Council Approves RFK Campus Plan, RENTAL Act, Juvenile Curfew Extension, Vaccine Access, and Police Contract

The Council's first Legislative Meeting following its summer recess always has a loaded agenda. This year was no exception, with two blockbuster bills-the RFK Stadium redevelopment bill and the RENTAL Act-receiving the second of two necessary votes. Additionally, the existing temporary short-term juvenile curfew bill was extended, an emergency measure allowing pharmacies to administer recommended vaccines without a prescription was approved, and a collective bargaining agreement with the police was signed off on.

RFK Stadium Site Redevelopment

Approval of the RFK Stadium campus bill on the second of two necessary votes was the culmination of a legislative process that began with the Congress and President Joe Biden approving the transfer of the site from federal to District hands in the waning days of the previous administration. This handoff from the federal to District ownership then left the ball in the hands of the mayor, who negotiated with the team an initial proposal for the stadium site's redevelopment and the construction of a new Commanders stadium.

Though some felt that what had been delivered to the Council was a done deal, the members of the Council were unanimous in their view that deal could be substantially approved.

When the legislation encapsulating the mayor's deal with the Commanders was presented to the Council, as incorporated in the proposed Budget Support Act, it was lacking in several critical areas-financial return to the District, construction timelines and limits, transportation and environmental considerations, labor/workforce/Certified Business Enterprise agreements, and community benefits.

In a series of timely and hard-fought concessions made by the Commanders, first in negotiations with the Chairman, then in a letter shared between the public hearing and the team hearing, and finally in the final lead-up to the Council's first approval vote, the team addressed each of these problem areas.

Prior to the second vote on the stadium campus legislation, additional clarifications were made via an amendment in the nature of a substitute regarding parking tax event breakdowns, the stadium's LEED status, tightened transportation language, and key deadlines. One additional substantive amendment was approved during the meeting, providing for an additional targeted expansion of the community benefits package.

The stadium campus legislation, as initially approved at the Council's August meeting and as amended at the most recent meeting, includes all of the Council-negotiated elements below.

Financial Return to the District

First and foremost, in regards to financial return to the District, the Commanders agreed to the following $779 million in concessions:

• $260 million in parking fees from non-team event days (on second vote, the definition of these events was clarified and broadened)
• All parking taxes ($112 million)
• $54 million in sales tax on merchandise at the stadium
• $248 million in sales tax on food and beverage at the stadium
• $50 million community benefit package (with another $60 million subsequently agreed to, see below)
• $55 million in debt financing restructuring savings

Construction/Timelines

In regards to construction timelines and limits, the Commanders agreed that any cost overruns for construction of the stadium/parking garages, as well as any costs for their maintenance above the pre-funded Maintenance Fund, will be paid for by the team, not the District. Additionally, binding deadlines for completion of each of ten construction phases have been put into place, and accelerated rent penalties will eventually accrue if the deadlines are violated. The duration of these penalties was extended prior to the second vote on the bill from five to ten years. Additionally, the mayor will be required to provide quarterly construction and funding updates to the Council regarding the stadium and the campus.

Transportation and Environment

Regarding transportation and environmental considerations, over the 30 years of the project, $600 million will be directed into a Transportation Improvement Fund to pay for potential Metrorail and Metrobus infrastructure and service improvements directly related to the new stadium. A potential third parking garage was removed from early plans, unless it is determined to be necessary after the stadium has opened for business. A change made prior to the second vote on the bill will require the District Department of Transportation to conduct a study on the need for an additional garage no sooner than July 1, 2032. An additional study will analyze the need, logistics, and placement options for an expected new engine and ladder fire company on the campus, with a delivery deadline of January 1, 2028 at the latest.

Two other garages were relocated to lessen impacts on surrounding residential neighborhoods. Additionally, materials and methods used to construct the stadium will be "feasibly consistent" with the Version 5 LEED Platinum level of stadium construction and operation. Construction will attempt to maximize adherence to stormwater and floodplain standards in regards to the Anacostia River. And a transportation study will attempt to mitigate traffic and parking impacts affecting the surrounding Kingman Park community. And in another update prior to the second vote, the Commanders committed to preserve as many heritage trees as possible, including all those in the East Capitol Street median.

Labor/Workforce/ Certified Business Enterprises

In regards to labor concessions, the Commanders agreed to a project labor agreement and labor peace agreement on the stadium and hotels on the project site. Additionally, 51 percent of jobs in mixed use developments on the site must go to DC residents, and 15 percent of construction and operation jobs at the project sites must go to justice-involved individuals (pending available candidates). Finally, the legislation incorporates a 20 percent threshold requirement for both equity and development participation for Certified Business Enterprises (CBEs).

Community Benefits

The initial community benefits agreement agreed to by the Commanders prior to the Council's first vote will provide a minimum of $50 million across 30 years, with an emphasis on assisting communities in Wards 5, 7, and 8. Included in the benefits are:

• $20 million to create and support a Commanders Youth Academy in Ward 7, linking sports to educational success
• $3 million in grocery subsidies in Ward 7
• $7 million in local business subsidies
• $5 million for workforce and apprenticeship development
• $2 million for community events and tickets
• $13 million in other projects determined by the Council

The one substantive amendment agreed to during the Council's second Legislative Meeting deliberations on the stadium campus provides for $2 million annually in excess Sports Facilities Fee revenue to be added to the Community Reinvestment Fund, above and beyond what was approved at the time of the Council's first vote. Those funds must be used to prevent displacement, support small businesses, provide workforce development, fight blight, and support public health in Wards 5, 6, 7, and 8. This $2 million in annual funds, paid out for thirty years, combined with the $50 million outlined above, will provide $110 million in combined community benefits. Another amendment provided for a setaside to help fund youth sports programs.

Regarding the maintenance and possible continuation of the current uses of the present RFK site, the Commanders agreed that the memory and legacy of Senator Robert F. Kennedy would be kept alive on the site. They agreed the Fields at RFK will remain open throughout the construction of the stadium and other properties on the site, and that present festival uses of the site would continue during and after the construction. The Commanders also agreed to maintain and develop open spaces that could allow for continued current uses such as a skate park and pole vaulting.

The quantity, quality, and magnitude of the concessions negotiated by the Council in response to Councilmember and public concerns cannot be underestimated. However, it is important to not overlook the core original benefits of the project: that it will bring 6,000 new housing units to the site (including 1,800 affordable units), generate $26.6 billion in redevelopment tax revenue…and bring the Commanders back to the District!

RENTAL Act

Also approved in the second of two necessary votes at the most recent Legislative Meeting was the Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Act. Like most Council legislation, the bill is a complicated balancing act-an attempt to balance maintaining the District's cherished legacy of tenant protection law with the reality of a District-specific decline in housing production, especially affordable housing production. With elevated rent nonpayment rates dating back to COVID-era tenant protections, coupled with judicial vacancies in landlord/tenant court and the slower transaction timeline associated with the Tenant Opportunity to Purchase Act (TOPA) adherence, housing investors are uniquely wary of investing in the District.

An initial version of the RENTAL Act was included in the mayor's budget proposal as part of the Budget Support Act, but it was broken out of that bill by the Council and treated as standalone legislation so that a standalone hearing could be held and a full, distinct legislative record could be created.

Changes were made to the mayor's initially proposed RENTAL Act language prior to the bill's first vote at the prior Legislative Meeting, and subsequent changes were made prior to Council consideration in response to intervening input from Councilmembers.

In regards to one of the RENTAL Act's most discussed provisions, the bill would provide for expedited evictions in cases of an alleged crime of violence in a unit on the premises, if a judge made a preliminary determination by a preponderance of the evidence that such a crime had occurred. This was intended as a compromise between the provision being triggered by an arrest for such a crime (seen as too broad) and by formal charges being pressed (seen as too narrow). More broadly, the bill shortens the notice period for all evictions from 30 days to 10 days.

An amendment prior to the second vote on the bill clarified that if a tenant was themselves the victim of a violent crime in their unit, they cannot be evicted because of that crime. The amendment also ensures that victims of domestic violence and other legally protected, especially vulnerable tenants would continue to be provided reasonable accommodations as required by law.

In regards to TOPA, the bill as passed at first reading would exempt residential buildings for the fifteen years following construction from the requirement to allow tenants the opportunity to purchase their building. Fully 96 percent of properties that have a TOPA transaction were built prior to 1978, so newer buildings do in practice already make less use of TOPA protections.

As passed after being amended at second reading, the bill would exempt buildings with four or fewer units from TOPA. In 2018, the Council voted to exempt single family homes from TOPA, and this latest amendment would basically dial up the number where TOPA kicks in from two to five units. The goal of this amendment was to balance the possibility for homeowners or small investors to freely create and sell truly micro-multifamily units against the District's longstanding tradition of tenant protection and a tenant's opportunity to purchase. In an effort to prevent larger financial actors from attempting to bundle multiple such smaller, TOPA-exempt buildings, a further amendment from the dais only allows this TOPA exemption for owners of two or fewer such buildings.

As initially passed at the prior Legislative Meeting, the bill also provided a TOPA exemption for the sale of buildings where the buyer agrees in writing to maintain rents for 51 percent or more of rental units at at or below eighty percent of Area Median Income for the twenty following years. Known as an affordability covenant, this can be seen as an effort to balance long-term guarantee of affordability for the many against the short-term financial compensation of the few. However, research has shown that existing TOPA protections already provide equal or greater long-term protections of affordability than would covenants. The affordability covenant language was removed via amendment prior to the second vote on the bill.

Other amendments to the RENTAL Act:

• require tenants in non-payment eviction cases to pay rent into the court registry, even during the increasingly extensive lead-up time to the hearing on any defense raised by the tenant
• reintroduce a preferred class of Qualified Purchasers who have established themselves as trusted actors who follow best practices and, as such, receive beneficial tax treatment during purchase transactions
• clarify the definition of "tenant" to provide a more common sense standard, so that even when neither a new building owner or a current renter can produce a written copy of a lease, the renter is still recognized as a tenant
• reinstate a mandatory "cooling-off period" during which tenants cannot transfer their purchase rights unless they meet with a tenant support provider first, in an effort to avoid rushed, ill-informed buyout transactions influenced by bad actors

Temporary Juvenile Curfew Extension

In other action at the most recent Legislative Meeting, the Council acted to extend an emergency bill passed at the Council's June 13 Legislative Meeting dealing with temporary extended youth curfews.

Under that emergency legislation, police can designate specific, defined geographic zones for extended, temporary curfew applicability. In these zones, the expanded curfew remains in place for up to four days, would go into effect at 8PM, and would designate that only gatherings of eight or more youth would constitute a curfew violation. Zones could only be put into place for cause-either crime occurring in the zone in the prior 30 days, or that an anticipated gathering of a large group of youth is likely to result in public safety problems. The curfew zones must be publicly posted in advance within the zone, and youth must be given a verbal notice to disperse prior to any enforcement actions. These declarations of need to disperse have proven quite successful-this summer's temporary extended curfew zones resulted in zero actual arrests for curfew violation.

Extension of the bill's provisions got caught up in arcane minutiae of Council rules-the advisability of passing two back-to-back 90-day emergency bills on the same topic, whether a 225-day temporary bill that was substantially modified between its first two votes requires a rare (but Home Rule Act mandated) third vote, etc. In the end, the decision was to go the latter route, with the second vote occurring at the most recent meeting and the third vote coming at our upcoming October 7 meeting. This will result in a gap of just a few days in the bill's applicability, but these days will fall mid-week and will therefore not be a real issue.

The temporary version of the bill passed at the most recent Legislative Meeting would essentially mirror the term of the emergency bill, with one exception: while the emergency bill applies to youth under age 17, the temporary bill would apply to youth under age 18.

Facilitated Vaccine Access

With continued access to previously readily available vaccines now in question like never before, the Council passed an emergency bill to ensure DC residents access to vaccines in the same manner as they have previously been accustomed to.

Under current District law, pharmacists can only independently administer vaccines if they are recommended by the Centers for Disease Control's Advisory Committee for Immunization Practices (ACIP). With the status of that group's recommendations in an unprecedented flux, the emergency bill broadens the net of who can legally endorse vaccines. The bill authorizes the director of the DC Department of Health to also give the stamp of approval to vaccines vouched for by "a competent medical or public health organization."

Once the emergency bill is signed by the mayor and the DC Health director publishes which group's vaccine endorsements will now join ACIP's as pre-approved, pharmacists will once again be authorized to provide all such vaccines without the additional need for doctor-penned prescriptions that many feared would now be required.

In additional action at the most recent Legislative Meeting, the Council approved a collective bargaining agreement regarding compensation and working conditions with union police officers and a parallel measure providing a parallel package to non-unionized police officials of the rank of lieutenant or higher. The agreement provides for a thirteen percent pay increase across three years, with two of those years being retroactive.

The Council's next Legislative Meeting will be held on October 7.