The proposed bill seeks to formalize a Third Amendment to the In-Lease Agreement between the District of Columbia and 250 E Street LLC, extending the lease of approximately 18,873 square feet of office space at 250 E Street, SW, for an additional 17 years and 9 months, starting July 1, 2025. The amendment is expected to provide significant financial benefits, including $1.5 million in rent abatement and a $1.9 million tenant improvement allowance. The annual rental for the first year is set at $1,011,027.89, with scheduled escalations thereafter. The bill also maintains the option for the District to extend the lease for an additional 5 years beyond the new expiration date of March 31, 2043, and confirms that no suitable District-owned space is available for the Department of Public Works, justifying the lease extension.

Additionally, the bill introduces several new provisions, including a tenant improvement allowance for renovations, a Premises Refresh Allowance of $377,460, and a requirement for participation from Small Business Enterprises and Certified Business Enterprises in the construction process, increasing the participation threshold from 35% to 50%. It also emphasizes compliance with the Davis-Bacon Act for wage rates and updates insurance requirements to include the District as a loss payee. The bill clarifies the financial and operational responsibilities of both parties, ensuring that costs incurred without prior acceptance from the District's Director will not be charged against District credits or allowances. Overall, the amendments aim to streamline processes, enhance transparency, and protect the interests of both the District and the Landlord.