[House Report 110-724]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-724

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



 
           OLD POST OFFICE BUILDING REDEVELOPMENT ACT OF 2008

                                _______
                                

 June 19, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5001]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5001) to authorize the 
Administrator of General Services to provide for the 
redevelopment of the Old Post Office Building located 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 all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Old Post Office Building Redevelopment 
Act of 2008''.

SEC. 2. OLD POST OFFICE BUILDING DEFINED.

  In this Act, the term ``Old Post Office Building'' means the land, 
including any improvements thereon and specifically including the 
Pavilion Annex, that is located at 1100 Pennsylvania Avenue, NW., in 
the District of Columbia, and under the jurisdiction, custody, and 
control of the General Services Administration.

SEC. 3. FINDINGS.

  Congress finds the following:
          (1) For almost a decade the Subcommittee on Economic 
        Development, Public Buildings, and Emergency Management of the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives has expressed considerable concern about the 
        waste and neglect of the valuable, historic Old Post Office 
        Building, centrally located in the heart of the Nation's 
        Capital on Pennsylvania Avenue, and has pressed the General 
        Services Administration to develop and fully use this building.
          (2) The policy of the Government long has been to preserve 
        and make usable historic properties rather than sell them for 
        revenue.
          (3) Security concerns related to this property's proximity to 
        the White House may hinder the sale of the Old Post Office 
        Building to a private party.
          (4) On December 28, 2000, the General Services 
        Administration, pursuant to Public Law 105-277, submitted to 
        the Committee on Transportation and Infrastructure of the House 
        of Representatives and the Committees on Appropriations and 
        Environment and Public Works of the Senate a plan for the 
        comprehensive redevelopment of the Old Post Office.
          (5) The Committee on Transportation and Infrastructure 
        approved the redevelopment plan on May 16, 2001, and the 
        Committees on Appropriations and Environment and Public Works 
        approved the plan on June 15, 2001.
          (6) The General Services Administration issued a Request for 
        Expression of Interest in 2004 for developing the Old Post 
        Office Building that generated a healthy, private sector 
        interest, but the General Services Administration has failed to 
        proceed with implementation of the approved redevelopment plan.
          (7) Redevelopment of the Old Post Office Building will 
        preserve the historic integrity of this unique and important 
        asset, put it to its highest and best use, and provide a 
        lucrative financial return to the Government.

SEC. 4. REDEVELOPMENT OF OLD POST OFFICE BUILDING.

  (a) In General.--The Administrator of General Services is directed to 
proceed with redevelopment of the Old Post Office Building, in 
accordance with existing authorities available to the Administrator and 
consistent with the redevelopment plan previously approved by the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committees on Appropriations and Environment 
and Public Works of the Senate.
  (b) Relocation of Existing Building Tenants.--The Administrator is 
authorized, notwithstanding section 3307 of title 40, United States 
Code, and otherwise in accordance with existing authorities available 
to the Administrator, to provide replacement space for Federal agency 
tenants housed in the Old Post Office Building whose relocation is 
necessary for redevelopment of the Building.

SEC. 5. REPORTING REQUIREMENT.

  (a) In General.--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 any proposed redevelopment agreement related to 
the Old Post Office Building.
  (b) Contents.--A report transmitted under this section shall include 
a summary of a cost-benefit analysis of the proposed development 
agreement and a description of the material provisions of the proposed 
agreement.
  (c) Review by Congress.--Any proposed development agreement related 
to the Old Post Office Building may not become effective until the end 
of a 30-day period of continuous session of Congress following the date 
of the transmittal of the report required 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.

                       PURPOSE OF THE LEGISLATION

    H.R. 5001, the ``Old Post Office Building Redevelopment Act 
of 2008'', as amended, authorizes the Administrator of General 
Services to provide for the redevelopment of the Old Post 
Office Building located in the District of Columbia.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Old Post Office located in Washington, DC, was 
constructed from 1892 to 1899. The building was intended to be 
the U.S. Post Office Department Headquarters building, as well 
as the city's main post office. The Old Post Office Building, 
which is the second-tallest structure in the nation's capital, 
is designed in Romanesque style. Over its lifetime there have 
been frequent urban renewal efforts calling for its demolition, 
most notably during the Depression era. However, dedicated 
preservationists were successful in blocking its destruction 
and preserving the building. The Old Post Office is now one of 
Washington's most enduring landmarks.
    According to the General Services Administration's 
(``GSA'') history of the building, in 1928 the Old Post Office 
Building was slated for demolition as part of the development 
now known as the Federal Triangle. Lack of funds during the 
Great Depression saved the building at that time, and over the 
next 30 years, it provided space for various government 
agencies. In 1964, the President's Council on Pennsylvania 
Avenue recommended the demolition of all but the clock tower. 
Local citizens, led by Nancy Hanks, Chairperson of the National 
Endowment of the Arts, protested to Congress and Congress 
reversed the decision of the President's Council. In 
recognition of her heroic efforts and dedication to historic 
preservation in general, in 1983, Congress passed P.L. 98-1 to 
designate the plaza adjacent to the Old Post Office as the 
Nancy Hanks Plaza and the building was officially renamed the 
Nancy Hanks Center. The Old Post Office was finally awarded a 
place on the National Register of Historic Places in 1973.
    To encourage more commercial use of Federal space at ground 
level, Congress passed the Public Buildings Cooperative Use Act 
in 1976. The Act authorized both government and commercial 
enterprises to share federally owned space at ground level. In 
1977, renovation of the building began as part of the 
Pennsylvania Avenue redevelopment. In 1982, GSA entered into a 
55-year out-lease with a private sector developer to lease and 
operate the Old Post Office Building. The renovation of the 
building made it a multifunctional building that included 
office space, retail, and a food court. Development options at 
the Old Post Office Building are also buttressed by the fact 
that several Metro lines are in close proximity.
    The development expected at the Old Post Office Building 
was not successful due to constant turnover of retail 
businesses and low satisfaction by tenants. The original 
developer went into bankruptcy and the lender foreclosed on the 
leasehold. In 1998, Congress passed the Omnibus Consolidated 
and Emergency Supplemental Appropriations Act of 1999 (P.L. 
105-277), which required GSA to submit a viable development 
plan for the Old Post Office before any federal funds are used 
to convert the space. In December 2000, GSA submitted a 
development plan to Congress, and on May 16, 2001, the 
Committee approved the plan by adopting a Committee resolution. 
In 2005, GSA issued a Request for Expressions of Interest 
(``RFI'') for the project. The responses would allow GSA to 
gauge and understand the entities who might propose to 
redevelop the asset, the concepts they may propose and the 
anticipated benefit to the government. Although the agency 
received several responses to the RFI, GSA did not move forward 
with redevelopment of the Old Post Office Building.
    Delay in making use of this centrally located historic 
treasure has made it one of the government's most wasted assets 
and a public embarrassment. The building costs the Federal 
Government money. The building's 2007 rent payments of $5.4 
million did not cover the total expenses for the property of 
$11.9 million, resulting in a loss of $6.1 million in 2007 to 
the Federal Building Fund.
    The policy of the Federal Government has long been to 
preserve and make usable historic properties rather than sell 
them for revenue. Preservation and use are particularly 
important for this property, where not only its historic status 
but, security concerns inherent in its location mean that the 
property must be controlled by the Federal Government.
    H.R. 5001, as amended, authorizes the Administrator of 
General Services to enter into a development agreement to 
redevelop the Old Post Office Building under terms and 
conditions that are beneficial to the Federal Government.

                       SUMMARY OF THE LEGISLATION

Section 1. Short title

    Section 1 designates the short title of the Act as the 
``Old Post Office Building Redevelopment Act of 2008''.

Section 2. Old Post Office Building defined

    Section 2 defines the Old Post Office Building as the land, 
including any improvements and including the Pavilion Annex, 
that is located at 1100 Pennsylvania Avenue, NW., in 
Washington, DC, and under the jurisdiction, custody, and 
control of the General Services Administration.

Section 3. Findings

    Section 3 states Congressional findings for the Act. 
Congress finds that for almost a decade the Subcommittee on 
Economic Development, Public Buildings, and Emergency 
Management has expressed considerable concern about the waste 
and neglect of the valuable, historic Old Post Office Building. 
Congress further finds that, pursuant to P.L. 105-277, GSA was 
required to submit a development plan to the Committee on 
Transportation and Infrastructure of the House of 
Representatives, and the Committees on Appropriations and 
Environment and Public Works of the Senate. The Committee on 
Transportation and Infrastructure approved the plan in May 16, 
2001, and the Senate Committees approved the plan on June 15, 
2001. In 2004, GSA issued a Request for Expression of Interest 
for developing the Old Post Office Building. Congress finds 
that the request generated healthy, private sector interest, 
but GSA has failed to proceed with implementation of the 
approved redevelopment plan. Congress further finds that 
redevelopment of the Old Post Office Building will preserve the 
historic integrity of this unique and important asset, put it 
to its highest and best use, and provide a lucrative financial 
return to the Federal Government.

Section 4. Redevelopment of Old Post Office Building

    Subsection (a) directs the Administrator of the General 
Services to proceed with the redevelopment of the Old Post 
Office Building in accordance with existing authorities 
available to the Administrator, and consistent with the 
redevelopment plan previously approved by the Committee on 
Transportation and Infrastructure of the House and the 
Committees on Appropriations and Environment and Public Works 
of the Senate.
    Subsection (b) authorizes the Administrator to provide 
replacement space for the Federal agency tenants currently 
housed in the Old Post Office Building, notwithstanding section 
3307 of title 40, United States Code.

Section 5. Reporting requirement

    Subsection (a) directs the Administrator of General 
Services to transmit a report to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate, on any proposed redevelopment agreement 
related to the Old Post Office Building.
    Subsection (b) provides that the report must include a 
summary of a cost-benefit analysis of the proposed development 
agreement and a description of the material provisions of the 
proposed agreement.
    Subsection (c) provides that any proposed development 
agreement will not become effective until the end of a 30-day 
period of continuous session of Congress following the date of 
the transmittal of the report to Congress.

            LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

    In 1998, Congress passed the Omnibus Consolidated and 
Emergency Supplemental Appropriations Act of 1999 (P.L. 105-
277), which required GSA to submit a viable development plan 
for the Old Post Office Building before any Federal funds could 
be used to convert the space. On December 28, 2000, GSA 
submitted the plan for the Old Post Office, as required by P.L. 
105-277.
    On May 16, 2001, the Committee on Transportation and 
Infrastructure met in open session and adopted a Committee 
resolution authorizing the development of the Old Post Office 
Building.
    On January 16, 2008, Delegate Eleanor Holmes Norton 
introduced H.R. 5001, the ``Old Post Office Building 
Redevelopment Act of 2008''.
    On April 10, 2008, the Subcommittee on Economic 
Development, Public Buildings, and Emergency Management held a 
hearing on ``The Old Post Office Building: The General Services 
Administration's Plans for Future Use''.
    On May 22, 2008, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 5001. The 
Committee adopted an amendment in the nature of a substitute to 
H.R. 5001 by voice vote. The Committee on Transportation and 
Infrastructure ordered H.R. 5001, as amended, reported 
favorably to the House by voice vote with a quorum present.

                              RECORD 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 record 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 consideration 
of H.R. 5001 or ordering it reported. A motion to order H.R. 
5001, as amended, reported favorably to the House was agreed to 
by voice vote with a quorum present.

                      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(c)(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 in the report.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objective of this legislation is to 
authorize the Administrator of General Services to provide for 
the redevelopment of the Old Post Office Building located in 
the District of Columbia.
    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 enclosed cost estimate for H.R. 5001 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 12, 2008.
Hon. James L. Oberstar,
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. 5001, the Old Post 
Office Building Redevelopment Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Robert A. Sunshine
                                   (For Peter R. Orszag, Director).
    Enclosure.

H.R. 5001--Old Post Office Building Redevelopment Act of 2008

    H.R. 5001 would direct the Administrator of the General 
Services Administration (GSA) to reach an agreement with a 
private-sector entity to redevelop the Old Post Office Building 
(including the Pavilion Annex) located at 1100 Pennsylvania 
Avenue in the District of Columbia. CBO estimates that 
implementing H.R. 5001 would cost $18 million over the 2009-
2013 period, assuming appropriation of the necessary amounts. 
Enacting H.R. 5001 would have no significant net effect on 
direct spending and would not affect revenues.
    H.R. 5001 would direct GSA to redevelop the Old Post Office 
Building in accordance with specific resolutions approved by 
the House Committee on Transportation and Infrastructure and 
the Senate Committee on Environment and Public Works in 2001. 
Those resolutions would require GSA to enter into agreements 
with private entities to redevelop the property through 
authorities granted in the National Historic Preservation Act 
(NHPA). That authority provides for the protection of historic 
properties and allows federal agencies to lease historic 
properties when those assets are not needed for current or 
future agency purposes.
    Based on information from GSA, it would take about 26 
months to develop and solicit proposals, analyze and rank the 
responses, and negotiate an agreement with a developer for the 
property. Although it is unclear what type of development would 
take place, GSA has previously reported that a hotel is the 
most likely option, although other options for the location 
have included a museum, television studio, or office building.
    According to GSA, the building is currently occupied by 
four federal agencies with approximately 450 employees and a 
main hall that is occupied by about 36 private-sector entities, 
including retailers and food vendors. Based on information from 
GSA, CBO estimates that implementing H.R. 5001 would cost about 
$18 million over the 2010-2011 period, assuming appropriation 
of the necessary amounts to relocate the federal employees 
currently occupying the Old Post Office.
    In addition, payments by the current retailers and food 
court vendors (about $500,000 annually) can be spent by GSA 
under the Public Buildings Cooperative Use Act without further 
appropriation. Future lease payments following the building's 
redevelopment under NHPA also could be spent by GSA under the 
Public Buildings Cooperative Use Act. Thus, neither the loss of 
receipts from the current vendors nor the collection of the new 
receipts from a ground lease following redevelopment would have 
any significant net budgetary impact.
    H.R. 5001 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                     COMPLIANCE WITH HOUSE RULE XXI

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, H.R. 5001 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI 
of the Rules of the House of Representatives.

                   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).

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 5001 does not 
preempt any state, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

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

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 5001 makes no changes in existing law.

                                  
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