FOR IMMEDIATE RELEASE:
Tuesday, October 19, 2021
Contact: Emmanuel Brantley | ebrantley@dccouncil.us

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Councilmember Brooke Pinto Introduces the RECOVERY Act to Ensure Comprehensive and Inclusive Economic Recovery Downtown

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Washington, D.C. – Today, Ward 2 Councilmember Brooke Pinto introduced the “RECOVERY Amendment Act of 2021.” The purpose of the Recovery Act is to provide a comprehensive and inclusive economic recovery package for the Central Business District (CBD) which includes the Downtown and Golden Triangle Business Improvement Districts (BIDs). The Recovery Act is targeted to support District residents, workers, and businesses with the goal of transforming our office corridors from solely commercial uses to a vibrant city core that includes mixed-use developments, affordable housing, and jobs and green space as a driver of growth. At-Large Councilmember Christina Henderson joined in co-introducing the legislation.

The pandemic has taken a toll on the Central Business District, resulting in the loss of thousands of jobs, a steep decline in transit ridership and therefore area foot traffic, and leaving millions of square feet of vacant office space and record-high retail vacancy rates. Through the Recovery Act, currently empty or underutilized commercial buildings can be repurposed for the future while generating jobs in both construction and high-growth industries. Mixed use and inclusive development will bring residents and workers downtown to live, work, and play.

“Creating new jobs for workers, supporting businesses and entrepreneurs, and building market rate and affordable housing for residents downtown, are the keys to an equitable and sustainable recovery,” said Councilmember Pinto. “We must take bold action now to ensure the successful recovery of our Central Business District and build resiliency for the future.”

To encourage shared growth for the Central Business District, the RECOVERY Amendment Act advances three strategies of tax incentives and grant programs that together will catalyze growth for a resilient CBD:

• Incentivizing Mixed Uses – The Recovery Act provides for a real property tax abatement to incentivize the conversion of office space to workforce housing, hotel, retail, restaurant, sports, entertainment, and cultural uses. To receive abatements, projects must implement Certified Business Enterprise, First Source, and economic inclusion agreements to empower women and minority workers and business owners. Hotels are required to enter into project labor agreements that will negotiate terms for union and non-union workers and retailers must enter into economic inclusion agreements. Retail and restaurants would benefit directly from reduced taxes under lease agreements wherein the tenants pay property tax expenses. Further incentives are offered for the development of family size residential units.

• Attracting Businesses to the Central Business District – The Recovery Act offers two-year operational grants for businesses that come to or expand in the CBD and for building owners that provide benefits to existing CBD business tenants. Twenty percent of grant funds will be set aside for resident-owned businesses, SBEs, women-owned businesses, and DBE-eligible businesses.

• Encouraging Entrepreneurship and Catalyzing Innovation – The Recovery Act will lead to the completion of the new Pennsylvania Avenue Innovation District. Furthermore, the Recovery Act would provide temporary tax relief for innovative businesses that locate in the CBD and meet hiring and economic inclusion requirements.

“It is imperative that we invest in our brick-and-mortar establishments, facilitate conversions of vacant office spaces to affordable housing, hotel, retail, and green spaces, and ensure our recovery and growth efforts are inclusive to local, women, and minority owned businesses,”said Councilmember Pinto. “I am confident that with these measures we will be able to work together to reimagine our spaces and help Downtown, the Golden Triangle, and our city be even more vibrant and inclusive.”

By enacting and funding a transformative recovery package for Downtown and the Golden Triangle, Councilmember Pinto is working to ensure that the District’s commercial office core sustains the District’s recovery as a more equitable and resilient city for the 21st century.

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