[House Report 110-724]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-724
======================================================================
OLD POST OFFICE BUILDING REDEVELOPMENT ACT OF 2008
_______
June 19, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 5001]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5001) to authorize the
Administrator of General Services to provide for the
redevelopment of the Old Post Office Building located in the
District of Columbia, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Old Post Office Building Redevelopment
Act of 2008''.
SEC. 2. OLD POST OFFICE BUILDING DEFINED.
In this Act, the term ``Old Post Office Building'' means the land,
including any improvements thereon and specifically including the
Pavilion Annex, that is located at 1100 Pennsylvania Avenue, NW., in
the District of Columbia, and under the jurisdiction, custody, and
control of the General Services Administration.
SEC. 3. FINDINGS.
Congress finds the following:
(1) For almost a decade the Subcommittee on Economic
Development, Public Buildings, and Emergency Management of the
Committee on Transportation and Infrastructure of the House of
Representatives has expressed considerable concern about the
waste and neglect of the valuable, historic Old Post Office
Building, centrally located in the heart of the Nation's
Capital on Pennsylvania Avenue, and has pressed the General
Services Administration to develop and fully use this building.
(2) The policy of the Government long has been to preserve
and make usable historic properties rather than sell them for
revenue.
(3) Security concerns related to this property's proximity to
the White House may hinder the sale of the Old Post Office
Building to a private party.
(4) On December 28, 2000, the General Services
Administration, pursuant to Public Law 105-277, submitted to
the Committee on Transportation and Infrastructure of the House
of Representatives and the Committees on Appropriations and
Environment and Public Works of the Senate a plan for the
comprehensive redevelopment of the Old Post Office.
(5) The Committee on Transportation and Infrastructure
approved the redevelopment plan on May 16, 2001, and the
Committees on Appropriations and Environment and Public Works
approved the plan on June 15, 2001.
(6) The General Services Administration issued a Request for
Expression of Interest in 2004 for developing the Old Post
Office Building that generated a healthy, private sector
interest, but the General Services Administration has failed to
proceed with implementation of the approved redevelopment plan.
(7) Redevelopment of the Old Post Office Building will
preserve the historic integrity of this unique and important
asset, put it to its highest and best use, and provide a
lucrative financial return to the Government.
SEC. 4. REDEVELOPMENT OF OLD POST OFFICE BUILDING.
(a) In General.--The Administrator of General Services is directed to
proceed with redevelopment of the Old Post Office Building, in
accordance with existing authorities available to the Administrator and
consistent with the redevelopment plan previously approved by the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committees on Appropriations and Environment
and Public Works of the Senate.
(b) Relocation of Existing Building Tenants.--The Administrator is
authorized, notwithstanding section 3307 of title 40, United States
Code, and otherwise in accordance with existing authorities available
to the Administrator, to provide replacement space for Federal agency
tenants housed in the Old Post Office Building whose relocation is
necessary for redevelopment of the Building.
SEC. 5. REPORTING REQUIREMENT.
(a) In General.--The Administrator of General Services shall transmit
to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public Works of
the Senate a report on any proposed redevelopment agreement related to
the Old Post Office Building.
(b) Contents.--A report transmitted under this section shall include
a summary of a cost-benefit analysis of the proposed development
agreement and a description of the material provisions of the proposed
agreement.
(c) Review by Congress.--Any proposed development agreement related
to the Old Post Office Building may not become effective until the end
of a 30-day period of continuous session of Congress following the date
of the transmittal of the report required under this section. For
purposes of the preceding sentence, continuity of a session of Congress
is broken only by an adjournment sine die, and there shall be excluded
from the computation of such 30-day period any day during which either
House of Congress is not in session during an adjournment of more than
3 days to a day certain.
PURPOSE OF THE LEGISLATION
H.R. 5001, the ``Old Post Office Building Redevelopment Act
of 2008'', as amended, authorizes the Administrator of General
Services to provide for the redevelopment of the Old Post
Office Building located in the District of Columbia.
BACKGROUND AND NEED FOR LEGISLATION
The Old Post Office located in Washington, DC, was
constructed from 1892 to 1899. The building was intended to be
the U.S. Post Office Department Headquarters building, as well
as the city's main post office. The Old Post Office Building,
which is the second-tallest structure in the nation's capital,
is designed in Romanesque style. Over its lifetime there have
been frequent urban renewal efforts calling for its demolition,
most notably during the Depression era. However, dedicated
preservationists were successful in blocking its destruction
and preserving the building. The Old Post Office is now one of
Washington's most enduring landmarks.
According to the General Services Administration's
(``GSA'') history of the building, in 1928 the Old Post Office
Building was slated for demolition as part of the development
now known as the Federal Triangle. Lack of funds during the
Great Depression saved the building at that time, and over the
next 30 years, it provided space for various government
agencies. In 1964, the President's Council on Pennsylvania
Avenue recommended the demolition of all but the clock tower.
Local citizens, led by Nancy Hanks, Chairperson of the National
Endowment of the Arts, protested to Congress and Congress
reversed the decision of the President's Council. In
recognition of her heroic efforts and dedication to historic
preservation in general, in 1983, Congress passed P.L. 98-1 to
designate the plaza adjacent to the Old Post Office as the
Nancy Hanks Plaza and the building was officially renamed the
Nancy Hanks Center. The Old Post Office was finally awarded a
place on the National Register of Historic Places in 1973.
To encourage more commercial use of Federal space at ground
level, Congress passed the Public Buildings Cooperative Use Act
in 1976. The Act authorized both government and commercial
enterprises to share federally owned space at ground level. In
1977, renovation of the building began as part of the
Pennsylvania Avenue redevelopment. In 1982, GSA entered into a
55-year out-lease with a private sector developer to lease and
operate the Old Post Office Building. The renovation of the
building made it a multifunctional building that included
office space, retail, and a food court. Development options at
the Old Post Office Building are also buttressed by the fact
that several Metro lines are in close proximity.
The development expected at the Old Post Office Building
was not successful due to constant turnover of retail
businesses and low satisfaction by tenants. The original
developer went into bankruptcy and the lender foreclosed on the
leasehold. In 1998, Congress passed the Omnibus Consolidated
and Emergency Supplemental Appropriations Act of 1999 (P.L.
105-277), which required GSA to submit a viable development
plan for the Old Post Office before any federal funds are used
to convert the space. In December 2000, GSA submitted a
development plan to Congress, and on May 16, 2001, the
Committee approved the plan by adopting a Committee resolution.
In 2005, GSA issued a Request for Expressions of Interest
(``RFI'') for the project. The responses would allow GSA to
gauge and understand the entities who might propose to
redevelop the asset, the concepts they may propose and the
anticipated benefit to the government. Although the agency
received several responses to the RFI, GSA did not move forward
with redevelopment of the Old Post Office Building.
Delay in making use of this centrally located historic
treasure has made it one of the government's most wasted assets
and a public embarrassment. The building costs the Federal
Government money. The building's 2007 rent payments of $5.4
million did not cover the total expenses for the property of
$11.9 million, resulting in a loss of $6.1 million in 2007 to
the Federal Building Fund.
The policy of the Federal Government has long been to
preserve and make usable historic properties rather than sell
them for revenue. Preservation and use are particularly
important for this property, where not only its historic status
but, security concerns inherent in its location mean that the
property must be controlled by the Federal Government.
H.R. 5001, as amended, authorizes the Administrator of
General Services to enter into a development agreement to
redevelop the Old Post Office Building under terms and
conditions that are beneficial to the Federal Government.
SUMMARY OF THE LEGISLATION
Section 1. Short title
Section 1 designates the short title of the Act as the
``Old Post Office Building Redevelopment Act of 2008''.
Section 2. Old Post Office Building defined
Section 2 defines the Old Post Office Building as the land,
including any improvements and including the Pavilion Annex,
that is located at 1100 Pennsylvania Avenue, NW., in
Washington, DC, and under the jurisdiction, custody, and
control of the General Services Administration.
Section 3. Findings
Section 3 states Congressional findings for the Act.
Congress finds that for almost a decade the Subcommittee on
Economic Development, Public Buildings, and Emergency
Management has expressed considerable concern about the waste
and neglect of the valuable, historic Old Post Office Building.
Congress further finds that, pursuant to P.L. 105-277, GSA was
required to submit a development plan to the Committee on
Transportation and Infrastructure of the House of
Representatives, and the Committees on Appropriations and
Environment and Public Works of the Senate. The Committee on
Transportation and Infrastructure approved the plan in May 16,
2001, and the Senate Committees approved the plan on June 15,
2001. In 2004, GSA issued a Request for Expression of Interest
for developing the Old Post Office Building. Congress finds
that the request generated healthy, private sector interest,
but GSA has failed to proceed with implementation of the
approved redevelopment plan. Congress further finds that
redevelopment of the Old Post Office Building will preserve the
historic integrity of this unique and important asset, put it
to its highest and best use, and provide a lucrative financial
return to the Federal Government.
Section 4. Redevelopment of Old Post Office Building
Subsection (a) directs the Administrator of the General
Services to proceed with the redevelopment of the Old Post
Office Building in accordance with existing authorities
available to the Administrator, and consistent with the
redevelopment plan previously approved by the Committee on
Transportation and Infrastructure of the House and the
Committees on Appropriations and Environment and Public Works
of the Senate.
Subsection (b) authorizes the Administrator to provide
replacement space for the Federal agency tenants currently
housed in the Old Post Office Building, notwithstanding section
3307 of title 40, United States Code.
Section 5. Reporting requirement
Subsection (a) directs the Administrator of General
Services to transmit a report to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works of the Senate, on any proposed redevelopment agreement
related to the Old Post Office Building.
Subsection (b) provides that the report must include a
summary of a cost-benefit analysis of the proposed development
agreement and a description of the material provisions of the
proposed agreement.
Subsection (c) provides that any proposed development
agreement will not become effective until the end of a 30-day
period of continuous session of Congress following the date of
the transmittal of the report to Congress.
LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION
In 1998, Congress passed the Omnibus Consolidated and
Emergency Supplemental Appropriations Act of 1999 (P.L. 105-
277), which required GSA to submit a viable development plan
for the Old Post Office Building before any Federal funds could
be used to convert the space. On December 28, 2000, GSA
submitted the plan for the Old Post Office, as required by P.L.
105-277.
On May 16, 2001, the Committee on Transportation and
Infrastructure met in open session and adopted a Committee
resolution authorizing the development of the Old Post Office
Building.
On January 16, 2008, Delegate Eleanor Holmes Norton
introduced H.R. 5001, the ``Old Post Office Building
Redevelopment Act of 2008''.
On April 10, 2008, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management held a
hearing on ``The Old Post Office Building: The General Services
Administration's Plans for Future Use''.
On May 22, 2008, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 5001. The
Committee adopted an amendment in the nature of a substitute to
H.R. 5001 by voice vote. The Committee on Transportation and
Infrastructure ordered H.R. 5001, as amended, reported
favorably to the House by voice vote with a quorum present.
RECORD VOTES
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each record vote on a motion to
report and on any amendment offered to the measure or matter,
and the names of those members voting for and against. There
were no recorded votes taken in connection with consideration
of H.R. 5001 or ordering it reported. A motion to order H.R.
5001, as amended, reported favorably to the House was agreed to
by voice vote with a quorum present.
COMMITTEE OVERSIGHT FINDINGS
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
COST OF LEGISLATION
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
COMPLIANCE WITH HOUSE RULE XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included in the report.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation is to
authorize the Administrator of General Services to provide for
the redevelopment of the Old Post Office Building located in
the District of Columbia.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the enclosed cost estimate for H.R. 5001
from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 12, 2008.
Hon. James L. Oberstar,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5001, the Old Post
Office Building Redevelopment Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 5001--Old Post Office Building Redevelopment Act of 2008
H.R. 5001 would direct the Administrator of the General
Services Administration (GSA) to reach an agreement with a
private-sector entity to redevelop the Old Post Office Building
(including the Pavilion Annex) located at 1100 Pennsylvania
Avenue in the District of Columbia. CBO estimates that
implementing H.R. 5001 would cost $18 million over the 2009-
2013 period, assuming appropriation of the necessary amounts.
Enacting H.R. 5001 would have no significant net effect on
direct spending and would not affect revenues.
H.R. 5001 would direct GSA to redevelop the Old Post Office
Building in accordance with specific resolutions approved by
the House Committee on Transportation and Infrastructure and
the Senate Committee on Environment and Public Works in 2001.
Those resolutions would require GSA to enter into agreements
with private entities to redevelop the property through
authorities granted in the National Historic Preservation Act
(NHPA). That authority provides for the protection of historic
properties and allows federal agencies to lease historic
properties when those assets are not needed for current or
future agency purposes.
Based on information from GSA, it would take about 26
months to develop and solicit proposals, analyze and rank the
responses, and negotiate an agreement with a developer for the
property. Although it is unclear what type of development would
take place, GSA has previously reported that a hotel is the
most likely option, although other options for the location
have included a museum, television studio, or office building.
According to GSA, the building is currently occupied by
four federal agencies with approximately 450 employees and a
main hall that is occupied by about 36 private-sector entities,
including retailers and food vendors. Based on information from
GSA, CBO estimates that implementing H.R. 5001 would cost about
$18 million over the 2010-2011 period, assuming appropriation
of the necessary amounts to relocate the federal employees
currently occupying the Old Post Office.
In addition, payments by the current retailers and food
court vendors (about $500,000 annually) can be spent by GSA
under the Public Buildings Cooperative Use Act without further
appropriation. Future lease payments following the building's
redevelopment under NHPA also could be spent by GSA under the
Public Buildings Cooperative Use Act. Thus, neither the loss of
receipts from the current vendors nor the collection of the new
receipts from a ground lease following redevelopment would have
any significant net budgetary impact.
H.R. 5001 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Matthew
Pickford. This estimate was approved by Theresa Gullo, Deputy
Assistant Director for Budget Analysis.
COMPLIANCE WITH HOUSE RULE XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, H.R. 5001 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI
of the Rules of the House of Representatives.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
PREEMPTION CLARIFICATION
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 5001 does not
preempt any state, local, or tribal law.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
APPLICABILITY TO THE LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 5001 makes no changes in existing law.