Bill Summary – FastDemocracy

ENGROSSED ORIGINAL

                                               A BILL

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                                               23-404

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                    IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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                                      __________________________

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 To amend the Deputy Mayor for Planning and Economic Development Limited Grant-Making

       Authority Act of 2012 to provide grant-making authority to issue a grant to Check It

       Enterprises to enable its acquisition of a certain facility located in the Anacostia Historic

       District.

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        BE IT ENACTED BY THE COUCIL OF THE DISTRICT OF COLUMBIA, That this

 act may be cited as the Deputy Mayor for Planning and Economic Development Limited Grant

 Making Authority for Check It Enterprises Amendment Act of 2019.

        Sec. 2. Section 2032 of the Deputy Mayor for Planning and Economic Development

 Limited Grant-Making Authority Act of 2012, effective September 20, 2012 (D.C. Law 19-168;

 D.C. Official Code  1-328.04), is amended by adding a new subsection (h) to read as follows:

        (h)(1)(A) Notwithstanding the Grant Administration Act of 2013, effective December

 24, 2013 (D.C. Law 20-61; D.C. Official Code  1-328.11 et seq.), and subject to paragraph (2)

 subject to subparagraph (B) of this paragraph and paragraph (2) of this subsection, the Deputy

 Mayor shall have grant-making authority to provide funds to Check It Enterprises for the

 acquisition of the Property to continue the current business operations of Check It Enterprises,

 We Act Radio, and The District Culture at the Property to serve as a community resource for the

 Anacostia Historic District.

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                        (B)(i) If the purchase price of the Property is less than the amount of the

 grant provided pursuant to subparagraph (A) of this paragraph, Check It Enterprises shall return

 the amount not needed for the purchase to the District government within 10 days of the closing

 on the property.

                                (ii) Any monies returned to the District government pursuant to

 sub-subparagraph (i) of this subparagraph shall be deposited in the General Fund of the District

 of Columbia.

                (2) The grant of funds provided pursuant to this subsection shall be subject to the

 terms of a grant agreement between the Deputy Mayor and Check It Enterprises (Grant

 Agreement) that shall provide that:

                        (A) Upon acquisition of the Property, Check It Enterprises shall enter

 into a lease agreement period of no fewer than 5 years with:

                                (i) WE ACT Radio for that portion of the Property that WE ACT

 Radio currently occupies (1918 MLK), at a rate not to exceed the amount charged immediately

 preceding the acquisition and provide WE ACT Radio an option to extend the lease agreement

 for no fewer than 5 years at a gross rent rate that shall not exceed an increase of 5% over the rate

 charged under the immediately preceding agreement for as long as WE ACT Radio remains in

 business at 1918 MLK; and

                                (ii) The District Culture for that portion of the Property that The

 District Culture currently occupies (1922 MLK), at a rate not to exceed the amount charged

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 immediately preceding the acquisition and provide The District Culture an option to extend the

 lease agreement for no fewer than 5 years at a gross rent rate that shall not exceed an increase of

 5% over the rate charged under the immediately preceding agreement for as long as The District

 Culture remains in business at 1922 MLK.

                        (B) Check It Enterprises may enter into a contract for architectural design

 services, construction services, or materials needed for the development, remodel, or

 construction of the Property; provided that:

                               (i) The contract is subject to the contracting and procurement

 requirements under the Small and Certified Business Enterprise Development and Assistance

 Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code  2-218.02 et

 seq.), and the employment and job creation requirements under the First Source Employment

 Agreement Act of 1984, effective June 29, 1984 (D.C. Law 5-93; D.C. Official Code  2-219.01

 et seq.); and

                               (ii) WE ACT Radio and The District Culture shall retain a Right to

 Return after the completion of any development, remodel, or construction of the Property.

                        (C) If WE ACT Radio ceases to occupy 1918 MLK or The District

 Culture ceases to occupy 1922 MLK, Check It Enterprises shall lease to tenants that are social

 enterprises a square footage that is the same or greater than that occupied by WE ACT Radio or

 The District Culture on December 2019.

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                         (D)(i) If Check It Enterprises ceases to lease that portion of the property

 as required in subsection (C) of this paragraph, uses the grant funds for an unauthorized purpose,

 or otherwise breaches the Grant Agreement, all grant funds shall be returned to the District; and

                         (D)(i) If Check It Enterprises ceases to lease that portion of the Property

 as required in subparagraph (C) of this paragraph, uses the grant funds for an unauthorized

 purpose, uses the grant funds for any purpose other than the acquisition of the Property or costs

 and fees associated with the acquisition, or otherwise breaches the Grant Agreement, all grant

 funds shall be returned to the District; and

                                 (ii) In the event of a breach by Check It Enterprises, the grantor

 shall have all applicable remedies available at law or equity.

                         (E) In the event that Check It Enterprises, or a subsidiary or affiliate of

 Check It Enterprises, seeks to sell the Property, the District shall have the right of first refusal.

                         (E)(1) In the event that Check It Enterprises, or a subsidiary or affiliate of

 Check It Enterprises, seeks to sell or transfer the Property to a third party, the District

 government shall have the right of first refusal.

                 (2) Check It Enterprises must notify the District government in writing before it

 intends to sell or transfer the Property. The District government shall have 120 days from

 receiving the written notice to purchase the Property at a price equal to the assessed value of the

 Property discounted by the sum of the grant provided pursuant to paragraph (1) of this subsection

 adjusted by annual inflation since the date the grant was issued.

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                        (F) If the District government does not exercise the first right of refusal

 and the Property is sold or transferred to a third party, Check It Enterprises, or a subsidiary or

 affiliate of Check It Enterprises shall within 30 days of the Property being sold or transferred

 return to the District the sum of the grant provided pursuant to paragraph (1) of this subsection

 and adjusted by annual inflation since the date the grant was issued.

              (3) For the purpose of this paragraph subsection, the term:

                        (A) Check It Enterprises means Check It Enterprises LLC, a District of

 Columbia limited liability company at 1920 Martin Luther King Jr. Ave., S.E., Washington,

 D.C., 20020.

                        (B) Gross rent means a flat rent fee that encompasses rent and all costs

 associated with ownership, such as taxes, insurance, and utilities.

                        (C) Third party means an individual, firm, corporation, partnership,

 company, cooperative, association, trust, or any other organization, legal entity, or group of

 individuals. The term third party shall not include Check It Enterprises or a subsidiary or

 affiliate of Check It Enterprises.

                        (CD) Property means the real property, and any structures thereon,

 located at 1918, 1920, and 1922 Martin Luther King Jr. Ave., S.E., Washington, D.C., 20020,

 then known for assessment and tax purposes as Lots 851, 852, 853 in Square 5769.

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                         (DE) Right of first refusal means that if an owner of a property places,

 or intends to place, the property for sale, a specified entity shall have the first right to purchase

 the property before the seller may enter into a contract for sale with a third party.

                         (E) Right of first refusal means that if an owner of a Property places or

 intends to place the Property for sale or to transfer the Property to a third party, the District

 government shall have the first right to purchase the Property.

                         (EF) Right to Return means WE ACT Radio or The District Culture, or

 both, has the right to return to a space in the Property that is the same or greater square footage

 that the entity occupied on December 2019, if displaced for renovation, rehabilitation,

 redevelopment of the Property.

                         (FG) Social enterprise means a business whose purpose is to generate

 profits while simultaneously advancing a social goal, such as supporting at-risk youth and

 workforce development.

                         (GH) The District Culture means The District Culture, LLC, a District

 of Columbia limited liability company, currently occupying 1922 Martin Luther King Jr. Ave.,

 S.E., Washington, D.C., 20020.

                         (HI) WE ACT Radio means Newton Media Group, LLC, a District of

 Columbia limited liability company, currently occupying 1918 Martin Luther King Jr. Ave.,

 S.E., Washington, D.C., 20020..

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        Sec. 3. Fiscal impact statement.

        The Council adopts the fiscal impact statement in the committee report as the fiscal

 impact statement required by section 4a of the General Legislative Procedures Act of 1975,

 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code  1-301.47a).

        Sec. 4. Effective date.

        This act shall take effect following approval by the Mayor (or in the event of veto by the

 Mayor, action by the Council to override the veto), a 30-day period of congressional review as

 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December

 24, 1973 (87 Stat. 813; D.C. Official Code  1-206.02(c)(1)), and publication in the District of

 Columbia Register.

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