4581909 Resolution 20-301, "Extension of Time to Dispose of the Strand Theater Emergency Declaration Resolution of 2013"

A RESOLUTION

20-301

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

October 1, 2013

 

 

To declare the existence of an emergency with respect to the need to the need to approve an extension of time to dispose of District-owned real property located at 5131 Nannie Helen Burroughs Avenue, N.E., known as the Strand Theater.

 

 

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Extension of Time to Dispose of the Strand Theater Emergency Declaration Resolution of 2013”.

 

Sec. 2. (a)  On June 16, 2008, the Deputy Mayor for Planning and Economic Development awarded Washington Metropolitan Community Development Corporation (“Developer”), exclusive rights to negotiate to redevelop the District-owned real property located at 5131 Nannie Helen Burroughs Avenue, N.E., known for tax and assessment purposes as Lot 801 in Square 5196 (“Strand Theater”), along with an adjacent developer-owned property, as part of a commercial-use project that will include vibrant, street-front retail, a community and office space, and off-street parking.

(b) Pursuant to the Land Disposition Agreement (“LDA”) dated March 30, 2010, the Developer is required to secure all sources of financing for the Strand Theater as a condition precedent to closing. Due to a risk-adverse market, lender underwriting standards were raised in terms of equity requirements and debt-service coverage ratios forcing a slight reduction in the project’s scale. Lender requirements that a retail tenant be secured before committing financing to the project have led to further delays. Additionally, other sources of funding, including public lenders, would not have committed until the developer secured a higher loan-to-value ratio.

(c) The developer has secured a letter of intent from a retail tenant and has begun to complete all pre-development activities associated with securing all sources of funding for the project, as required by the LDA.  However, due to delays in securing financing, exacerbated by the requirement that a retail tenant be secured, the closing will not occur by the expiration of the Council’s extension to October 6, 2013, pursuant to the Extension of Time to Dispose of the Strand Theater Temporary Amendment Act of 2012, effective March 5, 2013 (Law 19-216; 59 DCR 13292).

(d) The proposed legislation will extend the Mayor’s authority to dispose of the Property until October 6, 2014, to allow the parties to meet the closing and pre-development deadlines.

Sec. 3.  The Council of the District of Columbia determines that the circumstances

enumerated in section 2 constitute emergency circumstances making it necessary that the Extension of Time to Dispose of the Strand Theater Emergency Amendment Act of 2013 be adopted after a single reading.

 

Sec. 4.  This resolution shall take effect immediately.