[Congressional Record Volume 143, Number 82 (Thursday, June 12, 1997)]
[Senate]
[Pages S5604-S5605]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BENNETT (for himself and Mr. Hatch):
  S. 890. A bill to dispose of certain Federal properties located in 
Dutch John, UT, to assist the local government in the interim delivery 
of basic services to the Dutch John community, and for other purposes; 
to the Committee on Energy and Natural Resources.


                The Dutch John Privatization Act of 1997

  Mr. BENNETT. Mr. President, I am pleased to introduce the Dutch John 
Privatization Act of 1997 with my colleague from Utah, Senator Hatch.
  I want to explain to my colleagues the history of this community. The 
town of Dutch John, UT, was established in 1958 by the Bureau of 
Reclamation to house personnel and equipment during the construction of 
the Flaming Gorge Dam and Reservoir on the Green River. During this 
construction period, the town housed over 2,000 people. After the 
completion of the dam, Dutch John continued to serve as the residence 
of approximately 175 people, including Federal Government employees and 
others associated with the Flaming Gorge Dam and Recreation Area.
  To this day, basic services for Dutch John, as well as the operative 
and administrative costs for the town, have been an unnecessary 
financial burden for the Bureau of Reclamation and the U.S. Forest 
Service. The cost of providing the full range of community facilities 
and services--including that of the landlord for the town--have 
substantially risen over the years, approaching $1 million annually. 
The time has arrived to transfer the ownership and maintenance of this 
town into local hands.
  For several years, the involved Federal agencies have worked with 
Daggett County officials and residents in drafting a Dutch John 
privatization proposal that would protect all affected interests. The 
outcome of this process is the Dutch John Privatization Act of 1997. 
This legislation would provide for the transfer of selected Federal 
property into private ownership; dispose several residential units, 
public building and facilities; provide for a transition to local 
government administration and reduce long-term Federal expenditures.
  This legislation would transfer approximately 2,400 acres of land, 
identified by the U.S. Forest Service and the Bureau of Reclamation as 
no longer necessary to fulfill the agencies' mission, out of Federal 
ownership. Residents would have the ability to purchase the homes they 
currently rent from the Bureau of Reclamation at fair market value. 
Federal agencies would retain ownership of identified needed 
facilities, including the U.S. Forest Service warehouse and office 
complex, the Bureau of Reclamation industrial complex, certain 
personnel housing and the heliport.
  As the Federal Government ceases to provide basic community services, 
such as roads, water, and sewer, local government would be required to 
assume these responsibilities. Daggett County would receive an annual 
grant from public power revenues, for 15 years, in order to offset the 
costs of transition while a traditional community tax base is created.
  This bill is a win-win situation. The Federal Government will 
initially save more than one-half million dollars per year, and after 
15 years, will eliminate altogether an expensive obligation. Dutch John 
will be a self-sustaining community while providing necessary services 
for the 2 million people that visit the Flaming Gorge National 
Recreation Area each year.
  After 25 years, Dutch John as a government-run town has become an 
anachronism. This legislation is in the best long-term interest of 
Federal, State, and local governments. I urge my colleagues to join me 
in saving the Federal Government the costs of administering the town of 
Dutch John while providing the means to start a community with a small-
resort commercial base in one of the most remote parts of Utah.
  Mr. HATCH. Mr. President, I rise, along with Senator Bennett, to 
introduce the Dutch John Privatization Act. Dutch John, a city in 
Daggett County, UT, was established in 1958 by the Bureau of 
Reclamation to provide a community for the construction and operation 
of the Flaming Gorge Dam on the Green River. The dam was completed in 
1964.
  This bill will remove the 2,400 acre township from Federal ownership 
by allowing for a buy-out of homes by existing lessees and permittees 
at fair market value and for a transition to local government ownership 
over 15 years.
  This legislation is the result of years of discussion among local, 
State, and Federal officials, including the Bureau of Reclamation, U.S. 
Forest Service, and Daggett County.
  During the construction of Flaming Gorge Dam, the population of Dutch 
John reached more than 2,000 people. Today this remote town has 
approximately 175 persons. As small as it is, the Federal Government 
still pays about $1 million each year to run the city. As the landlord 
for Dutch John, the Federal Government must provide the water 
infrastructure, the sewer system, city roads, and various other public 
goods and services.
  Privatizing Dutch John would release the Federal Government from the 
burden of the operation and maintenance of this town. The current 
mandate and budget constraints of the Bureau of Reclamation and the 
U.S. Forest Service act as disincentives for the Federal Government to 
invest in Dutch John.
  This legislation will allow Federal agencies to retain control and 
ownership of facilities they have identified as needed for continued 
Government operation. Homes and properties not retained by the Federal 
Government will be sold at fair market value to current renters. 
Holders of federally issued permits and leases would have the right to 
purchase their underlying leased or permitted land at fair market 
value. All other properties will be transferred to Daggett County, and 
the revenues from these sales would be used for costs related to Dutch 
John.
  Under this bill, Daggett County will receive a $300,000 annual grant 
for the next 15 years as it takes over responsibility for the town's 
governance and infrastructure. During this transition period, Daggett 
County would be able to create a local tax base to fund future 
maintenance, sanitary, and public safety services.
  Currently, an environmental assessment is underway that will analyze 
the need for additional commercial recreation services for national 
recreation area and Ashley National Forest visitors. We will certainly 
review these recommendations carefully.
  Nevertheless, this legislation reflects the work of many individuals 
who have worked hard to create a viable plan for the future of Dutch 
John and that will allow residents to become self-governed. Self-
governance, after all, is the cornerstone of our federal system, and 
Dutch John has been, for all intents and purposes, a Federal colony.
  We urge our colleagues to join us in supporting independence for 
Dutch John.

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