The Council finds that in order for the development of the new convention center hotel to proceed, it is necessary for the District and the Authority to lease to Marriott International, Inc., the developer of the new convention center hotel, or its designee, 2 parcels of land that are part of the site of the new convention center hotel.
§ 10–1202.22. Lease authority for the Mayor.
(a) Notwithstanding any other provision of law, the Mayor may grant a lease to Marriott International, Inc., or its designee, of the real property described as a portion of Lot 26 (formerly known as Lots 18, 21, 801 through 806, 830 through 839, 843, and 845), Square 370, including all public alleys to be closed within these lots, on the following terms and conditions:
(1) The lease term shall be 99 years, with lease payments beginning on the 3rd anniversary of operations; provided, that the commencement of the lease payments may be extended as mutually agreed by the parties.
(2) Annual lease payments shall be in an amount to be negotiated by the parties; provided, that the present value of the lease payments during the lease term discounted at 6% shall equal at least $70.2 million.
(3) Repealed.
(4) Lease payments shall be payable from cash available after the developer’s debt service payments on debt financing as permitted under the Hotel Development and Funding Agreement and lease.
(5) A right of first refusal and an option to acquire the District’s fee interest in the real property during the lease term.
(6) The lease may be subordinated to a leasehold mortgage securing development financing for the developer and may permit the issuance of a new lease upon foreclosure on the same terms and conditions as the prior lease.
(b) Notwithstanding any other provision of law, the Mayor may assign the annual lease payments required by subsection (a) of this section to the Authority.
§ 10–1202.23. Lease authority for the Authority.
Notwithstanding any other provision of law, the Authority may lease to Marriott International, Inc., or its designee, the real property described as a portion of Lot 26 (formerly known as Lots 22 and 24), Square 370, on the following terms and conditions:
(1) The lease term shall be 99 years, with lease payments beginning on the earlier of:
(A) The commencement of the 4th year of operation of the New Convention Center Hotel; or
(B) October 1, 2014; provided, that this date may be extended as mutually agreed by the parties.
(2) Annual lease payments shall be in an amount to be negotiated by the parties; provided, that the present value of the lease payments during the lease term discounted at 6% shall equal at least $31.5 million.
(3) A right of first refusal and an option to acquire the Authority’s fee interest in the real property during the lease term.
(4) The Authority may convey to lessee its fee simple interest to the improvements located on the lots for lessee to own during the lease term.
(5) Lease payments shall be payable from cash available after payment of the developer’s debt service on a loan for the new convention center hotel.
(6) The lease may be subordinated to a leasehold mortgage securing development financing for the developer and may permit the issuance of a new lease upon foreclosure on the same terms and conditions as the prior lease.
§ 10–1202.23a. Use of new convention center vault space.
(a) Notwithstanding any other provision of law, with respect to the airspace located below the portion of N Street, N.W., between 7th and 9th Streets, N.W., the portion of 9th Street, N.W., between and including N Street, N.W., and Massachusetts Avenue, N.W., and the adjoining sidewalks abutting the new convention center in which the Authority was permitted to construct, and has constructed, a portion of the new convention center, including loading docks, access ramps, and associated driveways, the Authority may enter into one or more agreements with Marriott International, Inc., or its designee, to permit Marriott International, Inc., or its designee to:
(1) Use the new convention center’s access ramp and associated driveways and entrances thereto for such purposes as may be authorized by the Authority;
(2) Construct, operate, and maintain within the airspace an access way from the new convention center’s access ramp and associated driveways for the purpose of entering and exiting from the proposed loading docks of the new convention center hotel and such other purposes as may be authorized by the Authority; and
(3) Construct, operate, and maintain within such airspace a pedestrian connector between the new convention center hotel and the new convention center and for such other purposes as may be authorized by the Authority.
(b) The agreement regarding the pedestrian connector authorized under subsection (a) of this section may provide that Marriott International, Inc., or its designee, shall be responsible for the operation and maintenance of the pedestrian connector and, if so provided, that the Authority shall pay 50% of the costs to operate and maintain the pedestrian connector.
§ 10–1202.23b. Grant of easements over District property.
(a) Notwithstanding any other provision of law, with respect to the lots in Squares 400, 402, and 424 titled in the name of the District in which the Authority was permitted to construct, and has constructed, a portion of the new convention center, including loading docks, access ramps, and associated driveways and entrances thereto, the Authority may enter into one or more agreements with Marriott International, Inc., or its designee, to grant, as an appurtenance to the new convention center hotel site (including any public or private alleys closed or to be closed in connection with the development of the new convention center hotel), the following easements and uses:
(1) An ingress and egress easement over and across the new convention center’s access ramp and associated driveways and entrances thereto for such purposes as may be authorized by the Authority; and
(2) A temporary construction easement over the new convention center’s access ramp and associated driveways and entrances thereto for the construction of a pedestrian connector between the new convention center hotel and the new convention center, together with an easement for ingress and egress over and through the pedestrian connector to and from the new convention center hotel and the new convention center and for such other purposes as may be authorized by the Authority.
§ 10–1202.24. Authority for vault space permit or airspace lease.
Notwithstanding any other provision of law, the Mayor may issue a permit or airspace lease to Marriott International, Inc., or its designee, for vault space or airspace adjacent to the real property subject to the leases authorized by §§ 10-1202.22 and 10-1202.23, having a term not to exceed 99 years, or such longer period as may be otherwise determined by the Mayor, and at no additional rent or fee, except as may be otherwise determined by the Mayor, but otherwise in accordance with subchapters I and II of Chapter 11 of this title [§ 10-1101.01 et seq. and § 10-1121.01 et seq.], as applicable. The recording of any airspace lease executed pursuant to this section among the land records of the District of Columbia shall be exempt from the recordation tax imposed by § 42-1103.
