[House Report 106-591]
[From the U.S. Government Publishing Office]



106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-591

======================================================================



 
    SOUTHEAST FEDERAL CENTER PUBLIC-PRIVATE DEVELOPMENT ACT OF 2000

                                _______
                                

 April 13, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3069]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred 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, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

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.
  (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.

                          summary and purpose

    H.R. 3069, the ``Southeast Federal Center Public-Private 
Development Act of 2000,'' authorizes the Administrator of the 
General Services Administration to enter into agreements with 
private entities to provide for the acquisition, construction, 
rehabilitation, operation, maintenance or use of the Southeast 
Federal Center, and improvements thereon, or such other 
activities related to the Southeast Federal Center as the 
Administrator considers appropriate.

                  background and need for legislation

    The Southeast Federal Center, located in Washington, DC, is 
close to many Federal agencies, and is one mile from the United 
States Capitol. It is bounded by the Anacostia River on the 
south, and the Navy Yard on the east. Light industrial 
development lies to the north and west of this 55.3-acre site.
    In 1791, when a plan for a new Federal city was drawn by 
Pierre Charles L'Enfant, much of the Southeast Federal Center 
was under water. Shipbuilding began in 1800, and in 1803 
President Jefferson designated the Navy Yard, which encompassed 
the Southeast Federal Center, as the homeport of the U.S. Navy. 
Development flourished with wharves, warehouses and refineries.
    The Navy Yard experienced three major periods of growth. 
Each period expanded the site with landfill of the adjacent 
marsh, as more land was needed. By 1890, electricity and the 
railroad had been added. World War I brought added buildings, 
and President Roosevelt emphasized the increase of the Navy, 
which led to greater production of naval ships. During World 
War II, the site was a center for ordinance production and 
repair of damaged naval vessels. Weapons production stopped 
after the war, and by 1962, all production stopped. At that 
time the Navy Yard was split in two, with the General Services 
Administration acquiring the western half of the Yard, with 19 
buildings totaling 1.4 million square feet of space. Five of 
these buildings remained in the Navy's control to be used for 
maintenance purposes. The largest was the power plant for the 
Navy Yard.
    The area surrounding the Southeast Federal Center contains 
a mix of industrial, warehouse and automotive uses, public and 
private housing, and a considerable amount of vacant land. In 
the past five years, the Department of the Navy has moved 
several functions to the Navy Yard, resulting in an increase of 
over 5,000 naval personnel. Total Navy employment will exceed 
12,000 when these personnel arrive. This has led to the 
development of two commercial office buildings to house 
concerns doing business with the Navy Systems Command, which 
will relocate to the Navy Yard next year. This site comprises 
over 65 acres, which added to the other publicly owned sites, 
comprise about two thirds of the land in the immediate area.
    For the most part, the Southeast Federal Center has 
remained underutilized and the buildings on this land have 
deteriorated. There is a Federal presence, but it is mostly 
used for maintenance, motor pool, Federal Protective Service 
use, warehouse, storage, printing and security needs, and once 
every four years inaugural activities for the President elect. 
GSA commissioned a master plan, produced in 1989, which called 
for the development of over 5 million square feet of Federal 
office space, with on-site retail and parking for 5,000 cars to 
accommodate 23,000 Federal workers that could be located to the 
Center. This ambitious plan never materialized, even though GSA 
requested, and received over $88 million in planning and 
infrastructure funds to prepare this site for Federal agencies. 
All but $12 million have been rescinded. In FY 1992, GSA 
received $148 million to construct a new headquarters for 
itself at the Southeast Federal Center. GSA is currently housed 
in a Federal building that was built in 1906, and has never 
been completely renovated. It is one of the few buildings in 
Washington, DC that still relies on window air conditioning 
units as part of its ventilation system. Those funds have also 
been rescinded or reprogrammed. In FY 1993, GSA received $50 
million to construct a new headquarters for the Corps of 
Engineers at the Southeast Federal Center. For the last 20 
years, the Corps has been located in a leased facility, which 
caught fire in the 1980's, and virtually destroyed the Corps 
computer center. All but $300 thousand of the Corps funding has 
been rescinded. In total, over $268 million was appropriated 
for development or construction purposes at the Southeast 
Federal Center, and GSA was able to obligate only $12 million. 
Clearly, a different approach is needed to facilitate 
development, and provide long term financing and resources for 
this long neglected site.
    Part of the lack of progress was Federal agencies 
reluctance to relocate to the area. In 1988, GSA attempted to 
convince the Environmental Protection Agency to locate to the 
Southeast Federal Center. That effort failed. Later, the 
Department of Education was offered a new headquarters building 
at the site. That too failed. GSA offered to construct a new 
printing plant for the Government Printing Office, and the 
Bureau of Engraving and Printing. Funds never materialized. GSA 
offered to move there. Again, funds were rescinded. GSA has 
devoted considerable resources and effort to attract Federal 
tenants, and went so far as to volunteer itself as the lead 
Federal tenant at the site. Congress, after appropriating the 
funds for this project, later rescinded those same funds. There 
has been a lack of long term commitment from all Federal 
elements to support development efforts.
    In 1996 Congress appropriated $20 million for environmental 
restoration. Part of the work involved the demolition of unused 
buildings to make the site more attractive. Other work has 
included the installation of a seawall, which was to have been 
accomplished in the earlier effort. In 1998 Congress 
appropriated $10 million to finish earlier work on the 
environmental cleanup effort. The $30 million is mostly 
obligated, and work is nearing completion. The remediation 
effort involves demolishing buildings, cleaning contaminated 
soils, replacing the original seawall, and cleaning the storm 
water sewer. GSA had entered into a Resource Recovery and 
Reclamation Act (RCRA) Administrative Consent Order, which 
directs GSA to complete site investigation and cleanup of the 
Southeast Federal Center. This year, GSA is requesting 
additional cleanup funds for 2.7 acres, as a result of earlier 
efforts. This will require an additional $5 million in 
appropriations.
    While these efforts are necessary and commendable, they 
have not resulted in the full development of the site that 
could take place. Earlier efforts identified over 5 million 
square feet of office space that could occupy this land. Recent 
efforts at planning recommend more mixed use and balanced 
development that would complement the planned and actual 
development under way in the general area.
    H.R. 3069 will provide GSA with the authority to enter into 
different partnership forms with private entities to leverage 
private sector capital and expertise to develop this land. The 
bill provides GSA the ability to enter into multiple 
partnerships, since different developers have different 
strengths and expertise. GSA could also master lease the entire 
site, and allow a developer to enter into subsequent agreements 
with others for specific purposes. The bill does not obligate 
GSA to pay for any development at the Southeast Federal Center, 
nor does it obligate GSA to take space in any building 
constructed under this authority.
    GSA may enter into different kinds of agreements, and is 
not favoring one form over another. The private sector will 
have the ability to structure agreements to meet specific 
needs. Some of the existing buildings are on the historic 
register, and could qualify for consideration under Historic 
Preservation. A total of seven historic buildings could be 
reused and have an excellent reuse potential, according to the 
1989 Master Plan.
    Development does not just entail the construction or 
renovations of buildings. Landscape, streetscape, pedestrian 
plazas, retail arcades and public plazas will be part of the 
total development effort. Public transportation, water 
transportation and improved vehicle accessibility in the area 
are crucial. The District has demonstrated a willingness to 
devote resources and effort to improve this area.
    The bill provides broad latitude to GSA. It waives several 
laws pertaining to real property management with regard to the 
Economy Act of 1932, the Property Act of 1949, and the Public 
Buildings Act of 1959. The McKinney Homeless Act is also 
waived. These waivers were included to ensure the goals of the 
legislation are met. It is essential that GSA have maximum 
flexibility to participate in various development proposals 
which are intended to add value not only to the Southeast 
Federal Center site, but also to the Federal real estate 
portfolio. For this to succeed, GSA should not be put in a 
position to be second guessed, or hampered by conventional 
authority. For example, certain sections of the Property Act of 
1949 regarding property utilization and disposal are waived in 
order to preserve the entire site for development. The Economy 
Act is waived, which will allow GSA to accept in-kind payments 
in lieu of money for rental payments.
    These are sensible waivers that will contribute to the 
concept of public private partnerships. In view of the need for 
GSA to have maximum flexibility to evaluate proposals and to 
participate fully in the Southeast Federal Center development, 
the bill provides innovative authority as an alternative to the 
conventional process of direct Federal construction through the 
appropriations process.
    There is a continued need for Federal activities currently 
located at the Southeast Federal Center. This legislation is 
not designed to dislocate those activities without due 
consideration. GSA will be expected to accommodate current 
needs through hold harmless provisions, or relocate other 
activities more suited for industrial settings.
    Other agencies have employed similar kinds of authority to 
achieve development objectives of under-used Federal assets. 
The Department of Veterans Affairs, the National Park Service, 
Department of Defense, and the Postal Service all have some 
kind of authority to partner with the private sector to develop 
assets under their respective custody and control. It is ironic 
that GSA, the landlord of the civilian branch of the Federal 
government, with over 380 million square feet of office, 
storage and special use space under its control, has the 
authority to either construct Federal buildings or sign 
operating leases for space in privately owned buildings. Beyond 
that, GSA has no ability to acquire space for use by the 
government.
    This has been the case since 1990, with the imposition of 
scoring rules, which were part of the Budget Enforcement Act of 
1990. The conference report that accompanied this legislation 
activated these rules. The rules make real estate transactions 
difficult to consummate, and have hamstrung GSA's ability to 
finance needed projects. In years past, GSA has had special 
legislation that provided purchase contract authority, and 
lease purchase authority on specific projects. These buildings 
are operational and are providing a steady stream of rent to 
GSA that makes up the receipts of the Federal Buildings Fund. 
Without this authority, GSA must rely on Federal appropriations 
of funds in order to construct new Federal facilities. As the 
history of the Southeast Federal Center attests, this is a 
difficult and inconsistent process.

      DISCUSSION OF COMMITTEE BILL AND SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Provides that the Act may be cited as the ``Southeast 
Federal Center Public-Private Development Act of 2000.''

Section 2. Southeast Federal Center defined

    The site referred to in the Act, as the Southeast Federal 
Center is located in Southeast Washington, DC. The site 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. The Southeast Federal Center is under the jurisdiction 
and control of GSA. The Southeast Federal Center does not 
include an area on the river at 1st Street owned by the 
District of Columbia or a building west of Issac Hull Avenue 
and south of Tingey Street controlled by the Department of the 
Navy.

Section 3. Southeast Federal Center Development Authority

    (a) Authorizes the Administrator of GSA to enter into 
unique financing arrangements with the private sector for the 
acquisition, construction, rehabilitation, operation, 
maintenance, development and improvement of the Southeast 
Federal Center. These arrangements may include leases, 
contracts, cooperative agreements, limited partnerships, joint 
ventures, trusts, limited liability company agreements and 
other arrangements the Administrator considers appropriate for 
improving the Southeast Federal Center. The Act provides the 
Administrator the ability to maximize available public and 
private sector resources for the development and improvement of 
the Southeast Federal Center.
    (b) Agreements entered into under this Act shall have as 
its primary purpose to enhance the value of the Southeast 
Federal Center, shall be negotiated by the Administrator under 
such procedures as he considers necessary to maintain the 
integrity of the selection process, may provide a lease option 
to the Administrator to occupy general purpose office space in 
a facility under any agreement, and does not require Federal 
ownership of a facility occupied by the United States under the 
agreement at the expiration of any lease. The United States is 
not liable for any action, debt or liability associated with 
any agreement. A private partner with the United States may not 
execute any instrument or document of indebtedness unless the 
vehicle specifically disclaims any liability by the United 
States.
    (c) Provides that an agreement entered into by the 
Administrator shall be for fair consideration and may include 
in whole, or in part in-kind consideration. This may include 
space, goods and services, including construction, repair, 
remodeling, or other physical improvements to Federal property. 
In-kind consideration may also include maintenance of Federal 
property or the provision of office, storage, or other usable 
space.
    (d) The Administrator is authorized to convey interests in 
real property by lease, sale or exchange to a private entity.
    (e) Any agreement entered into for space, goods, or 
services under this bill, may only be made to the extent that 
necessary funds have been made available, in advance, in an 
annual appropriations act from the Federal Buildings Fund.
    (f) Nothing in the bill is intended to limit or affect the 
authority of the National Capital Planning Commission and 
redevelopment plans must be consistent with the objectives of 
the National Capital Planning Commission's vision plan 
``Extending the Legacy: Planning America's Capital in the 21st 
Century.''
    (g) For purposes of redeveloping the Southeast Federal 
Center the Administrator may take in-kind payment in lieu of 
money for rent and may include in a lease any provision for the 
alteration, repair or improvement of buildings, need not follow 
the prospectus process, is not required to excess and surplus 
the property for purposes of disposal, and is exempt from any 
other laws, other than laws relating to environmental and 
historic preservation, inconsistent with this section. The 
Administrator is also exempt from the Stuart B. McKinney 
Homeless Assistance Act.

Section 4. Reporting requirement

    (a) Before entering in any agreement the Administrator is 
required to report the proposed agreement to the House 
Committee on Transportation and Infrastructure and the Senate 
Committee on Environment and Public Works.
    (b) The report must include a cost-benefit-analysis and the 
provisions of the proposed agreement.
    (c) The report submitted to Congress of the proposed 
agreement is not effective until after a 30 day period of a 
continuous session of Congress.

Section 5. Use of proceeds

    (a) Proceeds, minus expenses associated with an agreement 
will be deposited, administered, and expended, subject to 
appropriations acts, into the Federal Building Fund.
    (b) The Administrator may retain expenses incurred 
associated with entering into an agreement authorized in the 
bill and will deposit expense amounts in the account from which 
the Administrator incurs expenses related to disposals of real 
property.

                                hearings

    On April 29, 1999, the Subcommittee on Economic 
Development, Public Buildings, Hazardous Materials and Pipeline 
Transportation and the Subcommittee on Government Management, 
Information and Technology held a joint hearing on Federal Real 
Property Management: Obstacles and Innovative Approaches to 
Effective Property Management. Testimony was given by a member 
of the National Research Council, officials from the General 
Accounting Office, Department of Defense, the National Park 
Service, Department of Veterans Affairs, United States Postal 
Service, the Public Buildings Service of the General Services 
Administration. The hearing did not specifically address H.R. 
3069, but discussed innovative real property asset management 
approaches of the Federal government, many of which are 
contained in the bill.

                        committee consideration

    On March 22, 2000 the Subcommittee on Economic Development, 
Public Buildings, Hazardous Materials and Pipeline 
Transportation marked up H.R. 3069. The Subcommittee adopted an 
amendment in the nature of a substitute. This amendment 
authorizes the Administrator of GSA 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 improvements at the Southeast Federal Center, a 55-
acre parcel of land located on the Anacostia River in Southeast 
Washington, DC. This bill will allow 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. It provides for latitude by the Administrator in 
valuing any agreements, including the valuation of in-kind 
exchanges.
    The bill bars the United States 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 and payment is subject to annual 
appropriations. This bill allows GSA to accept in-kind 
consideration of payment, including construction, repair or 
remodeling of physical improvements of Federal property. To 
maximize 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 BuildingsAct of 1959, the 
McKinney Homeless Act and other laws not related to environmental or 
historic preservation laws, are waived. GSA is required to report to 
the House Committee on Transportation and Infrastructure and Senate 
Committee on Environment and Public Works prior to entering any 
agreements.
    On March 22, 2000 the Subcommittee reported H.R. 3069, as 
amended, favorably to the Full Committee by unanimous voice 
vote. On March 23, 2000, the Full Committee met in open session 
and reported the bill, as amended by the Subcommittee, by 
unanimous voice vote.

                             rollcall votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each roll call vote on a motion 
to report and on any amendment offered to the measure or 
matter, and the names of those members voting for and against. 
There were no recorded votes taken in connection with ordering 
H.R. 3069, as amended, reported.

                      committee oversight findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          cost of legislation

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    compliance with house rule xiii

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3069, as amended.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
3069, as amended, from the Director of the Congressional Budget 
Office.

               congressional budget office cost estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 6, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3069, the 
Southeast Federal Center Public-Private Development Act of 
2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                         Robert A. Sunshine
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3069--Southeast Federal Center Public-Private Development Act of 
        2000

    H.R. 3069 would authorize the General Services 
Administration (GSA) to enter into an agreement with a private 
entity for the purposes of redeveloping the Southeast Federal 
Center (SEFC) in Washington, D.C. Because much uncertainty 
exists as to whether GSA could find a private-sector partner to 
redevelop the SEFC and the exact form that such an agreement 
might take, CBO cannot estimate the budgetary impact of H.R. 
3069. Because the bill could affect direct spending (including 
offsetting receipts), pay-as-you-go procedures would apply.
    An agreement to develop the SEFC under H.R. 3069 could take 
one of many forms, including a lease, joint venture, or limited 
partnership between the federal government and a private 
entity. Through such an agreement, GSA could sell a portion or 
all of SEFC; lease or exchange SEFC property for space, goods, 
or services, including new construction or physical 
improvements to existing federal property; or, through a 
public-private partnership, construct, manage, and lease space 
in new facilities to federal and nonfederal entities. The bill 
would prohibit GSA from providing a federal guarantee for any 
debt issued as part of an agreement. Any obligation for GSA to 
make payments under H.R. 3069 would be subject to funding being 
provided in advance in appropriation acts. Under the bill, GSA 
could retain and spend any proceeds resulting from an agreement 
sufficient to recover its costs under the agreement. Finally, 
before entering into an agreement, the bill would require GSA 
to report to the Congress on the proposed agreement.
    Because much uncertainty exists as to whether GSA could 
find a private-sector partner to redevelop the SEFC and the 
form such an agreement might take, CBO cannot estimate the 
budgetary impact of H.R. 3069. However, depending on the type 
of agreement, implementing H.R. 3069 could have significant 
budgetary consequences. For example, a public-private 
partnership formed to construct an office building at SEFC for 
use by federal agencies would be a lease-purchase agreement. 
Under the Budget enforcement Act, a lease-purchase agreement 
would require an up-front appropriation equal to the building's 
full construction cost, and outlays would be recorded during 
the construction period. Alternatively, GSA could use the 
authority in H.R. 3069 to provide a long-term lease of the SEFC 
to a private entity in exchange for specific services, such as 
rent-free office space for federal agencies. Because it would 
not involve the payment of cash, that transaction would have no 
budgetary impact. Finally, GSA could sell some or all of the 
SEFC property, thus increasing offsetting receipts from the 
sale of surplus federal property.
    H.R. 3069 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments. 
The District of Columbia could benefit under this bill because 
public land currently exempt from property tax would become 
taxable if the property is transferred to private ownership. 
The outcome would depend on whether the District of Columbia 
would choose to grant a tax exemption based on the proposed use 
of the property.
    The CBO staff contact for this estimate is John R Righter. 
The estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                   constitutional authority statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       federal mandates statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4.)

                      advisory committee statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by 
legislation.

                applicability to the legislative branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1.)

                        committee correspondence

        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 furture, 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.
                                ------                                

                          House of Representatives,
                            Committee on Government Reform,
                                    Washington, DC, April 13, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Rayburn House Office Building, 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.

                                
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