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Councilmember David A. Catania
Amendments offered to the Ballpark Omnibus Financing and Revenue Act of 2004
Bill 15-1028

November 3, 2004

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Page 23, Line 8

Add a new section 107 to read as follows:

"Sec. 107. The costs incurred by the government of the District of Columbia on the Project, as defined in section 103(a)(5), shall not exceed $500,000,000. Any costs in excess of $500,000,000 shall be paid by the owners of the professional baseball club that will enter into a lease with the District to use the Ballpark."

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Page 23, Line 8

Add a new section 107 to read as follows:

"Sec. 107. The government of the District of Columbia may fund up to 80 percent, not to exceed $400,000,000, of the cost of the Project, as defined in section 103(a)(5).".

Page 6, Line 13

After the phrase "not to exceed" delete the phrase "Five Hundred Fifty Million Dollars ($550,000,000)" and insert the phrase "Four Hundred Million Dollars ($400,000,000)".

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Section 104(a)(2) Page 12, Line 17-19

In new section 47-2002.05(a)(2) after the phrase "October 1, 2004 on" strike the phrase "a site bounded by N Street, SE, Potomac Avenue, SE, South Capitol Street, SE, and 1st Street, SE, or any designated alternative site in the District of Columbia if the primary site shall be unavailable" and insert the phrase "the site known as Reservation 13, commonly known as DC General Hospital".

Section 106(b)(1) Page 19, Lines 18-19

After the phrase "a ballpark within" strike the phrase "the site bounded by N Street, SE, Potomac Avenue, SE, South Capitol Street, SE, and 1st Street, SE, or any designated alternative site in the District of Columbia if the primary site shall be unavailable;" and insert the phrase "the site known as Reservation 13, commonly known as DC General Hospital;",

Section 106(c) Page 20, Lines 7-9

After the phrase "Ballpark site" means" strike the phrase "the site bounded by N Street, SE, Potomac Avenue, SE, South Capitol Street, SE, and 1st Street, SE, or any designated alternative site in the District of Columbia if the primary site shall be unavailable, and acquired by the Mayor" and insert the phrase "the site located on Reservation 13, commonly known as DC General Hospital".

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Section 103(c)(3) Page 4, Line 20 and Page 5, Line 4

Designate the language in paragraph (3) as subparagraph (3)(A) and add a new subparagraph (B) to read as follows:

"(B) Notwithstanding any other provision of law, in the case of acquiring land by condemnation for the purpose of constructing the ballpark, as defined in Section 47-2002.05(a)(2) of the D.C. Official Code, the final purchase price shall be determined by an independent arbitrer licensed by the American Arbitration association, using the following criteria: the fair market value of the land, the appraised value of the ongoing business, and the cost of making the affected parter economically whole.".

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Page 23, Line 8

Add a new section 108 to read as follows:

"Sec. 108. Living wage.

"All employees of the professional baseball club or independent contractors paid by the owners of the professional baseball club located in the District of Columbia shall be paid a living wage and provided with health care benefits. The living wage shall be no less than an hourly rate which is equivalent to 125% of the federal poverty line when calculated based on 40 hours per week, 50 weeks per year. This is, however, provided that costs paid by the owners for an employees health care benefits be counted towards up to 1/5 of the hourly rate payable to the employee. This shall be adjusted each year to reflect increases in the federal poverty line.".

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Page 23, Line 8

Add a new section 109 to read as follows:

"Sec. 109, Naming rights.

"Any proceeds received from the sale of the naming rights of the stadium shall be divided equally between the owners of the professional baseball club located in the District of Columbia and the government of the District of Columbia. The District's share of the proceeds shall be deposited in the Community Benefits Fund.".

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Section 104(a)(2)iis amended as follows:

New Section 47-2002.05(b) is amended as follows:

On page 13, line 16 after the phrase "a sales tax of" strike the number "10%" and insert the number "15%".

On page 14, lines 6-8 after the phrase "provisions of the Chapter" strike the phrase "except that the rate shall be 12% of" insert the phrase "including" and after the phrase "parking motor vehicles" strike the "," and insert the phrase "and the gross receipts from the sales of spirits, beers, and wines,".

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Sec. 104, Page 14, Line 12

Add a new subsection (e) to read as follows:

"(e) The District shall be entitled to adjust the sales taxes imposed by subsections (b) and (c) of this section and such adjustment shall have no impact of the rental fee paid by the professional baseball club for the stadium.".

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Page 23, Line 8

Add a new section 109 to read as follows

"Sec. 109. Rent payments.

"The owners of the professional baseball team shall pay to the District of Columbia an annual rent for the use of the Ballpark as follows:

Year 1   $3,500,000
Year 2   $3,750,000
Year 3   $4,000,000
Year 4   $4,500,000
Year 5   $5,000,000
Year 6   $5,500,000
Years 7 through lease expiry: $10,000 less than 102% of the prior year's rent.".

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Page 23, Line 8

Add a new section 110 to read as follows:

"Sec. 110. Ticket availability for District youth.

"No fewer than 500 tickets for each home game played by the professional baseball club at the Ballpark shall be made available to the Department of Parks and Recreation for distribution to District of Columbia youth below 19 years of age. If the demand for tickets exceeds the supply, the District of the Department of Parks and Recreation shall employ a lottery system to determine the distribution of the tickets."

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Page 23, Line 8

Add a new section 111 to read as follows:

"Sec. 111. Lease for administrative offices.

"Notwithstanding any other provision of law, the lease for the offices of the team management located in the Ballpark shall be subject to a lease separate and apart from any other lease related to the Ballpark by the professional baseball club and subject to Council approval by act.".

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Section 104(b)

Page 17, Line 17

After the phrase "District gross receipts" strike the phrase "greater than $30,000,001 shall pay $48,000." and insert the phrase "of $30,000,001 to $40,000,000 shall pay $49,000;

(8) Each feepayer with annual District gross receipts of $40,000,001 to $50,000,000 shall pay $59,000;

(9) Each feepayer with annual District gross receipts of $50,000,001 to $60,000,000 shall pay $69,000;

(10) Each feepayer with annual District gross receipts of $60,000,001 to $70,000,000 shall pay $79,000;

(11) Each feepayer with annual District gross receipts of $70,000,001 to $80,000,000 shall pay $89,000;

(12) Each feepayer with annual District gross receipts of $80,000,001 to $90,000,000 shall pay $99,000; and

(13) Each feepayer with annual District gross receipts of $90,000,001 to $100,000,000 shall pay $109,000.".

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Section 104(b) is amended as follows:

Page 15, Lines 3-8

Strike definition "(2)" and renumber "(3)" as "(2)".

Amend new §4-2762 as follows:

Page 16, Lines 2-4

After the phrase "shall remit," strike the phrase "on or before June 15 of each year, a ballpark fee that shall be based upon the annual District gross receipts of the feepayer for the feepayer's preceding tax year and computed according to the ball park fee schedule" and insert the phrase "on the due date of its business franchise return a ballpark fee as"

Page 17, Line 3-18

Strike the language in subsection (b) and insert the following language:

"(b) The ballpark fee is established as follows:

"(1) A new paragraph (5) is added to §47-1807.02(a) to read as follows:

"(a)(5) For taxable years beginning after December 31, 2004, a tax at the rate of 11.0% upon the taxable income of $3,000,000 or more of every corporation, whether domestic or foreign, of which 1.01% shall constitute the ballpark fee.".

"(2) A new paragraph (5) is added to §47-1808.03(a) to read as follows:

"(a)(5) For taxable years beginning after December 31, 2004, a tax at the rate of 11.0% upon the taxable income of $3,000,000 or more of every corporation, whether domestic or foreign, of which 1.01% shall constitute the ballpark fee.".

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Section 105 is amended as follows:

Page 18, line 15

Rename the title of the section to read as follows: "Local, small and disadvantaged business enterprises, First Source Employment, and Apprentice requirements."

Page 19, Line 11

Add a new subsection (d) to read as follows:

"(d)(1) Notwithstanding any other provision of law, 50% of all apprenticeship hours performed pursuant to apprenticeship programs related to the construction and operation of the Ballpark shall be performed by District of Columbia residents.

"(2) Any prime contractor or subcontractor that fails to comply with the requirements of this subsection shall be subject to a monetary fine in the amount of 5% of the direct and indirect labor costs of the contract. Fines shall be imposed by the Contracting Officer and remitted to the Department of Employment Services to be applied to job training programs, subject to appropriations by Congress.".

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Section 104(a) Page 12, Line 18
Section 106(b)(1) Page 19, Line 19
Section 106(c) Page 20, Line 8

After the phrase "1st Street, SE" strike the following phrase ", or any designated alternative site in the District of Columbia if the primary site shall be unavailable"

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Section 106(c)(2) Page 21-22, Lines 10-22 and Lines 1-10

Strike paragraph (3) of subsection (a) of new section 3-1407A.

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Section 106(b)(2) Page 22-23, line 22 and Lines 1-3

After the phrase "shall be approved by" strike the remaining text and insert the phrase "the Council of the District of Columbia pursuant to §2-301.05a of the D.C. Official Code.".

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Section 202(b) Page 25, Line 1

After the phrase "Community Benefit Fund" strike the word "may" and insert the word "shall".

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Section 203 Page 26, Line 14

Add a new subsection (f) to read as follows:

"(f) The DC Ballpark TIF Area shall cease to exist after October 1, 2039.".

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Title II Pages 23-33, lines 10-22 and 1-2

Strike the existing language and insert the following:

"Sec. 201(a) There is hereby established a revolving fund to be known as the Community Benefit Fund ("Fund"). In addition to funds received from appropriations, gifts, donations, grants, investments, the fund shall receive:

"(1) One dollar from each ticket, as that term is defined in section 104(a)(2), sold to a baseball game or event held in the Ballpark, as that term is defined in section 104(a)(2); and

"(2) Fifty percent of the money received by the District from sale of the naming rights of the Ballpark, whether it be a stadium or arena newly constructed or the re-naming of an existing stadium, such as, for example, the Robert F. Kennedy Stadium.

"(b) Monies deposited into the Fund are specifically designated to be expended by the Department of Parks and Recreation on the youth of the District, including expenditures to build and maintain recreation centers, ball fields, and other recreational buildings and facilities. A priority expenditure shall be to provide tickets to District youth to the Ballpark and to events at other venues in the District. The Fund shall not provide funding to any other District government agency.

"(c) Proceeds of the Fund may be invested in a prudent and reasonable manner consistent with applicable District government policies and procedures.

"(d)(1) The Mayor, in consultation with the Director of Parks and Recreation, shall develop rules and procedures to purchase tickets and to equitably distribute tickets to District youths free of charge, or substantially discounted.

"(2) The proposed rules and procedures shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules and procedures by resolution within this 45-day review period, they shall be deemed approved.

"(e) The Fund shall be available without fiscal-year limitation. Revenues deposited into the Fund shall not revert to the General Fund at the end of any fiscal year to at any other time but shall be continually available to the Department for the uses and purposes set forth in this section.

Fiscal impact statement

This legislation has no negative impact.

Rationale:

The purpose of this section is to ensure that the District's youngest residents share in the investment in the future economic development of our city, as the return of baseball has been touted to be and benefit from the additional revenue that results.

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