DC Code § 47-4640 (2021)
2021 District of Columbia Code|Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]|Chapter 46 - Special Tax Incentives|§ 47-4640. Payments in lieu of taxes, Center Leg Freeway (Interstate 395) PILOT Area

 *NOTE: This section has been amended by emergency legislation with identical permanent legislation that will become effective in January, 2022.*  (a) For the purposes of this section, the term: (1) “Center Leg Freeway (Interstate 395) PILOT Area” means the real property conveyed to the Owner under section 3 of the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010, effective October 26, 2010 (D.C. Law 18-257; 57 DCR 8144). (2) “Deck” means the platform to be constructed by the Owner above the Center Leg Freeway (Interstate 395), upon which will be constructed improvements, including commercial and residential buildings. (3) “Owner” means the Louis Dreyfus Property Group, LLC, or one of its affiliates or assigns approved by the Mayor, who may, from time to time, own all or a part of the Center Leg Freeway (Interstate 395) PILOT Area. (4) “PILOT” means the semiannual payments made in lieu of real property taxes pursuant to this section. (5) “PILOT Period” means the period commencing on the date that the District conveys to the Owner fee simple title to the Center Leg Freeway (Interstate 395) PILOT Area (but not earlier than October 1, 2011), and ending on the 1st anniversary of the 10th value adjustment required under subsection (b)(2)(E) of this section. (b)(1)(A) Notwithstanding part E of subchapter IV of Chapter 3 of Title 1, during the PILOT Period, the owner of each tax lot within the Center Leg Freeway (Interstate 395) PILOT Area shall pay a PILOT with respect to such lot, and any improvements thereon, in an amount equivalent to the real property taxes that would be otherwise levied on Class 1 Properties or Class 2 Properties (as applicable based on the use of the real property) pursuant to § 47-812, based upon the value of the real property in the Center Leg Freeway (Interstate 395) PILOT Area as determined pursuant to subsection (b)(2) of this section. Except as otherwise provided in this section, the PILOT shall be paid at the same time and in the same manner as real property taxes under Chapter 8 of this title. (B) If any tax lot included in the Center Leg Freeway (Interstate 395) PILOT Area is exempt from real property taxes pursuant to any provision of this title, other than subsection (h) of this section, the tax lot shall be exempt from payment of the PILOT. (C) Notwithstanding any other provision of this paragraph, commencing on October 1, 2014, the PILOT shall not be due until 30 days after the date on which a building permit is issued for the 1st building to be constructed upon the deck, other than buildings for the use of the Archdiocese of Washington or the Jewish Historical Society of Greater Washington, Inc. (D) Upon issuance of a Certificate of Completion of Core and Shell of Building with respect to any building that is built upon the deck, the tax lot upon which any such building is situated shall no longer be included in the Center Leg Freeway (Interstate 395) PILOT Area. The tax on any such lot shall be paid in accordance with Chapter 8 of this title commencing on the beginning of the next half tax year. (2)(A) For the purposes of calculating the PILOT pursuant to paragraph (1) of this subsection (but not for the purpose of calculating the assessed value), the value of the real property within the Center Leg Freeway (Interstate 395) PILOT Area (excluding the value of improvements constructed upon the deck) shall be computed as provided in this paragraph. (B) For Fiscal Years 2011 through 2014, the value of the real property shall be the lesser of: (i) The assessed value of the real property as determined under Chapter 8 of this title; or (ii) The assessed value of the real property for the applicable fiscal year projected in the fiscal impact statement adopted by the Council in the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010, effective October 26, 2010 (D.C. Law 18-257; 57 DCR 8144). (C) Commencing on October 1, 2014, the value of the real property shall be the purchase price paid by Owner to the District at closing on the transfer of the Center Leg Freeway (Interstate 395) PILOT Area pursuant to section 3 of the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010, effective October 26, 2010 (D.C. Law 18-257; 57 DCR 8144). (D)(i) Commencing on October 1, 2015, and on each October 1st thereafter, the value of the real property shall be the adjusted purchase price, as determined under sub-subparagraph (ii) of this subparagraph, as of the immediately preceding January 1st. (ii) As of January 1, 2014, and as of each January 1st during the PILOT Period thereafter until the January 1st immediately following substantial completion of the entire deck, the Mayor shall certify to the Council and the Office of Tax and Revenue the adjusted purchase price for such real property as determined in accordance with the procedures contained in the documents governing the transfer of the Center Leg Freeway (Interstate 395) PILOT Area to the Owner pursuant to section 3 of the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010, effective October 26, 2010 (D.C. Law 18-257; 57 DCR 8144). The last such certification shall further certify that substantial completion of the entire deck has occurred and that the adjusted purchase price set forth therein is final for purposes of this paragraph. (E) On each anniversary after the final adjustment of the purchase price as provided in subparagraph (E) of this paragraph, the value of such real property shall increase by the average percentage increase in the assessed value of land in the District in the immediately preceding fiscal year. (F) For the purposes of calculating the PILOT for each tax lot, the value of the real property determined under this paragraph shall be allocated among all the tax lots in the Center Leg Freeway (Interstate 395) PILOT Area for each fiscal year according to the relative assessed value of each such lot as of the January 1st immediately preceding the fiscal year with respect to which payment of the PILOT accrues (including, for purposes of this determination, any tax lot that is no longer included in the Center Leg Freeway (Interstate 395) PILOT Area pursuant to paragraph (1)(iv) of this subsection). (c) The PILOT shall be subject to the same penalty and interest provisions as unpaid real property taxes under Chapter 8 of Title 47. (d) Beginning on October 1, 2014, the PILOT deferred under subsection (b)(1)(C) of this section shall be reduced by an amount not to exceed $2.4 million in consideration for the Owner agreeing to provide no fewer than 50 affordable housing units on the Center Leg Freeway (Interstate 395) PILOT Area if the Center Leg Freeway (Interstate 395) PILOT Area is ever developed for residential use and an amount not to exceed $3 million for Owner’s conducting certain site preparation activities, including demolition of existing structures on the Center Leg Freeway (Interstate 395) PILOT Area and within F Street, N.W. (e) A lien for unpaid PILOT payments, including penalties and interest, shall attach to each tax lot in the Center Leg Freeway (Interstate 395) PILOT Area in the same manner and with the same priority as a lien for delinquent real property tax under Chapter 13A of this title. Unpaid PILOT payments may be collected in accordance with Chapter 13A of this title. (f) The owner of a tax lot within the Center Leg Freeway (Interstate 395) PILOT Area shall not have the right to challenge the Mayor’s determination of the purchase price or adjusted purchase price under subsection (b)(2) of this section. The owner of a tax lot within the Center Leg Freeway (Interstate 395) PILOT Area shall have the right to challenge the assessed value of its tax lot in accordance with the provisions of Chapter 8 of this title. (g) This section shall not affect the calculation of the assessed value or payment of real property taxes with respect to any buildings or improvements constructed upon the deck upon the receipt of Certificate of Completion of Core and Shell of Building for such building or improvement. (h) Land and improvements that are located in the Center Leg Freeway (Interstate 395) PILOT Area, and not otherwise exempt pursuant to § 47-1002, shall be exempt from the tax imposed by Chapter 8 of this title for the PILOT period; provided, that this exemption shall not apply to any improvements constructed upon the deck and the land and improvements on any lots that are removed from the Center Leg Freeway (Interstate 395) PILOT Area pursuant to subsection (b)(1)(D) of this section. (i)(1) For the purposes of this subsection, the term "Property" means the real property, including any improvements thereon, described as Lots 50, 861, and 862 in Square 566 and Lots 44 and 865 in Square 568, including any future subdivisions of those lots. (2) The Owner shall make real property tax payments to the District in the amount of 25% of the real property taxes that otherwise would be imposed on the Property by Chapter 8 of this title for 10 years starting October 1, 2027; provided, that: (A) The residential building on the Property is constructed and has received its final certificate of occupancy by September 30, 2027; (B) The Owner and the Mayor, prior to October 1, 2022, have executed an amendment to the documents governing the transfer of the Center Leg Freeway (Interstate 395) PILOT Area to the Owner pursuant to section 3 of the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010, effective October 26, 2010 (D.C. Law 18-257; 57 DCR 8144), to require, in addition to completion of the residential building on the Property by September 30, 2027, completion of all remaining development of the Property by September 30, 2033, and such economic inclusion requirements as the Mayor may require; (C) The Owner is in compliance with the amended documents described in subparagraph (B) of this paragraph; and (D) The total amount of real property taxes abated under this paragraph shall not exceed $100 million.  (Oct. 26, 2010, D.C. Law 18-257, § 2(b), 57 DCR 8144; Oct. 30, 2018, D.C. Law 22-166, § 2, 65 DCR 9384; Aug. 23, 2021, D.C. Act 24-159, § 2122, 68 DCR 008602.)  Emergency Legislation For temporary (90 day) repeal of § 3 of D.C. Act 18-614, see § 712 of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662). Editor's Notes  For amendment to section 3(a)(2) of the Redevelopment of the Center Leg Freeway (Interstate 395) Act of 2010 (D.C. Law 18-257), see § 3 of D.C. Law 22-166.