[House Report 106-591]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-591
======================================================================
SOUTHEAST FEDERAL CENTER PUBLIC-PRIVATE DEVELOPMENT ACT OF 2000
_______
April 13, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 3069]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 3069) to authorize the
Administrator of General Services to provide for redevelopment
of the Southeast Federal Center in the District of Columbia,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Southeast Federal Center Public-
Private Development Act of 2000''.
SEC. 2. SOUTHEAST FEDERAL CENTER DEFINED.
In this Act, the term ``Southeast Federal Center'' means the site in
the southeast quadrant of the District of Columbia that is under the
control and jurisdiction of the General Services Administration and
extends from Issac Hull Avenue on the east to 1st Street on the west,
and from M Street on the north to the Anacostia River on the south,
excluding an area on the river at 1st Street owned by the District of
Columbia and a building west of Issac Hull Avenue and south of Tingey
Street under the control and jurisdiction of the Department of the
Navy.
SEC. 3. SOUTHEAST FEDERAL CENTER DEVELOPMENT AUTHORITY.
(a) In General.--The Administrator of General Services may enter into
agreements (including leases, contracts, cooperative agreements,
limited partnerships, joint ventures, trusts, and limited liability
company agreements) with a private entity to provide for the
acquisition, construction, rehabilitation, operation, maintenance, or
use of the Southeast Federal Center, including improvements thereon, or
such other activities related to the Southeast Federal Center as the
Administrator considers appropriate.
(b) Terms and Conditions.--An agreement entered into under this
section--
(1) shall have as its primary purpose enhancing the value of
the Southeast Federal Center to the United States;
(2) shall be negotiated pursuant to such procedures as the
Administrator considers necessary to ensure the integrity of
the selection process and to protect the interests of the
United States;
(3) may provide a lease option to the United States, to be
exercised at the discretion of the Administrator, to occupy any
general purpose office space in a facility covered under the
agreement;
(4) shall not require, unless specifically determined
otherwise by the Administrator, Federal ownership of a facility
covered under the agreement after the expiration of any lease
of the facility to the United States;
(5) shall describe the consideration, duties, and
responsibilities for which the United States and the private
entity are responsible;
(6) shall provide--
(A) that the United States will not be liable for any
action, debt, or liability of any entity created by the
agreement; and
(B) that such entity may not execute any instrument
or document creating or evidencing any indebtedness
unless such instrument or document specifically
disclaims any liability of the United States under the
instrument or document; and
(7) shall include such other terms and conditions as the
Administrator considers appropriate.
(c) Consideration.--An agreement entered into under this section
shall be for fair consideration, as determined by the Administrator.
Consideration under such an agreement may be provided in whole or in
part through in-kind consideration. In-kind consideration may include
provision of space, goods, or services of benefit to the United States,
including construction, repair, remodeling, or other physical
improvements of Federal property, maintenance of Federal property, or
the provision of office, storage, or other usable space.
(d) Authority To Convey.--In carrying out an agreement entered into
under this section, the Administrator is authorized to convey interests
in real property, by lease, sale, or exchange, to a private entity.
(e) Obligations To Make Payments.--Any obligation to make payments by
the Administrator for the use of space, goods, or services by the
General Services Administration on property that is subject to an
agreement under this section may only be made to the extent that
necessary funds have been made available, in advance, in an annual
appropriations Act, to the Administrator from the Federal Buildings
Fund established by section 210(f) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 490(f)).
(f) National Capitol Planning Commission.--
(1) Statutory construction.--Nothing in this section may be
construed to limit or otherwise affect the authority of the
National Capital Planning Commission with respect to the
Southeast Federal Center.
(2) Vision plan.--An agreement entered into under this
section shall ensure that redevelopment of the Southeast
Federal Center is consistent, to the extent practicable (as
determined by the Administrator), with the objectives of the
National Capital Planning Commission's vision plan entitled
``Extending the Legacy: Planning America's Capital in the 21st
Century'', adopted by the Commission in November 1997.
(g) Relationship to Other Laws.--
(1) In general.--The authority of the Administrator under
this section shall not be subject to--
(A) section 321 of the Act of June 30, 1932 (40
U.S.C. 303b);
(B) sections 202 and 203 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 483,
484);
(C) section 7(a) of the Public Buildings Act of 1959
(40 U.S.C. 606(a)); or
(D) any other provision of law (other than Federal
laws relating to environmental and historic
preservation) inconsistent with this section.
(2) Unutilized or underutilized property.--Any facility
covered under an agreement entered into under this section may
not be considered to be unutilized or underutilized for
purposes of section 501 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11411).
SEC. 4. REPORTING REQUIREMENT.
(a) In General.--Before entering into an agreement under section 3,
the Administrator of General Services shall transmit to the Committee
on Transportation and Infrastructure of the House of Representatives
and the Committee on Environment and Public Works of the Senate a
report on the proposed agreement.
(b) Contents.--A report transmitted under this section shall include
a summary of a cost-benefit analysis of the proposed agreement and a
description of the provisions of the proposed agreement.
(c) Review by Congress.--A proposed agreement under section 3 may not
become effective until the end of a 30-day period of continuous session
of Congress following the date of the transmittal of a report on the
agreement under this section. For purposes of the preceding sentence,
continuity of a session of Congress is broken only by an adjournment
sine die, and there shall be excluded from the computation of such 30-
day period any day during which either House of Congress is not in
session during an adjournment of more than 3 days to a day certain.
SEC. 5. USE OF PROCEEDS.
(a) In General.--Net proceeds from an agreement entered into under
section 3 shall be deposited into, administered, and expended, subject
to appropriations Acts, as part of the fund established by section
210(f) of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 490(f)). In this subsection, the term ``net proceeds from an
agreement entered into under section 3'' means the proceeds from the
agreement minus the expenses incurred by the Administrator with respect
to the agreement.
(b) Recovery of Expenses.--The Administrator may retain from the
proceeds of an agreement entered into under section 3 amounts necessary
to recover the expenses incurred by the Administrator with respect to
the agreement. Such amounts shall be deposited in the account in the
Treasury from which the Administrator incurs expenses related to
disposals of real property.
summary and purpose
H.R. 3069, the ``Southeast Federal Center Public-Private
Development Act of 2000,'' authorizes the Administrator of the
General Services Administration to enter into agreements with
private entities to provide for the acquisition, construction,
rehabilitation, operation, maintenance or use of the Southeast
Federal Center, and improvements thereon, or such other
activities related to the Southeast Federal Center as the
Administrator considers appropriate.
background and need for legislation
The Southeast Federal Center, located in Washington, DC, is
close to many Federal agencies, and is one mile from the United
States Capitol. It is bounded by the Anacostia River on the
south, and the Navy Yard on the east. Light industrial
development lies to the north and west of this 55.3-acre site.
In 1791, when a plan for a new Federal city was drawn by
Pierre Charles L'Enfant, much of the Southeast Federal Center
was under water. Shipbuilding began in 1800, and in 1803
President Jefferson designated the Navy Yard, which encompassed
the Southeast Federal Center, as the homeport of the U.S. Navy.
Development flourished with wharves, warehouses and refineries.
The Navy Yard experienced three major periods of growth.
Each period expanded the site with landfill of the adjacent
marsh, as more land was needed. By 1890, electricity and the
railroad had been added. World War I brought added buildings,
and President Roosevelt emphasized the increase of the Navy,
which led to greater production of naval ships. During World
War II, the site was a center for ordinance production and
repair of damaged naval vessels. Weapons production stopped
after the war, and by 1962, all production stopped. At that
time the Navy Yard was split in two, with the General Services
Administration acquiring the western half of the Yard, with 19
buildings totaling 1.4 million square feet of space. Five of
these buildings remained in the Navy's control to be used for
maintenance purposes. The largest was the power plant for the
Navy Yard.
The area surrounding the Southeast Federal Center contains
a mix of industrial, warehouse and automotive uses, public and
private housing, and a considerable amount of vacant land. In
the past five years, the Department of the Navy has moved
several functions to the Navy Yard, resulting in an increase of
over 5,000 naval personnel. Total Navy employment will exceed
12,000 when these personnel arrive. This has led to the
development of two commercial office buildings to house
concerns doing business with the Navy Systems Command, which
will relocate to the Navy Yard next year. This site comprises
over 65 acres, which added to the other publicly owned sites,
comprise about two thirds of the land in the immediate area.
For the most part, the Southeast Federal Center has
remained underutilized and the buildings on this land have
deteriorated. There is a Federal presence, but it is mostly
used for maintenance, motor pool, Federal Protective Service
use, warehouse, storage, printing and security needs, and once
every four years inaugural activities for the President elect.
GSA commissioned a master plan, produced in 1989, which called
for the development of over 5 million square feet of Federal
office space, with on-site retail and parking for 5,000 cars to
accommodate 23,000 Federal workers that could be located to the
Center. This ambitious plan never materialized, even though GSA
requested, and received over $88 million in planning and
infrastructure funds to prepare this site for Federal agencies.
All but $12 million have been rescinded. In FY 1992, GSA
received $148 million to construct a new headquarters for
itself at the Southeast Federal Center. GSA is currently housed
in a Federal building that was built in 1906, and has never
been completely renovated. It is one of the few buildings in
Washington, DC that still relies on window air conditioning
units as part of its ventilation system. Those funds have also
been rescinded or reprogrammed. In FY 1993, GSA received $50
million to construct a new headquarters for the Corps of
Engineers at the Southeast Federal Center. For the last 20
years, the Corps has been located in a leased facility, which
caught fire in the 1980's, and virtually destroyed the Corps
computer center. All but $300 thousand of the Corps funding has
been rescinded. In total, over $268 million was appropriated
for development or construction purposes at the Southeast
Federal Center, and GSA was able to obligate only $12 million.
Clearly, a different approach is needed to facilitate
development, and provide long term financing and resources for
this long neglected site.
Part of the lack of progress was Federal agencies
reluctance to relocate to the area. In 1988, GSA attempted to
convince the Environmental Protection Agency to locate to the
Southeast Federal Center. That effort failed. Later, the
Department of Education was offered a new headquarters building
at the site. That too failed. GSA offered to construct a new
printing plant for the Government Printing Office, and the
Bureau of Engraving and Printing. Funds never materialized. GSA
offered to move there. Again, funds were rescinded. GSA has
devoted considerable resources and effort to attract Federal
tenants, and went so far as to volunteer itself as the lead
Federal tenant at the site. Congress, after appropriating the
funds for this project, later rescinded those same funds. There
has been a lack of long term commitment from all Federal
elements to support development efforts.
In 1996 Congress appropriated $20 million for environmental
restoration. Part of the work involved the demolition of unused
buildings to make the site more attractive. Other work has
included the installation of a seawall, which was to have been
accomplished in the earlier effort. In 1998 Congress
appropriated $10 million to finish earlier work on the
environmental cleanup effort. The $30 million is mostly
obligated, and work is nearing completion. The remediation
effort involves demolishing buildings, cleaning contaminated
soils, replacing the original seawall, and cleaning the storm
water sewer. GSA had entered into a Resource Recovery and
Reclamation Act (RCRA) Administrative Consent Order, which
directs GSA to complete site investigation and cleanup of the
Southeast Federal Center. This year, GSA is requesting
additional cleanup funds for 2.7 acres, as a result of earlier
efforts. This will require an additional $5 million in
appropriations.
While these efforts are necessary and commendable, they
have not resulted in the full development of the site that
could take place. Earlier efforts identified over 5 million
square feet of office space that could occupy this land. Recent
efforts at planning recommend more mixed use and balanced
development that would complement the planned and actual
development under way in the general area.
H.R. 3069 will provide GSA with the authority to enter into
different partnership forms with private entities to leverage
private sector capital and expertise to develop this land. The
bill provides GSA the ability to enter into multiple
partnerships, since different developers have different
strengths and expertise. GSA could also master lease the entire
site, and allow a developer to enter into subsequent agreements
with others for specific purposes. The bill does not obligate
GSA to pay for any development at the Southeast Federal Center,
nor does it obligate GSA to take space in any building
constructed under this authority.
GSA may enter into different kinds of agreements, and is
not favoring one form over another. The private sector will
have the ability to structure agreements to meet specific
needs. Some of the existing buildings are on the historic
register, and could qualify for consideration under Historic
Preservation. A total of seven historic buildings could be
reused and have an excellent reuse potential, according to the
1989 Master Plan.
Development does not just entail the construction or
renovations of buildings. Landscape, streetscape, pedestrian
plazas, retail arcades and public plazas will be part of the
total development effort. Public transportation, water
transportation and improved vehicle accessibility in the area
are crucial. The District has demonstrated a willingness to
devote resources and effort to improve this area.
The bill provides broad latitude to GSA. It waives several
laws pertaining to real property management with regard to the
Economy Act of 1932, the Property Act of 1949, and the Public
Buildings Act of 1959. The McKinney Homeless Act is also
waived. These waivers were included to ensure the goals of the
legislation are met. It is essential that GSA have maximum
flexibility to participate in various development proposals
which are intended to add value not only to the Southeast
Federal Center site, but also to the Federal real estate
portfolio. For this to succeed, GSA should not be put in a
position to be second guessed, or hampered by conventional
authority. For example, certain sections of the Property Act of
1949 regarding property utilization and disposal are waived in
order to preserve the entire site for development. The Economy
Act is waived, which will allow GSA to accept in-kind payments
in lieu of money for rental payments.
These are sensible waivers that will contribute to the
concept of public private partnerships. In view of the need for
GSA to have maximum flexibility to evaluate proposals and to
participate fully in the Southeast Federal Center development,
the bill provides innovative authority as an alternative to the
conventional process of direct Federal construction through the
appropriations process.
There is a continued need for Federal activities currently
located at the Southeast Federal Center. This legislation is
not designed to dislocate those activities without due
consideration. GSA will be expected to accommodate current
needs through hold harmless provisions, or relocate other
activities more suited for industrial settings.
Other agencies have employed similar kinds of authority to
achieve development objectives of under-used Federal assets.
The Department of Veterans Affairs, the National Park Service,
Department of Defense, and the Postal Service all have some
kind of authority to partner with the private sector to develop
assets under their respective custody and control. It is ironic
that GSA, the landlord of the civilian branch of the Federal
government, with over 380 million square feet of office,
storage and special use space under its control, has the
authority to either construct Federal buildings or sign
operating leases for space in privately owned buildings. Beyond
that, GSA has no ability to acquire space for use by the
government.
This has been the case since 1990, with the imposition of
scoring rules, which were part of the Budget Enforcement Act of
1990. The conference report that accompanied this legislation
activated these rules. The rules make real estate transactions
difficult to consummate, and have hamstrung GSA's ability to
finance needed projects. In years past, GSA has had special
legislation that provided purchase contract authority, and
lease purchase authority on specific projects. These buildings
are operational and are providing a steady stream of rent to
GSA that makes up the receipts of the Federal Buildings Fund.
Without this authority, GSA must rely on Federal appropriations
of funds in order to construct new Federal facilities. As the
history of the Southeast Federal Center attests, this is a
difficult and inconsistent process.
DISCUSSION OF COMMITTEE BILL AND SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Provides that the Act may be cited as the ``Southeast
Federal Center Public-Private Development Act of 2000.''
Section 2. Southeast Federal Center defined
The site referred to in the Act, as the Southeast Federal
Center is located in Southeast Washington, DC. The site extends
from Issac Hull Avenue on the east, to 1st Street on the west,
and from M Street on the north to the Anacostia River on the
south. The Southeast Federal Center is under the jurisdiction
and control of GSA. The Southeast Federal Center does not
include an area on the river at 1st Street owned by the
District of Columbia or a building west of Issac Hull Avenue
and south of Tingey Street controlled by the Department of the
Navy.
Section 3. Southeast Federal Center Development Authority
(a) Authorizes the Administrator of GSA to enter into
unique financing arrangements with the private sector for the
acquisition, construction, rehabilitation, operation,
maintenance, development and improvement of the Southeast
Federal Center. These arrangements may include leases,
contracts, cooperative agreements, limited partnerships, joint
ventures, trusts, limited liability company agreements and
other arrangements the Administrator considers appropriate for
improving the Southeast Federal Center. The Act provides the
Administrator the ability to maximize available public and
private sector resources for the development and improvement of
the Southeast Federal Center.
(b) Agreements entered into under this Act shall have as
its primary purpose to enhance the value of the Southeast
Federal Center, shall be negotiated by the Administrator under
such procedures as he considers necessary to maintain the
integrity of the selection process, may provide a lease option
to the Administrator to occupy general purpose office space in
a facility under any agreement, and does not require Federal
ownership of a facility occupied by the United States under the
agreement at the expiration of any lease. The United States is
not liable for any action, debt or liability associated with
any agreement. A private partner with the United States may not
execute any instrument or document of indebtedness unless the
vehicle specifically disclaims any liability by the United
States.
(c) Provides that an agreement entered into by the
Administrator shall be for fair consideration and may include
in whole, or in part in-kind consideration. This may include
space, goods and services, including construction, repair,
remodeling, or other physical improvements to Federal property.
In-kind consideration may also include maintenance of Federal
property or the provision of office, storage, or other usable
space.
(d) The Administrator is authorized to convey interests in
real property by lease, sale or exchange to a private entity.
(e) Any agreement entered into for space, goods, or
services under this bill, may only be made to the extent that
necessary funds have been made available, in advance, in an
annual appropriations act from the Federal Buildings Fund.
(f) Nothing in the bill is intended to limit or affect the
authority of the National Capital Planning Commission and
redevelopment plans must be consistent with the objectives of
the National Capital Planning Commission's vision plan
``Extending the Legacy: Planning America's Capital in the 21st
Century.''
(g) For purposes of redeveloping the Southeast Federal
Center the Administrator may take in-kind payment in lieu of
money for rent and may include in a lease any provision for the
alteration, repair or improvement of buildings, need not follow
the prospectus process, is not required to excess and surplus
the property for purposes of disposal, and is exempt from any
other laws, other than laws relating to environmental and
historic preservation, inconsistent with this section. The
Administrator is also exempt from the Stuart B. McKinney
Homeless Assistance Act.
Section 4. Reporting requirement
(a) Before entering in any agreement the Administrator is
required to report the proposed agreement to the House
Committee on Transportation and Infrastructure and the Senate
Committee on Environment and Public Works.
(b) The report must include a cost-benefit-analysis and the
provisions of the proposed agreement.
(c) The report submitted to Congress of the proposed
agreement is not effective until after a 30 day period of a
continuous session of Congress.
Section 5. Use of proceeds
(a) Proceeds, minus expenses associated with an agreement
will be deposited, administered, and expended, subject to
appropriations acts, into the Federal Building Fund.
(b) The Administrator may retain expenses incurred
associated with entering into an agreement authorized in the
bill and will deposit expense amounts in the account from which
the Administrator incurs expenses related to disposals of real
property.
hearings
On April 29, 1999, the Subcommittee on Economic
Development, Public Buildings, Hazardous Materials and Pipeline
Transportation and the Subcommittee on Government Management,
Information and Technology held a joint hearing on Federal Real
Property Management: Obstacles and Innovative Approaches to
Effective Property Management. Testimony was given by a member
of the National Research Council, officials from the General
Accounting Office, Department of Defense, the National Park
Service, Department of Veterans Affairs, United States Postal
Service, the Public Buildings Service of the General Services
Administration. The hearing did not specifically address H.R.
3069, but discussed innovative real property asset management
approaches of the Federal government, many of which are
contained in the bill.
committee consideration
On March 22, 2000 the Subcommittee on Economic Development,
Public Buildings, Hazardous Materials and Pipeline
Transportation marked up H.R. 3069. The Subcommittee adopted an
amendment in the nature of a substitute. This amendment
authorizes the Administrator of GSA to enter into agreements,
including leases, contracts, partnerships, joint venture
trusts, and limited liability agreements with private entities
to acquire, construct, rehabilitate, operate, maintain or use
land and improvements at the Southeast Federal Center, a 55-
acre parcel of land located on the Anacostia River in Southeast
Washington, DC. This bill will allow GSA to leverage private
capital and expertise to develop this site for use by the
government and private sector, including retail, commercial and
other uses. It provides for latitude by the Administrator in
valuing any agreements, including the valuation of in-kind
exchanges.
The bill bars the United States from debt, obligation or
liability in connection with development, and allows GSA to
prescribe terms and conditions for any lease by GSA for
developed space as appropriate and payment is subject to annual
appropriations. This bill allows GSA to accept in-kind
consideration of payment, including construction, repair or
remodeling of physical improvements of Federal property. To
maximize development flexibility, any agreements shall not be
subject to the Economy Act of 1932, which prohibits GSA from
accepting in-kind contributions. Further, certain provisions of
the Property Act of 1949, the Public BuildingsAct of 1959, the
McKinney Homeless Act and other laws not related to environmental or
historic preservation laws, are waived. GSA is required to report to
the House Committee on Transportation and Infrastructure and Senate
Committee on Environment and Public Works prior to entering any
agreements.
On March 22, 2000 the Subcommittee reported H.R. 3069, as
amended, favorably to the Full Committee by unanimous voice
vote. On March 23, 2000, the Full Committee met in open session
and reported the bill, as amended by the Subcommittee, by
unanimous voice vote.
rollcall votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each roll call vote on a motion
to report and on any amendment offered to the measure or
matter, and the names of those members voting for and against.
There were no recorded votes taken in connection with ordering
H.R. 3069, as amended, reported.
committee oversight findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
cost of legislation
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
compliance with house rule xiii
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 3069, as amended.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
3069, as amended, from the Director of the Congressional Budget
Office.
congressional budget office cost estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 6, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3069, the
Southeast Federal Center Public-Private Development Act of
2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is John R.
Righter.
Sincerely,
Robert A. Sunshine
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3069--Southeast Federal Center Public-Private Development Act of
2000
H.R. 3069 would authorize the General Services
Administration (GSA) to enter into an agreement with a private
entity for the purposes of redeveloping the Southeast Federal
Center (SEFC) in Washington, D.C. Because much uncertainty
exists as to whether GSA could find a private-sector partner to
redevelop the SEFC and the exact form that such an agreement
might take, CBO cannot estimate the budgetary impact of H.R.
3069. Because the bill could affect direct spending (including
offsetting receipts), pay-as-you-go procedures would apply.
An agreement to develop the SEFC under H.R. 3069 could take
one of many forms, including a lease, joint venture, or limited
partnership between the federal government and a private
entity. Through such an agreement, GSA could sell a portion or
all of SEFC; lease or exchange SEFC property for space, goods,
or services, including new construction or physical
improvements to existing federal property; or, through a
public-private partnership, construct, manage, and lease space
in new facilities to federal and nonfederal entities. The bill
would prohibit GSA from providing a federal guarantee for any
debt issued as part of an agreement. Any obligation for GSA to
make payments under H.R. 3069 would be subject to funding being
provided in advance in appropriation acts. Under the bill, GSA
could retain and spend any proceeds resulting from an agreement
sufficient to recover its costs under the agreement. Finally,
before entering into an agreement, the bill would require GSA
to report to the Congress on the proposed agreement.
Because much uncertainty exists as to whether GSA could
find a private-sector partner to redevelop the SEFC and the
form such an agreement might take, CBO cannot estimate the
budgetary impact of H.R. 3069. However, depending on the type
of agreement, implementing H.R. 3069 could have significant
budgetary consequences. For example, a public-private
partnership formed to construct an office building at SEFC for
use by federal agencies would be a lease-purchase agreement.
Under the Budget enforcement Act, a lease-purchase agreement
would require an up-front appropriation equal to the building's
full construction cost, and outlays would be recorded during
the construction period. Alternatively, GSA could use the
authority in H.R. 3069 to provide a long-term lease of the SEFC
to a private entity in exchange for specific services, such as
rent-free office space for federal agencies. Because it would
not involve the payment of cash, that transaction would have no
budgetary impact. Finally, GSA could sell some or all of the
SEFC property, thus increasing offsetting receipts from the
sale of surplus federal property.
H.R. 3069 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The District of Columbia could benefit under this bill because
public land currently exempt from property tax would become
taxable if the property is transferred to private ownership.
The outcome would depend on whether the District of Columbia
would choose to grant a tax exemption based on the proposed use
of the property.
The CBO staff contact for this estimate is John R Righter.
The estimate was approved by Robert A. Sunshine, Assistant
Director for Budget Analysis.
constitutional authority statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
federal mandates statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4.)
advisory committee statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by
legislation.
applicability to the legislative branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act. (Public Law
104-1.)
committee correspondence
House of Representatives, Committee on
Transportation and Infrastructure,
Washington, DC, April 13, 2000.
Hon. Dan Burton,
Chairman, Committee on Government Reform,
Washington, DC.
Dear Mr. Chairman: In the near furture, the House will
consider H.R. 3069, the ``Southeast Federal Center Public-
Private Development Act of 2000.'' While H.R. 3069 primarily
contains provisions related to matters in the jurisdiction of
the Committee on Transportation and Infrastructure, I recognize
that certain provisions of Section 3 of the bill, which waive
current law regarding the treatment of Federal property affect
the jurisdiction of the Committee on Government Reform.
I agree that allowing this bill to go forward in no way
impairs upon your jurisdiction over these provisions, and I
would be pleased to place this letter and any response you may
have in the Report on this bill. In addition, if a conference
is necessary on this bill, I would support your request to have
the Committee on Government Reform be represented on the
conference with respect to the matters in question.
I look forward to passing this bill on the Floor soon and
thank you for your assistance.
Sincerely,
Bud Shuster,
Chairman.
------
House of Representatives,
Committee on Government Reform,
Washington, DC, April 13, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of
Representatives, Rayburn House Office Building, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding H.R.
3069, the ``Southeast Federal Center Public-Private Development
Act of 2000.'' As you know, this bill contains certain
provisions related to matters in the jurisdiction of the
Committee on Government Reform. Specifically, Section 3 of the
bill waives current law regarding the treatment of Federal
property, which is under the Government Reform Committee's
jurisdiction.
In the interest of expediting Floor consideration of the
bill, the Committee will not exercise its jurisdiction over
H.R. 3069. This action should not, however, be construed as
waiving the Committee's jurisdiction over future legislation of
a similar nature.
Thank you for your cooperation on this matter.
Sincerely,
Dan Burton,
Chairman.