[Congressional Record (Bound Edition), Volume 145 (1999), Part 17]
[Extensions of Remarks]
[Page 25304]
[From the U.S. Government Publishing Office, www.gpo.gov]



      INTRODUCTION OF THE SOUTHEAST FEDERAL CENTER PUBLIC-PRIVATE 
                       REDEVELOPMENT ACT OF 1999

                                 ______
                                 

                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                      Wednesday, October 13, 1999

  Ms. NORTON. Mr. Speaker, along with Chairman Bob Franks today, I rise 
to introduce the Southeast Federal Center Public-Private Redevelopment 
Act of 1999 (SEFCA) to develop the largest undeveloped parcel of prime 
real estate here in the District of Columbia--the Southeast Federal 
Center located in Southeast Washington. This bill follows a tour of the 
site at the suggestion of Rep. Bob Franks, Chairman of the Subcommittee 
on Economic Development, Public Buildings, Hazardous Materials and 
Pipeline Transportation, as a result of questions I raised to General 
Services Administration (GSA) officials at a congressional hearing on 
May 11, 1999, concerning the failure of the federal government to make 
productive use of this valuable federal land while the government pays 
to rent and lease space for federal facilities.
  I recently held a town meeting in the District focusing on the 
development of the Southeast Federal Center and other properties owned 
by the federal government and the jobs and spinoff economic benefits 
that they inevitably have on their surrounding communities. Because the 
parcel is located in this city, the District of Columbia would gain 
immeasurably from the project at the same time that the federal 
government finally would achieve productive use and revenue from 
valuable property. The win-win approach embodied in this bill has clear 
potential for a new kind of partnership between hard pressed cities and 
the federal government.
  The Southeast Federal Center is a 55-acre undeveloped site just 5 
minutes from the U.S. Capitol. Located between M Street, S.E. and the 
Anacostia River next to the Washington Navy Yard, the site is 
considered by real estate and land use experts to be one of the most 
valuable pieces of property remaining on the entire east coast. It is 
as important a federal parcel as Constitution Avenue and Pennsylvania 
Avenue, the existing prime locations for federal facilities. The 
property was once a part of the Washington Navy Yard, but approximately 
30 years ago, this large parcel was transferred to the GSA in 
anticipation that the site would be developed into office space for 
federal agencies. For years, the site remained environmentally 
degraded, but I have worked hard to secure funds for this purpose, and 
to its credit, Congress responded by appropriating the necessary funds 
in FY 1997-99, and environmental upgrading is nearing completion. Yet, 
despite its inherent value, prime location, a $30 million infusion from 
the federal government for environmental cleanup of the site, and a 
proposed mall with stores and amenities to be built by the government 
to serve federal employees and the neighborhood, GSA has been 
continually frustrated in attempts to attract federal government 
tenants to the site, and the property has remained undeveloped. Thus, 
instead of using this federal land to house federal agencies or for 
other productive purposes, the federal government rents other space 
throughout the region. The financial loss to the federal government as 
a result of its failure to make use of this valuable asset is 
incalculable.

  Federal land cannot be used for other than federal purposes without 
legislation and the new approach embodied in this bill. One of the main 
reasons the site still lies unused is because the federal government 
has been unable to commit sufficient financial resources for its 
development. The bill would overcome this obstacle by creating a 
public-private partnership whereby the federal government would make 
the land available for development and a private developer would 
furnish the necessary capital to make the land productive. This kind of 
partnership represents an important breakthrough in securing the 
highest and best use for federal resources, securing revenue for the 
federal government, and saving the government money while at the same 
time contributing to the local D.C. economy and its neighborhood. The 
approach is mutually beneficial: the federal government makes its 
property available for development and revenue-producing occupancy and 
the developer, selected competitively, receives a valuable opportunity.
  Our bill would authorize the Administrator of the GSA to enter into 
agreements with a private entity to provide for acquisition, 
construction, rehabilitation, operation, maintenance, or use of 
facilities located at the site. The bill provides the GSA with wide 
latitude to enter into arrangements to bring any appropriate 
development work to the site--private, federal, local, or some 
combination. The bill also specifies that any agreement entered between 
the GSA and the developing entity must (1) have as its primary purpose 
enhancing the value of the Southeast Federal Center; (2) be negotiated 
pursuant to procedures that protect the federal government's interests 
and promote a competitive bidding process; (3) provide an option for 
the federal government to lease and occupy any office space in the 
developed facilities; (4) not require, unless otherwise determined by 
the GSA, federal ownership of any developed facilities; and (5) 
describe the duties and consideration for which the U.S. and the public 
or 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.
  I very much appreciate Chairman Bob Franks for his indispensable 
leadership on the bill. The Southeast Federal Center has been a subject 
at hearings since I came to Congress almost 10 years ago, and before. 
Bob Franks is the first chair of the Subcommittee to initiate action. 
New to the chairmanship of the Subcommittee, he was astonished to 
discover during my questioning of GSA witnesses that so large and 
valuable a federal parcel has long gone unused while taxpayers had been 
laying out billions of dollars to lease space for federal facilities. 
On the spot, he suggested that the subcommittee tour the parcel. 
Shortly thereafter, Chairman Franks indicated that he wanted to hold a 
hearing to work for expeditious passage of a bill for productive use of 
the parcel and revenue to the federal government. The result is a 
bipartisan effort made possible by the Chairman's understanding that 
something could be done about a notorious waste of a valuable federal 
resource.
  I urge rapid passage of the Southeast Federal Center Public-Private 
Redevelopment Act of 1999 so that the progress we have made thus far 
can soon produce a result at once beneficial to the federal government 
and the nation's capital.

                          ____________________