Councilmember David A. Catania
A BILL IN THE
COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmembers David Catania introduced the following bill, which was referred to the
Committee on Finance and Revenue and Economic Development with comments from the
Committees on Consumer and Regulatory Affairs, Public Works and the Environment, and Human
Services.
To provide financial and tax incentives for the remediation and redevelopment of
abandoned or underutilized contaminated real property.
TITLE I. AMENDMENTS TO DISTRICT OF COLUMBIA LAWS
Sec 101. Amendment to The Tax Increment Financing Authorization Act of 1998
Sec 102. Amendment to The National Capital Revitalization Corporation Act of 1998
Sec 103. Amendment to The District of Columbia Community Development Act of 1975
TITLE II. TAX AND FINANCIAL INCENTIVES FOR THE REMEDIATION AND REDEVELOPMENT OF
BROWNFIELDS
Sec. 201. Short Title
Sec. 202. Definition
Sec. 203. Brownfields Real Property and Business Franchise Tax Abatement
Sec. 204. Environmental Savings Accounts
Sec. 205. Brownfields Sites Environmental Assessment Fund
Sec. 206. Brownfields Sites Cleanup Revolving Fund
Sec. 207. Rules
TITLE III. FISCAL IMPACT STATEMENT
Sec. 301. Fiscal Impact Statement
TITLE IV. EFFECTIVE DATE
Sec. 401. Effective Date.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as
the "Brownfields Remediation and Redevelopment Incentives Amendment Act of
1999".
TITLE I. AMENDMENTS TO DISTRICT LAWS.
Sec 101. Section 2 of The Tax Increment Financing Authorization Act of 1998, effective
September 11, 1998 (D.C. Law 12-143; D.C. Code §1-2293.1), is amended as follows:
(a) Paragraph (24) is amended by striking the "." at the end of the paragraph
and inserting the phrase "; and Brownfields areas as defined in subsection
(33)." in its place.
(b) Add a new paragraph (33) to read as follows:
"(33) "Brownfields" means an abandoned or underutilized property where
expansion or redevelopment is complicated by actual or perceived environmental
contamination.".
Sec. 102. The National Capital Revitalization Corporation Act of 1998, effective
September 11, 1998 (D.C. Law 12-144; D.C. Code §1-2295.1 et seq.), is amended as
follows:
(a) Section 13(b)(2) (D.C. Code §1-2295.12(b)(2)) is amended to read as follows:
"(2) Remediation and redevelopment of abandoned, contaminated, and underutilized
commercial, industrial and residential sites;".
(b) Section 21(a) (D.C.. Code §1-2295.20(a) is amended as follows:
(1) Paragraph (11) is amended by striking the word "and" at the end of the
paragraph;(2) Paragraph (12) is amended by adding the phrase "; and" at the end of the
paragraph; and(3) A new paragraph (13) is added to read as follows:
"(13) Brownfields areas as defined in the Tax Increment Financing Authorization
Act of 1998, effective September 11, 1998 (D.C. Law 12-143; D.C. Code §1-2293.1 et
seq.).".
Sec. 103. Section 3(a)(3) of the District of Columbia Community Development Act of
1975, effective December 16, 1975 (D.C. Law 1-39; D.C. Code §5-902(a)(3)), is amended as
follows:
(a) Strike the word "and" at the end of subparagraph (A);
(b) Add the word "and" at the end of subparagraph (B); and
(c) A new subparagraph (C) is added to read as follows:
"(C) Remediate and redevelop brownfields areas as defined in the Tax Increment
Financing Authorization Act of 1998, effective September 11, 1998 (D.C. Law 12-143; D.C.
Code §1-2293.1 et seq.);".
TITLE II. TAX AND FINANCIAL INCENTIVES.
Sec. 201. Short title.
This title may be cited as the "Brownfields Remediation and Redevelopment
Incentives Act of 1999".
Sec. 202. Definition.
For purposes of this title, "brownfields site" means an abandoned or
underutilized property where expansion or redevelopment is complicated by actual or
perceived environmental contamination as determined by the Mayor.
Sec. 202 [sic]. Brownfields real property and business franchise tax
abatements.
(a) The Mayor may submit proposed rules to the Council to establish credits that offset
real property taxes and business franchise taxes in connection with the remediation and
redevelopment of a brownfields site. The proposed rules shall be submitted to the Council
for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of
Council recess. If the Council does not approve or disapprove the proposed rules, in whole
or in part, by resolution within this 45-day review period, the proposed rules shall be
deemed approved. Nothing in this section shall affect any requirements imposed upon the
Mayor by Title 1 of the District of Columbia Administrative Procedure Act, approved
October 21, 1968 (82 Stat. 1204; D.C. Code §1-1501 et seq.) The aggregate of the
credits may equal an amount up to 100% of costs for remediation and up to 25% of costs for
redevelopment of a brownfields site.
(b)(1) Application may be made to the Mayor for a reduction in real property taxes for
real property that has been proposed as a site for brownfields remediation and
redevelopment. Application may also be made for the deferral or forgiveness of any
delinquent real property taxes, of any delinquent special assessments, of any cost or fee
assessed to correct any condition that exists on the real property in violation of law,
and of any delinquent water or sanitary sewer charges that have been imposed on the
brownfields site.
(2) The application shall contain:
(A) A description of the real property;
(B) The assessed value of the real property; and
(C) A statement of expected public benefits.
(3) The statement of public benefits shall include:
(A) A description of the proposed remediation and redevelopment;
(B) an estimate of the cost of the remediation and redevelopment; and
(C) An estimate of the benefits associated with the proposed remediation and
redevelopment of the brownfields site, including but not limited to:(i) An estimate of the number of person who will be employed or whose employment shall
be retained as a result of the remediation and redevelopment; an estimate of the annual
salaries of those employees; and the number of District resident employees;(ii) An estimate of the increase in the assessed value of the real property; and
(iii) An estimate of the total increase in taxable activity in connection with the
proposal.
(c)( 1 ) Application may be made to the Mayor for a credit to any franchise tax
liability imposed by D.C. Code §47-1807.1 et seq. or §47-1808.1 et seq., on income
expected to be earned by an incorporated or unincorporated business entity as a result of
the remediation and redevelopment of a brownfields site.
(2) The application shall:
(A) Identify the incorporated or unincorporated business entity;
(B) Estimate the annual dollar value of each franchise tax credit; and
(C) State whether the business entity has entered into an employment agreement with the
District pursuant to the First Source Employment Agreement Act of 1984 (D.C. Law 5-93;
D.C. Code §1-1161 et seq).
(d) If the amount of the credits allowable under this section exceeds the taxes
otherwise due, the amount of the credits not used as an offset against the taxes may be
carried forward for up to 25 years.
(e) The Mayor may impose limitations on the amount of total reductions that will be
allowed.
Sec. 204. Environmental Savings Accounts.
The Mayor shall establish a program to be known as the Environmental Savings Account
Program which shall permit an eligible person to establish an Environmental Savings
Account ("ESA") for the purpose of accumulating funds to be used for the
remediation and/or redevelopment of a brownfields site. Funds deposited in an ESA by an
eligible person and interest earned on the funds shall be exempt from District income
taxation; provided, that any funds withdrawn that are not used for remediation and
redevelopment shall be subject to income taxation and a 10% penalty.
Sec. 205. Brownfields Sites Environmental Assessment Fund.
The Mayor shall establish a Brownfields Sites Environmental Assessment Fund, subject to
appropriations and any other Federal funds or private contributions, for the purpose of
making grants to conduct environmental assessments of industrial, commercial and
residential sites. The Mayor shall provide an annual report on October l of each year to
the Council on grants made from the Fund and on the effectiveness of the Fund in
conducting environmental assessments.
Sec. 206. Brownfields Sites Cleanup Revolving Fund.
(a) The Mayor shall establish the Brownfields Sites Cleanup Revolving Fund
("Fund"), subject to appropriations and any other federal funds or private
contributions, to provide financial assistance for the remediation and redevelopment of
brownfields sites. The financial assistance, in the form of grants or loans to be lent at
a rate not to exceed 2%, shall be in an amount up to 75% of the costs incurred for
completing an environmental study and remediating and redeveloping a brownfields site.
(b) The following criteria shall be used in determining whether to provide financial
assistance:
(1) The benefit of the remedy to public health, safety and the environment;
(2) The permanence of the remedy;
(3) The cost effectiveness of the remedy compared with other alternatives;
(4) The financial condition of the applicant;
(5) The economic distress of the area in which the site is located; and
(6) The potential for economic development.
(c) In addition to the criteria in subsection (b) of this subsection, loans may be made
based on the ability to repay the loan from future revenue to be derived from the
redeveloped site and may be secured by a mortgage or other collateral.
(d) Moneys received as repayment of loans shall be deposited in the Fund.
(e) The Mayor shall provide an annual report on October 1 of each year to the Council
on grants, loans, and expenditures made from the Fund, the revenue received by the Fund,
and on the effectiveness of the Fund in redeveloping brownfields sites.
Sec. 207. Rules.
The Mayor shall promulgate rules to implement the provisions of this title. The rules
shall include the following:
(1) Application procedures;
(2) Eligibility for tax credits and financial incentives; and
(3) Fees to be charged for application and administration of the Fund established in
section 206.
TITLE III. FISCAL IMPACT STATEMENT.
Sec. 301. Fiscal Impact Statement
TITLE IV. EFFECTIVE DATE
Sec. 401. This act shall take effect following approval by the Mayor (or in the event
of veto by the Mayor, action by the Council to override the veto), approval by the
Financial Responsibility and Management Assistance Authority as provided in section 203(a)
of the District of Columbia Financial Responsibility and Management Assistance Act of
1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of
Congressional review as provided in section 602(c)(1) of the District of Columbia Home
Rule Act, approved December 24, 1973 (87 Stat. 831; D.C. Code §1-233(c)(1)), and
publication in the District of Columbia Register.