[Federal Register Volume 61, Number 14 (Monday, January 22, 1996)]
[Notices]
[Pages 1666-1667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-665]



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DEPARTMENT OF VETERANS AFFAIRS

The Enhanced-Use Development of the VAMC Big Spring, TX

AGENCY: Department of Veterans Affairs.

ACTION: Notice of designation.

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SUMMARY: The Secretary of the Department of Veterans Affairs is 
designating the Big Spring, TX, Department of Veterans Affairs Medical 
Center (VAMC) for an Enhanced-Use development. The Department intends 
to enter into a long-term lease of real property with the Government 
Employees Federal Credit Union. The Credit Union will construct and 
maintain a parking area on the site, and will, as consideration for the 
lease, provide specified facilities and services to the Department at 
no cost.

FOR FURTHER INFORMATION CONTACT:
Jacob Gallun, Office of Asset and Enterprise Development (089), 
Veterans Health Administration, Department of Veterans Affairs, 810 
Vermont Avenue NW, Washington, DC 20420, (202)565-4307.

SUPPLEMENTARY INFORMATION: 38 U.S.C. 8161 et seq., specifically 
provides that the Secretary may enter into an Enhanced-Use lease, if 
the Secretary determines that at least part of the use of the property 
under the lease will be to provide appropriate space for an activity 
contributing to the mission of the Department, the lease will not be 
inconsistent with and will not adversely affect the mission of the 
Department; and the lease will enhance the property. This project meets 
these requirements.

    Approved: December 14, 1995.
Jesse Brown,
Secretary of Veterans Affairs.

Notice of Intent To Award Enhanced-Use Lease Report

    Pursuant to the provisions of 38 U.S.C. Section 8161, et seq., 
``Enhanced-Use Leases of Real Property'' this serves as notice that 
the Secretary of Veterans Affairs (``Secretary'') intends to 
designate approximately .25 acres at the Big Spring, TX, Department 
of Veterans Affairs Medical Center (VAMC) as a site (``the site'') 
that will be subject to public/private development of a parking 
garage under the terms of an Enhanced-Use lease.

Background and Rationale

    The Department of Veterans Affairs Medical Center, Big Spring, 
TX, is an isolated medical facility located in the heart of Texas. 
The surrounding city of Big Spring is the home to several large 
Federal installations including two Federal Prisons and a large U.S. 
Postal Service Center. The employees of all of these facilities are 
serviced by the Government Employees Federal Credit Union, which is 
located adjacent to the VAMC. The Credit Union site currently 
includes 24 parking spaces, 20 of which, located behind the Credit 
Union building, are inconvenient for customers. These spaces are, 
however, well-located for use by VA employees. These spaces are 
currently leased by the Credit Union directly to VA personnel on a 
first-come, first-served basis. The Credit Union membership has 
grown substantially in the past few years, and now finds that its 
remaining 4 parking spaces are insufficient. The Credit Union has 
proposed the construction of a new parking lot, on land leased from 
VA, to satisfy its customers' parking needs.
    Under the Enhanced-Use Concept, the Department of Veterans 
Affairs Medical Center will lease approximately .25 acres of land to 
the Government Employees Federal Credit Union for a period of 35 
years. On this leased site, the Credit Union will construct a 
parking lot of 20 to 25 spaces for its customers. In lieu of paying 
fair market value rent to VA for lease of the site, VA will receive 
control and use of the existing Credit Union-owned parking lot, 
which is currently used by VA employees. There will be no money 
exchanged between VA and the Credit Union. All costs of constructing 
the parking lot will be paid by the Credit Union. The Credit Union 
will be responsible for maintenance of the parking lot on the 
outleased site, while the VAMC will take over the maintenance of the 
existing lot which will be used by VA employees. At the end of the 
lease term, title to all improvements will revert to the Department 
of Veterans Affairs Medical Center. There are no physical or 
functional impediments to the development of this project on site.

Economic Factors

    The landscaped land proposed for outlease under this proposal is 
currently maintained by the VAMC at a cost of approximately $2,500 
per year. Over the anticipated 35-year span of this agreement, VA 
would, therefore, avoid expenditures of approximately $75,000. 
Maintenance costs for the existing lot, to be assumed by VA, are 
estimated at less than $250 per year, or $7,500 over the term of the 
agreement. This equates to a net cost avoidance over the term of the 
agreement of $67,500.
    The Big Spring, TX, District Appraisal has reported that the 
1994 value of the 31 acres 

[[Page 1667]]
of land comprising the total VAMC is $2,190,000. The site proposed for 
this Enhanced-Use development (approximately .25 acres) would 
therefore have a value of approximately $18,000. The construction 
cost of the parking area, to be paid by the Credit Union, is 
estimated at $32,000. As the parking lot will become the property of 
VA at the termination of the agreement, this proposal will 
approximately double the value of the outleased parcel to VA.
    Under this agreement, VA will receive needed parking spaces in a 
location that is convenient to patients and employees at no cost. In 
addition, VA will realize a cost avoidance of approximately $67,500 
through reduced maintenance of landscaped property. Finally, at the 
end of the lease, VA will receive, at no cost, the additional 
parking spaces constructed by the Credit Union.

Public Hearing

    On October 5, 1995, a public hearing was held regarding the 
proposed project. Comments were solicited from veterans service 
organizations and the neighborhood. No negative or opposing 
positions were expressed.

Description of How the Proposed Lease Will

    1. Contribute cost effectively to and be consistent with and not 
adversely affect the mission of the Department.
    The proposed lease will contribute cost effectively to the 
mission of the Department by providing a needed parking area for 
employees at no cost to the Department; and by improving employees' 
access to the Government Employees Federal Credit Union, The 
presence of the added parking area will in no way adversely impact 
the mission of VA.
    2. Affect service to veterans.
    The proposed facility will have no effect on service to 
veterans.

[FR Doc. 96-665 Filed 1-19-96; 8:45 am]
BILLING CODE 8320-01-M