(a) For the purposes of this section, the term:
(1) “Bonds” means any bonds, notes, or other instruments issued by the District pursuant to section 490 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 774; D.C. Official Code § 1-204.90), the proceeds of which shall be used in whole or in part to finance or refinance the construction of a theater with a floor area of not less than 18,000 square feet to be used for theater and ancillary facilities on a Parcel.
(2) “District” means the District of Columbia.
(3) “Initial PILOT period” means the period:
(A) Beginning on the earlier of the date on which some or all of the Site is:
(i) Under contract to a contract purchaser who is the Qualified Theater Company; or
(ii) Owned by the Qualified Theater Company; and
(B) Ending on the 6th anniversary of the beginning date.
(4) “Owner” means an owner of a Parcel, other than the Qualified Theater Company.
(5) “Parcel” means each portion of the Site.
(6) “Payment in lieu of taxes” or “PILOT” means payments made in lieu of real property taxes pursuant to this section.
(7)(A) “PILOT period” means the period:
(i) Beginning on the earlier of the date on which some or all of the Site is:
(I) Under contract to a contract purchaser who is the Qualified Theater Company; or
(II) Owned by the Qualified Theater Company; and
(ii) Ending upon the earlier of:
(I) The date on which the Initial PILOT Period expires if, on that date, the District has not issued a building permit for a theater with a floor area of not less than 18,000 square feet to be used for theater and ancillary facilities on any Parcel; or
(II) The real property tax year in which the total amount of payments in lieu of taxes pursuant to this section shall equal or exceed $30 million.
(B) Notwithstanding subparagraph (A) of this paragraph, the PILOT period and Initial PILOT period shall not begin if, on or before November 15, 2002, the District shall make and fund a grant to a Qualified Theater Company in an amount of not less than $20 million, less reasonably projected earnings on the proceeds pending disbursement determined as of the date the grant is funded, for use by the Qualified Theater Company for capitalizable expenditures incurred in connection with the planning, development, acquisition, or construction of a building to include a theater of the type described in § 47-1002(19) on all or a portion of the Site. The Mayor may make and fund such grant, which shall, if made, be subject to the following condition: if a building permit has not been issued for a theater with a floor area of not less than 18,000 square feet to be used for theater and ancillary facilities on any Parcel before the 6th anniversary of the date the grant is made and funded or, if the grant recipient determines that it is unable or unwilling to acquire title to all or a portion of the Site by December 31, 2003, the grant recipient shall:
(i) Repay the District the principal amount of the grant, less the actual third-party capitalizable expenditures incurred by the grant recipient for capitalizable costs incurred in furtherance of the acquisition and development of a building to include a theater with a floor area of not less than 18,000 square feet on all or a portion of the Site including, architectural and engineering fees and expenses; title, survey, and environmental fees and expenses; development and consulting fees and expenses; legal fees; permit fees; insurance costs; issuance costs and related costs, fees, and expenses; land acquisition deposits, costs, fees, and expenses; and capitalizable interest costs; which costs shall not to exceed $6 million in the aggregate; and
(ii)(I) Convey title to such portions of the Site as it has acquired to the District for the sum of its cost thereof, plus any interest costs incurred by it in carrying the property so conveyed; or
(II) Proceed to closing and convey title to the District at the grant recipient’s cost pursuant to simultaneous all-cash closings.
(8) “Qualified Theater Company” means any entity that:
(A) Operates a theater of the type described in § 47-1002(19);
(B)(i) Owns some or all of the Site; or
(ii) Is or was the contract purchaser of some or all of the Site as of [July 10, 2002]; and
(C) Is the current wholly-owned subsidiary of an entity that is described in the subparagraphs (A) and (B) of this paragraph.
(9) “Site” means lots 878 and 880 in square 456 in the District of Columbia, including any improvements thereon, and any combination thereof, all portions of such lots without regard to any subsequent subdivision or resubdivision of such lots, and any other lots developed along with any part of lots 878 and 880 in square 456 pursuant to the combined lot development method.
(b) Except as provided in subsection (d) of this section, during the PILOT period, no real property taxes shall be due and payable from the owner of a Parcel during the PILOT period. In lieu of real property taxes during the PILOT period, the owner of each Parcel shall pay a PILOT, in the amount that would be owed to the District if the Parcel were subject to real property taxation (including interest and penalties in the same amount that would be imposed on delinquent real property tax payments), to the Qualified Theater Company in the manner provided in this section.
(c) Except as provided in subsection (d) of this section, during the PILOT period, the District shall, in lieu of any real property tax bills, send a PILOT bill to each owner of each Parcel, and shall send a copy of the PILOT bills to the Qualified Theater Company. The PILOT bills shall be sent out at the same time and in the same manner as real property tax bills would be sent for the Parcels and shall state the amount of the PILOT owed by the property owner. Except as otherwise provided for pursuant to subsection (g) of this section, the PILOT bill shall state that payments shall be made to the Qualified Theater Company, or at the Qualified Theater Company’s direction, within the same time period that real property tax payments are required to be made.
(d) If, before the expiration of the Initial PILOT Period, on the date that a PILOT payment is made, the total amount of PILOT payments equals or exceeds $6 million and no building permit for a theater with a floor area of not less than 18,000 square feet to be used for theater and ancillary facilities on any Parcel has been issued, the collection of the PILOT shall be suspended and the imposition of real property taxes on the Site shall resume. If, after the suspension of the collection of the PILOT but during the Initial PILOT Period, the building permit is issued, then collection of the PILOT shall resume and PILOT bills shall be sent as provided in subsection (c) of this section.
(e) The PILOT shall constitute a prior lien on the applicable Parcels to the same extent as a real property tax lien.
(f) The Qualified Theater Company may pledge its interest in the PILOT as an account pursuant to Article 9 of Title 28.
(g) If the District issues Bonds, the District may, in financing documents that it enters into in connection with that transaction, provide for the PILOT to be made to the bond trustee for the benefit of the holders of the Bonds, to be used only to pay principal, premium, and interest on the Bonds and for any other payments set forth in the financing documents. If such provisions are included in the financing documents, the PILOT shall constitute a lien against the property on which the PILOT was assessed to the same extent as a real property tax lien and shall be deemed to be a tax within the meaning of 11 U.S.C. §§ 502(b), 505, and 507(a)(8)(B).
(h) The Qualified Theater Company, through its counsel, may file suit in the Superior Court of the District of Columbia against any owner of a Parcel whose PILOT is at least 60 days overdue. The Qualified Theater Company may recover as damages a delinquent PILOT, including interest and penalties, and the Qualified Theater Company’s attorneys’ fees.
(i) Any judgment obtained pursuant to subsection (h) of this section shall not be waived or reduced by the District and shall only be satisfied by the payment to the Qualified Theater Company of the full amount of the judgment, by waiver or compromise by the Qualified Theater Company, or by sale of the relevant Parcel pursuant to subsection (k) of this section.
(j) If the Qualified Theater Company obtains a judgment in a suit filed pursuant to subsection (h) of this section, it may execute upon the judgment using any method authorized by District law.
(k) If a PILOT shall remain unpaid for 180 days after it is due, upon the request of the Qualified Theater Company or its designee, and upon presentment of evidence in a form satisfactory to the District of the PILOT delinquency, the District shall sell the applicable Parcel in the same manner and under the same conditions as property sold for delinquent real property taxes, at the next ensuing tax sale for which proper notice may be given, if the PILOT, including interest and penalties thereon, shall not have been paid in full prior to the sale. The proceeds shall be applied towards the delinquent PILOT, including interest and penalties thereon; provided, that the proceeds from the sale shall be applied first toward any delinquent water and sewer charges, and then toward any delinquent litter control nuisance fines, in accordance, respectively with §§ 34-2407.02 and 34-2110, and § 8-807). The proceeds for the delinquent PILOT, including interest and penalties thereon, and the Qualified Theater Company’s costs associated with the sale shall be delivered to the Qualified Theater Company within 30 business days after their receipt by the District.
(l) A Parcel owner may challenge the accuracy of any PILOT bill in the same manner as if it were a real property tax bill. If, after a Parcel owner pays a PILOT bill, the District determines that the amount of the PILOT bill was incorrect and resulted in an overpayment of some or all of that payment by the Parcel owner, the amount of the overpayment shall be credited against the next PILOT bill with respect to the Parcel.
(m) The remedies available to a Qualified Theater Company under subsections (h), (i), and (j) of this section shall be satisfied only by execution against the Site and no deficiency arising therefrom shall give rise to a personal obligation of the Owners. The penalties, interest, and legal fees provided for in subsections (h), (i), and (j) of this section shall be limited to those available to the District in connection with a tax sale for delinquent real property taxes under Chapter 13A.
(n) This section shall expire on the day after the date on which the District and the Qualified Theater Company have entered into a grant agreement for the making of the grant identified in subsection (a)(7)(B) of this section, and the funding of that grant. The Mayor shall notify the Council when the District and the Qualified Theater Company have entered into the grant agreement and the grant is funded.
(May 2, 2002, D.C. Law 14-129, § 2(b), 49 DCR 2331; Mar. 25, 2003, D.C. Law 14-234, § 2(c), 49 DCR 9775; Apr. 12, 2005, D.C. Law 15-333, § 2(b), 52 DCR 2010.)
This section is referenced in § 47-1002.
D.C. Law 14-234, in the section heading, substituted “456” for “856”; in subsec. (a), rewrote pars. (7)(B) and (8)(B)(ii); rewrote subsec. (e); and added subsecs. (m) and (n).
D.C. Law 15-333, in subsec. (a)(8), deleted “and” at the end of subpar. (A), substituted “; and” for a period at the end of subpar. (B); and added subpar. (C).
For temporary (90 day) amendment of section, see §§ 2(c), (d) and 3 of Square 456 Payment in lieu of Taxes Extension Emergency Act of 2002 (D.C. Act 14-405, July 10, 2002, 49 DCR 7100).
For temporary (90 day) amendment of section, see § 2(b) of Lot 878, Square 456 Tax Exemption Clarification Emergency Act of 2004 (D.C. Act 15-423, May 10, 2004, 51 DCR 5182).
For temporary (90 day) amendment of section, see § 2(b) of Lot 878, Square 456 Tax Exemption Clarification Congressional Review Emergency Act of 2004 (D.C. Act 15-467, July 19, 2004, 51 DCR 7584.
For temporary (90 day) repeal of section 3 of D.C. Law 14-234, see § 7019 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) repeal of section 3 of D.C. Law 14-234, see § 7019 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
For temporary (225 day) amendment of section, see § 2(c) of Square 456 Payment in Lieu of Taxes Temporary Act of 2002 (D.C. Law 14-201, October 17, 2002, law notification 49 DCR 10019).
For temporary (225 day) amendment of section, see § 2(b) of Lot 878, Square 456 Tax Exemption Clarification Temporary Amendment Act of 2004 (D.C. Law 15-181, September 8, 2004, law notification 51 DCR 9223).
The effective date of the Square 456 Payment in Lieu of Taxes Extension Emergency Act of 2002, passed on an emergency basis on June 18, 2002 (Enrolled version of Bill 14-701), referred to in par. (8)(B)(ii), was July 10, 2002.
Section 3 of Law 14-234 provided that this act shall take effect subject to the inclusion of its fiscal effect in an approved budget and financial plan.
Section 7019 of D.C. Law 18-111 repealed section 3 of D.C. Law 14-234.
Structure District of Columbia Code
Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]
Chapter 10 - Property Exempt from Taxation
§ 47–1001. Real property — Listing
§ 47–1002. Real property — Exemptions
§ 47–1003. Disabled American Veterans
§ 47–1004. National Society of the Colonial Dames of America
§ 47–1005. Real property tax exemption
§ 47–1005.01. Interests in real property belonging to government and international organizations
§ 47–1005.02. Nonprofit affordable housing developer tax relief
§ 47–1005.03. Nonprofit Workforce Housing Properties
§ 47–1006. Use of property by agencies of the United States or American Red Cross
§ 47–1007. Real property tax exemption
§ 47–1008. Abatement or refund of tax assessed against exempt property
§ 47–1009. Appeals from assessments
§ 47–1010. Rules and regulations
§ 47–1010.01. Real property tax exemption
§ 47–1013. Sheridan tapestries
§ 47–1014. Chesapeake and Ohio Canal
§ 47–1015. Oak Hill Cemetery Company
§ 47–1016. Corcoran Gallery of Art — Real property and works of art
§ 47–1017. Corcoran Gallery of Art — Endowment fund
§ 47–1019. Luther Statue Association
§ 47–1020. Saint Mark’s Protestant Episcopal Church
§ 47–1021. Young Women’s Christian Home
§ 47–1022. Young Women’s Christian Association — Property
§ 47–1023. Young Women’s Christian Association — Accrued liability
§ 47–1024. Young Men’s Christian Association
§ 47–1027. General Education Board
§ 47–1028. Daughters of American Revolution — Lots 8, 9, and 10, square 173
§ 47–1029. Daughters of American Revolution — Square 173
§ 47–1030. Daughters of American Revolution — Square 173 — Lots 12, 13, 14, 15, and 16
§ 47–1031. Daughters of American Revolution — Square 173 — Lots 23, 24, 25, 26, 27, and 28
§ 47–1032. Daughters of American Revolution — Square 173 — Lots 4, 5, 6, 7, and 11
§ 47–1033. National Society United States Daughters of 1812; lot 811, square 210
§ 47–1034. National Society of the Sons of the American Revolution
§ 47–1035. The American Legion; lot 32 and 33 in square 185 and lot 01 in square 763
§ 47–1036. National Education Association
§ 47–1036.01. National Education Association — Real property subject to District taxation
§ 47–1037. Society of the Cincinnati; part of lot 5, lots 42, 43, 49, and 837 in square 67
§ 47–1038. American Veterans of World War II; lot 805, square 160
§ 47–1040. National Woman’s Party; lots 863, 864, and 885, square 725
§ 47–1041. American Association of University Women; lot 84, square 197
§ 47–1042. National Guard Association; lot 60, square 625
§ 47–1043. Woodrow Wilson House
§ 47–1044. American Institute of Architects Foundation
§ 47–1045. Prince Hall Freemason and Eastern Star Charitable Foundation, lot 0826 in square 0333
§ 47–1046. American Legion, James Reese Europe Post No. 5, lot 33 in square 3508
§ 47–1047. ARCH Training Center, lots 80, 81, and 949 in Square 5861
§ 47–1048. Shakespeare Theatre; lot 814, square 787
§ 47–1049. Lowell School, lot 80, in square 2745-F
§ 47–1050. Greater Southeast Community Hospital Corporation and Hadley Memorial Hospital
§ 47–1051. Woolly Mammoth Theatre Company, lot 0042 in square 0457
§ 47–1052. Payments in lieu of taxes, lots 878 and 880, square 456
§ 47–1053. DC Teachers Federal Credit Union; lot 809, square 938
§ 47–1054. Capitol Hill Community Garden Land Trust; lot 30, square 1060
§ 47–1055. Payments in lieu of taxes, Reservation 13 Benefit Area
§ 47–1056. Rosedale Conservancy, lot 817 in square 1954
§ 47–1057. Crispus Attucks Development Corporation, lot 0046 in square 3117
§ 47–1058. Emmaus Rehabilitation Project, lot 74 in square 366
§ 47–1059. American College of Cardiology and American College of Cardiology Foundation
§ 47–1060. Southeast Neighborhood House, lots 0808, 0904, and 0905 in square 5802
§ 47–1061. Hill East Community Garden; lot 0109 in square 1100
§ 47–1062. Bread for the City Community Garden
§ 47–1063. Department of the District of Columbia Veterans of Foreign Wars; lot 0040, square 5167
§ 47–1064. Payments in lieu of taxes; lots 826 and 831, square 491
§ 47–1066. The Catholic University of America’s Soldiers and Airmen’s Home, parcel No. 121/29
§ 47–1068. Appalachian State University, lot 42 in square 871
§ 47–1069. American Psychological Association, lot 146, square 677
§ 47–1070. Walter Reed military housing
§ 47–1072. New Columbia Community Land Trust; lots 803, 804, 805, 806, 807, and 808 in square 4110
§ 47–1073. Triangle Community Garden; lot 58, square 1966
§ 47–1074. Theatre Downtown, Inc.; lot 26, square 406
§ 47–1075. Far Southeast Community Organization; lots 73, 74, and 75 in square 5753
§ 47–1076. Heurich House Foundation; Lot 79, Square 115. [Repealed]
§ 47–1077. Tregaron Conservancy, Lots 848, 857, 859, and 860
§ 47–1078. SOME, Inc. and Affiliates Property Tax Exemption
§ 47–1079. Golden Rule Plaza, Inc., Lots 837, 841, and 842, Square 525, and Lot 840, Square 526
§ 47–1080. Bolling Air Force Base housing
§ 47–1081. KIPP DC — Douglass Property; Lot 950, Square 5872
§ 47–1082. The Studio Theatre housing
§ 47–1083. Building Bridges Across the River, Inc., Lots 2 and 6, Square 5894
§ 47–1085. KIPP DC — Shaw Campus; Lot 163, Square 510
§ 47–1086. United House of Prayer for All People — kitchen or feeding facilities
§ 47–1087. Hill Center at the Old Naval Hospital; Lot 5, Square 948
§ 47–1088. Meridian Public Charter School — Harrison Campus Property; Lot 814, Square 235
§ 47–1088.01. Meridian International Center
§ 47–1090. Washington Latin Public Charter School property; Lot 0800, Square 3327
§ 47–1091. Basilica of the National Shrine of the Immaculate Conception Property; Lot 6, Square 3663
§ 47–1092. YMCA Community Investment Initiative, Lot 2010, Square 234
§ 47–1093. American Academy of Achievement
§ 47–1095. SeVerna, LLC, Lot 247, Square 621. [Repealed]
§ 47–1096. N Street Village, Inc., Lot 93, Square 242
§ 47–1097. Naval Lodge Building, Inc.; Lot 800, Square 789
§ 47–1099. Jubilee Ontario Apartments, LP, Lot 805, Square 2565
§ 47–1099.01. Women's National Democratic Club; Lot 5, Square 135
§ 47–1099.02. Africare Real Property; Lots 805, 817, 816, 808, and 806, Square 509
§ 47–1099.03. University of the District of Columbia, Lot 114, Square 676
§ 47–1099.04. Washington Parks & People; Lots 841, 847, 848, and 851, Square 2841
§ 47–1099.05. Shaed School, LLC; Lot 816, Square 3552
§ 47–1099.06. 5601 East Capitol, LLC; Lot 153, Square 5283
§ 47–1099.07. St. Paul on Fourth Street, Inc.; Lots 1068 and 1069, Square 3648
§ 47–1099.08. Maime D. Lee, LLC; Lots 136 and 160, Parcel 124
§ 47–1099.09. National League of American Pen Women; Lot 0825, Square 0158
§ 47–1099.10. Children's Hospital Research and Innovation Campus tax exemptions