Congressional Record, Volume 141 Issue 129 (Friday, August 4, 1995)

[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.

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