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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 10. PLANNING AND DEVELOPMENT |
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SubTilte 10-B. PLANNING AND DEVELOPMENT |
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Chapter 10-B61. RULES OF OPERATION FOR THE DOWNTOWN RETAIL PRIORITY AREA |
Section 10-B6199. DEFINITIONS
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6199.1Terms not otherwise defined herein shall have the meaning set forth in the Act. 6199.2 For purpose of this chapter, the following terms shall have the meaning ascribed.
Development agreement - Development Agreement means an agreement between the District and the owner of a building in the TIF area relating to matters specified in section 5(b)(5) of the Act and may include the funding agreement, if any, as specified in section 6 of the Act.
Rating System - Rating System means the Rating Matrix contained in Appendix 2.
Appendix 1Retail Development Project Application
District of Columbia Retail Incentive Second Congressional Review Emergency Act of 2004 and Retail Incentive Review Act of 2004
Application for Tax Increment Financing
Pursuant to the District of Columbia Retail Incentive Second Congressional Review Emergency Act of 2004 and the Retail Incentive Act (collectively, Retail TIF Act), the undersigned Applicant hereby applies to the District of Columbia for tax increment financing for a Retail Development Project in the Downtown Retail Priority Area. This Application shall be submitted to the Office of the Deputy Mayor for Planning and Economic Development ("DMPED").
Applicant:
[name of applicant], a [form of legal entity] organized under the laws of , and owner of the Building. A copy of the Deed providing evidence of ownership is attached as Exhibit A.
Tenant :
[legal tenant name], doing business as [tenant], a [legal entity], organized under the laws of The 20xx Annual Report of [parent company name] its parent company, if applicable, is attached as Exhibit B.
Building:
The [building name], [building address] Street, N.W , Washington, D.C., located on the Land.
Land:
Lot [xxx] in Square [yyy], as shown on Exhibit C.
Retail Development Project:
The leasing of [xx,xxx] rentable square feet of space in the Building to [tenant] pursuant to the [tenant] Lease, and the build- out of such space for the retail sale by [tenant] of [describe goods sold]. [Description of the timeline of proposed tenant build-out.]
[Tenant] Lease:
Applicant and [legal tenant name] have executed a Lease dated [lease execution date], pursuant to which [legal tenant name] is leasing the TIF Area. A copy of the Lease is attached as Exhibit D.
TIF Area:
The space occupied by [tenant] in the Building, as shown on Exhibit E. The space consists of [xx,xxx] square feet of rentable area on the [floor number(s)] floor(s) of the Building.
Retail Development Costs:
The estimated costs to be incurred in connection with the Retail Development Project and the plans and specifications for the build- out of the tenant space are included in Exhibit F.
Projected Sales:
A projection of [tenant's] sales at the TIF Area including projected sales taxes, is attached as Exhibit G.
Certificate of Occupancy:
The Applicant expects that the District of. Columbia will issue a Certificate of Occupancy to [tenant] to operate the TIF Area for retail use on [projected date]. The Applicant expects the [tenant] to open for business on [date]. A copy of the Certificate of Occupancy will be required to be delivered pursuant to the Development Agreement prior to the issuance of the TIF Note or Bonds.
Requested TIF Amount:
The Requested TIF amount of $[Requested TIF amount]
TIF Note/Bond Structure:
The Applicant proposes that the District of Columbia issue a TIF Bond or Note [describe proposed terms and provisions of TIF Note or Bond].
LSDBE Participation
The Applicant has affirmed its agreement with respect to LSDBEs in the Development Agreement between the Applicant and the District. The Development Agreement is attached as Exhibit H.
First Source Commitment:
The Applicant will, and will require that, its tenant also execute a First Source Agreement, the forms of which are attached to the Development Agreement.
Non-Discrimination and EEO:
Attached as Exhibit I is Applicant's Non-Discrimination Certification. Attached as Exhibit J is Applicant's Equal Employment Opportunity Policy Statement Attached as Exhibit K is Applicant's Assurance of Compliance with Equal Employment Opportunity Requirements.
Tax Certification Affidavit:
Attached as Exhibit L is the Applicant's Tax Certification Affidavit.
No Other Incentives:
The Applicant has not received from the District of Columbia any other funds (including without limitation proceeds of bonds through any other program of tax increment financing) for development of this Retail Development Project.
Sources and Uses:
Attached as Exhibit M is a statement of sources and uses for the Building, showing (i) the total estimated costs of the Building (including the Retail Development Costs for this Retail Development Project), and (ii) the sources of funds (including debt, equity and TIF) anticipated to pay these costs including copies of lender commitments, if applicable.
Certification of Application:
A certification of this Application for Tax Increment Financing is attached as Exhibit N.
Applicant has executed this Application for Tax Increment Financing as of , 2005.
[Applicant's legal name]
By:[ ]
List of Exhibits:
A
Deed
B
[Parent company] 2Oxx Annual Report
C
Plat of Land
D
Copy of Lease
E
Diagram of TIF Area
F
Retail Development Costs and Plans and Specifications
G
Projected Sales Taxes
H
Development Agreement
I
Non-Discrimination Certification
J
Equal Employment Policy Statement
K
Assurance of Compliance with Equal. Employment Opportunity Requirements
L
Tax Certification Affidavit
M
Sources and Uses
N
Certification of Application
Appendix 2 - Rating System
Downtown Washington DC Retail Incentive Program Rating Chart
This electronic rating worksheet has been designed so that brokers, owners and retailers can self-rate potential recipients of downtown DC retail incentives. Final ratings are made by the Deputy Mayor for Planning and Economic Development. To use the sheet, fill in all 15 yellow boxes. The blue boxes contain formulas and should not be changed. After you have properly filled out this electronic worksheet it will return the approximate amount that the retailer is eligible to receive from the District in the form of a Downtown TIF incentive for tenant improvements (assuming the information provided is verified). You can either send an electronic copy of the completed sheet, or you can fax it to: Susan Linsky, Office of the Deputy Mayor for Planning and Economic Development susan.finsky@dcgov or fax to 727-6703 with a request that the retailer be officially rated by the District. See the bottom of the sheet for a full explanation of each rating factor. [This rating chart was last approved 10-20-03]
Name of Retailer Phone Date
Contact Person E-mail
Address DC Contact
First Threshold Test (to be completed by Office of Deputy Mayor or Marketing Partner)
A
Projected Sales Per Sq. Ft.
D
$
Tax/sq. ft
-
B
Today's LIBOR plus 425 basis points
0.0545
E
Supportable
$0.00
borrowing
C
Tax rate = 5.75%
F
Payback period
#NUM months
RATING FACTOR
RATINGS CALE
RATING
1
Uniqueness factor
Unique
2nd in
region
<5 in
region
>5 in
region
Number of stores in
region=
0
9
7
4
0
>1
store
1
store
0
Stores
2
Collateral Leasing Benefit (exclusive of #4)
(Depends on # of co-tenants anticipated to follow this retailer)
8
4
0
sales/ft
factor
sales/ft
factor
sales/ft
factor
$
3
Sales per square foot and factor
$ 200
1
$ 400
4
700
6
$
$ 250
2
$ 450
4
800
6
0
/square
foot
$
$ 300
3
$ 500
5
900
6
$
$ 350
3
$ 600
5
1000
6
Yes
No
4
Dominate category or 1st in market
5
0
4a
Fulfills clustering goal
5
(must be part of a 3+store deal)
4b
Minimum 10 points needed to be eligible for TIF incentive. If <10, stop here
Subtotal
5
Advertise in region
($ of advertising/square feet of store)
> $ 10
> $ 5
$ 0
7
3
0
6
Vertically integrated retailed
(percentage of Goods carried under the retailers label)
>50%
<50%
<25%
4
2
0
Yes
No
7
Highly expressive retail facade
2
0
8
Second floor occupied(75% of 1st)
1
0
9
DC owned business
2
0
square
factor
square
factor
square
factor
10
Square footage of retail store(Anchor ability)
feet
feet
feet
square feet=
<7000
-
20,000
2
50,000
3
0
7,000
1
30,000
2
75,000
3
10,000
1
40,000
3
100,000
3
15,000
1
11
Unique circumstance (awarded ; by Deputy Mayor)
Grand Total
If subtotal on line 4b is >=10, then multiply grand total by
$2.55
Incentive / sq foot
$
-
MAXIMUM ALLOWABLE TIFINCENTIVE
$ 0.00
1Uniqueness factor/number of stores in region is the number of other stores that the retailer has in the Washington DC region. This includes DC, Montgomery, Prince Georges, Fairfax, Arlington, Alexandria, and the independent cities in this area. If the retailer is not an anchor, the deputy mayor may determine that the geographic area for rating that retailer as unique is larger
2Collateral Leasing Benefit (exclusive of #4) is the strong likelihood that one or more additional retail co-tenants as defined in the developer's MOU will sign leases to locate in close proximity to the retailer being rated as a direct result of that retailer coming into the area.
3Sales per square foot and factor are the projected sales per square foot based on a retailers other stores in similar demographic markets and the rating factor that matches the projected sales per square foot listed.
4Dominates category or 1st in market is whether a retailer is either the most dominant retailer in its category (i.e. women's shoes) or whether it is the first in its category to locate in the shopping district (i.e. men's suits).
4aFulfills clustering goal is an alternative to #4. If three retailers sign leases together as a package and satisfy other criteria, they can each be awarded 5 points for creating a critical mass.
5Advertises in region is whether the retailer does, or will, spend more than a certain dollar amount per square foot on regional advertising that will promote its downtown location.
6Vertically integrated retailer is the extent to which the retailer sells only its own brand name goods.
7Highly expressive retail facade is how well the retailer designs its storefront, signage and display windows to animate both its store and the sidewalk.
8Second floor occupied (75% of 1st) is whether the retailer occupies a minimum amount of space on a second floor (either above or below) in addition to its ground floor space.
9DC owned business is whether the retailer is a District of Columbia business, or whether the primary owner is a DC resident.
10Square footage of retail store (Anchor ability) is the number of square feet of retail space to be leased. This does not include back of the house space.
11Unique circumstances include issues such as higher build out costs due to historic preservation requirements, or unique buildings or locations that have very high retail impact. Points are awarded at the discretion of the Deputy Mayor.