Section 10-B5015. COSTS

 

5015.1The developer, owner, or applicant, whichever is applicable as determined by the Deputy Mayor for Planning and Economic Development (Deputy Mayor), shall be responsible for all costs incurred by the District with respect to the financing of the facility, including, without limitation, the processing of the application, if applicable, all matters relating to the issuance of the bonds, financial advisor fees, bond counsel fees, and other matters.

 

5015.2If, for any reasons whatsoever, the developer, owner, or applicant, whichever is applicable as determined by the Deputy Mayor, after receiving written notification from the Deputy Mayor, fails to conclude necessary negotiations or take requested action within a reasonable or specified period of time, or if the developer, owner, or applicant withdraws, abandons, cancels, or neglects the application, or if the developer, owner, or applicant is unable to find a purchaser for the bonds, or if the bonds are not issued for any reason (other than failure of the District to provide for issuance of the bonds), then upon presentation of an invoice, the developer, owner, or applicant shall pay to the District, or to persons or firms designated by it, all fees, charges, and other costs incurred with respect to the application and any proposed bond issue, up to that date and time, including fees of financial advisors and bond counsel for the District.

 

5015.3In addition to the costs specified in § 5015.1, and except as specified in §5015.4, upon the delivery of any bonds issued pursuant to section 490 of the Act (other than bonds issued by the Chief Financial Officer or an instrumentality of the District, to whom bond issuance authority has been delegated by the Council pursuant to section 490 of the Act), the developer, owner, or applicant shall pay to the District an origination fee according to the following schedule:

 

(a)Up to twenty-five million dollars ($25,000,000) in face amount of bonds - twenty-five hundredths of a percent (0.25%) of the face amount of the bonds;

 

(b)More than twenty-five million dollars ($25,000,000) and up to and including one hundred million dollars ($100,000,000) in face amount of bonds - fifty hundredths of a percent (0.50%) of the face amount of the bonds; and

 

(c)More than one hundred million dollars ($100,000,000) in face amount of bonds - seventy-five hundredths of a percent (0.75%) of the face amount of the bonds.

 

5015.4In addition to the costs specified in § 5015.1, upon delivery of bonds issued pursuant to section 490 of the Act (other than bonds issued by the Chief Financial Officer or an instrumentality of the District to whom bond issuance authority has been delegated by the Council pursuant to section 490 of the Act) that are secured either by payments in lieu of taxes or by tax increments, or both, the developer, owner, or applicant, whichever is applicable as determined by the Deputy Mayor, shall pay to the District an origination fee of one and one half percent (1.5%) of the face amount of the bonds on the date of delivery of the bonds and shall pay the District an annual administrative charge thereafter on each anniversary date of the date of delivery of the bonds equal to fifteen hundredths of a percent (0.15%) of the outstanding principal amount of the bonds on each applicable anniversary date.

 

5015.5The entire origination fee shall be due on the date the bonds are delivered. With the written approval of the Deputy Mayor, a developer, owner, or applicant may pay the origination fee in up to five (5) equal installments, commencing on the date the bonds are delivered and continuing on each anniversary date thereafter until the entire origination fee is paid, without interest, upon written request to the Deputy Mayor no later than thirty (30) days prior to the date of delivery of the bonds evidencing the adverse impact of a single origination fee payment on the project to be financed with the proceeds of the bonds.

 

5015.6Payment of the origination fee in installments may be found to have an adverse impact on the project to be financed with the proceeds of the bonds if it is evidenced to the satisfaction of the Deputy Mayor that without the allowance for payment of the origination fee in installments, the developer, owner, or applicant will be unable to pay all of the other costs of issuance of the bonds on the date of delivery thereof or within the year beginning on the date of issuance of the bonds.

 

5015.7With the written approval of the the Deputy Mayor, the origination fee, but not the administrative charge, may be reduced or waived after written request to the Deputy Mayor no later than thirty (30) days prior to the date of delivery of the bonds evidencing that an origination fee concession in whole or in part will further the public interest because the present value of the special public purpose benefits offered by the developer, owner, or applicant at the project to be financed with the proceeds of the bonds exceeds the dollar amount of the origination fee, or that imposition of the origination fee is likely to adversely impact the financial feasibility of the project to be financed with the proceeds of the bonds, or if the imposition of the origination fee will result in a debilitating financial impact on the developer, owner, or applicant or on the operations of the project to be financed by the proceeds of the bonds. The special public purpose benefits, and the total value of the special public purpose benefits, shall be determined in the discretion of the Deputy Mayor and shall include, but not be limited to, public benefits the quality or quantity of which are not a necessary or natural consequence of the project that is to be financed with the proceeds of the bonds. The present value of the special public purpose benefits shall be the total value of the special public purpose benefits for the period of five (5) years from the date of the delivery of the bonds discounted to a present value at a per annum rate equal to the "Prime Rate" as published on the date the calculation is made by "The Wall Street Journal" in its listing of "Money Rates". The value of any fee concession granted shall not exceed the amount required to avoid such adverse or debilitating impacts.

 

5015.8On or before the completion of a transaction in connection with outstanding bonds issued pursuant to section 490 of the Act that requires the filing of an information return with the United States Department of Treasury Internal Revenue Service (other than bonds issued by the Chief Financial Officer or an instrumentality of the District), the developer, owner, or applicant shall pay to the District, in addition to the costs specified in § 5015.1, and except as specified in § 5015.4, a modification or conversion fee according to the following schedule:

 

 

(a)Up to twenty-five million dollars ($25,000,000) in face amount of bonds outstanding at the time of the modification or conversion: ten hundredths of a percent (0.10%) of the face amount of the bonds outstanding at the time of the modification or conversion;

 

(b)More than twenty-five million dollars ($25,000,000) and up to and including one hundred million dollars ($100,000,000) in face amount of bonds outstanding at the time of the modification or conversion: fifteen hundredths of a percent (0.15%) of the face amount of the bonds outstanding at the time of the modification or conversion; and

 

(c)More than one hundred million dollars ($100,000,000) in face amount of bonds outstanding at the time of the modification or conversion: twenty hundredths of a percent (0.20%) of the face amount of the bonds outstanding at the time of the modification or conversion.

 

5015.9With the written approval of the Deputy Mayor, the modification or conversion fee, but not the administrative charge, may be reduced after written request to the Deputy Mayor no later than thirty (30) days before the closing date of the transaction specified in § 5015.8 evidencing that the magnitude of cost savings realized by the developer, owner, or applicant in connection with the transaction will further the public interest because the benefits from the proceeds of the modification or conversion exceeds the amount of the modification or conversion fee, the imposition of the modification or conversion fee in whole is likely to adversely impact the financial feasibility of the project to be financed with the proceeds of the bonds, or the imposition of the modification or conversion fee will result in a detrimental financial impact on the developer, owner, or applicant or on the operations of the project to be financed by the proceeds of the bonds.  The magnitude of the cost savings realized shall be calculated as a percentage of the costs of the original transaction by using the cost savings as the numerator and the costs of the original transaction as the denominator.  Reductions in the modification or conversion fee shall not be in an amount exceeding five hundredths of a percent (0.05%) of the face amount of the bonds outstanding at the time of the modification or conversion.  The request for reduction shall be made a part of the record of the transaction.

 

5015.10For the purposes of § 5015, a developer shall mean a person who undertakes to develop a real estate project; an owner shall mean either an owner as defined in the Payments in Lieu of Taxes Act of 2004, effective April 5, 2005 (D.C. Law 15-293; D.C. Official Code § 1-308.01 et seq.) with respect to bonds secured by payments in lieu of taxes or an owner of any building which is located in a Tax Increment Financing area with respect to bonds secured by tax increments pursuant to the Retail Incentive Act of 2004, effective September 8, 2004 (D.C. Law 15-185; D.C. Official Code § 2-1217.71 et seq.); and an applicant shall mean any individual or any public corporation, private corporation, association, partnership, firm or other entity, organized for the purpose of making a profit or as a nonprofit organization, other than the District or any of its agencies and instrumentalities, which, pursuant to the filing of an application, requests the District to participate in the financing of a project through the issuance of bonds pursuant to section 490 of the Act (other than bonds issued by the Chief Financial Officer or an instrumentality of the District to whom bond issuance authority has been delegated by the Council pursuant to section 490 of the Act).

 

5015.11For the purposes of § 5015, payments in lieu of taxes shall have the meaning set forth in the Payments in Lieu of Taxes Act of 2004, effective April 5, 2005 (D.C. Law 15-293; D.C. Official Code § 1-308.01 et seq.) and tax increments shall have the meaning set forth in section 490 of the Act.

 

5015.12The applicant shall be responsible for all costs incurred in complying with applicable federal and state securities laws and with any registration or exemption requirements which the District and its counsel, in their sole discretion, determine shall be satisfied in connection with a bond issuance.

 

authority

The Deputy Mayor for Planning and Economic Development, pursuant to section 502(b) of the Industrial Revenue Bond Fees Act of 1997, effective March 20, 1998 (D.C. Law 12-60; D.C. Official Code § 47-340.20 (2005 Repl.)) and Mayor's Order 83-145, dated June 24, 1983.

source

Final Rulemaking published at 30 DCR 4905, 4927 (September 23, 1983); as amended by Final Rulemaking published at 53 DCR 6091 (July 28, 2006); as amended by Notice of Final Rulemaking published at 58 DCR 9018 (October 21, 2011).