[Congressional Record Volume 141, Number 54 (Thursday, March 23, 1995)]
[Extensions of Remarks]
[Pages E665-E666]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                  INTRODUCTION OF PRESIDIO LEGISLATION

                                 ______


                           HON. NANCY PELOSI

                             of california

                    in the house of representatives

                        Wednesday, March 22, 1995
  Ms. PELOSI. Mr. Speaker, today, I am introducing bipartisan 
legislation to create a Presidio Trust at the Presidio in San Francisco 
which is included in the national park system as part of the Golden 
Gate National Recreation Area.
  I am pleased to be joined in this bipartisan effort by my colleague 
from California, Representative Stephen Horn, and by Representative 
Benjamin Gilman from New York. These Members, from east to west, 
appreciate the national significance of the Presidio and the need for 
innovative ways to reduce Federal costs for its operations.
  Presidio Trust legislation, H.R. 3433, was considered by the Congress 
in the last session where it passed the House and was reported by a 20 
to 0 vote in Senate committee. It was not taken up by the full Senate 
in the final days of the session.
  Creation of a Presidio Trust would enable Federal costs for this 
national park to be reduced considerably. The structure of the trust is 
based on the study of 19 management models by independent financial and 
real estate experts who determined that this legislative proposal would 
be successful in reducing costs to the Government.
  The legislation calls for private-sector expertise and management of 
the Presidio's extensive nonpark properties. There are over 900 
structures at the Presidio, almost half of which are historic. A 
significant number of these properties could be leased with revenues 
retained to support renovation and operation of the park's facilities.
  A small board of planning and financial experts would direct the 
trust's activities and the National Park Service would continue its 
traditional management of resource protection and open-space park 
areas.
  Today's legislation differs from H.R. 3433 in its provision for a 
smaller, more efficient board of experts, and its streamlined 
management structure. The bill's financing provisions are subject to 
appropriations and additional private or other financing possibilities 
are included.
  A more detailed summary of the legislation is included below:
         Summary of Presidio Trust Legislation, 104th Congress

       Background: The Presidio is a scenic and historic former 
     Army post that is now included in the national park system as 
     part of the Golden Gate National Recreation Area. Because the 
     Presidio contains substantial building space, it offers an 
     opportunity, unique within the national park system--to 
     generate revenues from building leases. In order to realize 
     the savings that this opportunity affords, a public-private 
     management entity (Presidio Trust) with specialized financing 
     and managerial expertise is needed.
       The Presidio Trust would manage the renovation and leasing 
     of specific Presidio properties transferred by the National 
     Park Service. Ownership would be vested with the federal 
     government and the Presidio would be operated as a national 
     park with the Park Service continuing its traditional 
     management of open space areas and visitor and public safety 
     services.
       [[Page E666]] The Presidio Trust is based on studies of 19 
     management models by independent financial and real estate 
     experts. The Trust would be equipped with the following 
     authorities:
       The Presidio Trust would have managerial jurisdiction over 
     certain Presidio properties. It would manage the 
     rehabilitation of these properties and would lease buildings 
     to rent-paying tenants.
       Revenues from leases would be retained and used to offset 
     costs at the Presidio, driving operating costs down and 
     reducing the need for federal appropriations.
       Capital improvements would be financed primarily from 
     private sources. The Trust could augment or leverage private 
     lending through credit enhancement, direct loans, and 
     bonding. Such financing would be subject to review and 
     approval by the Treasury Department.
       Oversight of the Trust would be achieved through routine 
     reporting and auditing requirements.
       The Trust would adhere to the enabling legislation for the 
     GGNRA and the Presidio General Management Plan.
       For nearly 150 years, the federal government has invested 
     in the Presidio as an Army post. The best way to protect this 
     asset is by creating a management and financial mechanism 
     that will enable it to be used and to pay for itself.
       The Presidio Trust offers a good government approach that 
     recognizes fiscal realities and offers a less costly, more 
     business-like approach to the management of important federal 
     assets at the Presidio.
     

                          ____________________