Bill Summary – FastDemocracy

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                                              A BILL

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                                               23-778

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                    IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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                                       _________________

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 To amend Chapter 46 of Title 47 of the District of Columbia Official Code to provide an

       abatement of real property taxes for property known for tax and assessment purposes as

       Lots 033, 829, 830, and 831 in Square 3065, Lot 11 in Square 3074, Lot 807 in Square

       3075, Lot 52 in Square 3072, and Lot 73 in Square 3080.

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

 act may be cited as the New Howard University Hospital and Redevelopment Tax Abatement

 Amendment Act of 2020.

        Sec. 2. Chapter 46 of Title 47 of the District of Columbia Official Code is amended as

 follows:

        (a) The table of contents is amended by adding a new section designation to read as

 follows:

        47-4673. New Howard University Hospital and Redevelopment real property tax

 abatement..

        (b) A new section 47-4673 is added to read as follows:

         47-4673. New Howard University hospital and redevelopment real property tax

 abatement.

        (a) For the purposes of this section, the term:

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                 (1) CBE Act means the Small and Certified Enterprise Development and

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

 218.01 et seq.).

                 (2) Certified Business Enterprise means a business enterprise or joint venture

 certified pursuant to the CBE Act.

                 (3) First Source Agreement means an agreement with the District governing

 certain obligations of the Developer pursuant to section 4 of the First Source Employment

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

 219.03), and Mayors Order 83-265, dated November 9, 1983, regarding job creation and

 employment generated as a result of the construction on the Property.

                 (4) New Hospital means the teaching and research hospital constructed by the

 New Hospital Operator as further described in subsection (d)(4) of this section.

                 (5) New Hospital Developer means Howard University, or its successor

 approved by the Mayor.

                 (6) New Hospital Operator means Howard University, or other entity

 managing the day to day operations of the New Hospital.

                 (7) New Hospital Property has the meaning set forth in subsection (d)(4) of

 this section.

                 (8) Project means the redevelopment of the Property and the buildings located

 on the Redevelopment Property into a mixed-use project, integrated with the surrounding

 neighborhoods, that includes varied uses, such as residential, including a significant component

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 of affordable and workforce housing, market and neighborhood-serving retail, hospitality, and

 office uses.

                  (9) Redevelopment Property means the real property known for tax and

 assessment purposes as Lots 033, 829, 830, and 831 in Square 3065, Lot 11 in Square 3074, Lot

 807 in Square 3075, Lot 52 in Square 3072, and Lot 73 in Square 3080 and any improvements on

 that real property.

                  (10) Redevelopment Property Developer means Howard University or

 its successor, or an affiliate or assignee of Howard University.

         (b) The approval of a successor to Howard University as the New Hospital Developer

 shall not be unreasonably withheld, conditioned, or delayed.

         (c) Subject to subsections (d) and (e) of this section, the tax imposed on the Property by

 Chapter 8 of this title shall be abated for 20 real property tax years.

         (d) The abatement provided in subsection (c) of this section shall:

                  (1) Begin:

                         (A) No earlier than October 1, 2024, or the opening of the New Hospital,

 whichever occurs later; and

                         (B) At the election of the Redevelopment Property Developer, upon:

                                (i) The date of issuance of the temporary certificate of occupancy

 of each phase of the Project for that portion of the Redevelopment Property on which the phase

 is located; or

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                                  (ii) The date of transfer for development of each phase referenced

 in sub-subparagraph (i) of this subparagraph;

                (2) Not exceed $11.25 million in any tax year or $225 million in total; and

                (3) Not remain in effect later than the end of tax year 2048.

                (4) At the Redevelopment Property Developers election, be subject to

 monetization at any time before October 1, 2024.

        (e) For the Redevelopment Property to receive the abatement described in this section:

                (1) The New Hospital Developer and the Redevelopment Property Developer

 shall execute a First Source Agreement with the Department of Employment Services for the

 construction and operation of the New Hospital on the New Hospital

 Property and the Project on the Redevelopment Property;

                (2) The New Hospital Developer and Redevelopment Property Developer shall

 execute a Certified Business Enterprise agreement with the Department of Small and Local

 Business Development requiring the New Hospital Developer and the Redevelopment Property

 Developer to, at a minimum, contract for at least 35% of the contract dollar volume of the

 construction and operation of the New Hospital on the New

 Hospital Property and the construction and operation of and the Project on Redevelopment

 Property with business enterprises or joint ventures certified pursuant to the CBE Act;

                (3) The New Hospital Developer shall require its general contractor to enter into

 a project labor agreement (PLA) for the New Hospital Property on terms mutually acceptable

 to the signatories of the PLA;

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                (4) The New Hospital Developer shall construct a new, state-of-the-art, full-

 service, teaching and research hospital on or adjacent to the Georgia Avenue, N.W., campus of

 Howard University with a level 1 trauma center and an academic affiliation with the Howard

 College of Medicine and its graduate medical education program;

                (5) The New Hospital Developer shall open the New Hospital by October 1,

 2026, and operate the New Hospital on an ongoing basis for at least until the end of the time

 period of the tax abatement provided by this section; and

                (6) The New Hospital Operator shall endeavor in good faith to operate the

 existing Howard University Hospital located on the Redevelopment Property on a continuous

 basis until the New Hospital is open on the New Hospital Property;

        (f)(1) The District shall provide funding to support the operational and start-up support

 for 6 years for the New Hospital Developer or New Hospital Operator to operate, starting on or

 before October 1, 2021, centers of excellence approved by the Department of Health for sickle

 cell disease, womens health, substance use and co-occurring disorders, trauma care and violence

 prevention, and oral health. The New Hospital Developer or New Hospital Operator shall

 continue to operate such centers of excellence, and maintain the conditions necessary for their

 approval as centers of excellence by the Department of Health, until at least the end of the time

 period of the tax abatement provided by this section; provided, that the foregoing requirement

 shall not apply during a fiscal year between and including Fiscal Year 2021 and Fiscal Year 2025

 when the District does not include in its operating budget at least $3 million in the fiscal year to

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 support the centers of excellence; provided further, that the Mayor and the New Hospital may

 mutually agree to modify the centers of excellence required by this paragraph; and

                (2) The Redevelopment Property Developer shall submit a detailed

 redevelopment plan for the Redevelopment Property to the Mayor by October 1, 2021, and

 provide an updated redevelopment plan to the Mayor at least once every 6 months thereafter

 until the Redevelopment Property is fully redeveloped.

        (g)(1) The Mayor shall certify annually to the Office of Tax and Revenue the

 Redevelopment Propertys eligibility for the abatement provided pursuant to this section. The

 Mayors certification shall include:

                        (A) A description of the Redevelopment Property by square, suffix, and

 lot, and the date the abatement begins and ends;

                        (B) The date the issuance of the temporary certificate of occupancy or

 transfer referred to in subsection (d)(1)(B) of this section occurred;

                        (C) A statement that the conditions specified in subsection (e) of this

 section have been satisfied; and

                        (D) Any other information that the Mayor considers necessary or

 appropriate.

                (2) If at any time the Mayor determines that the Redevelopment Property, or any

 portion of the Redevelopment Property, has become ineligible for the abatement provided by this

 section, the Mayor shall notify the Office of Tax and Revenue and specify the date that the

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 ineligibility began. Such Property, or portion of the Redevelopment Property, shall be ineligible

 for the abatement on the first day of the tax year following the date when ineligibility occurred.

        (h) The exemption provided by this section shall be in addition to, and not in lieu of, any

 other tax relief or assistance applicable to the Property or Redevelopment Development from any

 other source permitted under the law.

        (i) Notwithstanding any other provision of law, the Mayor is authorized to take such

 actions as are appropriate to execute this section..

        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 a 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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