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)					 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Testimony.                                               **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
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 Josï¿½ 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 Chargï¿½
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 ï¿½lysï¿½e Palace,
home of the French President. The lot overlooks the Champs ï¿½lysï¿½e, 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 ï¿½lysï¿½e Palace and the Champs ï¿½lysï¿½e. 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 Chargï¿½ 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 Chargï¿½ 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

Ordering Information The first copy of each GAO report is free. Additional
copies of reports are $2 each. A check or money order should be made out to

the Superintendent of Documents. VISA and MasterCard credit cards are
accepted, also. Orders for 100 or more copies to be mailed to a single
address are discounted 25 percent.

Orders by mail: U. S. General Accounting Office P. O. Box 37050 Washington,
DC 20013

Orders by visiting: Room 1100 700 4th St. NW (corner of 4th and G Sts. NW)
U. S. General Accounting Office Washington, DC

Orders by phone: (202) 512- 6000 fax: (202) 512- 6061 TDD (202) 512- 2537

Each day, GAO issues a list of newly available reports and testimony. To
receive facsimile copies of the daily list or any list from the past 30
days, please call (202) 512- 6000 using a touchtone

phone. A recorded menu will provide information on how to obtain these
lists.

Orders by Internet: For information on how to access GAO reports on the
Internet, send an e- mail message with “info” in the body to:

info@ www. gao. gov or visit GAO's World Wide Web home page at: http:// www.
gao. gov

To Report Fraud, Contact one:

Waste, or Abuse in ? Web site: http:// www. gao. gov/ fraudnet/ fraudnet.
htm

Federal Programs

? e- mail: fraudnet@ gao. gov ? 1- 800- 424- 5454 (automated answering
system)

GAO United States General Accounting Office

Page 1 GAO- 01- 477 Decision on Embassy Parking Lot

Contents

Page 2 GAO- 01- 477 Decision on Embassy Parking Lot

Page 3 GAO- 01- 477 Decision on Embassy Parking Lot United States General
Accounting Office

Washington, D. C. 20548 Page 3 GAO- 01- 477 Decision on Embassy Parking Lot

Page 4 GAO- 01- 477 Decision on Embassy Parking Lot

Page 5 GAO- 01- 477 Decision on Embassy Parking Lot

Page 6 GAO- 01- 477 Decision on Embassy Parking Lot

Page 7 GAO- 01- 477 Decision on Embassy Parking Lot

Page 8 GAO- 01- 477 Decision on Embassy Parking Lot

Page 9 GAO- 01- 477 Decision on Embassy Parking Lot

Page 10 GAO- 01- 477 Decision on Embassy Parking Lot

Page 11 GAO- 01- 477 Decision on Embassy Parking Lot

Page 12 GAO- 01- 477 Decision on Embassy Parking Lot

Page 13 GAO- 01- 477 Decision on Embassy Parking Lot

Page 14 GAO- 01- 477 Decision on Embassy Parking Lot

Page 15 GAO- 01- 477 Decision on Embassy Parking Lot

Page 16 GAO- 01- 477 Decision on Embassy Parking Lot

Page 17 GAO- 01- 477 Decision on Embassy Parking Lot

Page 18 GAO- 01- 477 Decision on Embassy Parking Lot

Page 19 GAO- 01- 477 Decision on Embassy Parking Lot

Page 20 GAO- 01- 477 Decision on Embassy Parking Lot

Page 21 GAO- 01- 477 Decision on Embassy Parking Lot

Page 22 GAO- 01- 477 Decision on Embassy Parking Lot

Page 23 GAO- 01- 477 Decision on Embassy Parking Lot

Page 24 GAO- 01- 477 Decision on Embassy Parking Lot

Page 25 GAO- 01- 477 Decision on Embassy Parking Lot

Page 26 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix I

Appendix I Description of Primary Embassy- Owned Office Buildings

Page 27 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix I Description of Primary Embassy- Owned Office Buildings

Page 28 GAO- 01- 477 Decision on Embassy Parking Lot

Page 29 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II

Appendix II Comments From the Department of State

Page 30 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 31 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 32 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 33 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 34 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 35 GAO- 01- 477 Decision on Embassy Parking Lot

Appendix II Comments From the Department of State

Page 36 GAO- 01- 477 Decision on Embassy Parking Lot

Page 37 GAO- 01- 477 Decision on Embassy Parking Lot

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
*** End of document ***