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MURIELBOWSERMAYOR
May4,2026
Honorable PhilMendelson
Chairman
Councilof theDistrictofColumbia
John A. Wilson Building
1350 PennsylvaniaAvenue, NW, Suite504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section451 of the Districtof Columbia Home Rule Act (D.C. OfficialCode §l-
204.51),enclosedforconsiderationand approvalby theCounciloftheDistrictofColumbia isthe
fourthamendment to an in-leaseagreement with $/C 225 VirginiaAvenue, LLC to extend the
leaseof 345,120squarefeetof officespacelocatedat225 VirginiaAvenue, SE.
The leasedpremises will be occupied for an additional8 years and 4 months by the DC
Commission on theArtsand Humanities,theChildand Family ServicesAgency, theOfficeof the
ChiefTechnology Officer,and theOfficeofthe AttorneyGeneral.
If you have any questionsregardingthiscontract,please contactDelano Hunter, Director,
Department of General Services(“DGS”), or have your staffcontactTiwana Hicks,Associate
Director,PortfolioManagement Division,DGS, at(202)727-2800.
Ilook forwardtotheCouncil’sfavorableconsiderationofthiscontract.
Sincerely,
MuriflBowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
_________________________________________________________________________________________________
3924 Minnesota Avenue NE, 6th Floor, Washington, DC 20019 • Telephone (202) 727-2800
1
COUNCIL REAL ESTATE CONTRACT SUMMARY
April 24, 2026
Please note that any capitalized term used but not defined in this Summary shall have the meaning
given to such term in the proposed real estate contract.
1. The name of the proposed lessor, lessee, grantor or other party to the proposed real estate
contract, the type of real estate contract, the source selection method, the primary term
of the real estate contract (if applicable), and the consideration to be paid by the District:
Contract Party Name: S/C 225 Virginia Avenue, LLC, a Delaware limited
liability company (“Landlord”)
Type of Real Estate Contract: Amendment to I n-Lease Agreement (District is
tenant)
Location of Real Property: 225 Virginia Avenue, SE
Source Selection Method: Non-Competitive as to the Amendment
Primary Term (if applicable): Approximately 6 years remaining under existing In-
Lease Agreement. The proposed Amendment would
extend the primary term by 8 years and 4 months.
Consideration to be paid by District
for First Year under the Amendment:
(June 1, 2032 through May 31, 2033): $9,273,609.84
Certificate of Funding Amount
for Fiscal Year 2026: $0
2. If the real estate contract is a lease amendment, a breakdown of the r ent for the first
Lease Year under the amendment and the scheduled escalations thereof:
Premises (345,120 Rentable Square Footage (“RSF”))
Base Rent $/RSF/YR Annual Total Annual Escalations after First
Lease Year
Base Rent $26.87* $9,273,609.84 N/A
*In addition to the Base Rent, the District will continue to be responsible for operating, repair and maintenance
expenses and real estate taxes pursuant to the existing in-lease agreement.
3. If the real estate contract is a lease amendment, a description of any extensions of or
options to renew the primary lease term set forth above , the contract amount for any
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extension or option period (and an explanation of any difference), and a description of
any options to purchase the real property:
The proposed Amendment would extend the primary term under the existing i n-lease
agreement by 8 years and 4 months , and does not include an option to further extend the
primary term. As described in paragraph 5 below, the District owns the land at 225 Virginia
Avenue, SE and, as such, a purchase option is not applicable.
4. A description of the real property to be acquired, developed or leased, including any
applicable improvements:
The following is provided under the existing in-lease agreement:
Street Address: 225 Virginia Avenue, SE
Square/Lot Number: Square 0766 / Lot 0038
Total RSF of Building: 345,120 RSF
Total RSF of Premises: 345,120 RSF
Description of Improvements : The existing building is a 345,120 RSF office building
located on approximately 91,911 square feet of land. Under the Amendment, the Child and
Family Services Agency (“CFSA”), the Office of the Chief Technology Officer (“OCTO”),
the DC Commission on Arts and Humanities (“CAH”) and the Office of the Attorney
General (“OAG”) will continue to occupy 345,120 RSF of office space. CFSA, OCTO,
CAH and OAG will also continue to have use of 175 parking spaces.
5. A description of the District’s specific real property need associated with the proposed
real estate contract and t he selection process, including the number of offerors, the
evaluation criteria, and the evaluation results , including price, technical or quality, and
past performance components:
On October 15, 2009, pursuant to Subtitle H of Title I of the Fiscal Year 2010 Budget Support
Emergency Act of 2009 (A18-0187), the District purchased the land located at 225 Virginia
Avenue, SE . Pursuant to §1301(b) and §1301(c) of the Fiscal Year 2010 Budget Support
Second Emergency Act of 2009 (A18- 0207), Council authorized the Mayor to dispose of the
property by ground lease to the Landlord subject to simultaneously entering into a lease
agreement with the Landlord for the Landlord’s construction of a build-to-suit office building
on the property and the subsequent leaseback of the land and building to the District. The
existing in -lease agreement, which was deemed approved by Council on February 4 2010
(CA18-0249), was the result of a competitive process. Th e Amendment resulted from a
proposal from the Landlord requesting that the District extend the primary term of the existing
in-lease agreement in exchange for which the District would realize approximately $37.1
million in rent abatement. 225 Virgina Avenue, SE offers CFSA, OCTO, CAH and OAG the
opportunity to remain in a high-quality and centrally located building that serves each agency’s
needs.
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In response to the Landlord’s proposal, DGS met with CFSA, OCTO, CAH and OAG
regarding the Amendment terms. CFSA, OCTO, CAH and OAG wish to remain at this
location and support the Amendment.
6. A description of any other contracts the proposed contract party is currently seeking or
holds with the District.
Based upon a certification from Landlord, L andlord is not currently seeking and does not
currently hold any other contracts with the District other than the ground lease described in
paragraph 5 above.
7. The background and qualifications of the proposed contract party, including its
organization, principals, financial stability, and personnel; performance on past or
current real estate contracts with requirements similar to those of the proposed contract:
S/C 225 Virginia Avenue, LLC is a Delaware limited liability company and is the owner of
the building located at 225 Virginia Avenue, SE . The Landlord has no employees. The
Landlord’s principals are Douglas M. Firstenberg, Manager, and George A. Carras, Manager.
Landlord’s performance under the in-lease agreement has been satisfactory
8. Expected outcomes of the proposed real estate contract:
The execution of the proposed Amendment is expected to result in the continued occupancy
by CFSA, OCTO, CAH and OAG of the subject space for an additional 8 years and 4 months.
9. A statement that suitable space owned by the District is not available or cannot be
reasonably renovated or altered:
Based upon an evaluation of space owned by the District, there is no suitable space owned by
the District, either as -is or which can reasonably be renovated or altered, which would meet
the needs of CFSA, OCTO, CAH and OAG fulfilled under the Amendment.
10. ANC notice of the proposed real estate contract:
Not applicable, as CFS A, OCTO, CAH and OAG currently occupy the premises under an
existing in-lease agreement.
11. A certification that the proposed real estate contract is within the appropriated budget
authority for the agency for the fiscal year and is consistent with the financial plan and
budget adopted in accordance with §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified the availability of funds for the proposed
real estate contract. Please see the attached Funding Certification.
12. A certification that the proposed real estate contract is legally sufficient:
4
The Office of the General Counsel for the Department of General Services has certified that
the proposed real estate contract is legally sufficient. Please see the attached Legal Sufficiency
Certification.
13. A certification as to whether the proposed contract party has any currently pending legal
claims against the District:
Based upon a certification from the Landlord, the Landlord does not have any legal claims
currently pending against the District.
14. A certi fication that the Citywide Clean Hands database indicates that the proposed
contract party is current with its District taxes:
The proposed contract party is current with its District of Columbia taxes. As the proposed
contract party is a disregarded entity for tax purposes, the Citywide Clean Hands certificate for
the proposed contract party’s parent entity is attached.
15. A certification from the proposed contract party that it is current with its federal taxes ,
or has worked out and is current with a payment schedule approved by the federal
government:
Based upon a certification from the Landlord, the Landlord is current with its federal taxes, or
has worked out and is current with a payment schedule approved by the federal government.
16. A certification that the proposed contract party has not been determined to be in
violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011:
Based upon a certification from the Landlord, the Landlord has not been determined to be in
violation of section 334a of the Board of Ethics and Government Accountability Establishment
and Comprehensive Ethics Reform Amendment Act of 2011.
17. A certification from the proposed contract party that it currently is not and will not be
in violation of section 334a of the Board of Ethics and Government Accountability
Establishment and Comprehensive Ethics Reform Amendment Act of 2011:
Based upon a certification from the Landlord, the Landlord currently is not and will not be in
violation of section 334a of the Board of Ethics and Government Accountability Establishment
and Comprehensive Ethics Reform Amendment Act of 2011.
18. The status of the proposed contract party as a certified local, small, or disadvantaged
business enterprise, as defined in subchapter IX-A of Chapter 2 of title § 2-218.01 et seq.:
The proposed contract party is not a certified local, small, or disadvantaged business enterprise.
1101 4th Street, SW
Washington, DC 20024
Date of Notice: April 16, 2026 L0016443542Notice Number:
FEIN: **-***7580
Case ID: 18931328
Government of the District of Columbia
Office of the Chief Financial Officer
Office of Tax and Revenue
S/C 225 VIRGINIA AVENUE HOLDINGS L
7373 WISCONSIN AVENUE SUITE 700
BETHESDA MD 20814
Branch Chief, Collection and Enforcement Administration
Authorized By Melinda Jenkins
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
C
As reported in the Clea
reported in the Cle
iability with the District o
ility with the Di
vices. As of the date abov
ices. As of the date abov
ertificate of Clean Hands
ertificate of Clean Hand
TITLE 47. TAXATION, L
TLE 47. TAXATION,
CHAP
CHAP
PTER II. CLEAN HAND
PTER II. CLEAN HAN
D.C. CO
D.C. CO
PROHIBITION AGAINS
ROHIBITION AGAIN
441 4th Street, NW – Suite 890 North - Washington, DC 20001
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
GOVERNMENT OPERATIONS CLUSTER
OFFICE OF FINANCE & RESOURCE MANAGEMENT
Antoinette Hudson Beckham Angelique Rice
Agency Fiscal Officer Associate Chief Financial Officer
Date: March 30, 2026
Agency Budget: Department of General Services (AM0)
Occupying Agency: Commission on Arts & Humanities (BX0)
Child & Family Services (RL0)
Chief Technology Officer (TO0)
Ward 6
Funds Needed: FY 2026 $0.00
Purpose: Funding is needed for a leaseamendmentwhich will extend the term ofthe lease
agreement at 225 Virginia Avenue SE by 100 Months. The Commission on Arts &
Humanities, Child & Family Servicesandthe Office of theChief Technology
Officeroccupy office spaceunder the lease.
Certification: This is to statethatfunding in the amount of $0.00for FY 2026 is needed. Funding
in the amountof $122,904.00 for FY 2027 and is subject to the approval of the
District’s Budget and Financial Plan.
Cost of Obligation FY2026: $0.00
Cost of Obligation FY2027: $122,904.00
Term: 100 Months
_________________________ _________________________
Antoinette Hudson Beckham Date
Cc: Angelique Rice, Associate Chief Financial Officer, GOC
_______
__________________
_
_
AntoinetteHudsonBeckham
03.31.2026
/g39/g75/g115/g28/g90/g69/g68/g28/g69/g100/g3/g75/g38/g3/g100/g44/g28/g3/g24/g47/g94/g100/g90/g47/g18/g100/g3/g75/g38/g3/g18/g75/g62/g104/g68/g17/g47/g4
/g24/g28/g87/g4/g90/g100/g68/g28/g69/g100/g3/g75/g38/g3/g39/g28/g69/g28/g90/g4/g62/g3/g94/g28/g90/g115/g47/g18/g28/g94
________________________________________________________________________________________________
3924 Minnesota Avenue, NE, 6th Floor, Washington, D.C. 20019 /g120 Telephone (202) 727-2800
1
Office of the General Counsel
MEMORANDUM
TO: Tomás Talamante
Director, Office of Policy and Legislative Affairs
THROUGH: Xavier Beltran
General Counsel, Department of General Services
FROM: Erica P. Lee
Assistant General Counsel, Department of General Services
SUBJECT: Legal Sufficiency Certification for Pr oposed Fourth Ame ndment to Lease
Agreement by and between the District and S/C 225 Virginia Avenue, LLC for
premises at 225 Virginia Avenue, SE, Washington, D.C. (the “Amendment”)
DATE: April 24, 2026
This is to certify that this Office has reviewed the above-referenced Amendment and that we have
found it to be legally sufficient, subject to the sub mission of any required materials and Council
approval.
If you have any questions, please do not hesitate to contact me at (202) 727-2800.
__________________________
Erica P. Lee
Assistant General Counsel, Department of General Services
_________________
rica P Lee
nsel, Dep
ner
al Co
XB
EXECUTION VERSION
Page 1 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
FOURTH AMENDMENT TO LEASE
THIS FOURTH AMENDMENT TO LEASE (this “Fourth Amendment”) is executed as
of this ___ day of ________, 2026 (the “ Fourth Amendment Execution Date ”), but made
effective as of the Fourth Amendment Effective Da te (as defined in and subject to the terms of
Section 17 below) by and between the DISTRIC T OF COLUMBIA, a municipal corporation, by
and through its Department of General Services (“ Tenant” or the “ District”), and S/C 225
VIRGINIA AVENUE, LLC, a Delaware limited liability company (“Landlord”). Landlord and
the District are each referred to hereinafter as a “ Party” and collectively referred to as the
“Parties”.
W I T N E S S E T H :
WHEREAS, pursuant to that certain Award of In Lease, by and between Landlord and the
District, with Lease Commencement Date of May 14, 2010 (the “ Base Lease”), as amended by
that certain First Amendment to Lease also dated May 14, 2010, that certain Second Amendment
to Lease dated May 16, 2012, and that certain Th ird Amendment to Lease dated April 5, 2016
(collectively, the “Original Lease”; and the Original Lease as amended by this Fourth Amendment
being the “Lease”), the District leases fr om Landlord, and Landlord le ases to the District, those
certain Premises located at 225 Virginia Av enue, SE (also known as 200 Eye Street, SE) in
Washington, D.C., as is more particularly set forth in the Original Lease; and
WHEREAS, the Parties desire to amend the terms of the Original Lease as set forth herein
effective as of the Fourth Amendment Effective Date, subject to the terms of Section 17 below.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:
1. Incorporation of Recitals and Exhibits. The above recitals and any exhibits hereto
are incorporated in, and made a part of, this Fourth Amendment.
2. Defined Terms. Capitalized terms used but not defined herein shall have the
meanings given to them in the Original Lease.
3. Extension of Lease Term. The Parties acknowledge that under the Original Lease
the Lease Term expires on May 31, 2032. The Lease Term is hereby amended to expire at midnight
on September 30, 2040, unless sooner terminated in accordance with the terms of the Lease (the
period from June 1, 2032 through September 30, 2040 being the “ Extended Lease Term ”).
References in the Original Lease to the “Lease Term” shall include the Extended Lease Term.
4. Landlord Credit.
(a) Landlord hereby grants to th e District a rental abatement of Base Rent in the total
amount of $37,094,439.36 (the “Landlord Credit”), which shall be available in accordance with
Section 4(b) below and is equa l to the amount of four (4) y ears of Base Rent (calculated as
$9,273,609.84 per year). The Landlord Credit shall not be applied as a rental abatement of
EXECUTION VERSION
Page 2 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
Additional Rent, which shall be du e and payable by the District in accordance with the terms of
the Original Lease. The Parties acknowledge that (i) Section 4 of the Second Amendment to Lease
contemplated a potential downward adjustment to the Base Rent stated therein; and (ii) while the
Parties did not execute a subsequent amendment memorializing the finally determined Base Rent,
the Base Rent stated in this Fourth Amendment reflects the finally determined Base Rent.
(b) The Landlord Credit shall be available to the District commencing on October 1,
2026 and continuing through September 30, 2030 (the “ Credit Period ”); provided, however,
during any period within the Credit Period in wh ich a District Default has occurred and is
continuing, the District shall not be entitled to the Landlord Cred it, and in such event, the full
amount of the Base Rent otherwise payable by the District under the Lease during such period
shall be due and payable by the District. For th e avoidance of doubt, (i) if the application of the
Landlord Credit has been suspended during a period of the existence of a District Default, the
application of the Landlord Credit against Base Rent shall be resumed upon the remedy of the
District Default in accordance with the terms of the Lease; and (ii) except as set forth herein, the
application of the Landlord Credit shall result in no amount of Base Rent being due or payable by
the District for each month during the Credit Period.
5. Service of Notices. Section 25.2 of the Base Lease is hereby amended and replaced
with the following:
“All notices or other communi cations required under this L ease shall be in writing and
shall be deemed duly given and received (i) when delivered in person (with receipt
therefor), (ii) on the next Business Day after deposit with an established, overnight delivery
service, or (iii) when delivered by email so long as such email delivery is followed by such
notice or other communication being sent by the next Business Day by a method set forth
in the foregoing (i) or (ii). If any Party refuses delivery of a notice, such notice shall be
deemed to have been delivered to such Party at the time of refusal. Each Party’s mailing
and email address for sending notices hereunder ar e set forth below. Either Party may
change its mailing or email address for the giving of notices by notice given in accordance
with this Section. Notwith standing the foregoing, notices required to be delivered by
Landlord under Section 7 of the Base Lease, as amended (including, without limitation,
Tax Payments Notices and notices regarding CPI changes) sh all, in addition to being
delivered in accordance with this Section 25.2 hereof, al so be timely emailed to
DGSRent@dc.gov.”
If to District: District of Columbia
Department of General Services
3924 Minnesota Avenue, NE, 6th Floor
Washington, D.C. 20019
Attention: Director
Email address: delano.hunter@dc.gov
With a copy to: District of Columbia
EXECUTION VERSION
Page 3 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
Department of General Services
3924 Minnesota Avenue, NE, 6th Floor
Washington, D.C. 20019
Attention: General Counsel
Email address: xavier.beltran@dc.gov
If to Landlord: S/C 225 Virginia Avenue, LLC
7373 Wisconsin Avenue, Suite 700
Bethesda, MD 20814
Attention: Kent T. Marquis
With a copy to: Arnold & Porter
601 Massachusetts Avenue, NW
Washington, D.C. 20001
Attention: Michael Goodwin
6. Counterparts. This Fourth Amendment ma y be executed in several counterparts
each of which shall constitute an original, but both of which together shall constitute one and the
same instrument. Execution and delivery of this Fourth Amendment by electronic or facsimile
signature (including wi thout limitation by an e-mailed .pdf do cument) shall be sufficient for all
purposes, and shall be binding on the Parties hereto.
7. Binding; Choice of Law. This Fourth Amendment shall be (a) binding upon and
inure to the benefit of the Parties hereto and their respective represen tatives, successors and
permitted assigns, and (b) governed by, and construed in accordance with, the laws of the District
of Columbia, without regard to conflicts of law provisions.
8. Miscellaneous. The Parties, intending to be bound, acknowledge and agree that:
(a) the Lease contains and embodies the entire agreement of the Parties with respect to the matters
set forth herein, and supersedes and revokes any and all negotiations, arra ngements, letters of
intent, representations, inducements or other agreements, oral or in writing with respect to such
matters; (b) no representations, inducements or agreements, oral or in writing, between the Parties
with respect to such matters, unless contained in the Lease, shall be of any force or effect; and (c)
in the event of any conflict between any terms of this Fourth Amendment and those of the Original
Lease, the terms of this Fourth Amendment shall control. For the avoidance of doubt, except as
expressly amended by this Fourth Amendment, the District shall continue to pay Base Rent and
Additional Rent in accordance with the terms of the Original Lease.
9. Absence of Interest. Landlord represents and warrants that no officer, agent,
employee, elected official or representative of the District of Columbia, including of the Council
of the District of Columbia, has received any payment or other consideration for the making of the
Lease, and that no such person has any interest, d irect or indirect, in the Lease, or the proceeds
thereof or related thereto.
10. Authority. By executing this Fourth Amendment, Landlord represents to the
EXECUTION VERSION
Page 4 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
District that: (i) it is authori zed to enter into, execute and de liver this Fourth Amendment and
perform its obligations hereunder; (ii) this Fourth Amendment is effective and enforceable against
Landlord in accordance with its terms as of the F ourth Amendment Effective Date, subject to the
terms of Section 17 below; (iii) the person signi ng on behalf of Landlord is duly authorized to
execute this Fourth Amendment and thereby bind Landlord; (iv) no other signatures or approvals
are necessary in order to make all of the representations of Landlord contained in this Section true
and correct in all material respect s; (v) Landlord is in good standi ng in the District of Columbia
and shall remain so for the term of the Lease; and (vi) Landlord is in compliance with all District
of Columbia laws and regulations applicable to Landlord, including but not limited to laws and
regulations pertaining to the District of Columbia Office of Tax and Revenue and the District of
Columbia Department of Employment Services, and shall remain so for the term of the Lease.
11. Severability. Each provision of this Fourth Amendment shall be valid and
enforceable to the fullest extent permitted by law. If any provision of this Fourth Amendment or
the application thereof to any person or circ umstance shall to any extent be invalid or
unenforceable, then such provision shall be deem ed to be replaced by the valid and enforceable
provision most substantively similar to such invalid or unenforceable provision, and the remainder
of this Fourth Amendment and the application of such provision to persons or circumstances other
than those as to which it is invalid or unenfo rceable shall not be affected thereby. Nothing
contained in this Fourth Amendment shall be construed as permitting Landlord to charge or receive
interest in excess of the maximum rate allowed by law.
12. No Partnership; No Third Party Beneficiaries. Nothing contained in the Lease shall
be deemed or construed to create a partnership or joint venture of or between Landlord and the
District, or to create an y other relationship between the Parties hereto other than that of landlord
and tenant. Nothing contained in the Lease shall be deemed or construed to create any third party
beneficiaries. The only entities that the Parties intend to be benefitted by the Lease are Landlord
and the District.
13. Not a Contract for Goods or Services. The Lease is not intended to be, nor shall it
be deemed or construed to be a contract for goo ds or services. Nothing contained in the Lease,
and no future action or inaction by the District under the Lease, sh all be deemed or construed to
mean that the District has contracted with Landlord to perform any activity at the premises or the
property that is not ancillary to the conveyance of an interest in real property. Landlord expressly
acknowledges that the Dis trict is prohibited by law from en tering into contracts for goods and
services without following the procedures set fort h in the Procurement Practices Reform Act of
2010, D.C. Official Code § 2-351.01, et seq., as may be amended from time to time, or any other
applicable procurement authority.
14. The District’s Authority to Execute and Deliver this Fourth Amendment. Landlord
acknowledges that the execution of this Fourth Amendment by the District is subject to
authorization by the Council of the District of Columbia pursuant to Section 451 of the District of
Columbia Home Rule Act (D.C. Official Code § 1-204.51 (2001)), as may be amended from time
to time.
15. Brokerage. Landlord acknowledges and ag rees that Landlord shall pay any
EXECUTION VERSION
Page 5 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
commission or fee due to Landlor d’s broker, if any, pursuant to a separate agreement. Landlord
shall indemnify, defend, and hold the District harmless from and against any damage, injury, loss
or claim relating to any broker, finder or agent claiming through or under Landlord with respect to
this Amendment. Savills, Inc. (“ Savills”) is recognized as the excl usive broker representing the
District with respect to this Fourth Amendmen t. Upon full execution and delivery to Landlord of
this Fourth Amendment, Landlord shall compensat e Savills in an amount equal to 1.85% of the
total Base Rent and Operating Expenses which would otherwise be paid over the Extended Lease
Term but for the Landlord Credit, less the Land lord Credit, pursuant and subject to a separate
brokerage agreement between Landlord and Savills.
16. Anti-Deficiency Limitations. The following limitations exist as to each and every
purported obligation of the District set forth in the Lease, whether or not expressly conditioned:
(a) Whether expressly or impliedly quali fied or limited in any Section of the
Lease, the obligations of the District to fulfill any financial obligation pursuant to the Lease
or any subsequent agreement entered into pursuant to the Lease to which the District is a
party including without limitation the Work Agreement (an “Other Agreement ”; and
together with the Lease, any “ Applicable Agreement”), or referenced in any Applicable
Agreement, are and shall remain subject to the provisions of: (a) the federal Anti-
Deficiency Act, 31 U.S.C. §§ 1341-1351 and 1511-1519 (2004), and D.C. Official Code
§§ 1-206.03(e) and 47-105 (2012 Repl.); (b) the District of Columbia Anti-Deficiency Act,
D.C. Official Code §§ 47-355.01 et seq. (2 012 Repl. and 2014 Supp.) ((a) and (b)
collectively, the “Anti-Deficiency Acts”); and (c) § 446 of the District of Columbia Home
Rule Act, D.C. Official Code § 1-204.46 (2012 Repl.), as each may be amended from time
to time and each to the extent applicable to any Applicable Agreement. Pursuant to the
Anti-Deficiency Acts, nothing in the Lease or the Work Agreement shall create an
obligation of the District in anticipation of an appropriation by the United States Congress
(“Congress”) for such purpose, and the District’s legal liability for the payment of any
financial obligation, including but not limited to any Annual Rental or Additional Rent,
under any Applicable Agreement shall not ar ise or obtain in advance of the lawful
availability of appropriated funds for the applicable fiscal year as approved by Congress
and the District of Columbia (references in th is Section to “District of Columbia” shall
mean the District of Columbia as a sovereign entity, and not as a tenant under the Lease).
During the term of the Lease, the District of Columbia agency authorized and delegated by
the Mayor of the District of Columbia to administer the Lease shall, for each corresponding
District of Columbia fiscal period, include in the then-c urrent services funding level
package a request sufficient to fund the Di strict’s known financial obligations under the
Lease for such fiscal period. Landlord confirms that it has read and familiarized itself with
the Anti-Deficiency Acts and has full knowle dge of such laws a nd the impact on the
District’s financial obligations hereunder.
(b) If no appropriation is made by the Dis trict of Columbia or Congress to pay
any financial obligation, including, but not li mited to any rental components under any
Applicable Agreement for any period after the District of Columbia fiscal year for which
appropriations have been made, and in the event appropriated funds for such purposes are
not otherwise lawfully available, the District shall not be liable to make any payment under
EXECUTION VERSION
Page 6 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
such Applicable Agreement upon the expiration of any then-existing appropriation.
(c) Notwithstanding the foregoing, no officer, employee, director, member or
other natural person or agent of the District or the District of Columbia shall have any
personal liability in connection with a breach of the provisions of this Section or in the
event of a default by the District under any Applicable Agreement.
(d) No Applicable Agreement shall constitute an indebtedness of the District of
Columbia nor shall it constitute an obligat ion for which the District of Columbia is
obligated to levy or pledge any form of taxation or for which the District of Columbia has
levied or pledged any form of taxation. No Agent of the District is authorized to obligate
or expend any amount under any Applicable Agreement unless such amount has been
appropriated by Act of Congress and is lawfully available.
17. Fourth Amendment Effective Date. Landl ord and the District acknowledge that
prior to the Fourth Amendment Execution Date Landlord obtained a loan in the amount of
$85,935,000.00 (“ Existing Loan ”), which, as of the Fourth Amendment Execution Date, is
secured by a Deed of Trust, Security Agreemen t, Assignment of Leases and Rents and Fixture
Filing Statement dated May 14, 2010, recorded am ong the Land Records of the District of
Columbia as Instrument No. 2010045093. This F ourth Amendment shall be effective as an
amendment to the Original Lease automatically and without further act of the Parties at such time
as (a) this Fourth Amendment is approved by the Council of the District of Columbia pursuant to
Section 14 above and subsequently executed by the District; and (b) the Ex isting Loan has been
paid in full (collectively, the “Conditions”). If the Conditions to the Fourth Amendment Effective
Date have not been satisfied by September 30, 2026, time being of the essence, then this Fourth
Amendment shall thereupon be null and void and of no further force or effect whatsoever.
[Signature Pages to Follow]
EXECUTION VERSION
Page 7 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
IN WITNESS WHEREOF, Landlord and the Di strict have execut ed this Fourth
Amendment as of the Fourth Amendment Effective Date.
LANDLORD:
S/C 225 VIRGINIA AVENUE, LLC, a Delaware
limited liability company
By: ________________________________
Name: _Kent T. Marquis_________________
Title: __Authorized Signatory_____________
[District’s Signature Page to Follow]
EXECUTION VERSION
Page 8 of 8
225 Virginia Ave. SE – Fourth Amendment to Lease
DISTRICT:
DISTRICT OF COLUMBIA, a municipal
corporation, by and through its Department of
General Services
By: ________________________________
Name: _____________________________
Title: ______________________________
Approved as to Legal Sufficiency for the District of Columbia by:
Office of the General Counsel for the Department of General Services
By: _____________________________
Assistant General Counsel