I

104TH CONGRESS

1ST SESSION H. R. 2108

To permit the Washington Convention Center Authority to expend revenues

for the operation and maintenance of the existing Washington Convention

Center and for preconstruction activities relating to a new convention

center in the District of Columbia, to permit a designated authority

of the District of Columbia to borrow funds for the preconstruction

activities relating to a sports arena in the District of Columbia and

to permit certain revenues to be pledged as security for the borrowing

of such funds, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 25, 1995

Ms. NORTON (for herself, Mr. DAVIS, Mr. MCHUGH, Mr. GUTKNECHT, Mr.

LATOURETTE, Mr. FLANAGAN, Mr. WALSH, and Miss COLLINS of Michigan) introduced the following bill; which was referred to the Committee

on Government Reform and Oversight

A BILL

To permit the Washington Convention Center Authority to

expend revenues for the operation and maintenance of

the existing Washington Convention Center and for

preconstruction activities relating to a new convention

center in the District of Columbia, to permit a designated authority of the District of Columbia to borrow

funds for the preconstruction activities relating to a

sports arena in the District of Columbia and to permit

certain revenues to be pledged as security for the borrowing of such funds, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘District of Columbia Convention Center and Sports

6 Arena Authorization Act of 1995’’.

7 (b) TABLE OF CONTENTS.—The table of contents of

8 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—CONVENTION CENTER

Sec. 101. Permitting Washington Convention Center Authority to expend revenues for convention center activities.

TITLE II—SPORTS ARENA

Sec. 201. Permitting designated authority to borrow funds for preconstruction

activities relating to Gallery Place sports arena.

Sec. 202. Permitting certain District revenues to be pledged as security for borrowing.

Sec. 203. No appropriation necessary for arena preconstruction activities.

Sec. 204. Arena preconstruction activities described.

TITLE III—WAIVER OF CONGRESSIONAL REVIEW

Sec. 301. Waiver of Congressional review of Arena Tax Payment and Use

Amendment Act of 1995.

9 TITLE I—CONVENTION CENTER

10 SEC. 101. PERMITTING WASHINGTON CONVENTION CENTER

11 AUTHORITY TO EXPEND REVENUES FOR CON12 VENTION CENTER ACTIVITIES.

13 (a) PERMITTING EXPENDITURE WITHOUT APPRO14 PRIATION.—The fourth sentence of section 446 of the Dis15 trict of Columbia Self-Government and Governmental Re16 organization Act (sec. 47–304, D.C. Code) shall not apply

17 with respect to any revenues of the District of Columbia
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1 which are attributable to the enactment of title III of the

2 Washington Convention Center Authority Act of 1994

3 (D.C. Law 10–188) and which are obligated or expended

4 for the activities described in subsection (b).

5 (b) ACTIVITIES DESCRIBED.—The activities de6 scribed in this paragraph are—

7 (1) the operation and maintenance of the exist8 ing Washington Convention Center; and

9 (2) pre-construction activities with respect to a

10 new convention center in the District of Columbia,

11 including land acquisition and the conducting of en12 vironmental impact studies, architecture and design

13 studies, surveys, and site acquisition.

14 TITLE II—SPORTS ARENA

15 SEC. 201. PERMITTING DESIGNATED AUTHORITY TO BOR16 ROW FUNDS FOR PRECONSTRUCTION ACTIVI17 TIES RELATING TO GALLERY PLACE SPORTS

18 ARENA.

19 (a) PERMITTING BORROWING.—

20 (1) IN GENERAL.—The designated authority

21 may borrow funds through the issuance of revenue

22 bonds, notes, or other obligations which are secured

23 by revenues pledged in accordance with paragraph

24 (2) to finance, refinance, or reimburse the costs of

25 arena preconstruction activities described in section
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1 204 if the designated authority is granted the au2 thority to borrow funds for such purposes by the

3 District of Columbia government.

4 (2) REVENUE REQUIRED TO SECURE BORROW5 ING.—The designated authority may borrow funds

6 under paragraph (1) to finance, refinance, or reim7 burse the costs of arena preconstruction activities

8 described in section 204 only if such borrowing is se9 cured (in whole or in part) by the pledge of revenues

10 of the District of Columbia which are attributable to

11 the sports arena tax imposed as a result of the en12 actment of D.C. Law 10–128 (as amended by the

13 Arena Tax Amendment Act of 1994 (D.C. Act 10–

14 315)) and which are transferred by the Mayor of the

15 District of Columbia to the designated authority

16 pursuant to section 302(a–1)(3) of the Omnibus

17 Budget Support Act of 1994 (sec. 47–2752(a–1)(3),

18 D.C. Code) (as amended by section 2(b) of the

19 Arena Tax Payment and Use Amendment Act of

20 1995).

21 (b) TREATMENT OF DEBT CREATED.—Any debt cre22 ated pursuant to subsection (a) shall not—

23 (1) be considered general obligation debt of the

24 District of Columbia for any purpose, including the

25 limitation on the annual aggregate limit on debt of
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1 the District of Columbia under section 603(b) of the

2 District of Columbia Self-Government and Govern3 mental Reorganization Act (sec. 47–313(b), D.C.

4 Code);

5 (2) constitute the lending of the public credit

6 for private undertakings for purposes of section

7 602(a)(2) of such Act (sec. 1–233(a)(2), D.C. Code);

8 or

9 (3) be a pledge of or involve the full faith and

10 credit of the District of Columbia.

11 (c) DESIGNATED AUTHORITY DEFINED.—The term

12 ‘‘designated authority’’ means the Redevelopment Land

13 Agency or such other District of Columbia government

14 agency or instrumentality designated by the Mayor of the

15 District of Columbia for purposes of carrying out any

16 arena preconstruction activities.

17 SEC. 202. PERMITTING CERTAIN DISTRICT REVENUES TO

18 BE PLEDGED AS SECURITY FOR BORROWING.

19 (a) IN GENERAL.—The District of Columbia (includ20 ing the designated authority described in section 201(c))

21 may pledge as security for any borrowing undertaken pur22 suant to section 201(a) any revenues of the District of

23 Columbia which are attributable to the sports arena tax

24 imposed as a result of the enactment of D.C. Act 10–128

25 (as amended by the Arena Tax Amendment Act of 1994
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1 (D.C. Law 10–315)), upon the transfer of such revenues

2 by the Mayor of the District of Columbia to the designated

3 authority pursuant to section 302(a–1)(3) of the Omnibus

4 Budget Support Act of 1994 (sec. 47–2752(a–1)(3), D.C.

5 Code) (as amended by section 2(b) of the Arena Tax Pay6 ment and Use Amendment Act of 1995).

7 (b) EXCLUSION OF PLEDGED REVENUES FROM CAL8 CULATION OF ANNUAL AGGREGATE LIMIT ON DEBT.—

9 Any revenues pledged as security by the District of Colum10 bia pursuant to subsection (a) shall be excluded from the

11 determination of the dollar amount equivalent to 14 per12 cent of District revenues under section 603(b)(3)(A) of the

13 District of Columbia Self-Government and Governmental

14 Reorganization Act (sec. 47–313(b)(3)(A), D.C. Code).

15 SEC. 203. NO APPROPRIATION NECESSARY FOR ARENA

16 PRECONSTRUCTION ACTIVITIES.

17 The fourth sentence of section 446 of the District of

18 Columbia Self-Government and Governmental Reorganiza19 tion Act (sec. 47–304, D.C. Code) shall not apply with

20 respect to any of the following obligations or expenditures:

21 (1) Borrowing conducted pursuant to section

22 201(a).

23 (2) The pledging of revenues as security for

24 such borrowing pursuant to section 202(a).
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1 (3) The payment of principal, interest, pre2 mium, debt servicing, contributions to reserves, or

3 other costs associated with such borrowing.

4 (4) Other obligations or expenditures made to

5 carry out any arena preconstruction activity de6 scribed in section 204.

7 SEC. 204. ARENA PRECONSTRUCTION ACTIVITIES DE8 SCRIBED.

9 The arena preconstruction activities described in this

10 section are as follows:

11 (1) The acquisition of real property (or rights

12 in real property) to serve as the site of the sports

13 arena and related facilities.

14 (2) The clearance, preparation, grading, and

15 development of the site of the sports arena and re16 lated facilities, including the demolition of existing

17 buildings.

18 (3) The provision of sewer, water, and other

19 utility facilities and infrastructure related to the

20 sports arena.

21 (4) The financing of a Metrorail connection to

22 the site and other Metrorail modifications related to

23 the sports arena.

24 (5) The relocation of employees and facilities of

25 the District of Columbia government displaced by
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1 the construction of the sports arena and related fa2 cilities.

3 (6) The use of environmental, legal, and con4 sulting services (including services to obtain regu5 latory approvals) for the construction of the sports

6 arena.

7 (7) The financing of administrative and trans8 action costs incurred in borrowing funds pursuant to

9 section 201(a), including costs incurred in connec10 tion with the issuance, sale, and delivery of bonds,

11 notes, or other obligations.

12 (8) The financing of other activities of the Dis13 trict of Columbia government associated with the de14 velopment and construction of the sports arena, in15 cluding the reimbursement of the District of Colum16 bia government or others for costs incurred prior to

17 the date of the enactment of this Act which were re18 lated to the sports arena, so long as the designated

19 authority determines that such costs are adequately

20 documented and that the incurring of such costs was

21 reasonable.
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1 TITLE III—WAIVER OF

2 CONGRESSIONAL REVIEW

3 SEC. 301. WAIVER OF CONGRESSIONAL REVIEW OF ARENA

4 TAX PAYMENT AND USE AMENDMENT ACT OF

5 1995.

6 Notwithstanding section 602(c)(1) of the District of

7 Columbia Self-Government and Governmental Reorganiza8 tion Act, the Arena Tax Payment and Use Amendment

9 Act of 1995 (D.C. Act 11–115) shall take effect on the

10 date of the enactment of this Act.

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