[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]]
____________________