§ 47–4681. Tax Abatement for 1735 K Street, NW; Lot 849, Square 163.

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

(1) "Base year" means real property tax year 2025 with respect to the real property tax levied under Chapter 8 on the Property for that tax year.

(2) "Extended stay housing" means the portion of the building above the first floor in which furnished habitable rooms or suites, each with a kitchen, are reserved primarily for transient guests who rent the rooms on a daily, weekly, or monthly basis.

(3) "First Source Agreement" means an agreement with the District government governing certain obligations pursuant to § 2-219.03 and Mayor's Order 83-265, dated November 9, 1983, regarding job creation and employment.

(4) "Owner" means BUAP 1735 K LLC, its successors, affiliates, and assigns.

(5) "Property" means the real property, including any improvements constructed thereon, at 1735 K Street, NW, known for tax and assessment purposes as Lot 849 in Square 163.

(b) Beginning on October 1, 2028, the real property taxes imposed on the Property pursuant to Chapter 8 shall not be increased over the amount of real property tax levied upon the Property for the base year rate for a period of 15 real property tax years; provided, that the Owner shall:

(1) Convert the building to primarily extended stay housing with a total project cost of not less than $40,000,000;

(2) Operate or cause to be operated a minimum of 95 units at the Property;

(3) Have received a certificate of occupancy on the Property no later than 36 months after the effective date of the Corporate Short-Term Stay Housing in Downtown Tax Abatement Amendment Act of 2024, passed on 2nd reading on June 25, 2024 (Enrolled version of Bill 25-784);

(4) Enter into an agreement with the District government that requires the Owner, or its designee or assignee, to, at a minimum, contract with certified business enterprises for at least 35% of the contract dollar volume of the construction of the project, in accordance with Subchapter IX-A of Chapter 2 of Title 2;

(5) Pay taxes, as applicable, under §§ 47-2002, 47-2002.02, 47-2002.03, and 47-2002.03a;

(6) Notwithstanding any other provision of law, enter into a First Source Agreement for the operation of the repositioned building; and

(7) By September 30 of the year immediately preceding each tax year in the abatement period set forth in this subsection, provide the Mayor with information showing whether each of the requirements for eligibility for the abatement provided by this section has been met.

(c) By December 31 of each tax year of the abatement period provided in subsection (b) of this section, the Mayor shall certify to the Office of Tax and Revenue that the Property is eligible for the abatement provided in this section for that tax year. The Mayor shall notify the Office of Tax and Revenue if the Property ceases to be eligible for the abatement and the date such eligibility ceased.