2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 46 - Special Tax Incentives › § 47–4670. Chemonics International real property tax abatement

§ 47–4670. Chemonics International real property tax abatement.
(a) For the purpose of this section, the term:
(1) "Abatement period" means October 1, 2022, through October 1, 2030, the time during which the incentive will be applied.
(2) "Annual reporting date" means September 30 preceding every tax year of the Abatement Period.
(3) "Certified Business Enterprise" means a business enterprise or joint venture certified pursuant to [subchapter IX-A of Chapter 2 of Title 2].
(4) "Company" means Chemonics International, Inc.
(5) "District resident" means an FTE whose principal place of residence is located within the District and who is subject to District personal income tax on the annual reporting date.
(6) "Employment target" means 1,000 FTEs, of which 500 are District residents.
(7) "First Source Agreement" means an agreement with the District governing certain obligations of the Developer pursuant to [§ 2-219.03] and Mayor's Order 83-265, dated November 9, 1983, regarding job creation and employment generated as a result of the construction on the Property.
(8) "FTE" means an employee of the Company, or one of its subsidiaries or affiliates, who is eligible for full employee healthcare benefits of the Company, or its applicable subsidiary or affiliate, in accordance with its standard policies.
(9) "Incentive agreement" means the agreement entered into between the Mayor and the Company outlining the Company's incentive requirement, which shall include incentives for hiring and training District residents.
(10) "Lease commencement" means the date on which the Company occupies the Premises with its employees.
(11) "Lease execution" means the date on which the Company signs the lease for the Premises.
(12) "Lessor" means the developer or landlord of the Property
(13) "Premises" means a building or portion of a building on the Property that is leased and occupied by the Company.
(14) "Project" means the initial tenant improvements to the Premises at the Property undertaken by the Company or its contractor to construct the space for the initial occupancy.
(15) "Property" means a portion of the real property located at the northwest corner of New Jersey Avenue S.E. and N Street S.E., known for tax and assessment purposes as Lot 0094 in Square 0743 and subject to real property taxation under Chapter 8 of this title.
(b) Subject to subsections (c) through (l) of this section, the real property taxes imposed by Chapter 8 of this title with respect to the Property shall be abated in an amount not to exceed $650,000 per tax year during the abatement period. The abatement shall be apportioned equally between each tax year's installment billing. The abatement shall be non-refundable and shall not be credited to other tax years.
(c)(1) The amount of the abatement authorized in subsection (b) of this section shall be determined based on the requirements set forth in the incentive agreement.
(2) As further described in the Incentive Agreement and while the Company is targeting approximately 1,200 FTEs, the abatement amount may be reduced if the Company does not achieve the annual incentive requirements, including the employment target.
(d) The Property shall be eligible for the abatement authorized in subsection (b) of this section each year of the abatement period as long as the Company complies with subsections (e) through (l) of this section, including requirements of the incentive agreement.
(e) The terms of the Company's lease for the Premises on the Property shall require that:
(1) The Property be located in the District;
(2) The lease or sub-lease execution occur on or before January 31, 2019;
(3) Premises be a minimum of 240,000 square feet; and
(4) The term of the initial lease term or sub-lease term be at least 12 years.
(f) During the abatement period, the Property shall not be eligible for the abatement authorized under § 47-811.03.
(g) The Company shall be deemed to be in compliance with [part A of subchapter X of Chapter 2 of Title 2], if the Mayor, pursuant to [§ 2-219.03a], determines that the Company is in compliance with the hiring requirements of this section and the incentive agreement.
(h)(1) On or before October 31, the Company shall provide the Mayor with the following information pertaining to the previous tax year:
(A) A detailed report of the annual reporting date that identifies the:
(i) Number of employees whose primary workplace is located in the District;
(ii) Number of District resident employees;
(iii) Median salary of the District resident employees;
(iv) Median tenure of District resident employees; and
(v) Total employment; and
(B) A certification of compliance with the Incentive Agreement.
(2) The Company shall comply with the requirements of [§ 2-218.46] with regard to the Project.
(i) Within 60 days of [April 11, 2019], the Company shall enter into an incentive agreement with the Deputy Mayor for Planning and Economic Development, which may include commitments for community sponsorship, community participation, education training, and apprenticeships.
(j) Within 60 days of execution of the incentive agreement, the Company or Lessor shall:
(1) Enter into a First Source Agreement with the District that shall govern certain obligations of the Company; and
(2) Execute an agreement or acknowledgement that requires the Lessor to, at a minimum, contract with Certified Business Enterprises for at least 35% of the contract dollar volume of the Project.
(k) In each year of the abatement period, the Mayor shall certify to the Office of Tax and Revenue the Property's eligibility for the abatement set forth in subsection (b) of this section. The Mayor's certification shall include:
(1) The Company's tax payer identification number;
(2) A description of the eligible Property, by street address and square, lot, parcel, or reservation number, and a description of the eligible Premises, including the number of floors, location, and square footage;
(3) The date of lease or sub-lease commencement and the term of the lease or sub-lease;
(4) Any other information that the Mayor considers necessary or appropriate.
(l)(1) Upon receiving the verifying documents from the Company, as required by subjection (k) of this section, the Mayor shall certify to the Office of Tax and Revenue by December 1 following each annual reporting date, the Property's eligibility to receive an abatement pursuant to section (b) of this section.
(2) The Office of Tax and Revenue shall process the abatement before the first semi-annual billing of the tax year.
(m) The Mayor may delegate the functions vested in the Mayor under this chapter with regard to this section to an appropriate executive office, agency or department.
(Apr. 11, 2019, D.C. Law 22-302, § 2(d), 66 DCR 2030.)