The proposed bill amends the existing lease agreement between the District of Columbia and Terreno V Street LLC for the property at 3535 V Street, NE, extending the lease term by 5 years and 1 month, from December 1, 2026, to December 31, 2031, with an option for an additional 5-year extension until December 31, 2037. The annual rental for the first year under the amendment is set at $1,402,253.68, with a net rental rate of $17.00 per rentable square foot, and annual escalations of 3.5% are anticipated. The amendment also includes a provision for one month of rent abatement and improvements to the building's bathrooms, carpeting, and lighting. Notably, the calculation for the rental rate during the final lease year of the initial term is modified from 100% to 103.5% of the net rental payable.

Significant changes in the bill include the complete deletion of Section 7.5 of the original lease regarding Real Estate Taxes, replaced with a new framework detailing the District's obligations concerning tax increases and payment processes. The bill introduces a rental abatement of $116,854.47 for the first month of the Extension Term and modifies the Parking Fee to $5,728.69, subject to annual increases. It also clarifies that the lease does not create third-party beneficiaries and emphasizes compliance with the Procurement Practices Reform Act of 2010. Additionally, the District's financial obligations under the lease are subject to the Anti-Deficiency Acts, ensuring that payments are contingent upon the availability of appropriated funds, while the landlord is responsible for brokerage fees and must indemnify the District against claims from brokers.