[House Report 110-822]
[From the U.S. Government Publishing Office]
110th Congress Rept. 110-822
HOUSE OF REPRESENTATIVES
2d Session Part 1
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SALE OR EXCHANGE OF NOAA PROPERTY IN NORFOLK, VIRGINIA
_______
August 1, 2008.--Ordered to be printed
_______
Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 5350]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred the
bill (H.R. 5350) to authorize the Secretary of Commerce to sell
or exchange certain National Oceanic and Atmospheric
Administration property located in Norfolk, Virginia, and for
other purposes, 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. SALE OR EXCHANGE OF NOAA PROPERTY IN NORFOLK, VIRGINIA.
(a) In General.--The Secretary of Commerce may sell or exchange to
the City of Norfolk, Virginia, in accordance with chapter 13 of title
40, United States Code, real property under the administrative
jurisdiction of the National Oceanic and Atmospheric Administration (in
this section referred to as ``NOAA''), including land and improvements
thereon, located at 538 Front Street, Norfolk, Virginia, consisting of
approximately 3.78 acres, if the Secretary--
(1) determines that the conveyance is in the best interests
of NOAA and the Federal Government; and
(2) has provided prior notification to the Committee on
Natural Resources and the Committee on Appropriations of the
House of Representatives and the Committee on Commerce,
Science, and Transportation and the Committee on Appropriations
of the Senate.
(b) Consideration.--
(1) In general.--For any conveyance under this section the
Secretary shall require provision to the United States of
consideration having a value that is not less than the fair
market value of the property conveyed by the United States.
(2) Form.--Consideration under this subsection may include
any combination of--
(A) cash or cash equivalents;
(B) other property (either real or personal); and
(C) consideration in-kind, including--
(i) provision of space, goods, or services of
benefit to NOAA including construction, repair,
remodeling, or other physical improvements of
NOAA property;
(ii) maintenance of NOAA property; or
(iii) provision of office, storage, or other
usable space.
(3) Determination of fair market value.--The Secretary shall
determine fair market value for purposes of paragraph (1) based
upon an appraisal of the property conveyed under subsection (a)
conducted in conformance with the Uniform Appraisal Standards
for Federal Land Acquisitions.
(c) Use of Proceeds.--Amounts received under subsection (b)(2)(A) by
the United States as proceeds of any conveyance under this section
shall be available to the Secretary, subject to appropriation, for--
(1) activities related to the operations of, or capital
improvements, to NOAA property; or
(2) relocation and other costs associated with the sale or
exchange.
(d) Termination.--Authority granted to the Secretary under
subsections (a) and (b) shall terminate at the end of the 24-month
period beginning on the date of enactment of this Act.
PURPOSE OF THE BILL
The purpose of H.R. 5350 is to authorize the Secretary of
Commerce to sell or exchange certain National Oceanic and
Atmospheric Administration (NOAA) property located in Norfolk,
Virginia.
BACKGROUND AND NEED FOR LEGISLATION
The City of Norfolk, Virginia has experienced recent
significant economic growth. Downtown Norfolk has reemerged as
the urban center of the Hampton Roads region through a
comprehensive revitalization strategy which has spurred new
commercial and residential development. In the late 1990s,
Norfolk officials recognized the strategic location of the Fort
Norfolk District and re-zoned the district for ``waterfront
mixed-use.'' In 2001, at the City's request, the Urban Land
Institute (ULI) conducted a intensive assessment of the Fort
Norfolk District, and in 2002 ULI developed and provided for
the City a comprehensive re-development plan for the
approximately 50-acre District. The District holds significant
value as the City's last major downtown waterfront development
opportunity, and redevelopment is already underway.
The National Oceanic and Atmospheric Administration (NOAA),
which locates both its Marine Operations Center--Atlantic (MOC-
A) and its Chesapeake Bay Office in the city, has been an
important federal partner in downtown Norfolk for many years.
In 2002, NOAA was contacted by the Fort Norfolk Joint Venture
with an unsolicited proposal asking NOAA to enter into a joint
public-private partnership to exchange an under-utilized
federal property under the control of NOAA in the Fort Norfolk
District considered a vital link in fulfilling the
comprehensive redevelopment strategy, for a long-term lease at
another city site. The property of interest was a 3.78 acre
parcel located at 538 Front Street near the Elizabeth River,
with a single 7,000 square foot office building, surrounding
parking, and lot storage area. The building on the property
serves as offices and work space for NOAA's National Geodetic
Survey (NGS) Norfolk Field Operations office. Other portions of
the property, outside the main building, provide field areas
for instrument calibration, field testing and training, and
storage for vessels, marine equipment, and trailers. NOAA's
MOC-A uses portions of the property to store some equipment.
NOAA rejected this initial proposal citing a lack of explicit
authority and unfavorable financial implications for the
agency.
Two years later in 2004, the city itself contacted then-
Secretary of Commerce Donald Evans to discuss draft legislation
to authorize a conveyance or exchange of the Front Street
property. The draft language of that legislative proposal,
while similar to language contained in H.R. 5350, was also
rejected by NOAA, principally because the terms of the
conveyance were inflexible, the short- and long-term costs were
disadvantageous to NOAA, and the city failed to identify
appropriate alternate site options to relocate NOAA program
functions and activities. Since that time, NOAA and the city
have maintained amicable discussions to develop a framework for
agreement for a future sale, conveyance or exchange of
properties. H.R. 5350 would authorize such an agreement to be
implemented should it be reached.
COMMITTEE ACTION
H.R. 5350 was introduced by Rep. Robert C. ``Bobby'' Scott
(D-VA) on February 12, 2008. The bill was referred to the
Committee on Natural Resources, and within the Committee to the
Subcommittee on Fisheries, Wildlife and Oceans. On April 24,
2008, the Subcommittee held a hearing on the bill. A
representative testifying on behalf of NOAA for the
Administration and a representative testifying on behalf of the
City of Norfolk each spoke in support of the legislation.
On June 4, 2008, the Subcommittee on Fisheries, Wildlife
and Oceans met to mark up the bill. Chairwoman Madeleine Z.
Bordallo (D-GU) offered an amendment in the nature of a
substitute. This amendment made NOAA's use of any proceeds
subject to future appropriations; expanded the list of
committees to notice of any transaction to include the
Committee on Appropriations in both the U.S. House of
Representatives and the United States Senate; required that any
appraisals of value comply with applicable federal standards;
and inserted a two-year self-executing sunset of authority
granted to the Secretary under the legislation. The amendment
was adopted by voice vote. The bill was then forwarded, as
amended, to the Full Committee by voice vote. On July 16, 2008,
the Full Natural Resources Committee met to consider the bill.
A committee print reflecting the amendments adopted by the
Subcommittee was ordered favorably reported to the House of
Representatives by unanimous consent.
SECTION-BY-SECTION ANALYSIS
Section 1. Sale or exchange of NOAA property in Norfolk, Virginia
Subsection (a) would authorize the Secretary of Commerce to
sell or exchange to the City of Norfolk a 3.78 acre parcel of
property under the administrative jurisdiction of the National
Oceanic and Atmospheric Administration, including land and
improvements thereon, located at 538 Front Street in the City
of Norfolk. The Secretary would be required to determine that
any conveyance is in the best interests of NOAA and the federal
government, and to provide prior notice to the Committees on
Natural Resources and Appropriations in the House of
Representatives, and the Committees on Commerce, Science, and
Transportation and Appropriations of the United States Senate.
Subsection (b) would require any sale or exchange to be for
no less than fair market value of the property conveyed by the
United States, and that the form of consideration could be in
the form of cash or cash equivalents, other properties, in-kind
considerations, or any combination thereof. All determinations
of fair market value are to be conducted in conformance with
the Uniform Appraisal Standards for Federal Land Acquisitions.
Subsection (c) would make the Secretary's use of any
proceeds from such a transaction subject to appropriations and
restrict the use of proceeds to activities related to the
operations of, or capital improvements to, NOAA property or for
relocation and other costs associated with the sale or
exchange.
Subsection (d) would terminate the authority granted to the
Secretary under subsections (a) and (b) at the end of the 24-
month period beginning on the date of enactment of the
legislation.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article IV, section 3 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to authorize the Secretary of
Commerce to sell or exchange certain National Oceanic and
Atmospheric Administration (NOAA) property located in Norfolk,
Virginia.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 5350--A bill to authorize the Secretary of Commerce to sell or
exchange certain National Oceanic and Atmospheric
Administration property located in Norfolk, Virginia, and for
other purposes
H.R. 5350 would authorize the Secretary of Commerce to
exchange or sell to the city of Norfolk, Virginia,
approximately 4 acres of land. Under the bill, CBO expects that
the Secretary would negotiate a sale of the land, which is
valued at $1.5 million.
Based on information from the agency, CBO expects that the
administrative cost of the sale would be insignificant. The
legislation stipulates that proceeds of the sale, estimated to
total $1.5 million, would be available to the Secretary only if
provided in a future appropriation act. Thus, enacting the
legislation, would reduce direct spending by that amount.
Enacting the bill would not affect revenues.
H.R. 5350 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. The
bill would benefit the city of Norfolk, Virginia, by
authorizing the sale or conveyance of federal land to the city.
Any costs the local government might incur would result from
complying with conditions of aid.
The CBO staff contact for this estimate is Tyler Kruzich.
This estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
EARMARK STATEMENT
H.R. 5350 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.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.