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Mayor Vince Gray and D.C. United co-owner Jason Levien signed a term sheet today to build a D.C. United stadium in Buzzard Point. Here’s what’s in it.
The agreement includes an interesting wrinkle: profit-sharing for the District. If D.C. United makes more money on the stadium than it loses in a year and the stadium makes a “reasonable profit” for the team, the District gets a portion of the profits too. The agreement doesn’t spell out what percentage D.C. would receive or what qualifies as a “reasonable profit.”
The deal is subject to several deadlines that allow one of the parties to back out. The District has until just Jan. 1 of next year to obtain the land for the site from Pepco and Washington Kastles owner Mark Ein, and get D.C. Council approval for the deal. By March 1, 2015, the District needs to have finished environmental, utility work, and the zoning approval process.
D.C. United is expected to finish the stadium by Jan. 1, 2017, according to the agreement, though they’re aiming for March 1, 2016. If the stadium really blows its deadline and isn’t finished by March 31, 2020, the city can terminate the lease.
The agreement obligates D.C. United to try to fill 50 percent of its development contracts for the stadium with Certified Business Enterprises. Fifty-one percent of the stadium jobs have to go to District residents. Unluckily for D.C. soccer hopefuls, some jobs, like coaching or playing for the team, aren’t counted in the quota.
Images via the Office of the City Administrator