[Congressional Record Volume 141, Number 129 (Friday, August 4, 1995)]
[House]
[Pages H8509-H8511]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DISTRICT OF COLUMBIA CONVENTION CENTER AND SPORTS ARENA AUTHORIZATION 
                              ACT OF 1995

  Mr. DAVIS. Mr. Speaker, I ask unanimous consent to call up the bill 
(H.R. 2108), to permit the Washington Convention Center Authority to 
expend revenues for the operation and maintenance of the existing 
Washington Convention Center and for preconstruction activities 
relating to a new convention center in the District of Columbia, to 
permit a designated authority of the District of Columbia to borrow 
funds for the preconstruction activities relating to a sports arena in 
the District of Columbia and to permit certain revenues to be pledged 
as security for the borrowing of such funds, and for other purposes, 
and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  Ms. NORTON. Mr. Speaker, reserving the right to object, under my 
reservation, I ask the chairman of the Subcommittee on the District of 
Columbia to explain the bill.
  Mr. DAVIS. Mr. Speaker, if the gentlewoman will yield, H.R. 2108 is a 
straightforward bill which allows the District of Columbia to move 
forward on two very important economic development projects--the MCI 
arena at Gallery Place and a new convention center.
  These projects will provide thousands of jobs of the type most needed 
in the District of Columbia and hundreds of millions of dollars in 
economic activity and tax revenues for our Nation's Capital.
  This bill is very narrowly crafted and specifically directs each item 
for which expenditures may be made. Also, the independent nature of 
both the Washington Convention Center Authority and the Redevelopment 
Land Agency, which is the lead agency on the arena project, mean that 
the power and influence of the Mayor and the Council are sharply 
curtailed and less than would have been the case if these projects had 
proceeded without this legislation. I want Members to know that the 
entities directing these projects are independent of the Mayor and have 
both the legal and fiduciary responsibility for their actions.
  This legislation does not create or raise taxes in the District of 
Columbia. The funds authorized to be expended by this legislation are 
already being collected and deposited in an escrow account. Last year 
the Council passed dedicated tax sources for these economic development 
projects and directed the funds into escrow accounts. The moneys 
involved are not part of the District's general fund, could not be 
spent for any other purpose, and this spending will not increase the 
District's deficit.
  Under the narrow focus of this legislation and considering the 
economic benefits for the District of Columbia and the entire National 
Capital region from these projects, I ask Members to support H.R. 2108.
  Ms. NORTON. Mr. Speaker, I thank the gentleman from Virginia [Mr. 
Davis] for his explanation.
  Mr. Speaker, further reserving the right to object, I yield to the 
gentleman from Minnesota [Mr. Gutknecht].
  Mr. GUTKNECHT. Mr. Speaker, I would like to say a special thank you 
and tribute to both the gentleman from Virginia [Mr. Davis] and the 
gentlewoman from the District of Columbia [Ms. Norton] because they 
have worked very hard on this legislation.

[[Page H 8510]]

  Mr. Speaker, I was one of the few Members of the Congress who got a 
chance, 2 weeks ago, to take a tour of the areas where these two 
facilities are going to be built. I also want to say a special tribute 
to the business community, because I think they have all pulled 
together on this, and particularly to the Pollin family.
  Mr. Speaker, I would say to my fellow Members, and particularly any 
of those on this side of the aisle, this city essentially has two 
industries. One is Government, the other is tourism and the hospitality 
industry. I did not know, until I took that tour, that actually the 
hospitality industry is the largest employer here in the District of 
Columbia.
  While those of us on this side of the aisle are doing our best to 
reduce the size of the Federal Government, I think we have some 
responsibility to do what we can to increase the size of that other 
industry. So, Mr. Speaker, I strongly support this legislation.
  Mr. Speaker, I again congratulate the gentlewoman from the District 
of Columbia [Ms. Norton], the gentleman from Virginia [Mr. Davis], and 
the business community for working together. I think these are going to 
be projects that will be a tremendous attraction for the people of 
Washington, DC, and for people all over the United States of America. I 
think they are going to be a giant step forward in terms of rebuilding 
the economic infrastructure here in the District.
  Mr. Speaker, I hope everyone joins me in supporting H.R. 2108.
  Ms. NORTON. Mr. Speaker, I thank the gentleman for his strong support 
and his work in the committee on this and other bills for the District.
  Mr. Speaker, further reserving the right to object, we are bringing 
to this House a bipartisan bill that has the unanimous support of the 
Subcommittee on the District of Columbia and that will significantly 
increase the revenue of the District entirely from private resources.
  H.R. 2108, the District of Columbia Convention Center and Sports 
Arena Authorization Act of 1995, allows for the release of dedicated 
tax funds that are not part of the District's general fund revenues for 
preliminary work for a new convention center, and the lands acquisition 
and site cleanup for a new sports arena.
  This bill is here today only because the projects themselves will be 
financed largely by private parties and businesses. If the financial 
crisis of the District of Columbia is to be cured, and not merely 
temporarily stayed, it will take financial ventures such as these to 
grow the city's economy and create new opportunities for residents and 
businesses.
  Mr. Speaker, I want to once again express my thanks to the gentleman 
from Virginia [Mr. Davis], chairman of the Subcommittee on the District 
of Columbia, for his collegial and expeditious consideration of my bill 
and to the gentleman from Pennsylvania [Mr. Clinger], chairman of the 
Committee on Government Reform and Oversight for the same. Their 
efforts show how much can be accomplished when Members reach out in 
genuine bipartisan resolve to solve problems. Thank you very much.
  Mrs. COLLINS of Illinois. Mr. Speaker, I am delighted that the D.C. 
Subcommittee's ranking member, Eleanor Holmes Norton, and the 
subcommittee's chairman, Tom Davis have worked together in a bipartisan 
manner to develop H.R. 2108, a bill which would enable District 
government to spend its own locally raised revenues for the 
preconstruction work essential to move the District of Columbia's 
proposed new sports arena and convention center projects forward.
  The arena and convention center are indispensable to the economic 
revitalization of the Nation's Capital. Together they hold the 
potential to create hundreds of jobs and bring millions of dollars of 
badly needed revenue to this city. They will also generate many spinoff 
business opportunities that will also contribute to the District's 
recovery.
  Particularly noteworthy about these two projects is the public/
private partnership which brought them about. In each case, the local 
business community gave its support to the imposition of special taxes 
which its members will pay to fund land acquisition and preconstruction 
activities. It is also significant that the new sports arena will be 
built entirely with private funds by the owner of the District's 
professional basketball and hockey teams.
  Investments such as these, made during a period when the District is 
experiencing severe financial distress, are strong indications that 
this city does have a promising future.
  Mr. Speaker, I urge the approval of this legislation.
  Mr. Speaker, I withdraw my reservation of objection, and ask all 
Members to support H.R. 2108.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.
  The Clerk read the bill, as follows:

                               H.R. 2108

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``District 
     of Columbia Convention Center and Sports Arena Authorization 
     Act of 1995''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                       TITLE I--CONVENTION CENTER

Sec. 101. Permitting Washington Convention Center Authority to spend 
              revenues for convention center activities.

                         TITLE II--SPORTS ARENA

Sec. 201. Permitting designated authority to borrow funds for 
              preconstruction activities relating to Gallery Place 
              sports arena.
Sec. 202. Permitting certain District revenues to be pledged as 
              security for borrowing.
Sec. 203. No appropriation necessary for arena preconstruction 
              activities.
Sec. 204. Arena preconstruction activities described.

               TITLE III--WAIVER OF CONGRESSIONAL REVIEW

Sec. 301. Waiver of Congressional review of Arena Tax Payment and Use 
              Amendment Act of 1995.
                       TITLE I--CONVENTION CENTER

     SEC. 101. PERMITTING WASHINGTON CONVENTION CENTER AUTHORITY 
                   TO EXPAND REVENUES FOR CONVENTION CENTER 
                   ACTIVITIES.

       (a) Permitting Expenditure Without Appropriation.--The 
     fourth sentence of section 446 of the District of Columbia 
     Self-Government and Governmental Reorganization Act (sec. 47-
     304, D.C. Code) shall not apply with respect to any revenues 
     of the District of Columbia which are attributable to the 
     enactment of title III of the Washington Convention Center 
     Authority Act of 1994 (D.C. Law 10-188) and which are 
     obligated or expended for the activities described in 
     subsection (b).
       (b) Activities Described.--The activities described in this 
     paragraph are--
       (1) the operation and maintenance of the existing 
     Washington Convention Center; and
       (2) preconstruction activities with respect to a new 
     convention center in the District of Columbia, including land 
     acquisition and the conducting of environmental impact 
     studies, architecture and design studies, surveys, and site 
     acquisition.
                         TITLE II--SPORTS ARENA

     SEC. 201. PERMITTING DESIGNATED AUTHORITY TO BORROW FUNDS FOR 
                   PRECON- STRUCTION ACTIVITIES RELATING TO 
                   GALLERY PLACE SPORTS ARENA.

       (a) Permitting Borrowing.--
       (1) In general.--The designated authority may borrow funds 
     through the issuance of revenue bonds, notes, or other 
     obligations which are secured by revenues pledged in 
     accordance with paragraph (2) to finance, refinance, or 
     reimburse the costs of arena preconstruction activities 
     described in section 204 if the designated authority is 
     granted the authority to borrow funds for such purposes by 
     the District of Columbia government.
       (2) Revenue required to secure borrowing.--The designated 
     authority may borrow funds under paragraph (1) to finance, 
     refinance, or reimburse the costs of arena preconstruction 
     activities described in section 204 only if such borrowing is 
     secured (in whole or in part) by the pledge of revenues of 
     the District of Columbia which are attributable to the sports 
     arena tax imposed as a result of the enactment of D.C. Law 
     10-128 (as amended by the Arena Tax Amendment Act of 1994 
     (D.C. Act 10-315)) and which are transferred by the Mayor of 
     the District of Columbia to the designated authority pursuant 
     to section 302(a-1)(3) of the Omnibus Budget Support Act of 
     1994 (sec. 47-2752(a-1)(3), D.C. Code) (as amended by section 
     2(b) of the Arena Tax Payment and Use Amendment Act of 1995).
       (b) Treatment of Debt Created.--Any debt created pursuant 
     to subsection (a) shall not--
       (1) be considered general obligation debt of the District 
     of Columbia for any purpose, including the limitation on the 
     annual aggregate limit on debt of the District of Columbia 
     under section 603(b) of the District of Columbia Self-
     Government and Governmental Reorganization Act (sec. 47-
     313(b), D.C. Code);
       (2) constitute the lending of the public credit for private 
     undertakings for purposes of section 602(a)(2) of such Act 
     (sec. 1-233(a)(2), D.C. Code); or 

[[Page H 8511]]

       (3) be a pledge of or involve the full faith and credit of 
     the District of Columbia.
       (c) Designated Authority Defined.--The term ``designated 
     authority'' means the Redevelopment Land Agency or such other 
     District of Columbia government
      agency or instrumentality designated by the Mayor of the 
     District of Columbia for purposes of carrying out any 
     arena preconstruction activities.

     SEC. 202. PERMITTING CERTAIN DISTRICT REVENUES TO BE PLEDGED 
                   AS SECURITY FOR BORROWING.

       (a) In General.--The District of Columbia (including the 
     designated authority described in section 201(c)) may pledge 
     as security for any borrowing undertaken pursuant to section 
     201(a) any revenues of the District of Columbia which are 
     attributable to the sports arena tax imposed as a result of 
     the enactment of D.C. Act 10-128 (as amended by the Arena Tax 
     Amendment Act of 1994 (D.C. Law 10-315)), upon the transfer 
     of such revenues by the Mayor of the District of Columbia to 
     the designated authority pursuant to section 302(a-1)(3) of 
     the Omnibus Budget Support Act of 1994 (sec. 47-2752(a-1)(3), 
     D.C. Code) (as amended by section 2(b) of the Arena Tax 
     Payment and Use Amendment Act of 1995).
       (b) Exclusion of Pledged Revenues From Calculation of 
     Annual Aggregate Limit of Debt.--Any revenues pledged as 
     security by the District of Columbia pursuant to subsection 
     (a) shall be excluded from the determination of the dollar 
     amount equivalent to 14 percent of District revenues under 
     section 603(b)(3)(A) of the District of Columbia Self-
     Government and Governmental Reorganization Act (sec. 47-
     313(b)(3)(A), D.C. Code).

     SEC. 203. NO APPROPRIATION NECESSARY FOR ARENA 
                   PRECONSTRUCTION ACTIVITIES.

       The fourth sentence of section 446 of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     (sec. 47-304, D.C. Code) shall not apply with respect to any 
     of the following obligations or expenditures:
       (1) Borrowing conducted pursuant to section 201(a).
       (2) The pledging of revenues as security for such borrowing 
     pursuant to section 202(a).
       (3) The payment of principal, interest, premium, debt 
     servicing, contributions to reserves, or other costs 
     associated with such borrowing.
       (4) Other obligations or expenditures made to carry out any 
     arena preconstruction activity described in section 204.

     SEC. 204. ARENA PRECONSTRUCTION ACTIVITIES DESCRIBED.

       The arena preconstruction activities described in this 
     section are as follows:
       (1) The acquisition of real property (or rights in real 
     property) to serve as the site of the sports arena and 
     related facilities.
       (2) The clearance, preparation, grading, and development of 
     the site of the sports arena and related facilities, 
     including the demolition of existing buildings.
       (3) The provision of sewer, water, and other utility 
     facilities and infrastructure related to the sports arena.
       (4) The financing of a Metrorail connection to the site and 
     other Metrorail modifications related to the sports arena.
       (5) The relocation of employees and facilities of the 
     District of Columbia government displaced by the construction 
     of the sports arena and related facilities.
       (6) The use of environmental, legal, and consulting 
     services (including services to obtain regulatory approvals) 
     for the construction of the sports arena.
       (7) The financing of administrative and transaction costs 
     incurred in borrowing funds pursuant to section 201(a), 
     including costs incurred in connection with the issuance, 
     sale, and delivery of bonds, notes, or other obligations.
       (8) The financing of other activities of the District of 
     Columbia government associated with the development and 
     construction of the sports arena, including the reimbursement 
     of the District of Columbia government or others for costs 
     incurred prior to the date of the enactment of this Act which 
     were related to the sports arena, so long as the designated 
     authority determines that such costs are adequately 
     documented and that the incurring of such costs was 
     reasonable.

               TITLE III--WAIVER OF CONGRESSIONAL REVIEW

     SEC. 3O1. WAIVER OF CONGRESSIONAL REVIEW OF ARENA TAX PAYMENT 
                   AND USE AMENDMENT ACT OF 1995.

       Notwithstanding section 602(c)(1) of the District of 
     Columbia Self-Government and Governmental Reorganization Act, 
     the Arena Tax Payment and Use Amendment Act of 1995 (D.C. Act 
     11-115) shall take effect on the date of the enactment of 
     this Act.

  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and the motion to reconsider was laid on 
the table.

                          ____________________