[Congressional Record Volume 146, Number 55 (Monday, May 8, 2000)]
[House]
[Pages H2628-H2631]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    SOUTHEAST FEDERAL CENTER PUBLIC-PRIVATE DEVELOPMENT ACT OF 2000

  Mr. LaTOURETTE. Mr. Speaker, I move to suspend the rules and pass 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, as amended.
  The Clerk read as follows:

                               H.R. 3069

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     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.

[[Page H2629]]

       (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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. LaTourette) and the gentlewoman from the District of Columbia 
(Ms. Norton) each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio (Mr. LaTourette).
  Mr. LaTOURETTE. Mr. Speaker, I yield myself such time as I may 
consume.
  First of all, Mr. Speaker, I would like to thank the gentleman from 
Indiana (Chairman Burton) of the House Committee on Government Reform 
and Oversight for his close cooperation in waiving jurisdiction over 
certain portions of this bill.
  Mr. Speaker, I include for the Record the following exchange of 
letters between the gentleman from Pennsylvania (Chairman Shuster) and 
the gentleman from Indiana (Chairman Burton) regarding this matter:
                                         House of Representatives,


                               Committee on Government Reform,

                                   Washington, DC, April 13, 2000.
     Hon. Bud Shuster,
     Chairman, Committee on Transportation and Infrastructure, 
         House of Representatives, 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.
                                  ____

         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 future, 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.

  Secondly, Mr. Speaker, I want to congratulate our colleague, the 
gentlewoman from the District of Columbia (Ms. Norton), for her 
tireless efforts to move this bill forward. I know that this 
legislation means a great deal to the residents of the District of 
Columbia and will greatly improve the quality of life in the area of 
the Anacostia River, where the center is located.
  H.R. 3069, as amended, the Southeast Federal Center Public-Private 
Development Act of 2000, authorizes the Administrator of the General 
Services Administration 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 make improvements at the Southeast 
Federal Center.
  The Southeast Federal Center is a 55-acre parcel of land located on 
the Anacostia River in Southeast Washington, D.C., adjacent to the Navy 
Yard. The bill will also allow the 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.
  This bill bars the Government 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.
  The Administrator is permitted to accept in-kind consideration of 
payment, including construction, repair or remodeling of physical 
improvements of Federal property. To ensure maximum 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 
Buildings Act of 1959, the McKinney Homeless Act and other laws, not 
related to environmental law or historic preservation laws, are waived. 
These laws are waived to make an agreement with private-sector entities 
more attractive. GSA shall report to the committee prior to entering 
into any agreement, including master leases.
  I support the bill and ask our colleagues to do the same.
  Mr. Speaker, I reserve the balance of my time.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, first I would like to thank the gentleman from Ohio (Mr. 
LaTourette) for his kind words and for his generous support.
  I want to express my deep appreciation to the gentleman from 
Pennsylvania (Chairman Shuster) and the gentleman from Minnesota (Mr. 
Oberstar), the ranking member, for their hard work in bringing H.R. 
3069, the Southeast Federal Center Public-Private Redevelopment Act of 
2000, to the floor today.
  I also want to thank the gentleman from West Virginia (Mr. Wise), the 
subcommittee ranking member, for his strong support.
  Mr. Speaker, I want to especially thank the gentleman from New Jersey 
(Mr. Franks), the subcommittee chairman, because, were it not for his 
leadership and attention to the Southeast Federal Center, we would not 
finally be on the path toward making this valuable Federal asset 
productive and beneficial to American taxpayers.
  The Southeast Federal Center Public-Private Redevelopment Act of 2000

[[Page H2630]]

reflects the best and strongest bipartisan intents of the Congress. It 
arose out of a hearing in May 1999, where I was engaged in perennial 
questioning concerning the failure of the Federal Government since 1962 
to develop its largest tract of land in the city while leasing massive 
amounts of office space here and throughout the region.

                              {time}  1515

  Over many years, consistent criticism from our subcommittee 
concerning the magnitude of the waste never brought results until the 
gentleman from New Jersey (Mr. Franks) at that hearing took a deep 
interest, suggested a tour and then worked with me in developing H.R. 
3069, the Southeast Federal Center Public-Private Redevelopment Act of 
2000 that is before us now.
  H.R. 3069 would allow the GSA wide latitude to contract for 
arrangements to bring any appropriate development to the site, private, 
Federal, local or some combination. Our bill specifies that any 
agreement entered into between the GSA and the developing entity must: 
One, have as its primary purpose enhancing the value of the Southeast 
Federal Center; two, be negotiated pursuant to procedures that protect 
the Federal Government's interest and promote a competitive bidding 
process; three, provide an option for the Federal Government to lease 
and occupy any office space in the developed facilities; four, not 
require unless otherwise determined by the GSA Federal ownership of any 
developed facilities; and, five, describe the duties and consideration 
for which the government and the public and private entities involved 
are responsible. The bill also authorizes GSA to accept non-monetary, 
in-kind consideration such as the provision of goods and services at 
the site.
  A site centrally and strategically located just 5 minutes from the 
Capitol, the SEFC is considered one of the most valuable undeveloped 
parcels on the East Coast. Yet it has become a wasteland that also has 
triggered decay in the surrounding neighborhoods. The SEFC represents 
an astonishing denial of productive use to the Federal Government and 
of revenue to the taxpayers, particularly considering that the location 
is so close to the Mall and the Capitol.
  Efforts by the Federal Government to develop the land exclusively for 
Federal uses have consistently failed. Most recently the Reagan and 
Bush administrations in a thoughtful innovation proposed a mall 
infrastructure to be built by the Federal Government with amenities to 
be provided by the private sector to attract Federal agencies, but 
regrettably this proposal had no effect on agency decisions and no 
relocation of Federal agencies to the SEFC occurred as a result. The 
Clinton administration also has encouraged Federal agencies to locate 
at the site, to no avail. The Washington Navy yard located next to the 
SEFC is being redeveloped successfully with civilian Navy personnel, 
but its very visible innovation has not reversed the fortunes of the 
SEFC. Nor has the Metro station which was located there in December 
1991.
  The subcommittee's analysis of the site and of the real estate 
industry makes clear that the reason that so attractive a site has not 
been developed after decades of trying by the Federal Government is 
that it is not developable as a traditional government-owned site 
today. Moreover, the limited set of tools available to the GSA do not 
enable the government to make productive use of the SEFC. The 
subcommittee's work demonstrates that without new tools, the Federal 
Government will not be able to capitalize on this valuable asset or to 
offer an economic incentive for private developers to develop the land. 
H.R. 3069 is applicable to this single parcel alone and its value to 
the government and to this city makes it important to proceed without 
further costly delay.
  What are the government's realistic options? The land certainly is 
too valuable to sell in light of the scarcity of land in the District 
and the sale of federally owned land in any case would never be 
tolerated by Congress when the Federal Government is leasing space 
throughout the District and the region at a cost of billions of dollars 
to the taxpayers. Yet an OMB bureaucrat recently threw up his hands and 
was so anxious to get this embarrassment of unused land off the 
government's books that he did a pass-through to the District of 
Columbia until it was called back by higher authorities at the OMB. For 
years, the Congress has not allowed cost-free transfers of Federal 
land. Alternatively Congress, which has not appropriated funds for its 
own development of the SEFC, would clearly not fund a pass-through to 
another jurisdiction. Another alternative, leasing the land, is also 
unworkable and has at least two major drawbacks that would undercut the 
concept and purposes of the bill. First, the GSA is limited to 
supplying general purpose special office space and lacks mixed use 
authority through leasing. Second, leasing a government-owned site 
requires the sale of the site under the existing scoring rules. If 
leasing were the answer, GSA would have pursued it long ago, Mr. 
Speaker. The smart way to develop this property in today's climate is 
to combine the government's value in ownership with the private 
sector's ability to develop land.
  H.R. 3069 not only represents the subcommittee's thinking, this bill 
is entirely in keeping with the reinventing government public-private 
partnership ideas and practices fostered by the present administration. 
Moreover, the Congress itself has long sanctioned the use of Federal 
land value in exchange for private development. The Veterans' 
Administration, the Department of Interior and the Department of 
Defense have this general authority not on a one-time basis as provided 
by H.R. 3069. The extensive experience from these agencies demonstrates 
conclusively that public-private partnerships involving the Federal 
Government not only are cost effective, these arrangements protect the 
government from risk because the scoring rules ensure that every GSA 
expenditure is accounted and appropriated for in a manner that 
insulates the Federal Government from financial risk. This bill allows 
the private sector to do the kind of development it does every day. At 
the same time, H.R. 3069 provides an option of locating Federal 
facilities as part of the mix and, therefore, of meeting Federal agency 
needs for which the SEFC has been unavailable for decades.
  The Federal Government has been unable to commit financial resources 
for the development of the SEFC. Considering the competition with other 
resources, it is fair to say that the Federal Government is unwilling 
to develop the site notwithstanding the continuing loss in productivity 
and in revenue to the taxpayers. H.R. 3069, establishing a public-
private partnership to develop the site, represents an important 
breakthrough in achieving the highest and best use of a wasted Federal 
asset, securing revenue for the Federal Government and providing 
enhanced opportunities for Federal agency occupancy while at the same 
time contributing to the local D.C. economy and revival of the 
surrounding neighborhood whose deterioration traces significantly to 
this large brownfield site. The approach is mutually beneficial. It is 
win-win. The Federal Government makes its property available for 
Federal and private development, including revenue-producing occupancy 
for the government, and the developer, selected competitively, receives 
a valuable opportunity to add value. Democrats, Republicans and the 
President, who have all said they will come together when government 
and private responsibilities are appropriately apportioned, have found 
a meeting place in H.R. 3069. I appreciate the bipartisan partnership 
we have achieved here in the House for the public-private partnership 
H.R. 3069 represents.
  Mr. Speaker, I yield back the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, H.R. 3069 is a great idea. It is a good 
bill. I urge its passage.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Pease). The question is on the motion 
offered by the gentleman from Ohio (Mr. LaTourette) that the House 
suspend the rules and pass the bill, H.R. 3069, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

[[Page H2631]]



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