not be reimbursed by the District. Overall, the amendments aim to provide clarity, financial relief, and compliance with labor laws while establishing a structured framework for the lease terms.