District of Columbia v. Department of Labor

34 F. Supp. 3d 172, 2014 WL 1292788
CourtDistrict Court, District of Columbia
DecidedMarch 31, 2014
DocketCivil Action No. 2013-0730
StatusPublished
Cited by2 cases

This text of 34 F. Supp. 3d 172 (District of Columbia v. Department of Labor) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District of Columbia v. Department of Labor, 34 F. Supp. 3d 172, 2014 WL 1292788 (D.D.C. 2014).

Opinion

MEMORANDUM OPINION

AMY BERMAN JACKSON, United States District Judge

This case poses the question of whether the “CityCenterDC” project, the redevelopment of the old Washington Convention Center site, is a “public work” for purposes of the DavisBaeon Act, 40 U.S.C. § 3141 et seq. (“DBA” or “the Act”). The District has entered into a series of agreements to lease the land to private developers to construct a mixed-use development that will feature condominium and apartment buildings, two office buddings, a hotel, retail establishments, and some public open spaces. Although the project will sit on a parcel of land owned by the District of Columbia, it will be entirely privately funded, occupied, and maintained for the duration of the developers’ ninety-nine year leases with the city.

Despite the predominantly private nature of this development, the Department of Labor’s Administrative Review Board (“ARB”) has concluded that CityCenterDC constitutes a “public work” within the meaning of the Davis-Bacon Act. 1 This designation requires that workers on the project be paid prevailing wages as determined by the Department of Labor (“DOL” or “the Department”) under the Act. 2 The ARB found the project to be a “public work” because of the District’s involvement in planning and oversight, and in light of the public benefits expected to *175 flow from the development, including employment opportunities for District residents, a set of affordable housing units, new sidewalks, pedestrian friendly areas, and increased lease and tax revenue for the District.

Plaintiffs the District and CCDC Office LLC (“CCDC”) filed this action to challenge the ARB’s determination. They argue that the decision to apply the DBA to CityCenterDC conflicted with the plain language of the DBA, was arbitrary and capricious, and should be set aside under the Administrative Procedure Act (“APA”), 5 U.S.C. § 706. Defendants contend that the term “public work” is ambiguous and that the agency’s decision rested on a permissible interpretation of the Act and the Department’s own regulations. A labor organization and several individual workers have intervened as defendants and brought a counter-claim against plaintiffs, arguing that plaintiffs’ failure to implement the ARB’s ruling constitutes a deprivation of their rights. All parties have moved for summary judgment.

This appears to be a case of first impression. The parties acknowledge that the Act has never before been applied to a development that is entirely privately financed and constructed, and built primarily for private use. It may be true that the District has been more involved in this project than in a typical condominium or hotel construction project, but that is a feature of the size and mixed-use nature of the project and the fact that the District owns the land. When one considers the plain language of the Davis-Bacon Act and the history and purpose of the statute, it becomes clear that Congress did not intend the term “public work” to embrace a large-scale private development like City-CenterDC, which will be neither built nor used by the government or the public. This conclusion is also consistent with the Department’s own administrative decisions interpreting the Act.

At bottom, there are two signature elements of a public works project: public dollars going into the project, and a public facility coming out of the project. City-CenterDC has neither. It is being privately financed by for-profit entities, and it will result in the creation of condominiums, apartments, office space, retail space, and a hotel that will be privately owned and operated. The fact that the project is expected to give rise to incidental public benefits — such as employment opportunities, increased tax revenue, and even a certain amount of open space — does not transform it into a public work; these are the goals of every urban development project. And the fact that the District has imposed certain requirements — even some at the level of particularity of the width of the sidewalks — does not alter the essence of the finished product. The ARB’s reliance on these details ignores the big picture: that the project is not being built by the government, for the government, or for the people the government represents.

The CityCenterDC development may be a laudable and exciting public-private partnership, and it may entail a more comprehensive level of urban planning and cooperation than the ordinary project, but the exercise will result in the creation of an enclave of private facilities. What is being constructed will be no more for the use and benefit of the population of the District than any other condominium or hotel: members of the general public will be welcome to enjoy the surrounding sidewalks, and possibly the lobby, and they can spend their dollars in the nearby shops and restaurants, but at the end of the day, they will not be permitted to go upstairs. City-CenterDC is not a public work of the District of Columbia, and the ARB’s decision to the contrary cannot be sustained.

*176 BACKGROUND

I. The CityCenterDC Development Project

In July 2001, a District-convened task force recommended that the site of the old Washington Convention Center be transformed “into a mixed-use urban neighborhood.” AR 2603. With the approval of the Council of the District of Columbia (“City Council”), the city issued a “Request for Proposals for a Development Partner” (“RFP”) in September 2002, seeking a master developer to undertake the project. Id. The District sought “to identify a potential partner with whom it could collaborate over a protracted period of time to develop the area with a mix of appropriate civic, residential, cultural, retail, and entertainment offerings” and who “shared the same vision as the District” as to the use of the site. AR 2705. The RFP included a document called “Envisioning the Site: A Preliminary Design Guideline.” AR 2603.

After considering the responses to the RFP, the District executed an “Exclusive Rights Agreement and Land Disposition Agreement” (“ERA”) with its chosen master developer, Hines Interests Limited Partnership and Archstone-Smith Operating Trust (“Developers”), in May of 2005. 3 See AR 2603-99 (ERA document). The ERA required Developers to prepare a “master plan” for development of the site. AR 2627. The master plan was to include a “Development Program” specifying the “nature and scope of all uses” of the land, including:

• Common areas designed “to be a one-of-a-kind pedestrian friendly destination with extensive public art, signage, landscaping, street furnishings, fountains, pedestrian lighting and inviting spaces for programmable community events and gatherings,” as well as “[a] public plaza of approximately one acre.” AR 2629-30.

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Related

DC v. DOL
D.C. Circuit, 2016
District of Columbia v. Department of Labor
819 F.3d 444 (D.C. Circuit, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
34 F. Supp. 3d 172, 2014 WL 1292788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-of-columbia-v-department-of-labor-dcd-2014.