§ 10-1221.03 — Creation of the New Convention Center Hotel Fund.

District of Columbia § 10-1221.03

• Jurisdiction: District of Columbia
• Title 10: Parks, Public Buildings, Grounds, and Space.
• Ch. 12: Washington Convention and Sports Authority.
• Subch. II: New Convention Center Hotel Financing.

Text

(a) There is hereby established separate and apart from the General Fund of the District of Columbia a special nonlapsing fund designated as the New Convention Center Hotel Fund. The Chief Financial Officer shall deposit into the New Convention Center Hotel Fund the Available Tax Increment. The Chief Financial Officer shall create a sub-account within the New Convention Center Hotel Fund for Available Real Property Tax Revenues and Available Sales Tax Revenues and shall allocate the receipts from each to the appropriate sub-account. The Mayor may pledge and create a security interest in the funds in the New Convention Center Hotel Fund, or any sub-account or sub-accounts within the Fund, for the payment of the costs of carrying out any of the purposes described in subsection (b) of this section without further action by the Council as permitted by § 1-204.90(f) . If bonds are issued, payment will be made in accordance with the provisions of the Financing Documents entered into by the District in connection with the issuance of the bonds.

(1) The funds in the New Convention Center Hotel Fund may be used as follows:

(A) To secure the repayment of the bonds; and

(B) To finance, refinance, or reimburse the District or any instrumentality of the District for costs of the project.

(A) If the New Convention Center Hotel Fund has funds in excess of the amount required for any purpose described in this subsection, the excess shall be transferred as follows:

(i) Until the Authority has been reimbursed in full for the Additional WCCA Funding, the first $1 million of such excess in any fiscal year of the District shall be transferred to the Authority; and

(ii) Following any transfer to the Authority required by sub-subparagraph (i) of this subparagraph, if there are excess funds in the New Convention Center Hotel Fund, 50% of the excess shall be transferred annually to the Authority to promote tourism in the District, Washington Convention Center neighborhood development, hospitality job training and readiness programs, and other needs of the Washington Convention Center and 50% of the excess shall be transferred to the General Fund of the District of Columbia pursuant to subsection (c) of this section.

(B) For the purposes of this section, the term “Additional WCCA Funding” means the payment of $25 million to the developer of the New Convention Center Hotel for the costs of the development and construction of the New Convention Center Hotel not paid from the proceeds of the bonds or the $22 million payment by the Authority.

(c) If, at the end of any fiscal year of the District, the balance of cash and investments in the New Convention Center Hotel Fund exceeds the amounts required under subsection (b) of this section, including the amount of debt service and reserves on the bonds, the excess shall be transferred to the General Fund of the District of Columbia, unless the District elects to use the excess to redeem the bonds prior to maturity, either in whole or in part.

Legislative History

Sept. 19, 2006, D.C. Law 16-163, § 103, 53 DCR 5430; Apr. 15, 2008, D.C. Law 17-144, § 2(c), 55 DCR 2527; Oct. 22, 2009, D.C. Law 18-78, § 3(b), 56 DCR 6959