    State Department: Decision to Retain Embassy Parking Lot in
    Paris, France, Should Be Revisited (13-APR-01, GAO-01-477).

    The U.S. government owns a 0.4-acre lot adjoining the U.S.
    ambassador's residence in a prime location in Paris, France. In
    1998, the State Department's Office of the Inspector General
    reported that the property was underused and that continuing to
    park embassy vehicles on this high-value property was not
    economically justified. State's decision in February 2000 to
    continue using the lot for parking was not based on a full
    consideration of security needs, secure parking alternatives, and
    the merits of selling the property. French authorities have
    indicated that the property is valuable and marketable. At a time
    when the State Department has billions of dollars of security
    construction and maintenance needs at its embassies and
    consulates around the world, the sale of the parking lot in
    Paris, France, should receive serious consideration if State can
    arrange alternative, cost-effective, and secure parking for
    official vehicles and if a purchaser would pay $10 million for
    the lot.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-01-477
        ACCNO:   A00795
        TITLE:   State Department: Decision to Retain Embassy Parking Lot
                 in Paris, France, Should Be Revisited
         DATE:   04/13/2001
      SUBJECT:   Cost effectiveness analysis
    	     Embassies
    	     Facility security
    	     Parking facilities
    	     Federal property
    	     Real estate sales
    	     Paris (France)

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    GAO-01-477
    A

    Report to Congressional Committees

    April 2001 STATE DEPARTMENT Decision to Retain Embassy Parking Lot in Paris,
    France, Should Be Revisited

    GAO- 01- 477

    Letter 3 Appendixes Appendix I: Description of Primary Embassy- Owned Office

    Buildings 26 Appendix II: Comments From the Department of State 29 Appendix
    III: GAO Contact and Staff Acknowledgements 37

    Figures Figure 1: Diagram of the Parking Lot, the Ambassador's Residence,
    the Embassy, and the Surrounding Neighborhood 7

    Figure 2: Diagram of the Ambassador's Residence, the Gardens, and the
    Parking Lot 9 Figure 3: Parking Lot With the Ambassador's Residence in the

    Background 10 Figure 4: View from the Ambassador's Residence Showing the

    Parking Lot and Nearby Apartment Buildings 11 Figure 5: Garden Area of the
    Ambassador's Residence 12 Figure 6: Vehicle Entrance to the Embassy 15
    Figure 7: Rue Boissy d'Anglas, Public Street on East Side of the

    Embassy 27

    Lett er

    April 13, 2001 The Honorable Judd Gregg Chairman The Honorable Ernest F.
    Hollings Ranking Member Subcommittee on Commerce, Justice, State, and the
    Judiciary

    Committee on Appropriations United States Senate

    The Honorable Frank R. Wolf Chairman The Honorable Jos� E. Serrano Ranking
    Minority Member Subcommittee on Commerce, Justice, State, and the Judiciary

    Committee on Appropriations House of Representatives

    The U. S. government owns a 0.4- acre parking lot adjoining the U. S.
    ambassador's residence in a prime location in Paris, France. In 1998, the
    State Department's Office of Inspector General reported that the property
    was underused and that continuing to park embassy vehicles on this highvalue
    property was not economically justified. In February 2000, the department
    reported that it had decided to retain the lot and to continue using it for
    parking because it believed the property was needed to enhance security for
    the U. S. mission and that French authorities were highly unlikely to permit
    development of the property. This letter responds to a requirement contained
    in a conference report that we study State's decision to retain the parking
    lot. 1 Our report (1) assesses

    State's rationale for retaining the parking lot for security purposes and
    (2) analyzes the factors to be considered in determining the merits of
    selling the property. 1 H. Rept. 106- 1005 at 297 accompanying H. R. 4942
    (enacted into law as P. L. 106- 533).

    We interviewed officials at State Department headquarters who are
    responsible for overseas embassy security and real estate issues, including
    the Assistant Secretary for Administration. We also visited Paris, France,

    where we made first- hand observations of the parking lot and surrounding
    properties. In Paris, we interviewed embassy officials- including the Charg�
    d'Affaires (the officer in charge of the embassy), the Administrative
    Counselor, and the Regional Security Officer- and French government and

    private sector real estate experts. More details about our scope and
    methodology can be found on page 23. Results in Brief State said that the
    parking lot is needed for various security reasons and

    should not be sold. However, our analysis shows that there may be
    alternative means to achieve security needs. According to State, the parking
    lot enhances security at the U. S. mission in Paris, primarily by protecting
    about 40 government- owned vehicles from terrorist actions such as attaching
    bombs or otherwise tampering with the vehicles. Based on our

    analysis, however, we determined that there are alternative secure parking
    arrangements that potentially could be established without the existing
    parking lot. State also indicated that the lot provides other security
    benefits that are important but less essential. For example, it reported
    that the

    security setback 2 afforded by the lot prevents unauthorized vehicles from
    getting close to the rear of the ambassador's residence. However, if the
    parking lot were sold, the setback between the residence and the edge of the
    lot would still be over 160 feet, more than three times the 50- foot setback
    standard for ambassadorial residences. 3 Several factors determine the
    merits of selling the lot, including the potential sale price, the
    feasibility and cost of providing secure parking

    alternatives for official vehicles, and the potential need of the property
    as a site for building a new U. S. embassy. According to French real estate
    experts, the lot has exceptional potential for the development of apartments
    and could sell for about $10 million. These experts and French

    officials from the national and city governments that would have to 2
    Setback refers to the distance between a government building and the
    perimeter wall or fence separating it from any property not controlled by
    the U. S. government. 3 State Department security standards require a 50-
    foot setback for new ambassadorial residences. The standards do not
    specifically address existing residences, such as the one in Paris. However,
    State's Office of Diplomatic Security said that it would be desirable to
    have a 50- foot setback for all ambassadorial residences.

    approve the sale and/ or development of the property believe that there
    would be no insurmountable legal impediments to selling the property for
    private development. While the parking lot provides security enhancements,
    it would be feasible, based on our analysis, to meet the embassy's security
    needs without the parking lot if the embassy can arrange alternative secure
    parking for official vehicles. One alternative would be to build an
    underground facility on the grounds of the ambassador's residence at an
    estimated cost of $1. 5 million. Finally, the department has determined that
    the lot and adjoining U. S. government

    property would not be large enough to use as a site for building a new
    embassy that meets security standards and that the lot is therefore not
    needed for this purpose.

    We recommended that the Secretary of State initiate a formal study to
    determine the feasibility of selling the parking lot. This study should
    verify the potential sale price of the property and determine the
    feasibility of obtaining alternative, cost- effective, and secure parking
    for official vehicles. Because the State Department did not indicate if it
    planned to implement our recommendation and because it opposed the sale of
    the parking lot without first exploring this option, we have added a matter
    for congressional consideration to require State to conduct a formal study
    to determine the feasibility of selling the parking lot.

    Background Identification and sale of excess property has been a long-
    standing issue for the State Department. In 1996, we reported that, in
    addition to properties State had identified for potential sale, it also
    owned other properties worth millions of dollars that were potentially in
    excess of State's needs, had questionable value, or were expensive to
    maintain. 4 To support efforts by State's Under Secretary for Management to
    identify potentially excess overseas real estate, the Inspector General
    agreed to include identification of such properties as part of its
    inspections and

    audits, where possible. In September 1998, an inspection report by the
    Office of the Inspector General concluded that continued use of the Paris
    property to park vehicles was not economically justified and recommended
    that the State Department decide on the best use for the property. In
    addition, the Office of Inspector General informed the Under Secretary in

    4 Overseas Real Estate: Millions of Dollars Could Be Generated by Selling
    Unneeded Real Estate (GAO/ NSIAD- 96- 36, Apr. 23, 1996).

    October 1998 that the parking lot was underutilized. Two possible options
    were to sell the property or build on it.

    In February 2000, the Office of Foreign Buildings Operations reported to the
    Office of the Inspector General that the department had decided to make no
    changes in its use of the property. State believed the lot was needed for
    security reasons and that France would probably not permit development of
    the property. In March 2000, the Office of the Inspector General closed the
    recommendation based on State's response. Inspector

    General officials said they did not explore alternative means of providing
    security that could increase the feasibility of selling the property or
    verify if France would permit development of the property. The parking lot
    is part of an approximately 3.4- acre parcel of land about

    500 feet from the embassy that contains a 5- story building of about 55, 000
    square feet. The U. S. government purchased the property in 1948 for about
    $2 million. The building and 3 acres of grounds are used as the

    ambassador's residence. The remaining 0. 4 acre 5 is used as the primary
    parking area for the embassy. The lot has spaces for about 75 vehicles.

    The lot is located in an historic neighborhood with about 70 feet of
    frontage on Avenue Gabriel, which leads to the grounds of the �lys�e Palace,
    home of the French President. The lot overlooks the Champs �lys�e, about 300
    feet away. Figure 1 shows the location of the parking lot, the Ambassador's
    residence, the embassy, and the surrounding neighborhood. 5 In a 1998
    inspection report, the Office of the Inspector General, based on information
    supplied by the embassy, described the parking lot as a 1- acre parcel
    purchased in 1928 for $1. 25 million. However, our work shows that the 0.4-
    acre lot is part of a larger 3.4- acre property purchased in 1948 for about
    $2 million.

    Ambassador's Residence, ,

    the Embassy, Rue De L Apartments and offices Apartments

    Figure 1: Diagram of the Parking Lot, the and the Surrounding Neighborhood

    Shops Du Faubourg Saint Honore Rue `

    Elysee `

    Shops U. S. British

    Japanese Ambassador's

    Embassy & Embassy

    Palace `

    residence Ambassador's

    residence Restaurants Open

    offices and shops

    Garden Garden

    U. S. Embassy Garden Embassy parking lot

    Avenue Gabriel Public underground parking

    Public gardens Place

    De La Avenues Des Champs `

    Elysee `

    0 100 200 300 400 500 feet

    Concorde

    The light shading represents the 3.4 acre parcel that includes the
    Ambassador's residence and the parking lot. The dark shading represents the
    U. S. Embassy.

    Source: State Department.

    Rue d'Angias Boissy Elysee`

    The parking lot is secured by stone and concrete walls on three sides of
    about 10 feet and by a metal fence covered by material to prevent ground
    level observation on one side. Security is provided by a heavy metal gate

    and a 24- hour guard. The lot is located along the side of the lower gardens
    at the ambassador's residence, separated by concrete and stone walls.
    Apartment buildings overlook both the parking lot and the ambassador's
    residence. The apartments are built up to the wall of the parking lot at one
    point. Other apartment buildings are built up to the wall of the residence.
    Figure 2 shows the proximity of the parking lot to the residence and the
    residence's gardens.

    2: Diagram of the Ambassador's Residence, the Gardens, and the Parking Lot
    Shops

    Rue De L , Elysee

    Apartments and Figure offices Shops

    Du Apartments Open

    Rue Faubourg Saint Honore Front courtyard

    Residency Chancery

    U. S. Ambassador's residence

    British Embassy Elysee

    ` `

    ` Palace

    ` Upper gardens

    Embassy Garden

    parking Lower

    lot gardens Gates

    Avenue Gabriel Public gardens

    0 50 100 150 200 250 feet The shaded area represents the 3.4 acre parcel,
    including the Ambassador's residence and the parking lot.

    Source: State Department.

    Figures 3, 4, and 5 below show the parking lot, the residence, and the
    gardens behind the residence.

    Figure 3: Parking Lot With the Ambassador's Residence in the Background
    Source: GAO.

    Figure 4: View from the Ambassador's Residence Showing the Parking Lot and
    Nearby Apartment Buildings

    Source: GAO.

    Figure 5: Garden Area of the Ambassador's Residence

    Source: GAO.

    State's Rationale for According to State, the most important benefit
    provided by the parking lot Retaining the Parking

    is the security it provides for government- owned vehicles used by personnel
    at the embassy. Security officials stressed that there is a threat to Lot
    for Security U. S. government personnel and property in Paris and that,
    although the Purposes threat to U. S. interests has not been particularly
    high in the past, post personnel have not been immune to terrorist activity.
    There were three attacks directed against U. S. personnel in the early
    1980s, including the assassination of a U. S. government official in 1982.
    Moreover, the State Department now treats every post as a potential target
    because of the transnational nature of terrorism. 6 State has also
    identified other less essential security enhancements that the parking lot
    provides for the ambassador's residence. These enhancements include
    protecting the ambassador's residence against physical attack and
    eavesdropping, protecting and maintaining the privacy of events in the
    residence's garden,

    and providing secure parking for events at the residence. In addition,
    officials have indicated that the lot provides secure parking for privately
    owned vehicles and a secure staging area for high- level visits. As follows,
    we discuss our analysis of each of the security benefits cited.

    Providing Security for According to embassy officials, the security of the
    parking lot makes it Government- Owned difficult for terrorists to place
    bombs on, or otherwise tamper with, official Vehicles vehicles. About half
    of the spaces in the parking lot (39 of 75) are assigned to official
    vehicles from 6 U. S. agencies. Twenty- seven spaces are reserved

    for the use of various State Department offices, including the motor pool
    and General Services Office, five are reserved for Defense Department
    agencies, and the remaining seven are reserved for four other agencies. We
    counted 44 vehicles in this lot during an after- hours visit, most of which
    were official vehicles.

    Parking facilities at two nearby U. S. government- owned buildings are
    filled to or near capacity with official vehicles. The embassy's basement
    garage has 25 spaces, all of which are reserved for official vehicles; and
    during an after hours visit, we counted 33 vehicles crowded into the garage.
    Another embassy parking area at an office building about 1 mile away has 20
    spaces,

    6 This policy is consistent with recommendations contained in the Report of
    the Accountability Review Boards on the Embassy Bombings in Nairobi and Dar
    Es Salaam (January 1999). The Accountability Review Boards, led by Admiral
    William J. Crowe, Jr., were established to review the circumstances
    surrounding the 1998 embassy bombings and State's vulnerability to terrorist
    threats.

    17 of which are reserved for official vehicles, with only 3 unassigned
    spaces, which are used for visitors.

    The State Department believes that the terrorist threat in Paris is
    sufficient to warrant continuous protection for official vehicles and that
    parking them in insecure public lots would result in unacceptable risks.
    Officials said that if these vehicles were parked in unprotected areas, such
    as public lots, terrorists might have greater access to these cars. With
    sufficient time,

    they could potentially plant explosive devices that would not be easily
    detected before detonation because they could be well hidden or disguised to
    look like a part of the vehicle's undercarriage. Official cars are currently
    permitted to enter the embassy courtyard, after being inspected for
    explosives, to pick up and discharge passengers (and occasionally may enter
    the underground garage). If an undetected explosive device concealed on one
    of these vehicles detonated when the vehicle was close to the building's
    walls, the damage to property and personnel would be extensive. Therefore,
    lack of secure parking for these vehicles would force the embassy to
    consider preventing these vehicles from entering the embassy courtyard.

    Figure 6 shows the vehicle entrance to the embassy. The figure illustrates
    that vehicles can approach the embassy prior to inspection at the gate and
    can get close to the embassy wall after they are cleared through the gate.

    Figure 6: Vehicle Entrance to the Embassy

    Source: GAO.

    Other Security The State Department listed several other security
    enhancements provided

    Enhancements Provided by by the parking lot. Our analysis of these
    enhancements shows that they the Parking Lot Are Less

    may not be essential or that there are readily available alternatives that
    Essential could provide comparable security. The Assistant Secretary for
    Administration agreed that these enhancements were far less important than
    the secure parking for official vehicles provided by the parking lot.
    Protecting the Ambassador's In February 2000, the department reported that
    the parking lot provides Residence Against Physical

    much needed perimeter security for the ambassador's residence, making it
    Attack and Eavesdropping almost impossible for an unauthorized vehicle to
    get close to the rear of the residence. Officials in Washington, D. C., and
    at the post said that it is preferable to have as much setback as possible
    for protection against explosions or other terrorist acts, eavesdropping,
    surveillance, break- ins,

    and thievery. These officials expressed concern that, if the parking lot was

    sold and developed into apartments or offices, terrorists or foreign
    governments could lease or purchase space in the buildings, thereby making
    it easier for them to commit acts damaging to U. S. interests.

    Even without the lot, the setback would exceed State's standards. We
    determined that the ambassador's residence is more than 160 feet from the
    closest edge of the lot. Current State Department standards call for a
    50foot setback for new residences; the standards do not mention the desired
    setback for existing residences. We also noted that the residence faces onto
    a main street with little setback and with shops directly across the street.
    Furthermore, the apartments next to the parking lot and the ambassador's
    residence already have a direct line of sight into the residence, which
    poses

    some risk of eavesdropping. Protecting and Maintaining

    The security of people attending outdoor events in the gardens of the
    Privacy of Events in the

    ambassador's residence is also a concern. However, such events are
    Residence's Gardens

    infrequent. On July 4, 2000, there was a large- scale event in the gardens
    attended by about 2,000 people. But, according to the embassy security
    office, there were only two other events during the year that took place in
    the gardens. Both of these were smaller events, one with 300 guests and the

    other with about 35 guests. Construction of private apartment buildings on
    the parking lot would pose some additional threat to persons attending
    events in the gardens. However, we noted that there is already some risk
    from the existing apartment buildings that overlook the parking lot and
    gardens. Providing Secure Parking for The lot also provides a secure parking
    area for large events held within the

    Events at the Ambassador's ambassador's residence. However, embassy
    officials indicated that cars Residence

    bringing high- level guests generally discharge them at the main entrance
    and then park in the front courtyard or on nearby streets. Officials said
    Paris police are accommodating when it comes to parking vehicles for

    events at the residence and will generally allow cars of high- level guests
    to park on the street. Parking for other guests is available in the public
    garage near the embassy, less than 2 blocks away from the back entrance to
    the

    residence. Security officials may also use the parking lot on occasion to
    inspect caterers' vehicles entering the gardens. Officials believe that
    arrangements could be made with local police to have these vehicles
    inspected on the street behind the residence.

    Providing Secure Parking for The lot also provides secure parking for
    privately owned vehicles. About Privately Owned Vehicles one- third of the
    spaces (28) in the parking lot are made available to privately owned
    vehicles of embassy employees at no cost. Ten of the

    spaces are provided to embassy section heads to commute to and from work. 7
    The remaining 18 spaces are used by employees whose work schedules make it
    difficult to use public transportation and by visiting U. S. officials that
    work in other buildings in Paris. 8 The parking lot protects these cars from
    the risk of theft, vandalism, and terrorist action that they would face if
    parked in public facilities or on the street. However, the embassy believes
    that providing secure parking for these vehicles is not

    essential and that alternative commuting means are available. Private
    vehicles are already at risk because they are not under U. S. government
    control when parked in lots or garages at the owners' residences. 9 They are

    rarely allowed within the embassy courtyard and only with advance permission
    from security and only after being inspected for explosives. They cannot be
    parked in the underground garage. Therefore, there would be little danger of
    a private vehicle entering the courtyard with an undetected bomb attached
    that could detonate and damage the embassy. If the parking lot was not
    available, these employees could park in a 24- hour,

    public- parking garage that is closer to the embassy than the parking lot
    for about $14 daily, or they could use public transportation.

    7 According to an embassy official, most U. S. government and foreign
    service national employees walk or use public transportation to commute to
    and from work. However, there may be some employees that commute by
    privately owned vehicle and park in nearby public facilities or commercial
    garages. 8 At the time of our visit, there were also eight vehicles
    (official and private) in the parking lot awaiting shipment, sale, or
    acquisition of license plates. 9 On- street parking is very limited and
    unsafe due to incidences of theft and vandalism. U. S. employees are
    reimbursed for parking costs at their residence.

    Providing a Secure Staging Area Officials at the Office of Inspector General
    and the Bureau of Diplomatic for High- Level Visits

    Security said that the parking lot could be used to support visits by
    highlevel officials, including the President. Secret Service officials
    agreed that the parking lot could be useful to support high- level visits.
    The parking lot could, for example, be used to assemble motorcades. However,
    it has not been used much for this purpose. A Secret Service official
    indicated that

    the former President made only one trip to Paris in the last 2 years (in
    1999) and only two in the last 4 years. 10 Furthermore, they said that they
    could arrange alternative security measures if the parking lot was no longer
    available.

    If the President stayed at the ambassador's residence, as was done by the
    former President during a 1999 visit, the “secure package” (the
    President's cars and Secret Service support vehicles) would generally stay
    in the front courtyard or in the embassy garage. Other official U. S.
    government cars would return to their normal parking place overnight, in the
    embassy

    garage or the parking lot. Some cars in a large motorcade, including some
    used by government staff, are generally rented by the day and do not have
    secure parking overnight. These must be inspected for explosives before
    joining the motorcade the next day. This could be done at other locations if
    the parking lot was unavailable. The top- ranking Secret Service official in
    Paris noted that the French police are flexible when it comes to arranging
    parking and forming motorcades for U. S. high- level visits and would be

    prepared to accommodate U. S. security needs if the parking lot was no
    longer available. For example, the French police might agree to restrict
    traffic on Avenue Gabriel and block off an area for the motorcade to
    assemble.

    The former Secretary of State made several visits to Paris per year in the
    last few years. According to security officials, the motorcades were formed
    at the hotel where she stayed and the secure package would most likely have
    used parking areas in or around the hotel guarded by U. S. government

    personnel, rather than the parking lot. Other U. S. government officials
    also stay in hotels. Therefore, motorcades for these officials would not be
    staged in the parking lot.

    10 The Secret Service also provided protection for four other visits to
    Paris during 1999 and 2000. One visit was by the former First Lady, one by
    the daughter of the former President, and two by another former President.
    Officials could not recall if any of the motorcades for these visits used
    the parking lot for staging or parking.

    Factors Affecting the Several factors should be considered in determining
    the disposition of the

    Merits of Selling the parking lot. French government officials believe that
    France would permit the sale and development of the parking lot, and private
    sector real estate

    Property officials believe that developers would pay about $10 million for
    the

    property. However, before a decision is made to sell the property, the
    department would need to arrange alternative secure parking for official
    vehicles that is cost effective. One potential alternative would be to build

    an underground facility on the grounds of the U. S. ambassador's residence
    at an estimated cost of about $1. 5 million. The amount of secure parking
    required would depend on the number of official vehicles at the embassy,
    which could change due to embassy right- sizing. The lot and adjoining

    property also have been proposed as a potential site on which to build a new
    embassy. However, State has determined that the land parcel formed by the
    lot and adjoining gardens is not large enough to use as a site for a new
    embassy and is therefore not needed for this purpose.

    Potential Sale of Property The parking lot could be sold and private
    development would not face

    for $10 Million insurmountable obstacles, according to French government
    officials that

    deal with real estate proposals from foreign governments, city officials
    that deal with requests for construction permits, and a local real estate
    lawyer who works with the embassy. Private development plans would have to
    be approved by various French zoning and construction offices to ensure
    compliance with applicable building codes and special restrictions on
    building in this historic and culturally important neighborhood. These
    restrictions include the need to retain the wall, gates, and about 80 feet
    of garden between the building site and the street. There are also
    restrictions that apply to building size and use.

    Local real estate representatives said that buyers would be enthusiastic if
    such a uniquely located property became available for sale. Rarely does land
    come up for sale as close to the �lys�e Palace and the Champs �lys�e. Market
    price would depend on the type and size of structure that could be built
    there. The realtors we spoke to believe that apartments, similar to those
    located next to the parking lot, would probably be the highest value use for
    this property. Based on their experience with the market, real estate
    experts we spoke to estimated that the parking lot would sell for about $10
    million. These estimates are based on total available floor space for an
    apartment building

    of about three floors above the ground. The estimates also assumed the

    required garden area setback. The experts emphasized that land prices had
    increased dramatically since 1997. The Assistant Secretary for
    Administration cautioned that an estimated market value of $10 million for
    the lot may be high and that French building restrictions might
    substantially reduce the price potential purchasers would be willing to pay.

    If the U. S. government decided to sell portions of the rear gardens of the
    residence along with the parking lot, the sales price would be much higher.
    For example, the back gardens adjacent to the parking lot are twice the size
    of the parking lot, which could potentially bring the sale price of a
    combined parcel (lower gardens and parking lot) to about $30 million. The
    real estate lawyer said that the residence (including the parking lot) is
    now

    considered one parcel but that there were no restrictions on selling part or
    all of the gardens along with the parking lot. The real estate lawyer said
    that the United States could place stipulations in a sales contract that
    would limit how the purchaser could develop the property. For example, the
    U. S. government could stipulate the property be developed only for housing
    and could limit the number and size of windows on the side facing the
    residence. However, it would not be possible to stipulate who could buy the
    property or lease space after the property was developed.

    Potential Alternatives for Before deciding to sell the parking lot, the
    embassy would have to Secure Parking

    determine that alternative secure parking for official vehicles could be
    arranged at another location, preferably near the embassy where the vehicles
    would be readily available for use. We identified two potential
    alternatives. One alternative would be to seek secure parking space in the
    underground public lot under the Place de la Concorde near the embassy. This
    lot has more than 800 spaces on 3 levels; it also has a private level. At
    the time of our visit, there were at least 30 available public spaces,
    although the lot was full one afternoon during our visit. The embassy
    estimated that it would cost about $57,000 per year to house 45 vehicles in
    this garage if spaces could be reserved. Security guards currently assigned
    to the parking lot could potentially be reassigned to protect a U. S.
    government section of the facility. The embassy did not know if management
    of the facility would

    permit the presence of embassy guards. If not, the embassy could approach
    other commercial parking garages within a few blocks to seek arrangements
    for secure parking.

    Another alternative is to build an underground parking facility beneath the
    residence's gardens adjacent to the parking lot. The British embassy,
    located between the U. S. embassy and the parking lot, built an underground
    parking garage for about 25 vehicles beneath its gardens. According to rough
    estimates that the U. S. embassy obtained at our request, the likely cost to
    construct a similar facility for 50 vehicles under the gardens of the
    residence is about $1. 5 million.

    Embassy officials have not explored the feasibility of expanding the
    capacity of the parking area in the basement of the embassy. However, they
    believe that this may be extremely expensive and difficult given the age of
    the building and its proximity to underground power lines and the subway.

    Size of Embassy Staff Could An ongoing U. S. government effort to reconsider
    the appropriate size of Affect Amount of Secure U. S. posts may affect the
    number of official vehicles needing secure Parking Needed

    parking. The Overseas Presence Advisory Panel, created by the Secretary of
    State in 1999 to consider the future of U. S. overseas representation,
    called for the streamlining of U. S. embassies to reduce security
    vulnerability, achieve budget savings, and free up resources for other
    priorities. In early 2000, an interagency committee, chaired by the
    Secretary of State, began studies to determine the appropriate number and
    composition of staff at U. S. overseas posts, including pilot studies of the
    embassy in Paris, which has more than 900 U. S. and foreign national
    employees, and 5 other posts. In November 2000, the Ambassador reported that
    initial study results had not led to recommendations for substantial changes
    in workload that would lead to significant personnel reductions.
    Nevertheless, he believed that there are opportunities to reduce workload
    and personnel levels that would reduce costs and security vulnerabilities
    and that efforts to right- size the embassy in Paris should continue. In

    January 2001, the Charg� d'Affaires said that the embassy was waiting to see
    how the new administration would approach reassessments of embassy size.
    Parking Lot Does Not

    Current embassy office buildings in central Paris are vulnerable to
    terrorist Provide a Suitable Site for a action due to their limited setback
    from public streets. (See appendix I for New Embassy

    more information on these buildings.) As a result, the State Department
    plans to build a new, secure embassy in Paris some time in the next 15
    years. The department believes the parking lot and adjoining gardens of the
    ambassador's residence are unsuitable as a building site because together
    they are only about 230 feet wide. The State Department requires a 100- foot

    setback for new embassies. (This is twice the setback required for
    ambassadorial residences.) It would not be feasible to maintain this setback
    on each side of a new embassy as this would leave a width of only 30 feet to
    build a large new building. In 1999, the U. S. Ambassador proposed to
    develop the parking lot and adjoining gardens of the residence for embassy
    office space. However, State rejected this proposal because the lot was not
    large enough and because it believed that the proposal was incompatible with
    zoning restrictions.

    Conclusions State's decision in February 2000 to continue using the lot for
    parking was not based on a full consideration of security needs, secure
    parking

    alternatives, and the merits of selling the property. French authorities
    have indicated that the property is valuable and marketable. At a time when
    the State Department has billions of dollars of security construction and
    maintenance needs at its embassies and consulates around the world, the sale
    of the parking lot in Paris, France, should receive serious consideration if
    State can arrange alternative, cost- effective, and secure parking for
    official vehicles and if a purchaser would pay $10 million for the lot. We
    therefore believe State's decision should be revisited.

    To develop a sound basis for deciding on the disposition of the property, we
    recommended that the Secretary of State initiate a formal study to determine
    the feasibility of selling the parking lot. The study should verify the
    potential sale price of the property and determine the feasibility of
    obtaining alternative, cost- effective, and secure parking for official
    vehicles. The State Department did not address our recommendation but stated
    that it opposes the sale of the parking lot for security reasons. Matter for

    In view of State's position, the Congress may wish to consider requiring
    Congressional that State perform a comprehensive study to determine the
    feasibility of selling the parking lot. Consideration

    Agency Comments and In written comments on a draft of this report, State did
    not comment Our Evaluation

    specifically on our recommendation to perform a formal study to determine
    the feasibility of selling the property, but it opposed the sale of the
    parking lot based on security reasons. State questioned the feasibility and
    potential costs of obtaining alternative parking for official vehicles

    without having seriously studied the alternatives. Through a feasibility
    study, we believe that State could verify the potential sale price of the
    property, explore potential parking alternatives, such as construction of a

    secure underground parking facility, and determine if such alternatives are
    cost effective and if they would provide the degree of security required. We
    believe that it would be worthwhile to fully consider sale of the property
    because the potential revenue of $10 million could provide State with
    resources to fund alternative, secure parking, as well as address some of
    its many other security and real estate needs in Paris and around the world.
    State's comments are reprinted in appendix II. State also provided technical
    comments, which we incorporated into the report where appropriate.

    Scope and To assess State's rationale for retaining the property for
    security purposes, Methodology we interviewed State's Assistant Secretary
    for Administration and

    headquarters security experts from the State Department's Bureau of
    Diplomatic Security and its Office of the Inspector General, as well as
    headquarters officials of the Secret Service. We also examined documents and
    studies prepared by the Office of the Inspector General regarding use

    of the parking lot and related security issues in Paris and the department's
    responses. We visited the embassy in Paris, France, in late January 2001,
    where we observed the parking lot and surrounding buildings and compared
    security that would be afforded with and without the parking lot to the
    department's standards and stated needs. We also explored security actions
    that could be taken if the parking lot was sold. We discussed the

    security benefits and use of the parking lot with key embassy officials,
    including the Charg� d'Affaires, the Regional Security Officer, the
    Administrative Counselor, the General Services Officer, and a Political
    Officer. We met with several agencies' representatives to discuss the

    security afforded by the parking lot to their operations. We received
    briefings on the security threat to embassy facilities and employees. We
    also obtained data on parking policies and practices for government- owned

    and personal vehicles at the embassy. We did not, however, assess the
    agencies' needs for official vehicles.

    To analyze factors to be considered in determining the merits of selling the
    parking lot, we obtained estimates of the property's market value and
    development potential from French real estate experts. To obtain French
    views on potential zoning and other restrictions that may affect sale or
    development of the property, we met with national and city government
    officials that the U. S. embassy identified as responsible for approving U.
    S.

    government real estate proposals and government or private construction
    plans. At the national level, we met with the Director of the Office of
    Construction and the Director of the Office of Urban Planning in the
    Prefecture of Paris. At the city level, we met with the Director and
    Assistant Director of Urban Planning in the Office of the Mayor of Paris. We
    also met with a French real estate lawyer. We explored parking alternatives
    such as

    public and commercial garages. We also toured an underground parking
    facility built at the British embassy on property that is similar in size
    and location to the gardens of the residence. We identified and explored two
    other factors that could affect decisions to retain or sell the property.
    First, we obtained information on the overall size of the U. S. government

    presence in Paris and the status of efforts to consider adjustments to that
    size that could affect the post's security requirements and overall real
    estate needs. Second, we discussed the feasibility of U. S. government

    development of the parking lot and adjoining land with U. S. and French
    government officials. Finally, we discussed the tradeoffs and considerations
    in selling or retaining the property with State's Assistant Secretary for
    Administration.

    We conducted our review from January through March 2001 in accordance with
    generally accepted government auditing standards.

    We are sending copies of this report to interested congressional committees
    and the Honorable Colin L. Powell, the Secretary of State. We will make
    copies available to others upon request. Sincerely yours, Jess T. Ford,
    Director International Affairs and Trade

    Appendi xes Description of Primary Embassy- Owned

    Appendi x I

    Office Buildings The U. S. government owns four office buildings in central
    Paris. Two of these buildings are joined together to form the embassy. It
    also owns the Talleyrand Building and Building D. The following gives
    information on each building.

    The most prominent building is the embassy. Figure 6 on page 15 shows the
    front of the building. It occupies about 1.5 acres near the Place de la
    Concord, one of Paris's busiest intersections. The land for the original
    building was purchased in 1928, and construction began in 1931. An

    adjacent building was purchased in 1946, and the two buildings were joined
    together. It has seven floors and about 130,000 square feet. The building
    has virtually no setback on one side as the wall is separated from a public
    street by about a 10- foot sidewalk. The building has about 50 feet of
    setback from the building wall to the front gate. The building adjoins
    private office space in the back. The setback requirement for new embassy
    buildings is 100 feet. Personnel in offices on the east side of the embassy
    are particularly vulnerable to potential blast damage from bombs. 1 As shown
    in figure 7,

    this side of the embassy is very close to the Rue Boissy d'Anglas. The
    government of France has rejected United States requests to close this
    public street.

    1 In November 2000, the Regional Security Officer recommended that about 80
    personnel in offices on the east side of the embassy be relocated to
    mitigate this vulnerability. As of March 2001, the State Department was
    considering this recommendation.

    Figure 7: Rue Boissy d'Anglas, Public Street on East Side of the Embassy

    Note: The embassy is in left foreground. Source: GAO.

    The Talleyrand Building is located on a corner of the Place de la Concorde.
    It houses the consular section and other offices. The building has four
    floors and about 61, 000 square feet, including several large reception
    rooms that have historical significance and cannot be used as offices. The
    United States acquired the building after World War II and used it to
    administer the Marshall Plan to assist Europe's postwar recovery. In 1980,
    the government of France designated the building an historic monument. The
    building has virtually no setback on three sides, as its walls are separated
    from the

    street by a sidewalk of 10 feet or less. It is therefore very vulnerable to
    terrorists. The U. S. government owns another office building, called
    Building D, about a mile from the embassy. The building has nine floors and
    about 56, 000 square feet. It currently houses State's Financial Service
    Center and other

    government agencies. In 2000, the U. S. Ambassador proposed selling this
    building, estimated to be worth over $40 million, as part of a plan to
    improve security and reduce overall U. S. government real estate holdings in
    Paris. State, however, decided to retain and renovate this building. The
    building is located behind other buildings that face onto the street and is
    therefore less vulnerable to terrorist bombs from that direction. However,
    the building has less than a 100- foot setback in the rear and adjoins
    private

    buildings on two sides.

    Appendi x II

    Comments From the Department of State Note: GAO comments supplementing those
    in the report text appear at the end of this appendix.

    See comment 1. See comment 2. See comment 3. See comment 4. See comment 5.

    See comment 6. See comment 7. See comment 8. See comment 9. See comment 10.

    See comment 11. See comment 12. See comment 13.

    See comment 14. See comment 15.

    GAO's Comments The following are GAO's comments on the Department of State's
    letter dated March 27, 2001.

    1. Our report acknowledges the setback problems of the office buildings in
    Paris. However, sale of the parking lot would not affect these problems, as
    the parking lot is about 500 feet from the main embassy building.

    Furthermore, the corner of the parking lot is more than 160 feet from the
    nearest corner of the ambassador's residence, which is more than three times
    the 50- foot setback standard for new ambassadorial residences. Using
    setback as a security rationale for retaining the parking lot obscures the
    primary security benefit afforded by the parking lot (i. e., it provides
    secure parking for official vehicles). If the parking lot could be sold for
    $10

    million, and alternative secure parking for official vehicles could be
    obtained for considerably less, the difference could be used to meet
    security and other facility needs in Paris or elsewhere. 2. Our report
    emphasizes that the parking lot provides a secure, guarded area to park
    official vehicles and that this is by far the most important security
    benefit afforded by the property. 3. The Bureau of Diplomatic Security
    opposes sale of the property because

    of the additional security buffer or setback it provides for the residence,
    the secure parking it provides for embassy vehicles, and the utility it has
    as a motorcade staging area for high- level visits to Paris. Our report
    addressed each of these security factors. We agree that the parking lot
    provides important security for official vehicles. However, there are
    potential alternative parking arrangements that should be examined, such as
    an

    underground facility on the grounds of the residence that could enhance
    security for official vehicles compared to the current above- ground lot. We
    believe other security afforded by the lot is less essential. 4. Our report
    recognizes the security vulnerabilities at various embassy buildings in
    Paris. Although we did not perform a comprehensive security review, we
    believe that there is a need for more security at some facilities in Paris.
    5. We emphasize throughout our report and in our conclusions and
    recommendation that consideration of selling the property would be

    appropriate if alternative, cost- effective, and secure parking for official
    vehicles can be obtained. State proposes criteria to be used in assessing
    whether alternative parking for official vehicles would meet or exceed the

    security currently afforded by the parking lot. We believe that full
    exploration of secure parking alternatives, using this or other criteria,
    would be a good step in determining the feasibility of obtaining
    alternative, secure, and cost- effective parking for official vehicles.

    State also indicated that a public lot would not meet its security criteria
    even within a secure, segregated area. However, there are other potential
    alternatives that need to be explored, including building an underground
    facility on secure, U. S. government controlled land. 6. These are valid
    concerns to consider in determining if alternative secure parking can be
    obtained. We observed that employees walking to and from the current embassy
    parking lot could also be vulnerable as they are on a public street with
    cars parked along one side. Only through serious consideration of potential
    parking alternatives and ways of mitigating risks

    will State be able to determine and weigh the advantages and disadvantages
    of various alternatives. 7. Our draft report indicated that there is a
    threat to U. S. government personnel and property in Paris. We have
    clarified the report to explain that although the threat to U. S. personnel
    and property in Paris has not been particularly high in the past, post
    personnel have not been immune to

    terrorist activity. We also added to the report that there were three
    attacks directed against U. S. personnel in the early 1980s, including the
    assassination of a U. S. government official in 1982. 8. We agree that the
    $1. 5 million cost estimate for an underground parking facility is a rough
    estimate. That is why we think it would be useful for State to explore this
    and other parking alternatives to determine if they would be secure and cost
    effective. Even if a feasibility study determines

    that building an underground facility would cost much more than the $1.5
    million rough estimate, pursuing this alternative may still make sense if
    the parking lot can be sold for $10 million.

    9. Our report correctly describes the parking lot as part of an
    approximately 3.4 acre parcel of land with a 5- story building purchased in
    1948, which is now separated from the rest of the property by solid walls.
    Past inconsistencies regarding the address, dimensions, and whether the lot
    was a separate property or part of the ambassador's residence were partly a
    result of incomplete or inaccurate information contained in property
    inventory records of the Office of Foreign Buildings Operations

    and material that the embassy in Paris provided to the Office of the
    Inspector General in 1998.

    10. We have clarified language in the report to better describe the walls
    surrounding the parking lot and the location of adjacent properties. 11. We
    did not assess the merits of selling portions of the gardens of the
    ambassador's residence. However, the parking lot and gardens are both part
    of one parcel of land, and according to the real estate lawyer we spoke
    with, the embassy would be able to sell portions of the gardens along with
    the parking lot. We agree that any consideration of selling portions of the
    gardens would need to take into account access and security issues for the
    ambassador's residence as well as the potential need of the garden area to
    construct an underground parking facility for the embassy. 12. State did not
    indicate its basis for asserting that it is highly unlikely an

    underground facility could be built beneath the gardens of the ambassador's
    residence that would accommodate the embassy's large trucks. We toured a
    nearby underground parking facility at the British embassy built to
    accommodate cars and vans. British officials indicated

    that the height of the entry way precluded several of its larger trucks from
    entering and suggested that the United States consider this design issue if
    it plans to construct a similar facility. Parking several large trucks
    belonging

    to the U. S. embassy in existing spaces at the embassy or Building D may
    also be an option to overcome this concern. Full consideration of the
    underground parking alternative, including the cost of a facility designed
    to accommodate the embassy's large trucks, is needed to determine if this
    alternative is feasible and cost effective. 13. Throughout our report, we
    have stressed the importance of providing secure parking for official
    vehicles. We agree that vehicles parked in an unguarded public lot would be
    at greater risk than vehicles parked in the secure parking lot. Our report
    says that if official “vehicles were parked in unprotected areas, such
    as public lots, terrorists might have greater access

    to these cars.” 14. To develop a sound basis for deciding the
    disposition of the property, State needs to consider security and cost
    factors and weigh the alternatives. State indicated that it would be willing
    to study this subject further if a decision is made to do so. This is what
    we recommend.

    15. We believe that our report is consistent with the briefing on our
    preliminary observations that we provided in January 2001 to embassy
    officials at the conclusion of our fieldwork. In our briefing, we emphasized
    that our work did not support some of State's security rationale for
    retaining the parking lot, such as the argument that the lot was needed to
    achieve setback. However, we agreed that there was a need to provide secure
    parking for official vehicles. We told embassy officials that selling

    the parking lot for $10 million should receive serious consideration if
    alternative, secure parking could be obtained and if State did not need the
    property for the construction of a new embassy building. We subsequently
    determined that State did not need the parking lot to construct a new
    embassy. Based on this additional information, we determined that the
    reasonable course of action for State would be to conduct a formal
    feasibility study that would verify the potential sale price and determine
    if alternative, cost- effective, and secure parking for official vehicles
    could be obtained.

    Appendi x I II

    GAO Contact and Staff Acknowledgements GAO Contact John Brummet (202) 512-
    5260 Staff

    In addition to the contact named above, Ed Kennedy and Lynn Cothern
    Acknowledgements

    made key contributions to this report.

    (320017) Lett er

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    GAO United States General Accounting Office

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    Appendix I

    Appendix I Description of Primary Embassy- Owned Office Buildings

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    Appendix I Description of Primary Embassy- Owned Office Buildings

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    Appendix II

    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix II Comments From the Department of State

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    Appendix III

    United States General Accounting Office Washington, D. C. 20548- 0001

    Official Business Penalty for Private Use $300

    Address Correction Requested Presorted Standard

    Postage & Fees Paid GAO Permit No. GI00
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