B 26-0769

1______________________
2Chairman Phil Mendelson
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5A BILL
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10IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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12________________________
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15 To authorize the Mayor to enter into a public-private financing agreement with DC United or its
16affiliates to redevelop the soccer stadium known as Audi Field through the installation of
17a climate-controlling roof and through a public-private financing model that will include
18contributions from the stadium and the District in order to realize more than one hundred
19new events annually that will generate excess revenue to the District which will more
20than triple the District’s contribution to the project’s expanded seating capacity; to
21establish the Soccer Stadium Preservation and Improvement Fund; to provide for the
22maintenance, repair, and capital improvement of the Soccer Stadium Site; to provide tax
23exemptions on excess Soccer Stadium Site revenue; to provide for an ancillary housing
24development including affordable housing units and to make conforming amendments.
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26BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
27 act may be cited as the "Soccer Stadium Redevelopment and Maintenance Act of 2026".
28Sec. 2. Definitions.
29(a) For the purposes of this act, the term:
30(1) "Soccer Stadium" means the facility identified as Audi Field located on a site
31 bounded by Second Street, S.W., T Street, S.W., Half Street, S.W., Potomac Avenue, S.W., and R
32 Street, S.W.
33(2) “Soccer Stadium Site” means the Soccer Stadium and all real property on
34 which the Soccer Stadium is located, or which is ancillary thereto.
35(3) “Baseline Soccer Stadium Tax” means the total amount of taxes collected by
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36 the District that are generated annually from the Soccer Stadium Site as calculated by the Chief
37 Financial Officer on the effective date of this act.
38(4) “Soccer Stadium Revenue Bonds” means any bonds, notes, or other
39 obligations issued by the District or any instrumentality thereof, the proceeds of which are used
40 to finance or refinance the redevelopment or capital improvement of the Soccer Stadium.
41(5) “Soccer Stadium Preservation and Improvement Fund” or “Fund” means the
42 fund established by section 3 of this act.
43(6) “Authority” means the Washington Convention and Sports Authority or its
44 successor.
45(7) “OCFO” means the Office of the Chief Financial Officer.
46(8) “DMPED” means the Office of the Deputy Mayor for Planning and Economic
47 Development.
48Sec. 3. Soccer stadium redevelopment.
49(a)(1) The Mayor is authorized to enter into a public-private financing agreement with
50 DC United or its affiliates to raise the necessary resources and to execute the redevelopment of
51 the Soccer Stadium, including the installation of a climate-controlling roof, the expansion of
52 seating capacity by not fewer than 8,000, construction of ancillary housing development and the
53 construction of support structures and ancillary facilities to enable year-round multi-purpose use
54 of the Soccer Stadium.
55(2) The total investment for the redevelopment of the Soccer Stadium shall not be
56 less than $620 million, comprised of not less than $320 million in private investment from DC
57 United or its affiliates and partners and not less than $300 million in contributions from the
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58 District of Columbia, to be appropriated from the District’s Capital Budget in annual installments
59 of $60 million per year for a period of 5 years.
60(3) The redevelopment authorized by this subsection shall be designed to enable
61 not fewer than 100 new events annually at the Soccer Stadium, including concerts, conferences,
62 sporting events, and private and special events, and attracting not fewer than 1.25 million
63 additional visitors annually to the District.
64(4) There are taxes of General Applicability that apply to soccer related events at
65 the soccer stadium that begin on December 1, 2026, that are as described in subsections (4)(A)
66 and (B).
67(A) Notwithstanding any other provision of this chapter relating to the
68 imposition of sales tax on either a retail sale or a sale at retail, there is hereby imposed an
69 additional sales tax of 4.25% on the gross receipts of any person from the sale of tickets to any
70 public event referred to in § 47-2001(n)(1)(H) sponsored by the person (or any affiliate of such
71 person) and to be performed at the soccer stadium, regardless of whether the ticket is sold to a
72 person who resells the ticket to another person or to a person who uses the ticket for admission to
73 the event.
74(B) Notwithstanding any other provision of this chapter, there is hereby
75 imposed an additional sales tax of 4.25% on the gross receipts of any person from the sale at the
76 soccer stadium during such times as shall reasonably relate to the performance of soccer games
77 or soccer-related events and exhibitions at the soccer stadium of tangible personal property or
78 services otherwise taxable under the provisions of this chapter, except the gross receipts from (1)
79 sales of food and beverages subject to the tax imposed by § 47-2002(3), and (2) the sale of or
80 charge for the service of parking motor vehicles.
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81(b) Chapter 10 of Title 47 of the District of Columbia Official Code is amended as
82 follows:
83(1) Section 47-1002 is amended as follows:
84(A) Paragraph (35) is amended by striking the phrase "; and" and inserting
85 a semicolon in its place.
86(B) Paragraph (36) is amended by striking the period and inserting the
87 phrase "; and" in its place.
88(C) A new paragraph (37) is added to read as follows:
89“(37) Each parcel (and the improvements thereon) located on a site
90 bounded by Second Street, S.W., T Street, S.W., Half Street, S.W., Potomac Avenue, S.W., and R
91 Street, S.W. that includes the Soccer Stadium, where DC United competes and all real property
92 on which the Soccer Stadium is located, or which is ancillary thereto.”.
93(2) Section 47-1005.01 is amended by adding a new subsection (c-4) to read as
94 follows:
95“(c-4) This section shall not apply to the real property (and any
96 improvements thereon) site bounded by Second Street, S.W., T Street, S.W., Half Street, S.W.,
97 Potomac Avenue, S.W., and R Street, S.W. that includes the Soccer Stadium, where DC United
98 competes and all real property on which the Soccer Stadium is located, or which is ancillary
99 thereto.”.
100(c) Community development requirements.
101(1) The agreement authorized by subsection (b) of this section shall require DC
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102 United or its affiliates to deliver, in connection with the redevelopment of the Soccer Stadium
103 Site, not fewer than 467 residential units, of which not fewer than 148 shall be affordable units,
104 including not fewer than 122 fully affordable senior housing units.
105(2) The agreement shall further require the provision of not less than one acre of
106 publicly accessible open space and new retail and office space on or adjacent to the Soccer
107 Stadium Site.
108(3) The agreement shall include requirements that the redeveloped Soccer
109 Stadium hosts professional women’s sporting events such that the majority of professional
110 sporting events hosted at the Soccer Stadium annually are women’s sports events.
111Sec. 4. Soccer Stadium Preservation and Improvement Fund.
112(a)(1) There is established as a special fund the Soccer Stadium Preservation and
113 Improvement Fund (“Fund”), which shall have funds deposited beginning on December 1, 2029
114 and shall be administered by the OCFO in accordance with this section.
115(2) The OCFO shall create a sub-account within the Fund for each revenue type to
116 be deposited into the Fund pursuant to subsection (b) of this section and shall allocate the
117 deposits to the appropriate sub-account.
118(3) The OCFO shall advance funds to the Authority after the Authority has
119 submitted documentation of planned encumbrances and expenditures consistent with the
120 purposes provided in subsection (c)(1) of this section.
121(b) Revenue from the following sources shall be deposited in the Fund:
122(1) Any rent paid to the District pursuant to a lease or license agreement for the
123 Soccer Stadium;
124(2) Any revenue derived from naming rights, sponsorship agreements, or other
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125 commercial arrangements for the Soccer Stadium to the extent the District is entitled to such
126 revenue; and
127(3) Other amounts as may be appropriated or transferred to the Fund by act
128 of the Council.
129(c) Money in the Fund shall be used for the District’s obligations under the Soccer
130 Stadium lease for the maintenance, repairs, and capital improvements of the Soccer Stadium,
131 including the climate-controlling roof, expanded seating, and support structures.
132(d)(1) The money deposited into the Fund but not expended in a fiscal year shall not
133 revert to the unassigned fund balance of the General Fund of the District of Columbia at the end
134 of a fiscal year, or at any other time.
135(2) Subject to authorization in an approved budget and financial plan, any funds
136 appropriated in the Fund shall be continually available without regard to fiscal year limitation.
137(e) The Fund shall not be used to pledge and create a security interest in the funds in the
138 Fund, or any sub-account or sub-accounts within the Fund, to finance any additional bonds
139 beyond those authorized by this act.
140(f) By March 1 of each year, the Authority shall submit a report to the Mayor and to the
141 Council that details expenditures from the Fund for the prior fiscal year and planned spending
142 from the Fund in the current and next 4 fiscal years.
143(g) During the period of construction authorized by section 2(b) of this act and continuing
144 annually each fiscal year thereafter until the Soccer Stadium Revenue Bonds, if any, are
145 defeased, a transfer of $1,500,000 from the Fund to the Authority is authorized to directly pay
146 the costs of the District’s obligation under the Soccer Stadium lease or other agreements for
147 maintenance, repairs, and capital improvements to the Soccer Stadium; provided, that the Fund
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148 shall be used for this purpose only after the Authority has first used the Authority’s funds,
149 including the annual transfer provided for in this subsection and excess reserves, to pay these
150 costs.
151Sec. 5. Applicability.
152This act shall become applicable upon the execution and Council approval of a public-
153 private financing agreement between the District and DC United or its affiliates that provides for
154 the redevelopment of the Soccer Stadium as described in section 2(b) of this act.
155Sec. 6. Fiscal impact statement.
156The Council adopts the fiscal impact statement in the committee report as the fiscal
157 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
158 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
159Sec. 7. Effective date.
160This act shall take effect following approval by the Mayor (or in the event of veto by the
161 Mayor, action by the Council to override the veto), a 30-day period of Congressional review as
162 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
163 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of
164 Columbia Register.
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