PUBLIC BUILDINGS AMENDMENT OF 1972

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CIA-RDP86-00244R000100080037-8
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May 19, 1999
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April 19, 1972
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I 19 1972LLEGIB CONGRESSI 113273 DERWI WA G G OMPOOPtoCTigrAVVEIle s Mien expressing the sense of the Con- gress in a manner consistent with these remarks. I intend to cosponsor that reso- lution and to use my influence in what I truly believe to be the most direct and promising path to peace for this and fu- ture generations. PROVIDING FOR CONSIDERATION OF BILL FOR SUPPLEMENTAL AP- PROPRIATIONS, 1972 Mr. MAHON. Mr. Speaker, I have two unanimous-consent requests to make. The House Appropriations Committee will report on Monday two bill. First, Mr. Speaker, I ask unanimous consent that it may be in order on any day after Tuesday of next week?and that would be Wednesday or thereafter? to consider a general appropriation bill making supplemental appropriations for the fiscal year ending June 30, 1972, and for other purposes. ? The SPEAKER. Is there objection to __the request of the gentleman from Texas? Mr. GROSS. Mr. Speaker, reserving the right to object, may I ask the gentle- man how it is proposed to handle these bills, in the absence of a rule? . Mr. MAHON. Mr. Speaker, if the gen- tleman from Iowa will yield, this is a general supplemental appropriation bill which would supply funds to many agen- cies of the Government: ? Mr. GROSS. Yes, I understand that. Mr. MAHON. I understand, but per- Mit me to explain further. It covers many agencies of Government. Most of the additional money is the result of pay increases which have been accorded by or pursuant to law. It voil be the plan of the committee to call the bill up for gen- eral debate with 2 hours of debate, to be divided equally, and then under the 5-minute rule, as we usually do on appro- priation bills. ? This request is for the purpose of bringing the bill up on Wednesday, if possible. Mr. GROSS. Mr. Speaker, I withdraw my reservation of objection. The SPEAKER. Is there objection to the request of the gentleman from Texas? Mr. RYAN. Mr. Speaker, reserving the right to object, would the distinguished chairman of the Appropriations Com- mittee inform us as to whether or not it- is contemplated that the supplemental appropriation bill will include any money for the military? Mr. MAHON. Mr. Speaker, if the gen- tleman will yield, the bill will include several hundreds of millions of dollars for pay increases for civilian and hnlitry personnel, based on laws heretofore en- acted. It is now a matter of providing the ad- ditional funds with which to make the payments so authorized. Mr. RYAN. For personnel? Mr. MAHON. Yes. - Mr. RYAN. Will it include any money y Southeast Asia? 09/4Y: eykaRDP8640244 40008003t7ie& objection to ou east Asia anc areas all over the the lequest of the gentleman from Texas world. But the supplemental amounts (Mr. Manoita ? are not related directly to Southeast There was no objection. Asia. It does provide for pay of military per- sonnel, of course. Mr. RYAN. Does the bill itself, in addi- tion to pay increases for civilian and military personnel, contain any money for military operations in Southeast Asia? Mr. MAHON. Not as such at all; no. The whole objective here is to bring the bill up on Wednesday rather than Thursday in order to expedite the busi- ness of the House. Mr. RYAN. But there is no military money involved, except for pay increases? Mr. MAHON. Generally speaking, that is correct. I would be perfectly happy for the gentleman to look at the report which is not in final form, but which is available in. draft form. Mr. RYAN. I am concerned about the chairman's statement "generally speak- ing." Is there some other money, other than for pay. increases? Mr. MAHON. No; not at all. Of course, the House can work its will on whatever it wishes to do with the bill which will be before us next week. I would say to the gentleman from New York that it provides for the Depart- ment of Defense?military, retirement pay, and increased pay and retirement. In respect to the Defense Department and to a large extent otherwise, it is a routine appropriation to supply supple- mental funds for pay cost increases here- tofore put into effect. Mr. RYAN. In other words, the only military funding is for the payment of personnel, either pay increases or in- creases in reiirement y? Mr. MAHON. The gentleman is cor- rect. Mr. RYAN. And there is no money for procurement of weapons, or for conduct- ing military operations? Mr. M..tHON. This did not provide for the procurement of weapons or am- munition. Mr. RYAN. I thank the gentleman. Mr. Speaker, I withdraw by reserva- tion of objection. The SPEAKER. Is there objection to the request of the gentleman from TeX- as? Mr. PICKLE. Mr. Speaker, reserving the right to object, do I understand the chairman to say that there will be a re- port available on this supplemental? Mr. 'MAHON. Yes, when the bill is re- ported. It will be reported on Monday. Mr. PICKLE. Would we be able to have a copy of the report by Monday? Mr. MAHON. Yes; just as soon as the cs,rimuttce reports it Monday of ternoon. coh,mue not to exceed one 7,1r, Piel_cf__,E. Ariti n'_it before.? eoitally divided .,f.td conr(;Lle,1 rkaii and M AH ran.-.; Mr. ON. Not before, bee arise the - Committee on PuOlic S! bill Will no 'inputs cc'born . Ts. ? be read for amendment at..tt.:r te port, in fact, is not yet finalized. If the oar role. It shall be in order to considyr the gentleman needs to know what is tenta- amendment in the nature_ of a substitute ively in the bill, it can be providsd; we recti,mmended by the Committee On Iiie have a draft of the bill and report, but Wats now printed in tile bLit as an er:i?al -he Point is the athole committee has not MEE for the purpose of ameutimei: tlif five-minute rule. and ail poi') orrer et consicierid and voted on it. -There agtinst said substitute for failure to ccan.,!3; oulci be changes next Monday. witat the provisions of clause 7, rule XVI, Mr. PICKLE. Mr. Speaker, I with- apt clause 4, rule XXI, are heri4iy v;aivt.d. draw my reservation of objection. At the conclusion of such consideration, the 2000/09/14: CIA-RDP86-00244R000100080037-8 PROVIDING FOR CONSIDERATION OF A JOINT RESOLUTION MAKING A SPECIAL APPROPRIATION IN RESPECT TO DOLLAR DEVALUA- TION Mr. MAHON. Mr. Speaker, I ask unan- imous consent that it may be in cider on any day after Tuesday of next week to consider a House joint resolution making a special appropriation for the purpose of carrying out the Par Value Modifica- tion Act (Public Law 92-263) the dollar devaluation bill. This is a bill to provide for funds nee- mazy as the result of the devaluation of the dollar. The SPEAKER. Is there objection to the request of the gentleman from Texas? Mr. GROSS. Mr. Speaker, reserving the right to object, I assume this is com- monly known as the maintenance of value bill? Mr. MAHON. That is correct. Mr. GROSS. And will the same provi- sion for debate and consideration of this bill apply as to the previous bill, with 2 hours of general debate? Mr. MAHON. This would be a speelal measure, but we would ask tor amole time?an hour to each side, and then the 5-minute rule. Mr. GROSS. With that understand- ing, Mr. Speaker, I withdraw my- vation of objection. The SPEAKER. Is there obeetion to the request of the gentleman from 'Isstas (Mr. MAnotz) ? There was no objection. PUBLIC B UILDIN GS AM EN DrIE S OF 1972 Mr. BOLLING. Mr. Si)efier. by direc",- ton of the Committee on Rules. 1 soil House Resolution 931 and itek for its _ mediate consideration. The Clerk read the resoiution, as fol- H. REs. 931 Resolved, That upon the adoption of this rEsolution it shall be in order zo ravuse 27(d) (4) of rule XI to the contrary nal^,vithstandit g. that the I.escive -- self into the Comittee of the kN,ide on the State of the Union for c.,, eziltion of the bill (H.R. 10488) to amend tbz Public Buildings Act of .1:59. as amt,nded. toprovide for rinaricing the acquisition. e.,.?,n- stravtion, alt,r,ration, maintenance. opera- ticte, and protection of public I- 'ii'.'. and for other purpo:-.e,i. After go.n.ei..d which shall be confined to the aln?, ;i111 Mr. MAHON. No; this is not related to Southeast Asia. Of course, in a sense the Approved For Release IT 3274 ,,CONcRESSIONAL RECORD ? HC.?SE April 19, 197; pphr9ved For lele,q 20o0/09/14 : CIA-RDP86-0020R000100080037-8 Comm 'L a rise and repor t le i 0 (Mr. LATTA asked and was given per- 'The SPEAKER. The question is on the the House with such amendments as may mission .to revise and extend his re- motion offered by the gentleman from have been adopted, and any Member may marks.) Illinois. . demand a separate vote in the House on Mr. LATTA. Mr. Speaker, I agree with Tne motion was agreed to. any amendment adopted in the Committee of the Whole to the bill or to the commit- the statement just made by the gentle- IN TI1E COMMITTEE OF THE WHOLE tee amendment in the nature of a subsii- man from Missouri (Mr. BOLLING) con.- Accordingly the House resolved itself tute. The previous question shall be con- cerning the rule. I think it is a good rule. sidered as ordered on the bill and amend- I think it is the only thing the Committee into the Committee of the Whole House eon- meats thereto to final passage without in- on Rules could do in this case. on the State of the Union for the tervening motion except one motion to re- FIR. 10188 amends both the ? Public sideration of the bill H.R, 10183. with ? commit with or without instructions. After 'Mr. ASPINALI, in the chair. Buildings Act of 1959 and the Federal the passage of H.R. 10488, the Committee The Clerk read the title of the oill. Property and Administrative Serviees Act on Public Works shall be di7charged from By unimitnOUS consent, He rust read- the further consideration of the bill, S. of 1949 in numerous respects. thg of the bill was dispensed with. 1736, and it .shall then be in order in the A major purpose of the bill is to require House to move to strike out all after the Government agencies using public build- The CHAIRMAN. Under the rule. the will gentleman from Illinois (Mr. GP, enacting clause of the said Senate bill and ings to budget and pay for the use of the AY , space they occupy. The receipts would be recognized for - 30 minutes, and the Insert in lieu thereof the provisions con- tained in H.R. 10483 as pas3ed by the House. ' then be used by the General Services Ad- gentleman from Ohio (Mr. HARsitA) will The SPEAKER. The gentleman from ministration to finance its public build- be recognized for 30 minutes. The gen- Missouri (Mr. BOLLING) is recognized for ings construction and operations, but tleman from Illinois (Mr. Gamin is recognized. 1 hour. only after these funds have been appro- Mr. BOLLING. Mr, Speaker, I yield propriated by Congress. Mr. GRAY. Mr. Chairman, I yield my- 30 minutes to the gentleman from Ohio A second major purpose of the bill is- self 10 minutes. (Mr. LATTA), pending which I yield my- to authorize the Administrator to enter Mr. Chairman, members of the com- self such time as I may consume, into purchase contracts with independ- mittee, your House Committee on Public Mr. Speaker, this is a rule that proves ent contractors for the purchase of build- Works is privileged to bring before nett how complicated a simole oisen rule pro- ings, with payments to be mode over a today for consideration the bin H.R. viding for 1 hour of general debate can period of from 10 to 30 years. This au- 10483 that would (=lend the r iibilo Buildin Ac be. It makes in order the committee sub- thority -would be valid for 3 years, and gs t of 1959 - i o eecciiin? for fi stitute for consideration as an original would nuke it possible to construct some nancing the acquisition, min ;'1.:.C't0II, al- , bill for the purpose of amendment. It of the 63 public buildings already author- teration. maintenance, operiti.in arid waives points of order for failure to corn- ized by the House and Senate Commit- protection of public buiniii17-S in tile Vie- ply with the 3-day rule, but copies of the tees on Public Works, but not yet funded. United States, Puerto Rico, and the Vie- report are available. The committee report refers to this pro- gin Islands. There are three sections of the laill vision as a "stop -gap expedient, an at- Mr. Chaieman, I can assure you that this l slation is in the i est which are, in effect, rearpropriations Of tempt i o reconcile the urgent need for egi ptiblic nter funds and, therefore, points of order had new Federal facilities with present eco- and in the long run will save'eny eel:- to be waived against them for failure `to nomic conditions." The bill would also, in lions of dol.lars of the taxpayme feeds. comply with clause 4 of rule = which limited situations, permit the lease-con- There are nye main orovisions of the bill makes it against the rules to have ar struction of Federal buildings authorized before you. propriations in authorizing bills, but not funded. The committee renort First, H R. 10468 would Sliiffi a describes lease construction as a "remote private entreOrCilellr method o. !-I: i Sections 7 and 9 of the substitute whi h we make in order for consideration as n alternative, avMetble only when direr!: ing public buildinos known as sr. .s -original bill were not in the original bill Federal construction and purchase con- contracta fee a sits st pseicie en and there is some question of germane- tracting are not feasible." only in place or dirset Fele s ness. Therefore, points of order are A third provision in the bill authorizes in order to inaileentiele cc,. s waived against that in order to comply $1,500,000 in fiscal year 1972 for pay- much 'needed Fedora', jeilicile e in '' 7 with clause 7 of rule XVI. meat of costs of the ?publicly related StateS. Ptierto Rico, ond Then less Unusual, we provide that functions of the niemorial aspects of the lands. Mr. Cl ii Ines ti.lici- "Ss after the passage of the House bill, the John F. Kennedy Center for the Per- ings have been autnorisied fer iiio s -Committee on Public Works shall be dis- forming Ares. I oppose the inclusion of with no funds to censtruct (-nein. -Vinle charged from further consideration Of this section to tins bill. these much needed le cenies 1: -e? e ?isen Senate 1736 and it shall be in order to In addition to the $1,500,000 for the on the shelf, inflation has increased their move to strike out all after the enacting Kennedy Center, the committee report aggregate cost by .9,1.)7,1'07';M:,: 'I; clause of the Senate bill and amend it shows the cost of this bill over, the next million per year. In !?-n.l.il.t.ifii. (h. li,'eles-,:11. with the House passed language. , 6 years as $1,430,800,000. However, the Government 'has been leasing nes oo s I believe that describes all the unustial cost figures in the committee report do private individuals with no earthy ac- cruing. to the taxpayers other than the features of the rule. ' . i not take into consideration the fact that I will say. that there was no oppositien the purchase contract arrangement, as- space used. The Genetol Services .Acimin- istration estimates that by owiense these to the rule among witnesses before -the suming .30-year contracts, will continue o,th en iuings and payin- inlo eflU,I:,' Cl ii? o n committee. Ida understand there is soeue to cost the taxpayers approximately save a minimum of $71 millions per year. controversy in the matter that will be $100.000,000 per year until the contract Mr. Cleairman, the second psenision I made in order by the rule and if Ty expires. These a.dditional cost estimates would like to explain v ll also anent great friend from Iowa would like me to yie d, were provided by the GSA Office of the i savings to the taxpayers. IL (omen au- I will attempt to answer his questio s. Budget. Mr. BOLLING. Mr. Speaker, I move thorize establishment of a jinlbi!. build- Mr. GROSS. Mr. Speaker, I thank ? ings fund into which will to siceosieel gentleman for yielding the previous question on the resolution. I a not at all surprised that there The preVicus miestion was ordered. user chaeres or toms oesleem l ,]?1 m Federal depl irm!n-,L,; a was no opposition to this rule from r,ien-i- The resolution was agreed to. bers of the committee because this cer- A !noti on to reconsider was laid on space ill &A ookseae. from anion wilt te tainly accommodates them. I do not See the table. drieen 1 esi f, finance the construction and men tition how they could ask for more--they got - Mr. GRAY. Mr. Speaker, I move that of the new Government Innen nes. Under all outdoors right along with the protqc- the House resolve itself into the Commit- present law, any agency ot Cio.:mrnenr tive provisions they have in the bill, tee of the Whole House on the State of can request as much space as t,:y ,..rarit Mr. BOLLING :The only thing I can tne Union for the consideratiod of the without having to request 1 cesta in their say to the gentleman is that we conld bill ( H.R. 10488) to amend the Public budget. have waived all points of order witheut Buildings Act of 1959, as amended, to We know for a fact thot?indiecritninate painting out what they were in detail; provide for financing the acquisition, requests have been made for space that Dille GROSS. I understand that. . construction, alteration, maintenance, is now costing the taxpayers millions of T"eardirdie4 Ohio . . . legaffafft129110 /141"VffMr86Q00-244RG001,000909117-8quiri, useven' f r all i 1 3 '. agency to pay or he space they e iii April -19, 1972 CO-r;RESSIONAL RECORD -HOUSE 11 3275 all GovernmeAPPEQMOCileft9rIBRIA44900444POngACAPPan-00001gaillM914QPinfale gen- ings for the first time in our history we taining all monuments in the Nation's tleman from Illinois has expired. Will know exactly what It is costing us Capital. This is where this responsibility Mr. GRAY. Mr. Chairman, I yield my- to provide this space. Second, we know rightfully belongs. I am sure the Mem- self 2 additional minutes. that agencies will be prone to consolidate hers of the House and the other body Putting it very simply, what we could some of their far-flung operations and to do not want to be saddled with this build today for $1.4 billion, if we waited save millions of dollars by requesting obligation as the years go by. The Park another year, would have a cost of $1.5 smaller amounts of money in their budg- Service has agreed to accept the respon- billion, and, at the present rate of infia- ets. The Appropriations Committees of sibility and I again want to reiterate it tion, would have a cost of $1.7 billion the House and Senate will approve these is only the responsibility and expense 2 years from now, and so on. appropriations which will continue to connected with the daytime operation Mr. GROSS. Is the total, as set forth give Congress full control over this new of the nonperforming arts functions of in tile report, $1,430,800,000? Is that the revolving fund. The moneys collected in the Kennedy Memorial. total cost of the bill, and does that take the revolving fund :then can go to pay Mr. Chairman, at the present time, into account the cost of the 61 buntlines? the purchase contract payments for the there is an average of 8,000 to 10,000 Mr. GRAY. The 63 buildings. That es 63 new buildings and others that may be persons per day visiting the Kennedy not the total cost. approved later. Center, some holidays produce even We must remember that many of these Third, this legislation would preserve more. It is the second highest visitation projects were approved as long as 9 years basic congressional controls over the point at the present time of any monu- ago. This is the best figure we could get building authorization and spending. ment or facility in Washington. It is now from the General Services Adminis- process while permitting necessary ad- second only to the Capitol Building. The tration. ministrative flexibility. The bill contem- monument was closed for more than 3 / certainly want to be fair and candid plates no change in the past requirement months which brought public clamor for the Members, as I have always tried that the House and Senate Public Works from all over the United States. It was to be. I believe we can say by going the Committees approve building prospec- reopened recently and if the authoriza- private entrepreneur route, a. e i) nulhcn tuses. In addition, the General Services tion you are being asked to support is building over a period of 30 years would Administration would be required, as at not adopted, the Board of Trustees will cost approximately double that, or $20 present, to submit annual budget re- have no alternative but to once again million. So we are really talking about a quests to the Home and Senate Appro- close the Center during daylight hours. cost of close to $2 billion over the next 10 pria dons Committees and such requests To me, Mr. Chairman, this would be a years to 30 years. would have to be approved by both national disgrace. Since the bill before There is a $71 million per year saving - Houses before GSA could make any ex- you will save the taxpayers many mil- by moving out of rented space, where pendittires from the fund. Thus, the Con- lions of dollars, I am sure every Mem- the taxpayer is getting no return for his gress would continue to approve con- ber can justify voting for the entire bill investment, and by going into Govern- struction on a building-by-building basis including this Kennedy Center amend- ment-owned buildings. and to impose spending limitations. ment, since the $1.5 million will be offset Add that up, and subtract it from the Fourth, the bill would require the Ad- by savings affected in other sections of $2 billion. ministrator of GSA to submit a prospee- the bill. The best estimate I can give my friend tus for approval by the House and Sen- Mr. Chairman, in closing let me tell is to look at page 30, and to say that ate Public Works Committees wherever you that the American public deserves when those buildings are finally owned he proposes to secure leased space for good service from their Government by the taxpayer they will cost us double. which he pays an average annual rental whether it be in the adjudication of a Mr. GROSS. Is the figure of $1.430 mil- in excess of $500,000. This is a tightening social security claim or help from the lion limited to the 63 buildings? of congressional control over present many other Federal agencies. This bill Mr. GRAY. Yes, this is limited to the leasing laws. At the present time, Con- will bring together all of these dispersed 63 buildings. grass has no control oaer leasing of pub- offices under one roof in 63 communities, The CHAIRMAN. The time of the lin buildings. We feel this should be catch up the 10-year backlog of public gentleman has again ey.pired. brought under control so we can monitor building construction and make in order Mr. GRAY. Mr, Chairman, I yield the amount spent for leased space where the consideration of other projects in myself 2 additional minutes. it is not feasible to construct a new other congressional districts as the need In some cases it may be advantageous arises. If we are to maintain a good court to the Government to take as short as Fifth, lastly, the bill . would authorize 'system and provide good public service, a 10-year contract. We allow an eseala- $1.5 million for the nonperforming arts we can do no less than send this bill on tion of between 10 and 30 years for con- :functions at the John F. Kennedy Cen- to the White House immediately in its tracts. ter, Mr. Chairman, I want to make it present form since it has already passed Putting it very simply, the figures are crystal clear that these funds ? are for the other body overwhelmingly, what the building will cost. You have to In closing, I have been asked by the add what the costs of other goods and the security, maintenance, and other gentleman from California (Mr. BUR- services are, such a.8 architectural and necessary expenses in connection with 'marl whether or not the Social Security engineering costs, and so forth. That is the memorial and not the performing Building in San Francisco could be why I am being candid in saying that it arts functions of the Center. Your corn- moved from that city under the terms will cost double. mittee on public works was requested to of this bill; the answer is "No." The General Services Administration provide several million dollars to pay I shall be delighted now to yield to any is spending Millions a year now for for cost overruns due to labor disputes, Member who might have any questions leased space, and I think you have to add Inflation, and other factors. Those funds concerning this measure, that in, with nothing in return to the are not in this bill. The $1.5 million is Mr. GROSS. Mr. Chairman, will the taxpayer. to pay the National Park Service for guard protection, to pay for electrical gentleman yield? Mr. GROSS. Are there no other costs and air-conditioning bills and other ex- Mr. GRAY. I am delighted to yield to expenditures other than $1.5 million for pensea in connection with keeping the my friend from Iowa. that monstrosity down on the Potomac? Kennedy Center open to the general. Mr. GROSS. I thank the gentleman Mr. GRAY. That Ls the enLire public during daytime hours when the for yielding. I understand the gentleman now. '1 here performing arts part of the Center is What is the total cost of this hill? is no cost in here except the cost for tile not in operation. This authorization ex- Mr. GRAY. In the present estimate of 63 buildings plus the $1.5 million for the Kennedy Center. I am sorry I did not plies at the end of this fiscal year with the cost of the 63 buildings, it aggregates no continuing authorization and it will approximately $1.4 billion. As I pointed understand the gentleman's question be- be our intention under the 5-minute rule out in my statement earlier, many of fore. to offer an amendment giving the these projects have been authorized for Mr. LENNON. Will the gentleman responsibility of providing security and many years, and it has cost the Amen- yield? Maintenance at the Kennedy Center to can taxpayer about $100 million per year Mr. GRAY. I yield to the gentleman, the National Park Service which is in inflation for these 63 projects. Mr. LENNON. On page 25 of the cam- Approved For Release 2000/09/14: CIA-RDP86-00244R000100080037-8 H 32VOproved For ReleWiceMiting4IsTCPRIRM15-110A4490010008003y/i/ 19, 1974 mittee report, as you describe the term "public buildings," beginning on line 13, where it describes it as "any other building or construction project, the in- clusion of which the President may deem, from time to time hereafter, to be justified in the public interest." For the purpose of precedent, is the annual authorization bill or such authorization bill as has been brought out by the Com- mittee on Public Works relating to pub- lic buildings giving the President of the United States the authority to make the selection of the site and then Congress will fund whatever he says should be built, whether it is a center in the Dis- trict of Columbia for a sports arena or , not? Have we done this before? Mr. GRAY. The gentleman has raised a very important question. If you will - refer to the report, you will see the bill you are being asked to vote on here today does not authorize a single project be- yond the 63 line items put in this re- port on page 30. The CHAIRMAN. The time of the gentleman has again expired. Mr. GRAY, Mr. Chairman, I yield my- self 5 additional minutes in order to answer questions. It does not authorize one single project beyond the 63 enumerated in the report. If any additional buildings are required any place in the country, whether in the gentleman's congres- sional district or mine or anyone else, you would have to go through the regu- lar procedure of the General Services Administration making a survey of the space needs and working up what is known as a prospectus and submitting this prospectus to the House Committee , on Public Works. It would then have to be approved by the Senate Committee on Public Works before any money could be spent from the revolving fund for any purpose for any type of building. Mr, LENNON. I very much appreciate the gentleman's explicit and definitive explanation, but I am concerned as to why in your report you state as it is used this term: "Public buildings," and then it goes on to say that a public building is any building or construction project the inclusion of which the Presi- dent may deem from time to time here- afterto be in public interest. Why is that language used if you get to stand in the well of the House and say you are now authorized to build any building the President may decide he wants to build? Mr. GRAY. Let me say, you may have. a parking facility or a warehouse or something that does not fit into the gen- eral category of a Federal office build- ing. Therefore we have given him that, flexibility. But let me remind you it only allows the President the authority to request the Congress to do this. We will still have to approve it by line item, as any project that he deems to be in the public interest. Mr. LENNON. Let me call my dis- tinguished friend's attention in the same paragraph to the place where you define a public building as record cen- ters, appraiser's stores, courthouses, wa- constructed. 1.1 this is done, a building n'c difdal reflected in the taellr oifflaggataiiqt,AVI914Matited2 ' Then, you conclude the definition of a public building as any building that the President decides should be built in the public interest. Are you saying to this House today, sir, that there is nothing in here that would authorize the construction of a sports center or recreational center here in the District of Columbia? Mr. GRAY. I am stating emphatically that any such request by the President would have to be submitted to the House and Senate Committees on Public Works and approved by it on a line item request. Mr. LENNON. I say this because some members of the Public Works Commit- tee, although I am not a member of that committee, are concerned about this language. Mr. GRAY. I am sure that any re- quest would have to be approved by the House and Senate Committees on Pub- lic Works on a line item basis. Mr. HECHLER of West Virginia. Mr. Chairman, will the gentleman yield? Mr. GRAY. I yield to the gentleman from West Virginia. Mr. HECHLER of West Virginia. I no- tice on page 30 there is included some 30 States and 54,000 square feet of build- ings in the Virgin Islands. Am I to assume that there are no ap- proved projects in the State of West Virginia contained in this bill? Mr. GRAY. I would remind my friend from West Virginia that the projects that are contained in this bill are proj- ects that have been authorized by the House and Senate Committees on Pub- lic Works for as long as 9 years ago. The purpose of getting this bill passed and getting these 63 projects out of the way is in order that we can build add t- tional facilities in West Virginia and other places instead of renting that space for the use of social security of- fices, draft boards and others which are now operating in rented space where the private investigator gets the equity and it never accrues to the benefit of the taxpayers. I think it is time that we consolidated these operations in West Virginia and in other States in Federal buildings. Mr. HECHLER of West Virginia. Mr. Chairman, if the gentleman will yield further, I certainly hope that the gen- tleman and his committee would be sym- pathetic next year toward the space needs of our State. Mr. GRAY. We are always sympa- thetic. ate more efficiently and effectively in the public interest. Unfortunately. the Federal building program in recent years has not kept abreast of agency requirements. Because of funding limitations, much-needed buildings located in 37 States through- out the Nation, although authorized as long as 9 years ago, have not been built. This is not to be critical of anyone or any committee because we have had pri- ority problems and only so much money with which to meet those problems. However, this has posed a severe hard- ship on those agencies whose space needs have net been met. And it has proven extremely costly to American taxpayers. The inflation toll alone caused by construction delays amounts to over $100 million annually. Presently, there is a backlog of 63 public buildings which have been au- thorized but not built. Clearly, the time has come to eliminate the backlog and to put the Federal building program on a sound budgetary basis. H.R. 10488 is feel-do:led with this ob- jective in mind. First. it. would aueneeiee GSA to contract, over a 3-year ndeed, for the construction of the Cri l):w!krg buildings. The device used would be pur- chase contract authority, Such authority would enable GSA to enter into agree- ments with independent contractors for the purchase of buildings through pay- ments spaced over a period of tune up to 30 years. At the conclusion of the con- tract term, title would vest in the Unired States. Throughout the cornrat':.t tenn, however, the buildings in queetion would remain in priVate p WI: to State and local taxation. This would mean that the Feclerel preeetaee in en area would constitute a tax bene-lit ro than a tax burdea. But I wish to stress that the lease purchase authorieation is a stcenean measure. It is not our intention that ties type . of funding arrangement b:yrie permanent, What we are simely diene is providing a mechanism which wiil enable us to place the Federal building program on a sound and finencially re- sponsible, basis in the future. A logical first step is the elimination of e the backlog which the lease-purcien.e or contract purchase authorization over the next 3 years would accomplish. Addi- tionally this legislation establishes a Fed- eral building fund into whicia user charges would be paid by agencies oc- cupying Federal ?ince space. Facts Fee- eral agency would be required to pay into Mr. Chairman, I reserve the balance the fund user charges equivalent to corn- of my time, mercial rates for the space and related services received. Since the user charges made would, ha set at comniercri funds would. he *,:,nerr:n:en to nuance fu- ture construction needs. The General Services Administration strongly endorses establishment of- the building fund. In a letter to the Speaker, Assistant Administrator Harold S. Tim- mer, Jr., declared: Requiring all agencies -to finance the cos: of the space they occupy is consistent with Mr. HARSHA. Mr. Chairman, I yield myself 10 minutes. (Mr. HARSHA asked and was given permission to revise and extend his re- marks.) Mr. HARSHA. Mr. Chairman, the principal aim of any sound Government building program is to assure that space authorizations are attuned to space needs. Thus, when the appropriate com- mittees of Congress find that a Govern- ment building is needed it should be itkaRDP8640244h4J 0:1 re agency. Review 'Government can oper- of agency budgets internally by review au- April 1Pps9yed For Rele*MftglaglAlt: Ei&W...8_66540k000100080037-8ii 3:77 thorlties in the Executive Branch and by the Congress would be more realistic. This would be a significant change in the method of funding building operating and capital costs, but would be both practical and busi- nesslike. The new budgeting approach would en- hance the ability of General Services Admin- istration to provide faster and better serv- ice with respect to space needs of agencies, both by new construction and lease. Pro- vision of funds for space would be directly related to the programs involved. Authoriza- tion would be based on .better Information and costs estimates. Funds for specific proj- ects would be provided at one time in lieu of the present two or more budget requests for the same project, each involving a full cycle. Let me make,, this clear, however. In authorizing the establishment of a public building fund, the Congress would not be surrendering congressional control over the building authorization and spending process. The Committees on Public Works of both Rouse and Senate would still approve individual building prospectuses. What is more, GSA would continue to ,submit annual budget requests to the Appropriations Committees. Such re- questa would have to be approved by both Houses before any expenditures could be made by GSA from the building fund. Thus, Congress would maintain present authorization and spending control over Federal construction. As an additional safeguard, H.R. 10488 would require the submission of a pro- spectus to the Public Works Committees whenever annual rentals for leased space exceed $500,000. Mr. STRATTON. Mr. Chairman, will the gentleman yield? Mr. HARSHA, I yield to the gentleman from New York. Mr. STRATTON. Mr. Chairman, I support this legislation. eMr. STRATTON asked and was given permission to revise and extend his re- marks.) Mr. STRATTON. Mr. Chairman, I rise in support of H.R. 10488, the Public Buildings and Grounds amendments. This bill allows the Federal Govern- ment to authorize construction of Fed- eral office buildings by private contrac- tor, with the General Services Admin- istration leasing the building for a spe- cified period and applying the rent toward the final purchase price. The effect would be to allow the construction of at least 63 public buildings already authorized by the House and Senate Committee on Public Works, but which have been thus far unfunded and hence =constructed. Included among these 63 proposals is a new Federal Office Building for the city of Albany in my congressional dis- trict, the capital of New Solos State. The design of this building was com- pleted some time ago and site acquisition will be completed as soon as this legisla- tion is enacted. Although the prospectus for this new Albany Federal Building was approved by both Public Works Commit- tees as far back as 1964, it is estimated that by following present procedures it could be another 10 years before the Capital offalaggialSeileckb Federal oIerS The Administrator of the GSA informs me, however, that when the bill before us today is enacted into law, the GSA is pre- pared to begin immediately the contract award process for Albany with the build- ing itself to be completed within 2 years. The purchase contract arrangement provided for in the committee bill Is, it appears to me, a far superior method of having Federal buildings constructed than the present piecemeal method of annual appropriations. By funding al- ready authorized buildings on a one-shot basis, the GSA could have the buildings constructed over a relatively short term, and then gradually purchased them by means of the rents collected from the tenant agencies. Until the Federal Gov- ernment had paid the final purchase price the buildings would be subject to real estate taxes. At the same time a spe- cial public building fund would be set up, into which user charges, collected from all Federal agencies using space in GSA buildings, would be deposited. Money from that fund could go toward financing the construction and opera- tion of still other Government buildings. I uree my colleagues to support this bill so that we will at last have a real- istic and financially workable means of constructing new and much needed Fed- eral office buildings, and so we can get going at once on the construction of the new Albany Federal Office Building. Mr. GRAY. Mr. Chairman, I yield such time as he may desire to the gentleman from California (Mr. BURTON). Mr. BURTON. Mr. Chairman, I thank the distinguished gentleman. In our city of San Francisco, we have a payment center for the Social Security Administration. They employ some 1,700 people. A number of them are very highly skilled, of course, but there are also a great number of jobs that require some- what less skill. This employment is very vital to our city. I understand from the remarks of the gentleman from Illinois that there is nothing in this bill that authorizes or encourages the removal of that payment center from San Fran- cisco; is that correct? Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. BURTON. I yield to the gentleman. Mr. GRAY. Absoultely nothing?there Is absolutely nothing in this bill that would cause the removal of the facility in San Francisco. Mr. BURTON. I would hope the gen- tleman from Illinois would agree with me in view of the difficulty of employment in the core cities?that a move of that sort should not be taken without an over- whelming case being made for the re- moval of this kind of job opportunity for the residents in our central city. Mr. GRAY. I agree with the gentle- man completely. Mr. BURTON. Mr. Chairman, I yield to my friend, the gentleman from Cali- fornia (Mr. WALDIE). Mr. WALDIE. Mr. Chairman, I appre- ciate the gentleman yielding. I just want to state to the gentleman, he has my full support for this bill. The 0. :NIP Ottl MYKRIM-R0 cation of a Federal social security pay- ments facility for many of the seine rea- sons that my good friend and colleague from San Francisco, the gentleman from California (Mr. BURTON) has suggested. We need to alleviate the =employment problems in the Richmond area. We see this bill as a major help in that direction and we commend the gentleman and the committee for moving in that direction. Mr. GRAY. I thank the gentleman from California and I assure the gem IC- man the committee will be sympathetic to any request that is received. Mr. Chairman, I yield such time as he may require to the gentleman from Texas (Mr. GONZALEZ). Mr. GONZALEZ. Mr. Chairman, I also rise, to say I support fully the gentleman in this legislation. I just have one question along the line that the first gentleman from California (Mr. BURTON) inquired about, and it hes to do with the net impact of this legis- lation. My question is simply this. In my home district of San Antonio, we have had a ii- thorized and appropriated for a facility for several years. This legislation in no way would detrimentally affect those plans; would it? Mr. GRAY. Mr. Chairman, will the gentleman yield? M:.. GONZALEZ. I yield to the gentle ma - Mr. GRAY. I want to make it perfectly clear that there is nothing in this bill that would preclude an ongoing pro e' from continuing whether it is the GSA or the Postal Service. Mr. GONZALEZ. I thank the gentle- man. Mr. HARSHA. Mr. Chairman. I 'eel a 3 minutes to the distingtfrhed genit man from New Yock ir.C;ioL op) ,to ranking minority member on the sub- committee who has done such outstand- ing work on this logislatton. Mr. DON H. CLAUSEN. Mr. Chairman, will the gentleman yield? Mr. GROVER. I yield to the gen 'e- ma(Mr. DON H. CLAUSEN asked and was given permission to revise and ex- tend his remarks.) Mr. DON H. CLAUSEN. Mr. Chairmen, I rise in support of this legislation and compliment the committee for the work that they have done. Mr. Chairman, I rise to express ray strong support for H.R. 10488. a bill to eliminate the backlog in the construc- tion of public buildings authorized by Congress. As a member of the Committee on Pub- lic Works, I can assure this body that it is generally the position of our com- mittee to fund the piaounna tad struction of Feolcrial through appropriations and that by means is the committee attempting to create a precedent for fundings these projects. However, flexibility of policy is urgent- ly required in this instance if the Con- gress is to be able to meet its commitment to a backlog of over $1 billion in des- perately needed Federal buildings. To do nagm,c1A most cer- 76011M-Immanicis This H 3278 Approved For ReleasAMIX' 1014 :kfikikbP8131SMISIIR00010006triliie 1973 borrowing would add to an already mi- - It was to get the Federal building pro- such time as he may consume to the gen- mense deficit and seriously strain the gram back on the track again that the tleman from Wisconsin (Mr. Tricnesoe) . competition for moneys In the lending purchase contract program was devised. Mr. THOMSON of Wisconsin. Mr. markets. In fashioning it, we have attempted to Chairman, I rise in enthusiastic support By adopting the course indicated by overcome the weaknesses that plagued of this legislation. It is badly needed, not this legislation, we can move rapidly to its predecessor?the Lease-Purchase Act only in the 63 areas that have been men- complete the construction of these build- of the 1950's. Interest rates determined tioned, but in the removal of a backlog. Ings in away that will provide a strong by market conditions assure that rates Removal of this backlog will facilitate shot-in-the-arm for the economy at a will be reasonable. And present finan- the orderly development of needed Fed- time when the trend toward economic cial conditions assure healthy competi- eral facilities throughout the country. strength is becoming clearer with each tion in the financing construction of Mr. Chairman, this bill is badly needed Passing day. these 63 buildings, and past overdue. If the other 61 cities In addition, a key feature of the meas- Finally, the legislative authorization besides the one in my district which will ure before us is that it provides a means will be for a period of only 3 years. have their promised construction pro- to construct Federal facilities without Thereafter, the new revolving fund con- ceed under terms of this bill are in the depriving local government of vital por- cept will become operative, making same situation as La Crosse, Wis., I can tions of its tax base. Traditionally, Fed- lease-purchase types of contracts no only say that the Federal Government eral installations do not pay property longer necessary. has done a disservice to the residents of taxes but H.R. 10488 leaves the property Insofar as the new public building - these cities, in private hands under the purchase- fund is concerned, this new device holds The La Crosse Post Office-Federal contract concept. Thus the property will great promise. By imposing user charges Building was authorized in 1966, 6 years melte the Federal presence in the corn- on Government agenbies for the space ago. It is to be the central edifice in an ramity much easier to accept. they occupy in GSA buildings, each Gov- imposing, modern civic center in the . And finally, one of the most important ernment agency will have an incentive heart of downtown La Crosse. To prepare provisions in this bill is the assessment to make space demands equal space re- for this civic center, the city of La Crosse of user charges against the budget of quirements. The tendency would, there- razed the existing city hall and built a those individual Federal agencies who oc- fore, be to promote the most efficient beautiful new structure. Similarly, the cupy these buildings. The user fee as- and economical use of all -Government county government tore down the old sessments will require each agency tocourthouse building and erected a mod- have to justify its space needs which will offi andThe lack of sound business procedures ern courthouse, architecturally blending permit better congressional oversight in the operation of Government has long with the new city hall. both for the authorizing and appropria-Amid this well-planned civic center thorization of a public building fund in tion, committees. These fees will also in- been a bitter refrain among critics. Au- stands the city's worst eyesore, the ar- vite the various agencies to reduce their which each agency would be charged the chaic Post Office Building and an acne, space needs to the minimum thereby equivalent of rent for the space occu- cent vacant lot. This space has been ac- saving tax moneys. pied makes sense, particularly since quired for the construction of, the new On a national scale this bill will do commercial rates will be charged. Post Office-Federal Building promised 6 the job. On the local level it is also ex-.years ago. The architect assures tlee, cellent legislation as I am aware from Moneys generated should be sufficient, not only to operate the Federal Estab- planning for the building is complete. the fact that one of the authorized build- lishment, but also to provide funds for But the vacant lot remains, a daily re- 'rigs is in Santa Rosa, Calif., in my eon- future building needs. In the process, minder to the citizens of La Crosse of gressional district, substantial savings in space require- the broken promise made to them by `i,..i The bill will escalate the timetable for meats and the funds needed to provide Federal Government. the construction of the Santa Rosa La-themI cannot believe that anyone in is cility which is already long overdue. This will be realized. If for no other Chamber can justify keeping building will effectively meet a need for reason. the consequent savings to the waiting 6 to 10 years before the Fe-.d part of the program of designing the city American taxpayer will, I believe, more than justify passage of this bill. Government gets around to keeping its designed for living. 1, therefore, urge approval of HR. promises. For La Crosse and st other Mr. GROVER. Mr. Chairman, I wish 10488. cities, the bill we are debating today is support for this important bill. Over the Mr. WYDLER. Mr. Chairman, will the the answer. Let us resolve to start past decade; the Committee on Public g delivering on these promises made so to join with my colleagues in expressing entleman yield? many years ago, promises which have Works, acting under the Public Build- Mr. GROVER,. I yield to the gentle, triggered enormous local investments, lags Act of 1959, has considered and man from New York. and promises which have buoyed the approved buildings for ? construction Mr. WYDLER, I rise in support of this hope of local ciitzens for years. 'kids y.,,..r, which it felt were vitally needed in the legislation, and I want to commend theas political commentators tell us that tae public interest. Because of financial gentleman for the work that he has done people are losing faith in the effective- constraints on the appropriation's proc- as a member of the committee consider- ness of their Government and as his- ess, the level of funding necessary to ing this legislation. The largest single torians tell us that our social problems construct all of these much-needed fa- project in the bill before us is located on are rooted in the unfulfilled promises of cilities has not been provided. Long Island, which the gentleman and the decade oe the 1960's, let us resc've Although appropriations averaged myself both represent here in the Con- to move forward to fulfill our promises approximately $115 million per year, a gress. It is a Federal office building of a and demonstrate our resolve to assist backlog of 63 buildings has- been built large size, but one which is desperately these needy and long-postponed proj- - up. It is to accelerate construction of needed by the Federal Government and ects. Let us pass this bill, these facilities that the purchase con- by the citizens of that area. I know that The CHAIRMAN. The gentleman from ' tract authority contained in HR. 10488 the gentleman in the well provided the Illinois 4 Mr. GRAY) 15 recognized. is directed. - leadership in the committee which was Mr. GRAY. Mr. Chairman, I intended -Members of the committee are agreed necessary to see that this particular to ask the gentleman from N,:-.?; that direct Federal construction is de- building was proven necessary for the,,,. ,.,,,, ,-, ...,- ,r. RovEai to yield, but he le ' sirable. But we are facing a condition people in that area and to make it a well before I had an opportunity 1,1 (11) here, a state of facts, and not a theory, reality. so. I wish to state publicly for the record Approximately a billion dollars in Fed- Mr. GROVER. If I may return the that he, as the ranking minority member eral funding would be required to elim- compliment to the gentleman from New of the Subcommittee on Public Buildings Mate the construction backlog with York, I should like to point out that he, and Grounds, was of great help in writ- which we are now faced. That kind of himself, was the driving force on Long lag this bill over the past several inentlie, money is simply not available at the Island which brought to the committee as were also the distinguished gentleman present time. Other spending Priorities and to the Congress the desperate need from Ohio (Mr. HARSHA) and the distin- will not permit the immediate Federal for a center on Mitchell, Field on Long guished gentleman from Wisconsin who investmeApproved PoreRdteatv 2 ?4,& '3 4. '4.1ilie.I.TINA.rniY0 -A9d2 4.101 1 1 i, 6.i, ..iiiiowhey have all etV, and I want done. April AN Rimed For Rele publicly to thank them for their support, along with that of all Members on our side of the aisle. I yield such time as he may consume to the very distinguished gentleman from Illinois (Mr. ? KLUCZYNSKI) . Mr. KLUCZYNSKL Mr.- Chairman, I thank the gentleman.- I wish to compli- ment the gentleman from Illinois for bringing this much needed legislation to the floor today so that we will be able to vote on projects which have been pend- ing for 3 or 9 years. Members know as well as I do that erecting public build- ings is like the construction of highways.' If you do not build them this year, they will cost you 10 or 11 percent more next year. I want to thank the gentleman from Illinois for bringing this legislation to the floor today, legislation which will save the taxpayers of this country mil- lions and millions of dollars. We have already heard a great deal about the staggering backlog of congres- sionally approved but unfunded Federal building projects. Throughout the Na- tion, the needs of our health, law en- forcement, environmental, and other Federal agencies for efficient, modern facilities, are going unmet. Agencies con- tinue to operate in inefficient and, in - some cases, obsolete buildings. TO the extent that they do, the taxpayer is penalized many millions Of dollars in wasted employee time. He is also short- changed in the delivery tc him of the Government services he wants, needs, and pays dearly for. In addition, each passing day erodes the value of $13.6 mil- lion he has invested in the purchase of sites and $12.4 million he has invested in designs for 50 buildings already approved by the committee. No city on earth knows the costs of delay in Federal construction like Chi- cago. At long last, the new Federal build- ing, for years just a big hole in the ground, is underway. Now the delay falls heavily upon the GSA Federal Records Center, which was first approved in 1966. The GSA ,Records Center is currently located in a leased building which is filled to capacity and does not comply with GSA's fire safety standards. It is necessary to utilize temporary storage space with inadequate cubic footage ca- pacity at another Government-owned location and to ship a considerable vol- ume of records for processing and stor- age to record centers in other States.. These deficiencies result in. delay, in- creased costs, and reduced operating efficiency?to say nothing of inconveni- ence to Chicagoans and other mid- westerners. The building will be 185,600 square feet. GSA is now 'leasing more than 102,000 square feet to house Federal rec- ords in Chicago alone. So, there will be a healthy saving in rents as soon as the new center is completed. To get the center completed, we need HR. 10488: Without this bill, that building could wait another 6 years. The history of GSA's construction ap- propriations since fiscal year 1959 shows that GSA has been able to average only $115 million per year for new construe- exclusively tion. At thUtstsMittmg tells MAL Vb?g867.988t#R000100080037-8 11 3279 backlog?giving no attention to new re- may consume to the gentleman from quirernents as they arose?it Would take New York (Mr. HANLEY) . 10 years to construct buildings we have Mr. HANLEY. Mr. Chairman, I rise in already authorized, support of this legislation and commend We need those buildings now. On the the chairman and the fine committee other hand, we are in a period when for their efforts in regard to this legis- fiscal restraint is the order of the day, lation. and hope for appropriations in this Of Mr. Chairman, I am quite pleased that the next few fiscal years would indeed H.R. 10488 is under consideration ?0- be wishful thinking. day. I earnestly urge its adoption ivleash The purchase-contract provisions of will provide a procedure through svnii Ha. 10488 are an attempt to reconcile a backlog of 63 Federal buildings von the urgent need- for new Federal facili- be constructed. Most of these projeots ties with today's economic conditions, have been on the back burner for qui te We are being asked for purchase-con- some time. Their need is great to provide tracting of Federal buildings as a stop- the necessary accommodations to our gap expedient. GSA is so convinced that citizens and the agencies which will purchase-contracting will help eliminate occupy them. the backlogin a very short time that we My home community Syr :tease, N.Y.. is are asking for this authority for only 3 the site for one of the projects. A arive years. GSA has, in fact, pledged that it need exists in that community as it does can and will beat the backlog in that in the 62 other locales. ? move to full implementation of the pub- The long run effect will be the con- lie buildings fund. veniance of the accommodation as well The purchase-contract authority Pro- RS the millions of dollars in savings to posed in H.R. 10488 would permit GSA be enjoyed by the taxpayers. to make regular payments over a period Again I urge adoption of H.R. 104.2$. of from 10 to 30 years to entrepreneurs Mr. GUBSER. Mr. Chairman, I who would finance and construct build- the gentleman from Ohio for yielinior. lags that meet GSA specifications. At the - I take this time tor the purpose of end of the contract term, title to the ing a question. 'The city of San Jose in building would vest in the United States, my congressional district is very mu.on ?. During the contract term, a purchase-- need of a Federal office building. Toe contract building would remain on the General Services Administration has sur- local tax rolls, helping to ease the bur- veyed it. However, the priority is not stiO- dens of the Federal presence upon the ficiently high at this time for it to be in- local community, eluded in this list of 63 cities. My question There can be no doubt that purchase- is, if San Jose achieves priority at some contracting for Federal construction time subsequent to the passage of Tins projects will increase the total dollars bill, can the list of 63 cities be exipc-ndeti'? GSA pays out for any specific building. Mr. HARSHA. First, let me em tt.ht Nevertheless, an analysis of purchase- this period of contract r)In:c-n.-1.se is contracting that that takes into account the thorized for 3 years. At any time present value of dollars expended, na?that 3 years, any city whih es' tonal spending priorities, mid the ur- the necessary priority w lin the C0000.- gency of the need for these facilities con- Services Administration can be inel vinces me that any additional costs to in this method of obtaining a Fedeeel the Government, spread over a 10- to 30- building for its community% year period, would be reasonable and In addition, I would add for the gen- warranted. tleman's information that the new re- In weighing the total cost of home- volving fund, if this bill becomes Tao:. , ' ownership under a mortgage, the pro- even after the 3-year period,. enable GSA spective home buyer considers many fac- to go about its program of providing tors, including the amount of capital needed office space on a much quicker available to him, alternative uses for his basis than in the past. capital?including the education of his Mr. GUBSER. Mr. Chairman, I Lanni: children, the purchase of health care, the gentleman. I think this is excellent transportation and other services, for his legislation. I shall support it. family?and the urgency of his housing - Mr. HARSHA. Mr. Chairman, I yield needs. In the same way, I believe that such time as he may consume to the gen- it is appropriate for the Federal Gov- tleman from Idaho (Mr. 11/4,1cCcone) ernment to consider its overall needs in Mr. McCLURE. Mr. Chairman, as a co- finding a way to get our public buildingsponsor of this legislation, thank the projects underway now. I strongly sup gentleman from Illinois and the gentle- port Hirt. 10488 and hope that other man from Ohio for - their very yejc Members will join me in voting for this courtesy to me over the months tins sound approach to getting the job done legislation has been under run now, and publicly express my .on (Mr. KLUCZYNSKI asked and was at last we are getting some Innise given permission to revise and extend his proval on a matter critical to eye ry er remarks. ) ber of the Congress?not just to those - Mr. GRAY. Mr. Chairman, I yield my- who happen to have buildings in their self 1 minute. districts. As has been pointed out, this to- Mr. Chairman, I take this time in order moves the backlog and allows an orderly to have the REcotte show that we thank consideration of those construction Pipj- my distinguished friend, the gentleman cots which are not included in the list from Illinois (Mr. KLUCZYNSKI) who has included in this bill. just spoken, who has rendered an in- ociouti gpa (Mr. McCLUlitiog e. eetesd was given ad his time as nattNtri,-f S7ijrct such' Inn as he marks.) ....ut,, ree II 32Approved For RelNeteoWzmApmpit, Mr. HARSHA. Mr. Chairman, I thank the distinguished gentleman from Idaho for his interest in this matter. He has very effectively pursued the interest of the people of his congressional district. He appeared before the committee in support of this legislation and he has conferred with me on several occasions on this matter. He has most urgently acted In pursuit of this legislation so that the citizens of his district can finally realize the benefits of a Federal office building in his district. Mr. Chairman, I yield 3 minutes to the gentleman from Nebraska (Mr. TnoNE), a member of the committee, and I reserve the balance of my time. (Mr. THONE asked and was given per- mission to revise and extend his re- marks.) Mr. THONE. Mr. Chairman, I share the interest of many of my colleagues that the design of our public buildings should be the finest examples of Ameri- can architecture. I am very pleased that the committee has adopted my amend- ment requiring the Administrator of the General Services Administration to give thorough consideration to the excellence of architecture and design during the de- velopment of plans for all public build- ings. In this regard, I am hopeful that the pending legislation will enable architects and engineers to continue to work ef- fectively on public building projects without the possibility that their al- legiance might be transferred away from their true client, the General Services Administration and the people of this country. I believe the design professions share this hope. It would be helpful if the distinguished gentleman from Illinois (Mr. GRAY), the subcommittee chair- man, would clarify a few points relating to the pending bill. Under the purchase contract author- ity of H.R. 10488, will GSA retain title to the drawings and specifications al- ready prepared by the original design architect for the 63 authorized but un- funded projects? Mr. GRAY. Mr. Chairman, will the dis- tinguished gentleman yield? Mr. THONE. I yield to the gentleman from Illinois. Mr. GRAY. I am delighted to answer. I have been informed by the acting GSA Administrator, Mr. Rod Kreger, that the answer is yes, they will retain title to the architect's drawings and specifications. Mr. THONE. I thank the gentleman. Will the original design architect be retained for the administration and su- pervision of construction of projects un- der the purchase contract authority? Mr. GRAY. Mr. Chairman, will the gentleman yield further? Mr. THONE. I yield further. Mr. GRAY. The General Services Ad- ministration has stated categorically that It will establish procedures to have the original architect provide inspection services wherever possible. Although GSA does not anticipate this occurring frequently there inny be cases where the architect and the successful offeror are 19?:sakkeoom000so97.1 pi 19, 197.2 costs of buildings will come out of this 'fund. As time goes by, the fund will-have in it sufficient moneys to pay for new Federal buildings as they are needed. Thu.s,we hope to end the position it is now in, with 63 new Federal buildings authorized without funds being provided for construction. That brings me to the second impor- tant aspect of this proposed legislation. It will alliew Congress to keep the prom- ises this body has made to communities all over America. Through authorization acts of Congress, these cities have been promised new Federal buildings. Citizens in these areas are beginning to wonder if Congress will ever keep these promises. Some of the Federal buildings were au- thorized 9 years ago and still have not been funded for construction. At the rate appropriations for Federal buildings have been made over the past dozen years, it would take at least until 1982 to fund the 63 buildings authorized in 1969 and earlier. In this bill, we have our solution. Through purchase contracts the Federal buildings already authorized by Congress would be built. Entrepreneurs would pro- vide the capital to build the buntlines to Government-approved plans and speci- fications. At the end of the contracts, the Government would own all these buildings. Bear in mind that the pur- chase contract phase of this legislation would only be in effect for 3 years, After that, the user charge fund should contain money to Pay for Federal buildings as needed. The effect of Federal building author- ization without construction funding C,)11 be devastating for a communny. I can speak first hand for a clty in 1117," dierJ!iin, Lincoln, Nebr. The Senate a ;lave vett prospectus for a new Federal building in Lincoln in 1965 and the House or Repre- sentatives gave approval in 1966, The land involved consists of two square blocks in the heart of the central city district of this community of 150,000. For 6 years, the buildings on this land have been allowed to deteriorate. Some of this land, which is valuable enough for much higher use, has been used only for un- paved parking lots. PrIuch development by private enter- prise has not taken place because this land has laid idle. If the Federal build inc is begun in the near future. I am cert nn that it will trigger much private develop- ment nearby. The community of Lincoln, Nebr., il- lustrates another important factor that this body should consider. The Federal Government is now paying' aboet 3 mad- lion annually for rental space scattered all over Lincoln. Scene aeencies are hug to conduct business in at le=t 3 buildings; This payment of rent by the Federal Government in Lincoln will be ended, this scattering of agencies will be ended, if the Lincoln Federal building is constructed. In .Lincoln and in 62 other American cities, we can stimulate employment and business by passing this act. We can end rental. payments by constructing build- ings that Will be federallLowned. We can lironcSinMean make1Rovernment agen- qqa& all over the upon approving the architect to inspect the project. I am sure the gentleman will agree with this. Wherever possible it will be done, but if someone wants to charge an exorbitant fee on a project the GSA is bound by law to seek out and find some- one with a more acceptable fee. Mr. THONE. I understand that, and that is as it should be. Under this legislation, would GSA be prevented first, from maintaining a di- rect contractural relationship with and directly compensating the original de- sign architect for any additional design services and supervision services, or sec- ond, from being reimbursed for that compensation through a provision in the agency's contract with the successful offeror. Mr. GRAY. Mr. Chairman, will the gentleman yield further? Mr. THONE. I yield further. Mr. GRAY. No. H.R. 10488 would not prohibit GSA from taking either action the gentleman has enumerated. Mr. THONE. One final question. It is my understanding that GSA has re- quested the purchase contract authority clue to the emergency need to pro- vide long-required Federal office space throughout the country. It is correct that this is an emergency authority only and will automatically go out of existence at the end of 3 years when the Federal buildings fund goes into effect? Mr. GRAY. Mr. Chairman, will the gentleman yield further? Mr. THONE. I yield further. Mr. GRAY. The answer is emphatically "yes." The law provides for the expira- tion of the purchase contract authority after the 3-year period and reverting back to direct fund appropriations. Mr. THONE. I thank the distinguished gentleman from Illinois. Mr. Chairman, accountability is the most important aspect of the legislation we are considering. At present, various Federal depart- ments and agencies are not held fiscally responsible for the space they occupy. Instead, money to pay for building ren- tals, maintenance, and service is nearly all appropriated to the General Services Administration. In fiscal 1971, GSA was appropriated $660 million to provide more than 220 million square feet and necessary services for 820,000 Federal employes. This proposed legislation, of which I am a cosponsor, will change this situa- tion, It will provide that each agency will be accountable for the space it uses. Each agency will pay user charges for space. Governmental bureaus now may insist to GSA that they need more space than actually necessary. Each agency will be less likely to ask for more space than needed, when the cost of that space will be reflected each year in its annual appropriations request to Congress. Al- location of these costs will also give Con- gress, the President, and the general pub- lic a truer picture of the cost of each function of the Federal Government. The user charges will provide a solu- incompatible for some reason; for ex- tion to a problem that has long troubled ample, tW. a fee. Ir" AttnikAlia?P PRIM f,MITM?Mi III ? I ?a ? ? April 19Apinoved For Re emtwAripmkopponpiekoom0008003711 32s1 des accountable for the office space they bill requires that type of accountability, nie. We can provide a permanent solution and we will take these savings in order to to the persistent and troublesome prob- build much-needed facilities in con- loin of funding Federal buildings for con- gressional districts all over the Nation, fitruction. I urgently solicit your votes I want to thank the members a the in favor of H.R. 10488, which is a coin- House Committee on Public Works on minion bill of one that I introduced in both sides of the aisle, because this is a this regard, bipartisan measure which was reported Mr. HARSHA, Mr. Chairman, I yield out unanimously. I want to single out 2 minutes to the distinguished gentleman especially our very distinguished and able from Ohio (Mr.- WHALEN) . chairman, the gentleman from Mimic- Mr. WHALEN. I thank the gentleman sota (Mr. BLATNIK) who is always sym- for yielding, pathetic and helpful, a man of compas- 1 rise in support of this measure. I can sion. This kind of critical legislation that testify from personal experience as to comes from the Committee on Public the need for the new Federal building for Works unanimously could not have been Dayton, Ohio, which is contained in this brought here without his able assistance. I also want to thank our chief counsel, Mr. Sullivan, my able assistant, Mrs. Nancy Vitali, and the staff for their help. Mr. BLATNIK. Will the gentleman yield? Mr. GRAY. Of course I yield to the dis- tinguished gentleman from Minnesota. Mr. BLATNIK. I appreciate the very generous and certainly thoughtful cornments and references to the chairman of the committee. I would like to make a comment about the work of the subcommittee chair- man, Mr. GRAY, and the cooperation re- ceived from the minority side in tote and the excellent staff work that has been done there. Let me say each one of these projects represented a crying need in a given area. Yet it would seem that each one of these Projects has some element of justifiable and understandable difference of opin- ion or judgment in it which could lead to divisiveness. It could either be so be- cause the needs of the local community were opposed to the needs of a State agency or because of a conflict between one or more Federal agencies or because there was a difference of opinion between the members of the subeommittee. Each one of these projects was systematically, patiently, and considerately considered, and each problem was constructively worked out. I want to commend the chairman of the subcommittee and all of the mem- bers of the subcommittee and the staff for the thorough and responsible manner in which they worked out this piece of legislation. It enables us to come out with a-good solution to meet the needs of many areas. I urge that the bill be approved by this full body as presented. I yield back the balance of my time. Mr. MeMILLAN, Mr._ Chairman, I rise in support of the pending bill and would like to state that in my opiuion, it is one of the most important bilis that has been considered in the Congress since the Christmas holidays. I am certain the chairman of the Ap- propriations Committee and the chair- man of the Independent Offices Subcom- mittee of Appropriations will remember that in 1968. approximately $5 million was allocated for a Federal building in my hometown of Florence. S.C. The Gen- aaencies-all over the Nation and we can eral Services Administration, the Post see them sprawling out in all kinds of Office Department officials, and the U.S. ways in rented facilities. We think it is district jud_qes in out car' timehlit e that thaliklpriDA/OCW4DP N)0READEVSMadi414109144Fell and that they be eld accountable. This wanted at Florence. The Congress passed measure. At the present time the Federal of- fices are located in a building which was constructed in 1915. Architecturally, this 57-year-old building is very beautiful. however, it is extremely inefficient, inas- much as it was built to house a post of- fice rather than Federal offices. Too, maintenance costs are extremely high. Further, at the present time in the Payton area the Federal Government relate; approximately 41,000 square feet at an annual rental of $205,000. All of the ee offices will be consolidated in the new Federal building once it is con- etructed. The land is available. The architectural plans have been completed. We are ready to go.. Passage of this bill certainly will save at least 10 years in respect to correcting the costly, wasteful Federal office op- eration which presently exists in the Dayton area. Therefore, I hope my col- leagues will support this measure. - Mr. -HAREHA. Mr. Chairman, I have Ho further requests for time, and I re- serve the remainder of my time. Mr. GRAY, Mr. Chairman, I yield such time as he may consume to the gentleman from Wyoming (Mr. RON- CALT0), Mr. RONCALIO. Mr. Chairman, I eball use but a minute. want to observe that over the past decade I have waited for the day when I could look at a public works authoriza- tion bill and find not 1 cent spent for Public office buildings in the District of Columbia. I believe that is a great pre- cedent and a move in the right direction. And lest some of my colleagues are looking In the direction of the Rocky Mountain States, there is not any item for the great State of Wyoming, either, or for the State of Colorado or Utah. There must be an end to District of Co- lumbia Federal construction?a breath- inn spell. I hope this is a landmark and a be- ginning, to that end. GRAY'. Mr. Chairman, I yield my- he remaining time. I stated in My previous remarks, this is an historic bill in many ways, be- canse I think it will save millions of dol- hire of the taxpayers' money in the long run by requiring Federal agencies to pay for the space they use. We can look at the bill and the President added his sig- nature; however, after the Federal Gov- ernment had the plans for the new build- ing drawn up, and the structures cleared from the lot which had been purchased for the new building; the President issued a freeze on all Federal buildings that had not actually begun. I am delighted that the Public Works Committee has authorized this builcinig in the pending bill and I hope the Mem- bers of Congress will understand just how badly we need this building since there are approximately 200 postal ethployees working in a temporary, abandoned, au- tomobile salesroom. There are also ani - proximately 75 social security employees in addition to the Labor Department in- illectors and FBI agents who are waiting to use this new building. Tile court offi- cials tell me that they are in dire need of a new courtroom as the one in the old building is completely outmoded. I sincerely hope the Members of Con- gress - will understand that this is, in ray opinion, emergency legislation which should be enacted into law without fun- tiler delay. Mr. MIZELL. Mr. Chairman, I want to express my strong supeort for teis legislation to provide for financing the acquisition, construction, alteration, maintenance operation, and proteetion of public buildings. This legislation, which was reported out of the Public Works Subcommiiteg on Public Buildings mid Ge'odnels. in which I am a rii4miy?r, is a b,-Z7vi netA.te.d bill and a very sensible one as well. Under provisions of this legielatien, the Federal Government could avitheri.:c construction of Federal buildings try. o?:?-? vase contractors, and taco buildings for a mit payments being- appiica toward finai poi-chase of the buildings by the Govern- mint. When the lease expires. the Govern- ment assumes full ownership, but, until tliat date, the property and the building would be subject to local taxation. There are currently 63- Federal build- ing projects throughout the country which have -been delayed for lack- of Government funds. The General Serv- ices Administration is now required to provide direct Federal funding for new ccastruction projects. The lack of stiff,- drat funds has resulted in an estimated 11-year backlog of projects, Of particular interest to the peorn" Of North Carolina's Fifth Congressior District, which I represent, is the ttfutt tins legislation would have on a propeeed new Federal building to be cons7,ruce- -7;Vinstori-Salem. The Winston-Salem pro eeit wae preyed for construction 3 years eqe+, cat pr.:egress beyond the designing sat has been stalled because of insufficient Fed- eral funds. Estimated construction. cost for the 287,000-square-foot building is $12.1 million. - The legislation we offer today a el sigenficantly accelerate work on the pro- . po6ed Federal building in Winston- 41 t.cinApleti 4r accelerated construction sched- vtate on eP H 328Approved For Relette 2000/09/1CONGRESSIONAL4 : citmg-o9m000l000soog* 19, 1972 ules for other projects throughout the Nation. I strongly recommend that my col- leagues join me in voting for passage of this legislation. Mr. HARSHA. Mr. Chairman, I have no further requests for time. Mr. GRAY. Mr. Chairman, I have no further requests for time. The CHAIRMAN. In accordance with the rule, the committee amendment in the nature of a substitute printed in the bill will be read by the Clerk as an origi- nal bill for the purpose of amendment. Mr. GRAY. Mr. Chairman, I ask unani- mous consent that the bill be considered as read, printed in the RECORD, and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Illinois? Mr. GROSS. Mr. Chairman, I would suggest to the gentleman that the bill be read by sections. This would require some eight unanimous-consent requests for the reading of the sections, and I realize this. Mr. GRAY. Mr. Chairman, I withdraw my unanimous-consent request. The CHAIRMAN. The Clerk will read. The Clerk read as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Public Buildings Amendments of 1972". SEC. 2. The Public Buildings Act of 1959 (73 Stat. 479), as amended (40 U.S.C. 601 et seq.), is amended as follows: (1) strike out in subsection (b) of section 4 the figure "6200,000" and insert the figure "$500,000" in lieu thereof; (2) strike out in subsection (a) of section 12 the following: "as he determines neces- sary,"; . (3) insert at the end of section 12(c) the following sentence: "In developing plans for such new buildings, the Administrator shall give due consideration to excellence of architecture and, design."; and (4) section 7 is amended to read as follows: "SEC. 7. (a) In order to insure the equita- ble distribution of public buildings through- out the United States with clue regard for the comparative urgency of need for such buildings, except as provided in section 4, no appropriation shall be made to construct, alter, purchase, or to acquire any building to be used as a public building which in- volves a total expenditure in excess of $500,- 000 if such construction, alteration, pur- chase, or acquisition has not been approved by resolutions adopted by the Committee on Public Works of the Senate and House of Representatives, respectively. No appropria- tion shall be made to lease any space at an average annual rental in excess of $500,000 for use for public purposes if such lease has not been approved by resolutions adopted by the Committee on Public Works of the Sen- ate and House of Representatives, respec- tively. For the purpose of securing consider- ation for such approval, the Administrator shall transmit to the Congress a prospectus of the proposed facility, including but not limited to)? "(1) a brief description of the building to be constructed, altered, purchased, ac- quired, or the space to be leased under this Act; "(2) the location of the building or space to be leased and an estimate of the maxi- "(3) There are hereby merged with the mum cost to the United States of the facility fund established under this subsection, un- to be constructed, altered. Aurchased, ac- ? endedibitantiA464e Bo= "(3) a comprehensive plan for providing therein), established pursuant to tht7, ft 77 ployees in the locality of the proposed facils ity or the space to be leased, having due re- gard for suitable space which may continue to be available in existing Government-owned or occupied buildings; "(4) with respect to any project for the construction, alteration, purchase, or acqui- sition of any building, a statement by the Administrator that suitable space owned by the Government is not available and that suitable rental space is not available at a price commensurate with that to be afforded through the proposed action; and - "(5) a statement of rents and other hous- ing costs currently being paid by the Gov- ernment for Federal agencies to be housed in the building to be constructed, altered, purchased, acquired, or the space to be leased. "(b) The estimated maximum cost of any project approved under this section as set forth in any prospectus may be increased by an amount equal to the percentage in- crease, if any, as determined by the Admin- istrator, in construction or alteration costs, as the case may be, from the date of trans- mittal of such prospectus to Congress, but in no event shall the increase authorized by this subsection exceed 10 per centum of such estimated maximum cost. "(c) In the case of any project approved for construction, altesation, or acquisition by the Committees an Public Works of the Sen- ate and of the House of Representatives, re- spectively, in accordance with subsection (a) of this section, for which an appropriation has not been made v;ithln one year after the date of such approval, either the Com- mittee on Public Works of the Senate or the Committee on Public Works of the House of Representatives, may rescind, by resolu- tion, its approval of such project at any time thereafter before such an appropriation has been made." Mr. GRAY (during the reading). Mr. Chairman, I ask unanimous consent that section 2 be considered as read, printed in the REcosp, and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Illinois? There was no objection. The CHAIRMAN. Are there any amendments to be proposed to section 2? If not, the Clerk will read. The Clerk read as follows: SEC. 3. Subsection (f) of section 210 of the Federal Property and Administrative Serv- ices Act of 1919, as amended (4fe U.S.C. 490(f)), is amended to read as follows: "(f) (1) There is hereby established in the Treasury of the United States on such date as may be determined by the Administrator, a fund into which there shall be deposited the following revenues and collections: ' "(A) User charges made pursuant to sub- section (3) of this section payable in advance or otherwise. "(B) Proceeds with respect to building sites authorized to he leased pursuant to subsection (a) of this section, and proceeds with respect to building sites, plans, and specifications authorized to be sold pursuant to sub-;ection ih) of Ibis section. '(0) Receipts for carriers and others for loss of, or damage to, property belonging to the fund. "(2) Moneys deposited into the fund shall be available for expenditure for real property management and related activities in such amounts as are specified in annual appro- priations Acts without regard to fiscal year limitations. quireApprovedo elease 20 F I r 640 space for all Government officers Tend em- section prior to its amendment by the Public Buildings Amendments of 1972; (B) the Construction Services Fund, created by sec- tion 0 of the Act of June 11, 1940 (CO Stat. 259), as amended; and (C) any funds appro- priated to General Services Administration under the headings 'Repair and Improve- ment of Public Buildings', 'Construction, Public Buildings Projects', 'Sites and Ex- penses, Public Buildings Projects', 'Con- struction, Pectoral Office Building /Cumbered 7, Washington, District of Columbia', end 'Additional Court Facilities', in. any aprro- priation Acts for the years prior to the year in which the fund becomes operionnal. The fund shall assume all the liabilities, obligations, and commitments of the said (1) Buildings Management Fund, (2) Con- struction Services Fund, and (3) the appro- priations specified in (C) hereof. "(4) In. any fiscal year there may be de- posited to miscellaneous receipts in the Treasury of the United ;States such amount as may be specified in. appropriation Acts. "(5) Nothing in this section slain precisde the Administrator from providine services not included in the standard level user charge on a reimbursable basis and such reimbursements may he credited to the fund established under this subsection." Mr. GROSS (during the reading). Mr. Chairman, I ask unanimous conserv. that the remainder of the section be con- sidered as read, printed M the REcolui? and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Iowa? There was no objection. The CHAIRMAN. Are. -there any amendments to be proposed to section 3? ty Mr. GROSS, Mr. Chairman, I mot e to 1. strike the necessary number of words. (Mr. GROSS asked al:A was given per- mission to revise and extend his re- r marks.) Mr. GROSS. Mr. Chairman, I telt.s this time to ask the gentleman ti?oni Or some other member of the cone.. ..en what is proposed to be done in this bill with respect to a spans cen- ter in the District of Columbia? Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. GROSS. I am glad to yield to the gentleman from Illinois, Mr. GRAY. I would be happy and de- lighted to answer that question for my friend. If you will refer. to page 30 of the re- port, you will find a listing of all of the buildings authorized by line item in this bill.- Then if you will refer to---- Mr. GROSS. Where on page 30 will I find them? Mr. GRAY. If the gentleman will bear with me, I shall be glad to answer his t question. I know this is an important matter. Mr. HARSHA. Mr. Chairman, will the gentleman yield to me? Mr. GROSS. Yes: I yield to the gen- tleman from Ohio. Mr. HARSHA. There is noth con- tained in the provisions of this bill that actually authorizes a building known as a sports arena or convention center. Under the Purchase contract author- ity, conceivably such a building could be built. However, first, it would have to meet certain requirements; that is, the President of the United States would have to declare that that building is a FtPoePjp!'eg,;3 C?ATIA he would have use and Senate Public Works Committees, and have the Apr-IN:0MM! For RelalliseCROGOACESAMALIA-RDIetirer-006441T0001 00080037-8 Prospectus approved by those commit- financing that thing, and the gentleman Lees for the construction of the building. Mr. GROSS. The President would have to come before the committee? . Mr. HARSHA. No. Mr. GROSS. Who would come before the committee? Mr. HARSHA. Representatives of the General .Services Administration would come before the committee after the President made a finding that that was a public building and in the public in- terest. Then, there would be an amend- ment offered?and if it is not offered by anyone else, I shall offer it?that no building under this purchase contract authority can be approved until it, first, has been approved by both the Senate and House Appropriation Committees, ,So, you would have to get the authoriza- tion from the Senate and House Thine Works Committees and then you would have to get the funding by resolution from the House and Senate Appropria- tion Committees. So, there would be three steps that would have to be fol- lowed in order to build such a building. Mr. GROSS. In the matter of the construction of public buildings the gentleman's amendment would make a lot of sense, and restore some degree of responsibility to the Congress that it has not had in the matter of authorizing buildings. Here, today, we are asked to vote for 63 buildings. What do we know about the need and the necessity for them? They do not have to be justified on an individual basis. Complete authority has been delegated to this committee. - Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. GROSS. In just a minute. And as was explained to me earlier in the day in the matter of the E3 build- hies, the Committee on Appropriations will look these things over. And then I heard from - a veteran member of the Committee on Appropriations, who said, We have already taken care of the funds for these buildings. You can start shoveling dirt almost the minute this bill passes, because we have already given our blessing to these 63 buildings." Now I yield to the gentleman from Illinois. Mr. GRAY. Mr. Chairman, first, if I could. I now have the precise language, . and I will read it to the gentleman, con- cerning the sports arena and conven- tion center. On page 18 of the report it says: Except for previously approved prospecf:uses? Meaning these 63 buildings? referred to in (e) above, no purchase con- trmL nt be entered into pursuant to the aufhoxtv of this section until a prospectus therefor has been submitted and approved in aecordance with section 5 of this Act. SO. I want to lay this perfectly clearly On the table where you can all see it; that, as far as the building of the sports must admit? Mr. GRAY. If the gentleman will yield further, we are through financing it. Mr. GROSS. What do you mean we are through financing it? You have $1.5 mil- lion for it in this bill. Mr. GRAY. For security. Mr. GROSS. We have been told that before; that we had appropriated the last of the money for the Kennedy Cultural Center. Mr. GRAY. For the construction. There is nothing in here for the further con- struction of the Kennedy Center, and there is nothing in. this bill for the per- forming arts function of the Cultural Center. But if you go down to the George Washington Monument you can see that that facility was started, and it went up about 50 feet, and then for 60 years it was allowed to lie dormant. Finally Con- gress had to go in and finish it. You can see that that is so because of the different color in the stonework, and we have con- tinued to maintain the security of that movement, and that is all we are doing to the monument for our deceased Presi- dent, is to maintain the monument. Mr. GROSS. Let me tell you something else about the Washington Monument. It took about 40 years to complete it. That was back in the days when they gave consideration to balanced budgets, and had some consideration for financial san- ity in the Federal Government. The CHAIRMAN. The time of the gen- tleman from Iowa has expired. (By unanimous consent, Mr. Gaoss was allowed to proceed for 5 additional, minutes.) Mr. GRAY. Mr. Chairman, will the gentleman yield further? Mr. GROSS. In Just a minute: Yes, it took about 40 years to finish the mon- ment to George Washington. and yet today it has to be instant salvation? we have to have these 63 buildings right now to take care of two things, meire bureaucrats and forced-draft spending for employment. That is the story. In- stead of doing what we ought to do, and that is to cut down on this bureaucracy so that we do not have to go out and put up 63 more buildings. Instead of do- ing the things that are sane and right and reasonable, we are going to spend money that we do not have for 63 more buildings. Mr. GRAY. If the gentleman will yield further, I just want to say that when we wrote this bill we had the distinguished gentleman from Iowa in mind. Mr. GROSS. If you really had me in mind you would not have put $1.5 million in this bill for that cultural palace in Foggy Bottom, Mr. GRAY. I am talking about the gen- eral provisiins of the bill. That ainern- ment was added aiterwards, but- in sue bill itself we did have the gentleman tram Iowa in mind. Because this was tighten- ing up of our procedure. But if the gentle- man wants to know where the money- is arena and convention center, there is coming from, it is out of the money that nothing in this bill to build the sports we are now paying in rents. We think it arena and convention.center. is time that we should stop paying rents, Mr. GROSS. We have been duped and build some government-owned build- around here all too often with regard to ings so we will save money. . Mrattlyen'higiitelMIRTP center. -1115F) - were Cold we were qrSefga? the sAopprovt OW ercRei 0 Ply CA:A II 3`)"' see one of these buildings built in the gentleman from Iowa's district, and see the name put on it, the H. R. Gross Build- ing. Mr. GROSS. Just spare me that, if you will, please; jpst spare me in that. Mr. JACOnS. Mr. Chairman, I move to strike out the last word. Mr. Chairman, I have of course tre- mendous affection for the members of the committee. But, I disagree with this bill as deeply as I can ciLtagree with any- thing. There is a provision in it?you can go and get your chart out?yes, young lady, get the chart out and show them that in Indianapolis. Ind., there is a new Federal building proposed. Ilia save the time of telling me about it I already know it. I want the buntline. hut I do not waist Indisuasposts Feeiteai tax- payers to have to pay for it three or four times. I would like to have it built ann.' some kind of what they used to con ti. eal responsibility. It has already been acknowledged Lime by one Member that direct finencent is the less expensive way to build, net we cannot afford to do tliet.?thete deo nig a deficit in the Feder,ii budget. That is the same kind of silas I.hen a bum is in when he goes to a tmh to borrow money anti they tell Lim--"You already owe us ,S-U) not going to lend you any monee;" out in the street and deals with eed "How much interest?" "Oh, 25 et:tenet or 30 percent?do not worry aten.it ? Someone else will pay ally wee . can pay 25-percent or 30-percent and we will let you have $5 to eo otit eat and have a good Lime this di Well, I dub this approach in tipsa. 'hide the ciet`dsit V.'list -oi, going to de under this hiS i.; rowed money and use it to private contractors who borrowed ati,nt,y? and put that borrowing in the structure of the rent that they charge. So what you end an doing is hosrcov- ing twice and payitet interest nteni. We have a truttnienendine lone Why do we not have a teuth-in-boreownag law for the American people aro make it apply to the Congress and zneke it apply. to the Federal Got/elan-neat? Un- der this bill which pretends we use not borrowing to put up the buildings, we end up borrowing more .and paying more in interest. What happens atter these private people put up the building .and each agency pays its own rent? We stt:;:3 pay- ing rent to the private facilities in the COMrfilinity that we are ocettLI,yin The only tiling I can, tell yea is. t.t:o Lat connection with this new iutraaty oyes' here. the 7:liaison Lintady, t1.7. $3 million rent now private oboes, anti the uncut bonds or the in leriet: on the . or- rowed to put up that ? betiding is tootle; to be $5 million a.year..That is how you save the taxpayers' money. It is costing them a net increase of $2 million per year. And "them" includes Aelericans yet unborn. Mr. GROSS. Mr. Chairman, will the gentleman yield? RCopt 4114* to the gentleman. 1/4f2iCAATIMem an is exactly F 113284 ? ?D r AD oved For RgilileiteRNM9A4R:Ead3p_PA61904iR000100R59f13.7op 1972 - right. The lease-purchase building ar- rangement certainly passes on to the generation to come the mortgage debt for these buildings. That is what we are doing; handing on to the children of today and tomorrow the obligations this Government ought to assume today. Mr. JACOBS. Yes. Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. JACOBS. I yield to the gentleman. Mr. GRAY. I know that the gentleman Is honest and sincere and I have great respect for him. But let us look at the hard, cold facts of this proposed Federal building in Indianapolis, Ind. Mr. JACOBS. That is what I was hop- ing you would do. Mr. GRAY. Would the gentleman ad- vocate that we eliminate the Federal So- cial Security Administration and the De- partment of Agriculture and the Department of the Interior and all of the other agencies in Indianapolis? Mr. JACOBS. That is irrelevant to what I am talking about. What I am talking about is that if there are needs in this country, I am talking about meet- ing them responsibly. Mr. GRAY. All right. I asked the gen- tleman a question?Do you see any pos- sibility of eliminating them? Mr. JACOBS. Why do not you ask me what I am going to have for dinner to- night? It is irrelevant. Of course, I do not advocate the elimination of legiti- mate needs of government in this coun- try. Mr. GRAY. That is the first part of the question and if the gentleman will yield further, I will answer the question propounded by him. Mr. JACOBS. I yield further to the gentleman. Mr. GRAY. This method is not going to cost the taxpayers more money. No. 1, we approved that building for your city in 1964, 8 years ago. There has been a 10-percent, and in some cases a 12-percent, escalation cost per year, That building now is going to cost the tax- payers double. You will not have to pay an entrepre- neur 100-percent interest when you bor- row from him. If you wait any longer it will cost your taxpayers much more than the method provided in this bill. By waiting the taxpayers of Indianap- olis have already paid twjce for that building and they still do not have it. That is being pennywise and dollar foolish. Every year that these 63 projects remain on the shelf results in another $100 million extra cost to the taxpayers. So we either eliminate the need for the buildings or we build them now. The CHAIRMAN. The time of the gen- tleman front Indiana has expired. (By unanimous consent, Mr. JACOBS was allowed to proceed for 5 additional minutes.) Mr. JACOBS. I thank the gentleman for what he said just now, for it leads me into my next paint: The escalation in the cost of building in Indianapolis. That is precisely why the building was not put up in 1965. The war in Vietnam was escalated, and $30 billion was piled on top of the penny of ad or any fiscal responsibility shown?$30 billion was piled on top of the Federal budget with no additional taxes at all. After all, we were on a holy crusade and the Lord would provide us with some sort of alchemy through which we would produce that $30 billion. We would not have to tax for it. I remember my father said at the time that if they raised the taxes to pay for this venture in the quicksands of Asia, the war in Vietnam, it would stop two things: It would stop the inflation and it would stop the intervention. Now, there are direct funds available to back up the Penn Central loan and the Lockheed business. There are plenty of direct funds to pay wealthy farmers not to farm. And I have filed a discharge pe- tition here to get rid of the "big shot" limousines the Federal Government pays for. Why, you cannot even walk across the street around the Capitol Building because chauffeurs with their fancy uni- forms are leaning up against these lim- ousines after hauling bureaucrats down here to tell us how to run the Govern- ment. There are two signatures on that dis- charge petition, that of the gentleman from California (Mr. ROUSSELOT) and the gentleman from Indiana (Mr. JA- cons). That is an interesting combina- tion. There are direct funds available for that purpose, but there are not direct funds available for buildings that the gentleman says we need, and in effect must borrow two or three times to buy. I say again, and I emphasize it: You are passing here a new scheme to hide the deficit, to borrow money twice, to pay two interest rates on it, and to allow the fellow who puts up the building to use a little thing called depreciation that puts him on easy street for the rest of his life, and maybe for his descendants, too. So some descendants are getting something out of this. Mr. Chairman, I should like to men- tion the pork barrel end of the proposal. Wonderful. Why, if you talk against this approach, we will go out and tell them you are against a new Federal building. Go ahead and tell them. It is not true. I am in favor of a Federal building of some kind?with fiscal responsibility. Tell the American people how you are going to give them something they need. But remember that line in the show tune that "If you can give the baby a locket from her daddy's pocket you are a natu- ral in politics." Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. JACOBS. I yield to the gentleman from Illinois. Mr. GRAY. I am sure the gentleman would not want to leave the impression that the Congress is losing control and that there will be clever manipulations downtown in this program. Mr. JACOBS. What do you 'mean? I just spent 8 minutes trying to leave that impression. I am not implying it; I am saying it directly. Mr. GRAY. Then the gentleman does not understand the bill. The bill charges spent through the actions of the House and the Senate Committees on Appro- priation, and if they approve it, as we approve direct appropriations, the money goes to Pay the developer of the building. Tell me where there are any hidden charges. Mr. JACOBS. That revolving fund is being held at the-head of every taxpayer and his descendants in this country. That is where the hidden charges are. If you want to find another place where they are trying to do something about inflation I suggest that you will find that by going to a grocery store; they de not even wait until the new stock comes in. They put higher price tags on top of the price tags. They change the prices before they even sell their existing stock. If you do not believe that, go and find out. Mr. HARSHA. Mr. Chairman, will the gentleman yield? Mr. JACOBS. I yield to the gentleman from Ohio. Mr. HARSHA. You talk about irrele- vant arguments. The gentleman is now stating an irrelevancy. Mr. JACOBS. Does the gentleman think the actions of the Federal Govern- ment in this particular instance are ir- relevant to the inflation that is killing this country? Mr. HARSHA. If the gentleman wants a compromise, we will accommodate him. The Indianapolis building is included at $28 million. We will take it eut of there. Mr. JACOBS. Oh. sure, so your farm subsidies can take its place and youe limousines can take its place, Throw out the waste in the budget and you can build the Indianapolis facility and still give the American public a tax cut. I yield back the balance of my time. Mr. HARSHA. Mr. Chairman, I move to strike the requisite number of words, Mr. Chairman, let me point out here that if we went the direct appropriation route, this $760 million would be added to the national deficit. Recently the Fed- eral Government borrowed money to take care of the burden of the interest rate and other operating costs on long- term notes, and it paid 5.9 percent in- terest. So any addition to nat deficit?and the addition Of if we went the direct aP pro pri! route, at an interest rate of 5.9 pe.-:!,,nr, would be to add to that deficit until time as the national deficit is paid on-- and apparently it will not be paid off. So we are not going out and incurring a great deal of hidden charges. Rather, in the most expeditious way and at the least expense to the Government. we are trying to get Government facilities for needed services winch people are de- manding, which we are not sale to ride under under the direct appropriation proc- ess. It will cost us only the (ilierential between what we have to pay to borrow money at 5.9 percent and What we . are going to have to pay for these purchase contracts. It has been estimated at 7,5 percent. So the true differentiae in cost that is going to have to be assumed by the taxpayers is the difference between Federal agencies in your city for using 7.5 percent and 5.9 percent. OttikMaltk2PCPAS ?NAgx-11M-09NEMPNIMPLInblerg; : April ITPT9yyd For IReleilCalginRaCheW81-14014R000100080037-8 II 3285 consolidation of office space throughout the Government, we will save millions of dollars annually. If each agency is charged with the responsibility of financ- ing, funding and defending its budget requests f6r space before the Appropria- tions Committee, it will, be inclined to conserve space, and that conservation of space will save dollars for the American taxpayer. In addition to that, the space we are presently renting all over the United States to provide adequate space for Fed- eral agencies, will no longer be needed. We will no longer have to pay for the cost of that space. In addition, the con- solidation .of agencies into one building will save a great deal of time and lost ef- fort of people going to and from the various buildings and the cost of the transportation of those individuals. That will result in more efficient and effective service to the taxpayer. So. in the final analysis, this process will in effect save money for the tax- payers. contrary to what the gentleman asserts. Mr, GROSS. Mr. Chairman, will the gentleman yield? Mr. HARSHA. I yield to the gentleman from Iowa. Mr. GROSS. Mr. Chairman. I will say to my friend, the gentleman from Ohio, that the construction startup costs of a billion dollars in this bill will have to come from somewhere. Does not the gen- tleman think we ought to reserve some- thing for the day of financial collapse in this country, because it is inevitable the way we are going? Mr. HARSHA. The startup costs will not be a billion dollars to the Federal Government. It will be considerably less. In tile committee's report we showed the startup costs and continuation costs for a number of years. I would hope the gentleman will still feel we will have a balanced budget at some time. Mr. GROSS. Not with bills such as this will we have balanced budgets. Mr. HARSHA. I would hazard the observation that if the gentleman con- tinues his fine work of watchdogging the Treasury, we will have a balanced budget. Mr. GROSS. Thank you. The CHAIRMAN. The Clerk will read. The Clerk read as follows: SEC. 4. Section 210 of the Federal Properly and -Administrative Services Act of 1949, as amended (40 U.S.C. 490), is amended by adding two new subsections reading as fol- lows:. "(j) The Administrator is: authorized and directed to charge anyone furnished services, space, qtlarters maintenance, repair, or other factlities (hereinafrer referred to as space al Hrvires), at roes to he de'orralett by the Admistr(?pr from time to time sad ,ideci for in regidatlorer t,.etted by him. Seen re,ies and char,?,es snail approximate commercial charges for comparable space and services, except that with respect to those buildings for which the Administrator of General Services is responsible for alter- ation() only (as the term is defined in see-teen 13(3) of the Public Buildings Act of 1059 (73 Stat. 470), as amended (40 U.S.0 612(5)), the rates charged the occupant for such serviees shall be fixed by the Adminis- tarpaptioircasyip)i cregviaerd Rigalterneraia /Marl% lutriat log such alterations. The Administrator may limited to) payment of taxes, costs of carry- exenspt anyone from the charges required lug appropriate insurance, and costs of by this subsection. To the extent any such pair and maintenance if so required of the exemption is granted, appropriations to the contractor. General Services Administration are author- (c) Funds available on the date- of en- ized to reimburse the fund for any loss of actment of this subsection for the payment revenue. of rent aetd related. charges for premises, "(k) Any executive agency, other than the whether appropriated directly to the General General Services Administration, which pro- Services Administration or to any other vides to anyone space and services set forth agency of the Government and rec.ived by in subsection (j) of this section, is author- said A?dministration for such purpose, mey ized to charge the occupant for such space be utilized by the Administrator of G.nez..al. and services at YStOS approved by the Admiti- Services th make payments bec...',,min7: (U-,e istrator and the Director of the Office of from time to rune irom the United Stetes as Management and Budget. Moneys derived current charges in connectien with terree- by such executive agency from such rates or ments entered into under authority of tiae fees shall be credited to the appropriation section. or fund initially charged for providing tie.4 (d) With respect to any interest in real service, except that amounts which are la, property acquired under the provisiens of excess of actual operating and inaintenanee this section, the same shall be subje,r!t costs of providing the service shall he State and local taxes is.. title to the setee credited to miscellaneous receipts unlese shall pass to the Goverement of the tiniied otherwise authorized by law." States. (e) For the purpose of purchase cor..,racts provided for in this 'or' 'ii tor tae by the contractor of bui:Jttigs and for the use of the Tjeited Stesee tee Administrator is autlized to lea) agreements with any per.;cn, coparner,i,ip, corporation, or other puhlic or privatc ern, to effectetate any i.",f the pinposes tiu-$ section; and is further T.o about the development and inio-:oveiIt.,.. any land owned by the Unthed :t:;tares aed under the" control of tile Administration ineluding the obsolete and outmecled thereon, by providing for tiui conde ere:, e), thereon by othees of such etriee?:.ures facilities as shall be the subject of the ep- plicable purchase contracts, and be meld ar available such plans and srp,ner:.,rs the contruction of a public blnk:1,n,r. tilerec.n CC tic 0,:e.'erinneni:, may 7)c.,.;;:.e;. heretonire approved pursuant to the i)rovi- sions of the c' 1,10 L.' as or amended (40 tf.S.C. COL e , n construceed under au,aotlt "0 IV, suttied to oi..)tain s;.ich - fee all e?r?ee,o?e. be t uses for 1.1,e purchae of sp.tce, ! a.ny such oroject sh.o.11 suO?t to Ihe 1,? quire.meurs of sec.ti)n. '7(b) of Buildings Act of 195C.), amen,ied, upon an erinn.ated maximum by not more than an ave.a. e of 10 C.,11t1I0' yef,r e:clusire et other cc.si attributable to tile u..;e method of construction authorized by tills section. (T) 'Except for previously approved peoE- pectui..?es referred to in ( c> a Oo ve, no p chase contract shall be entered pu to the authority of this section until a tilos- pectus therefor has been s-ebmitted and ap- proved in accordarice wi.th section 7 of tine Public 5'. ','i Act of 195e, ae airened, and each such prospectus shall he limited to public buildings generally suitable for ofTho or stonu4e 's i.e or Lich and any- r:,t11,1- of public building that is proved by resolutinn adopted by tee on V.'orlcs House of 1..epre.:Onr.a.!:1,:es for a pt.1.7.".:13..e tract seation. into uncftr the authority ;7-r (g) ourclase section or the end of. t;Ite which bejnis airer the daze this section. Mr. GRAY (during the reading). Mr. Chairman, I ask unanimous consent that section 5 be considered' es , in the RECORD, and open to aniondmont Mr. GRAY (during the reading). Mr. Chairman, I ask unanimous consent that section 4 be considered as read, printed In the RECORD, and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Illi- nois? There was no objection. The CHAIRMAN. Are there any amendments to be proposed? If not, the Clerk will read. The Clerk read as follows: SEC. 5 (a) Whenever the Administrator of General Services determines that the best interests of the United States will be served by taking action hereunder, he is authorized to provide space by entering into purcheee contracts, the terms of which shall not be more than thirty years and which shall pro- vide in each case that title to the property shall vest in the United States at or before the expiration of tte coatrac.t tcrin and upon fulfillment of the terms and conditions stipu- lated in each of ettail purclia;e conT:ract.. Such terms and c-onchtons shah include pro- vision for the appiicaLion to the purchase price agreed upon therein of installment pay- ments made thereunder. Each purchase con-- tract authorized by this section shall be en- tered into pursuant to the provisions of title III of the Federal Property and Administra- tive Services Act of 1949, as amended. If any such contract is negotiated, the 'determina- tion and findings supporting such negotia- tion shall be promptly reported in writing to the Committees ma Public Wores of the Sen- ate and House of Representatives. Proposals for purchase contracts shall be solicited from' the maximum number of qualified sources consistent with the nature and requirements of the facility to be procured. (b) Each such purchase contract shall in- clude such provisions as the Administrator of General Services, in his discretion, shall deem to be in the best interesw, of the United States and appropriate to secure the perform- ance of the oblieations imposed upon cae parry or pail_,eiI,,aC shall enter into such agreement with tin United States. No socn. purcnse COUT any otI - nlents to be m-ido. 1.:;11ed. Etare.; 1.1 excess of -the amount riecsary, as (Ieter.. mined by the v;-- (1) amortize the cost of construction of Improvements to be constructed plus the fair market value, on the date of the aereement,. of the site, if not owiled by the 'United States; and (2) provide a reasonable rale of interest on the outstanding principal as determined at any point. paragraphunder 1 above; d The CHAIRMAN. Is there objection to (3) reimburse the contractor for the cost 291! Iamoibttiai mcgomp attztippecols0 etmeosritman from Illi- II 3286 Approved For Rel There was no objection. AMENDMENT OFFERED BY MR. STEED Mr. STEED. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. STEED: Page 24, after line 13, insert the following: ' "(h) No purchase contract shall be en- tered into under this section until it has been authorized by resolutions adopted by the Committees on Appropriations of the Senate and House of Representatives, respec- tively." Mr. STEED. Mr. Chairman, the reason Why I offer this amendment is that I believe it is an improvement in the bill and it answers some of the concern which some of the Members have had. I believe it is fair to point out that there are several stages we go through In the process of construction of Federal buildings. Since our subcommittee is deeply involved in this whole process, it Is important that we have this amend- ment to keep this whole program in an orderly balance. Mr. BOW. Mr. Chairman, will the gen- tleman yield? Mr. STEED. I am happy to yield to the gentleman from Ohio. Mr. BOW. I should like to say to the gentleman that I wholeheartedly sup- port the amendment he has offered. I be- lieve it is a great improvement in the bill and will give us some oversight in the Appropriations Committee. Mr, STEED. I thank the gentleman. Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. STEED. I am happy to yield to the gentleman from Illinois. Mr. GRAY. Certainly the Committee on Public Works wants to continue its cooperation with the Appropriations Committee on the funding of public buildings. This is one additional over- sight provision the Appropriations Com- mittee would have, and we on this side are prepared to accept the gentleman's amendment. Mr. STEED. I thank the gentleman. Mr. HAR,SHA, Mr. Chairman, will the gentleman yield? Mr. STEED. I yield to the gentleman from Ohio. Mr. HARSHA. I thank the gentleman for yielding. This is precisely the amend- ment I had at the desk, and I believe it more properly comes from the distin- guished chairman of the subcommittee of the Appropriations Committee. I be- lieve it is proper to include oversight for the Appropriations Committee, and we are happy to accept it on this side of the aisle. Mr. STEED. I thank the gentleman. Mr. WRIGHT'. Mr. Chairman, will the gentleman yield? Mr. STEED. I am happy to yield to the gentleman from Texas. Mr. WRIGHT, As I heard the gentle- man's amendment read, I believe it did not have the same caveat that applies in subsection (f) with respect to Public Works Committee approvals, wherein it says: Except for previously approved pro- spectuses referred to in (e) above, no pur- chase contrAitifichlef dcirReI ease CiAIRDP136120'0244ROVECTIVEMOOSIg8us mkt .,fiampsmegek0001000w/77%, 1972 I wonder if the gentleman would agree to that same sort of arrangement with regard to his committee? Mr. STEED. As I understand it, the gentleman's committee has to act first. They work up a project, and then they bring it to us in final form and we have to act on it. This keeps it in balance with other work in this field our committee has to do. I believe there would be no delay in the program, and that this ought to be approved. I shall call attention to the fact that In our bill our subcommittee handles we are charged with the responsibility of enabling the General Services Adminis- tration to provide space throughout the country which the Government has to have to carry on its work. Our rent ac- count is quite heavy. It is nearing the half-billion dollar mark. A large part of that rent account is dedicated to getting space in these areas where these build- ings are so badly needed. There is a very high criteria on the justification for erecting Federal buildings. This bill provides a new tool, added to what we have already, to proceed to get the Government in the most economical housing possible to be provided. With this amendment in here I believe any ob- jection I would have to the bill would be eliminated, and I would support the bill wholeheartedly. Mr. WRIGHT. Mr. Chairman, will the gentleman yield further? Mr. STEED. I yield further, Mr. WRIGHT. In order to achieve an understanding between the two commit- tees, I believe the gentleman's amend- ment by its terms would require these projects already authorized by the Pub- lic Works Committee to come to the Ap- propriations Committee before they could be constructed, for specific author- izing resolutions from the Appropriations Committee. I assume that the gentleman from Oklahoma would be in a position to say that the Appropriations Committee would expect to act with some expedi- tion upon those already approved proj- ects which have been waiting so long. Mr. STEED. Of course, as the gentle- man knows, under the old system the Public Works Committee had to author- ize prospectuses before we had any au- thority over it anyway. Having the rent account and being under this pressure, I can assure the gentleman that my sub- committee is more concerned about get- ting adequate space for Government agencies, perhaps, than even his commit- tee, because this is something we live with, and it is getting to be a very siza- ble burden, and we know a large part of this rent is money that oudit to be going into paying for these buildings. Mr. WRIGHT. I thank the gentleman for his comments. The CHAIRMAN. The question is on the amendment offered by the gentleman from Oklahoma (Mr. STEED). The amendment was agreed to. Mr. VAN DEERLIN. I move to strike the last word, Mr. Chairman. Mr. Chairman, I take this time to address a request to the chairman of the Mr. VAN DEERLIN. We have many that our judges have encountered out in San Diego. San Diego, as you know, Mr. Chair- man, is using a Federal building that was built a year before I was born, which gives you an idea of how very old and used up it is at this point. We enjoy high priority for a new building under the terms of this legislation. As a Matter of fact, the last a years have been sne.nt by a leading firm of San Diego archi- tects, preparing plans for a $43 million building in which to house the court- house complex and some 44 Federal agen- cies at San Diego. After completion of these plans, Mr. Chairman, the National Judicial Confer- ence ordered a new size courtroom to be the standard courtroom throughout the United States?a smaller, scmidepressed courtroom of a size 28 by 40 feet. Com- pleted plans in San Diego provide court- rooms 48 by 40 feet. The ordered change is going to re- quire redesigning the buildin.g?whiali the architects say must be done With so fundamental a change. This will result in a delay of at least 6 months. That redesign will increase the cost of the building by the amount of architects' fees in a sum of approximately $200.010. The five judges of our Southern Dis- trict Court in California?one Democrat, the presiding judge, and foto: Republaan appointees?all feel strongly about this matter. They told me if they are coin- pelled to take these new, smaller cent- rooms, they would prefer to stay naht where they are in the old, dilapidaa.cal courthouse on F Street. It seems to me that this could 'a:. a very 'embarrassing- thing to the Caaa - a-aess, and to me persen.Uy, ss waal ? to the GSA and the - :National Juan. -Conference. May I inotare of the subcommittee chairman what advice me can give i.17 this regard? ? Mr. GRAY. Will the gentleman yield to me? Mr. VAN DEERLIN. Of course. Mr. GRAY. I say to my good friend from California that this is a problem attendant on almost all of these buildinas where it is a combination Federal build- ing including- the courts. Baltimore, Md., is one, and I could name many others in the different cities that have. this same problem. We haveauthorized a larger build to which the gentleman alluded, but the Judicial Conference met at the request of Chief Justice Burger, and for Some reason they asked them to consider re- euesting the GSA to have a smaller court facility. My own personal opinion is th.o.t t17 is a case of being penny vise sat a..' foolish and that it will co:,t, a lo; money to redraw these p!s:is and up with this smaller size than it WOUIC1 be to go ahead and build the larger court- room in the first place. As the judges point out, they need the larger space. Many of the trials are of national inter- cat, and they need a larger courtroom hold them. 'ARM 414 e e of our April Ai? RR? d For Rel egqqa(N1i4jy&w:??.?. piggtrithoom 00080037-8 H 3287 proximity to the international border with its immigration and narcotics prob- lems. Mr. GRAY. But in direct answer to your question, the project as presently authorized could be built exactly as the judges want it. The judges should work on the Judicial Conference and get them to request the GSA not to scale down the size because it requires no further legis- lative action in this bill to build the larger courtroom. So the problem is with the Judicial Conference and the admin- istrative office of the courts, because I understand GSA, being the so-called real estate agent for the Government, only builds space at the request of an agency, In this case the judiciary. So it is the ju- diciary itself that has asked that it be cut down. We are powerless to say here that you should build the bigger one. The problem rests with the juiciary. I will be delighted to hold hearings and bring in .the people from the Gen- eral Services Administration as well as the people from the Judicial Conference, if the gentleman requested it, but I think time is of the essence and ;eel that the judges should be doing their homework on the Judicial Conference. ? Mr. VAN DEERLIN. Does the gentle- man not agree that the interest of the local community in this matter is very Important, and in line with the senti- ments expressed by the President in his state of the Union - message last year? Mr. Nixon emphasized that, where pos- sible and appropriate, we should leave decisionmaking to people at the local level. The CHAIRMAN. The time of the gen- tleman from California has expired. (By unanimous consent, Mr. VAN Dente- LIN was allowed to proceed for 1 addi- tional minute.) ivir. GRAY. Mr. Chairman, if the gen- Aleman will yield, the answer is "Yes." I agree with the gentleman implicitly, but I was trying to get the mechanics of the prOblem of the Judiciary asking the GSA to go ahead with the building plans as authorized in the bill. -Mr. MATSUNAGA. Mr. Chairman, will the gentleman yield? Mr. VAN DEERLIN. I yield to the gen- tleman from Hawaii. Mr. MATSUNAGA. I am glad that the gentleman from California has brought this problem up because in Honolulu we are suffering from the same bungling. Plans for our new Federal building had been drawn up -at-id construction ready to begin, pending appropriation of nec- essary funds. Suddenly the postal depart- ment altered its plans and the entire building plans had to be redrawn at more expense to the taxpayer. When the new plans had been drawn and approved. and construction once again ready to com- mence, pending the appropriation of funds, comes now the Judicial Confer- ence, with its recommendation for a de- crease in the size of the courtrooms pre- sumably for economy reasons, and threatens to require the redrawing of plans again, at even greater cost to the taxpayer. mean. higher costs. Plans which have The CHAIRMAN. Is there objection to been drawn and approved should be al- the request of the gentleman from 1111- lowed to proceed without alteration. nois? If the chairman of the subcommittee There was no objection. will lend his ear, I would like to say that as a representative of one of the cities being affected, I join with the gentleman. from California in begging him if beg- ging there must be to exert the influence of his office, as chairman of the Sub- committee on Public Buildings, to cut oat the foolislmess of costly replanning and delays. Mr. VAN DEERLIN. I thank the gen- tleman. Mr. GRAY. Mr. Chairman, I move to strike the last word. (Mr. GRAY asked and was given per-- mission to revise and extend his re- marks.) Mr. GRAY. Mr. Chairman, let me say to my distinguished friend from Hawaii that he never has to beg me for any- thing. We will hold a hearing and tra to help all of the cities to correct similar. situations as exists in Honolulu. The CHAIRMAN. The Clerk will reatE The Clerk read as follows: SEC. 6. Section 210 of the Federal Properly mid Administrative Services Act of 1949, la amended (40 U.S.C. 490), is further amende0 by renumbering section 210(h) (2) as set,- lion 210?11) (.31, and adding a new paragraph (2) immediately after section 210(h) (1.), as follows: "(2) In the case of lease agreements pro- viding for the erection by the lessor of build- ines and improvements for the use of the United States, the Administrator may enter into any such lease for a period not to exceed thirty years and make the property of the United States to be used as a site for a public building (as defined in section 14(e) of the Public Built:tinge Act of 1959, as amended) ea-enable by sale to the lessor 121 such matmer and upon such terms as the Administraior deems appropriate to the best interest or the United States, together with such plans and specifications for the Con- struction of a public building thereon as the Government may possess. Projects here- tofore approved pursuant to the provisions of the Public Buildings Act of 1959, as amended (40 U.S.C. 601 et seq.), may be con- structed under the authority of this section 210(h) without further approval, and the prospectuses submited to obtain such ap- proval shall, for all purposes, be considered as prospectuses for the lease construction of space, except that any such project shall be subject to the requirements of section 7(b) of the Public Buildings Act of 1959, as amended, based upon an estimated max- imum cost exclusive of financing or other costs attributable to the use of the method of construction authorized by this section. In order to utilize the authority.granted under this paragraph (2) with respect to such pre- viously approved projects, the Administrator must find that direct Federal construction and a purchase contract as provided for in eectiou 5 of the Public Buildinge Amend- of 1.972 13 not a feasible means of providing tile required apace. Sections 202 tied 203 of the Federal Property and Ad- minietrative Services Act of 1049, as amended (40 U.S.C. 483 and. 484), shall not be appli- cable to property made available under this subsection. The authority granted under this paragraph (2) shall be in effect for a period of three full fiscal years from enactment and not thereafter.' Mr. GRAY (during the reading). Mr. The city of Honolulu, with its ill- Chairman, I ask unanimous consent that ? 0 housed Fad titoturourtat to in sub- r-latimated fmr dire need bra clew edlrif beurfr;g. tna ehs 1 tneotto, and open o ameMR2 market value. ther delays in its construction can only at any point. (e) The Postmaster General of the United AMENDMENT OFITRED BY Ma. HARSHA Mr. HARSHA, Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered. by Mr. HARSHA: On page 24, strike out line 14 and all that fol- lows down through and. including line 2 on page 26. Renumber succeeding sectiona accordingly. (Mr. HARSHA asked and was given permission to revise and extend his re- marks.) Mr. HARSHA. Mr. Chairman, this is a very simple amendment. It strikes out section 6. That section authorizes GSA to go out and lease public buildings for periods of occupancy up to 30 years. My objection to this section is neat at the end of the lease term. after payna this lease fee, the entrepreneur or ai- vate developers will still own the build- ing. In other words. the Federal Govern- ment is not obtaining anv equity in the building during this 30-year tiered. I would hope that the chairman would accept this amendment. It think it tin it- ens up the bill and strengthens it eon- siderably and strengthens conetcesortal oversight on the balance of the bill. Mr. Chairman, if I might have the at- tention of the chairman of the eulaena- mittee, the gentleman from Illinois Cane GRAY ) , I would like to ask the man if if he is willing to aecept the a eesse a- ment. Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. H A RS II A. I yield to the gen man from Illinois. ? Mr. GRAY. Mr. Cantsmei. I eJenee delighted to accept the amencloicen en this side. The CHAIRMAN. The questioa is t.,,a the amendment offered by the gee:ale:II:all from Ohio (Mr. liansraa) The amendment was agreed to. The CHAIRMAN. The Clerk will read. The Clerk read as follows: SEC. 7. (a) The following real property, and any improvements located thereon, when no longer required for occupancy by the United States Postal Service, shall be trans- ferred, without cost, to the General Services Administration for disposal pursuant to the provisions of the Federal Property and Ad- ministrative Services Act of 191, as amended: (1) Post Office?South Main and East Port Street. Saint Martinville, Louisiana. (2) Post Office-1210 Park Street, Com- merce. Texas. (3) Post Office-34 West Street, Keene, New Hampshire. (4) Poet Office-230 W. Main Street, Vele Platte, (3) Post Oifica-100 Smith Olive A-.cei.e. West Palm BeeM. (6) Post 0:fice-e.l,e W. Fourth Street, Si.;'. field, Ohio. (7) Post Office-114 N. Loraine Street, Mid- land, Texas, (8) Post Office?Court House?East Ford Street, Augusta, Georgia. (b) The provisions of section 204(e) of the Federal Property and Administrative Services Act of 1949 shall not preclude dis- ) Qt. ? Approved For Reletee 2000/09/14: CIA-RDP86-002 000100082037-8 H 3288 CONGRESSIONAL RECORD ? HOUSE pnt /9, 1972 States Postal Service 'shall canvey to- the city of Carbondale, Illinois, all right, title, and interest of the United States and such Postal Service, and in and to the real prop- erty (including any improvements thereon) in Carbondale, Illinois, bounded by old West Main Street on the south, Glenview Drive on the west, Illinois Route 13 and access road to Murdale Elhopping Center on the north, and by Texaco Service Station and residences on the north, approximately 308 feet on the east, 525 feet on the south, 420 feet on the west and with an irregular boundary oa the north, a total area of approximately 191,300 square feet. The exact legal description, of the property shall be determined by the Postmaeter General, without cost to the city of Carbondale, Illinois. Such conveyance shall be made without payment of monetary consideration and on condition that such property shall be used solely for public park purposes, and if it ever ceases to be used for such purpose. the title thereto shall revert to the United States which shall have the right of imniediate reentry thereon. (d) The Postmaster General of the United States Postal Service shall convey to the city of New York. New York. all right, title, and Interest of the United States and such Postal Service, in and to the real property (Inc/tid- ing all improvements thereon) generally re- ferred to as the Morgan Annex, one block square between Ninth and Tenth Avenues. anti Twenty-eighth and Twenty-ninth Streets, New York, New York. Such eon- veytmce shall be made without payment of monetary consideration and on condition that such property shall be used solely for publicly assisted housing and related pur- poses, and if it ever ceases to be used. for Such purposes, title thereto shall revert to the United States which shall have the right of immediate reentry thereon_ Mr. GRAY (during the reading) . Mr. Chairman, I ask unanimous consent that section 7 be considered as read, printed in the RECORD, and open to amendment at any point. The CHAIRMAN. Is there objection to the request of the gentleman from Illinois? There was no objection, AMENDMENT OFFERED BY MR. CLEVELAND Mr. CLEVELAND. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. CLEVELAND: Page 26, line 3, after "Sc. 7." strike subsec- tions (a) and (b) through and including 11ne 4 .on page 27. Renumber succeeding subsections accord- ingly. (Mr. CLEVELAND asked and was giv- en permission to revise and extend his remarks.) Mr. CLEVELAND. Mr. Chairman, I of- fer an amendment to H.R. 10488, as re- ported which would strike from the bill language which is no longer necessary. The subsections I propose to strike calls for a transfer of e:zcess Festal Service properties to the GA for disposal pur- suant to the Federal Property and Ad- ministrative Services Act of 149, as amended. Late last year, when the committee was considering this bill, I brought to the committee's attention what I considered , be a very inequitable situation. Through its Reorganization Act, the Pos- tal Service had become a Government 1,200 buildings from GSA. In addition to these buildings, new ones were under construction by GSA which were de- signed to replace some of the older build- ings of the 1,200 transferred. Further, the Postal Service was to receive these new buildings at no cost, all the while retaining the buildings which were pro- grammed to be replaced. Such buildings could then have been sold to the highest bidder with all proceeds going to the Postal Service. This represented to me a windfall to the Postal Service at the taxpayers' ex- pense and one which was not intended under the Reorganization Act. I was par- ticularly concerned about this practice since one community in my own district, long desirous of obtaining for school or library purposes a postal building about to be abandoned for new quarters, sud- denly found they were no longer dealing with GSA, but with a government cor- poration more concerned with the sound management of assets than disposition of some Government property which had been paid for by the taxpayer in the first place. A survey of similar new postal build- ings underway produced those you lind in section 7(a) of the bill before you. I Introduced legislation to correct this in- equity and the committee modified and adopted it. Subsequently, the Postal Service saw the light and agreed with my position and administratively offered these build- ings to GSA, who in turn accepted, for disposal as surplus under the Federal Property and Administrative Services Act of 949, as amended. With the ad- ministrative transfer of these bulletin qs, sections 7 (a) and (b) of this bill become unnecessary and so I offer an amend- ment to strike them. By consent obtained after we have re- turned to full session of the House. I oi- fer correspondence betv,,een the iti Service and the General Services Admin- istration in support of the fact that these subsections are no longer needed. (The material referred to follows:) BUILDINGS DESCRIBED IN H.R. 10488 AS REPORTED Bilt identity and location Estimatet cost Status of new building Funded, Under contract to construction be awarded Notes (Saint Martinville, La .... (') 7 (2) Commerce, Tex (a) Occumed. (3) Keene, N.H $1,60a.000 X Open May 1972. (4) Ville Platte, La 408,000 Nor/ OCCUDieti. (5) West Palm Beach, Fla 8400, 000 X Open July 1972, (6) hlansfield, Ohio 7,305,400 X fa,- 0e,,.rmAr 1972, (7) Midland, Tex 4, 8(4.000 X Open August I$m. (8) Augusta, Ga 5,000,000 X ? I Will be acquired by Post Office, and constructed by Corps of Ergineers. a Acquired by Post Office, and constructed by Corps of Engineers, SEN/OR ASSISTANT POSTIVIASTER GENERAL, MAIL PROCESSING GROUP, Washington, D.C., November 8, 1972. Hon. ROBERT L. KUNZIG, Administrator, General Services Administra- tion, !Washington, D.C. DEAR MR. KUNZIG :- Some of the buildings transferred to the Postal Service on July 1,, 1971 had been programmed, since before en- actment of the Posral Reorganization Act, for donation upon completion of planned and approved new multi-occupancy Federal of- fice buildings and Post Office buildings for use in the States wherein they are located for purposes of education, public health, park and recreation, historic monument, or other purposes, pursuant to the provisions of the Federal Property and Administrative Serv- ices Act of 1949, as amended, and related stat- utes. Such buildings were not required by the Postal Service except as temporary quar- ters pending completion and occupancy of planned new space. In addition, the Postal Service has a postal f;:cility site which has become exce,s to the Postal Service needs dna ro the acquisition of a pl'e,er.dne Accordingly, the Po:;l Service has deter- mined that the follo.,ving propertc, are ex.- CkS5 tO the needs of the Postal Service: Carbondale, Illinois, poetal facility site, Northeast corner of Old West Main Street and Gienview Drive, Carbondale, Illinois, consisting of approximately 191,900 aquare feet. Commerce, Texas, Post Office, 1210 Park Street, Commerce, Texas. ? ai and had 1 ady i ed Iri.eene. New Hampshire, Poet Office, 31 West 11.1s,nsf.eld. Pct Office, 53 West Pcilrt Street, Man ii. Ohio. Midland, Teass. Post Office, 114 North ,Loraine Street, Midland, Te. Saint Martinville, Post Orqce. South Main and It Port Sit'eet. Saint Mar- tinville, Louisiana, Ville Platte, Louisiana, Post Office,- 2:30 West Main S tree,:, Platte, Lounfina.. West Palm Beach, Florida, Post Office, 400 South Olive Avenue, 15,Te5t Palm Beach, Flor- ida. These 17:70:7,v.-1,;.i,,,.; are offered to Administrn,...,:l fir 15 111?1- ? 1:,..7:)p- erty rv.:.:,..,r0i:Infcre wich of the Fed.:.:-;i1 Ajrnf3.: : ?:e Services Act of ii49 andre General Services Administration agrees to permit the Po.stal Service to continue to occupy the space the Postal Service pre .iv occupies in each building until as the Postal Service rnov..; into renlacom,.n.,.. .?.;:a,ce eh re.,pective, na.11. Service s bear ail co; s wad e,..1ses these pr r'1?'- s:o long a:3 thev a:*e al t'urther the Servi,:e tlie net received trcni the di.,-;pol c6.: these ties. If this transfer is acceptable to you, please so indicate by signing at the foot of this letter, Respectfully, Accepted: H. F. PAuGitr. ROBERT L. KUNZIG, Administrator, Genercd Services Ad- V?ctiLtnkppromeattor &lease Q000/60/14 POIAADP86-00244R000400080037-8 April Appal:Wed For RelYse2a00/902114.41000100080037-8 11 3289 SENIOR ASSISTANT POSTMASTER GENERAL, Man. PROCESSING Gnome, Washington, D.C., November 8, 1971. Hon. Roamer L. RONZIG, Administrator, General Services Administra- tion, Washington, D.C. DEAR MR. Kingrac: This refers to your October 28 letter to Mr. Blount concerning the Postal Service's request for the transfer to the Postal Service, without reimburse- ment, Of a portion of the Federal Center In Bell, California, and also to the several earlier letters written to the Postal Service by the Public Buildings Service requesting the transfer to GSA, without reimbursement, of buildings destined to be vacated by the Postal Service upon completion of new postal facilities in specified locations. In your October 28 letter, you indicated that you would recommend the reimburse- ment-free transfer of the Bell property to the Postal Service if a mutual understanding were reached that, in return for transfer of the Bell property, the Postal Service would transfer to GSA excess properties in the Postal Service inventory which would be equal in value to that of the Bell property. You stated that GSA has continuing needs for these properties, either for dirct assign- ment to Federal agencies or as a medium of exchange for other properties. The Postal Service has determined that the following properties are excess to the needs of the Postal Service: Augusta, Georgia, Pest Office?court House, East Ford Street, Augusta, Georgia. Miami, Florida, Post Office?Court House, _200 N.E. First Avenue, Miami, Florida. Rock Hill, South Carolina., Post Office? Customs House, 201 East Main Street, Rock Hill. South Carolina. These properties are hereby offered for im- mediate transfer to the General Services Ad- ministration. The Genet.al Services Admin- istration agrees to permit the Postal Service to continue to occupy the space the Postal Service presently occupies in each building until such time as the Postal Service moves Into replacement space in eaci resp,z,ctive location. The Postal Service snail bear all costs and expenses of these p.roperties s long as they are occupied by the Postal Service. The General Services Administration further agrees to recommend to the Office of Manage- ment and Budget that the appraised fair market value at the time of transfer of the properties transferred pursuant to this agree- ment be allowed as a credit to the Postal Service against any reimbursement that, may be required from the Postal Service in return for any lands or buildings transferred to the Postal Service under 39 U.S.C. ?, 2002(d). If this transfer is acceptable to you, please so indicate by signing at the foot of this letter. Respectfully, Accepted: ROBERT L. RIINZIG, Administrator, General Services Administration. Mr. GRAY. Mr. Chairman, will the gentleman yield? Mr. CLEVELAND. I yield to the gentle- man from Illinois. Mr. GRAY, Mr. Chairman, what we were doing legislatively here has been handled administratively, and we accept the amendment offered by the gentle- man from New Hampshire (Mr. CLEVE- LAND) on this side. Mr. CLEVELAND. -I thank the gentle- man. The CHAIRMAN. The question is on the amendment offered by the gentleman from New -Hampshire (Mr. CLEVELAND). H. F. PAUGHT. AMENDMENT OFFERED BY MR. 1CITIALL Mr. UDALL. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. 'UDALL: on page 27, beginning with line 24, strike out all of subsection (d) of section 7 down -through line 11 on page 28 and insert in lieu thereof the following: "(di (1) The United States Postal Seteice shall grant to the City of New York. without reimbursement, air rights for public housing purposes above the postal facility to be con- structed on the real property bounded by Twenty-eighth and Twenty-ninth Streets, Ninth and Tenth Avenues, in the City of New York i the Morgan Annex site), such fatality - to be designed and constructed In such man- ner as to permit the building by the City of New York of a high-rise residential Dryer thereon, provided that? "(Ai The City of New York shall grant- to the Postal Service without reimbursement exclusive use of Twenty-ninth Street be- ? tween Ninth and Tenth Avenues in the City of New Torii. such use to be irrevocable un- less the Postai Service sells, leases, or other- wise disposes of the Morgan Annex site; and ?(B) The City of New York shall wee to reimburse the Postal Service for the seine tional cost of designing and constructing foundations of its Facility so as to render them capable of supporting a residential tower above the facility. and shall issue arty permits, licenses, easements and other au- thorizations which may be necessary Or In- cident to the construction of the postal "(2) If within 24 months after the City of New York has compiled with the provi- sions of paragraphs (A) and (B) of subsea- tion (d) (1) of this section, the United States Postal Service has not awarded a contract for the construction of its facility, the Postai Service shall convey to the City of New York, without reimbursement, all right, title and interest in and to the above-described real property. Such conveyance shall be made on the condition tluit such property shalt h?,. used solely for public 1.10ttlilg purposes. and if public houiag is not consrructed on the property within five years after tit/e is con- veyed to the City of New York or if there- after the property ever ceases to be used for such purposes. title thereto shall revert to the Postal Service, which shall have the right of inunediate reentry thereon." Mr. UDALL (during the reading). W. Chairman, I ask unanimous consent thAt the amendment be considered as read and printed in the RECORD. The CHAIRMAN. Is there objection to the request of the gentleman from Arizona? There was no objection. (Mx'. UDALL asked and was given per- mission to revise and extend his re- marks.) Mr. UDALL. Mr. Chairman, the 'U.S. Postal Service owns a square block in Manhattan called the Morgan Annex site. This property was acquired in 1.563 for the purpose of building a major nev pc,\Aai iteilny. There has been a geed deal Of controversy about the use of this site. The city of New York now wants it foe a low-income public housing develop- ment. In the bill as reported by the commit- tee this square block of very expensive land is given to the city of New York, without any reimbursement, for use as a public housing facility. The Postal Service still Wants to buDil for a four-story major vehicle mainte- nance facility. So that we have this conflict: The Postal Department wants to use it for postal facilities, and the committee has .said to give the land to the city of New York, and have a public housing project erected. The amendment I am offering is a com- promise. It would permit the Postal Serv- ice to build on the lower four stories a major vehicle maintenance facility. Ent it would give air rights to the city of New York so that a high-rise public hous- ing project could be built on top of the postal facility. There would be no reimbursement whatever by the city of New York except that the amendment would require city to pay the cost of the additional foundations because it would need larger and heavier foundations if the i7? ir 7:lns were to be used for a housing- facility on top of the piist office faciihv it is esti- mated the extra expense would be stout $2.7 million in cosi4i to the city M e? York. Other than that, they would get for nothing these very expensive air rights for this housing pYO:ft,.t.;. SO, as I say, this is a compromize wIch would permit substantial nein to the city of New York in this public housloo, i.e ee... ect, and still permit the Post ()Mee De- partment to build their facility on the land it now owns. Mr. HENDERSON. Mr. Chairman, will the gentleman yield? Mr. UDALL. I am happy to yield is the gentleman from North Carolina. Mr. HENDERSON-. Mr. Chairman, t want to commend the a-enr-li7-nian Irai Arizona for offering the anneicen which, as the gentleman 55 Vi, is a promise between the twe hove this is fair and the city ot New Yorx to lie and to protect the intent of the Cone, in the creation of the Postai Servi,:e he giving them the proper ownership of the property, and yet at Sa;11e accommodating the needs of the cite of New York. I am indeed happy to join with my col- league, the gentleman. front Arizona, in urging support for his amendment. Mr. UDALL. Mr. Chairman, I thank the gentleman for his remarks. Mr. GRAY. Mr. Chairman, I rise in opposition to the amendment. Mr. Chairman, I am always reluctant to oppose the ranking member of tile great House Committee on Post Office and Civil Service, my friend Mr. LeAtie in offering this amendment. rdts if I were to coin an old phrase. I would have to say that the chickens are now 7:4-rit- ing ho-me to roost. How of -its stood here in the 's oIl against giving away coog thority for this so-called to run tile Post Office Department see fit? Let me tell you what happened in New York in the district of the gentle- women from New York ; Mre. We took our subcommittee up lliere :ntd held public hearings on this matter so I am completely familiar with it. What The mcitteAaatargeTease 2 tiAltbistr-teruttitelottesEibbW-Pc'ep"' 11 3290 Approved For Rele ment said to over 300 citizens in Man- hattan, "We are going to displace you from your homes. We are going to get rid of 33 business establishments in or- der to build an annex to the Morgan Street Station project in New York City." After putting these low-income people out of their homes?over 300 of them? and after displacing over 30 business en- terprises, they then abandoned the pros- cot and went over to Secaucus, N.J.? and the gentleman from Iowa who is sitting here knows about that project. If you want to talk about boondog- gling?that, is it. They now have esca- lated that project up to approximately $200 million. They could have built a postal facility handling all foreign mail and other pcstal operations in New York City for about $50 million. But no?they did not want to do that. They went to New Jersey, as I said, and spent about a quarter of a billion dollars of the tax- payers' money in a swamp. Now they want to hang on to the old site. The committee bill before you says that, since we displaced the low income peo- ple, we ought now to give them the land back for public housing. That is what the bill does. But the amendment offered by the gen- tleman from Arizona says no, we do not want to do that. We want to go ahead and build another garage for the post office and then allow the public housing to be used over the air rights so they will have all the fumes coming from those trucks that will be so bad and with all the noise from the garage. My friends, we had people testify that some of these people have been displaced in Manhattan in New York City-16 to 18 of them are living in one and two room apartments because they cannot find de- cent housing. That is what we did when we gave away the congressional control of the Postal Service. Now here I find my very good friend, the distinguished gentleman from Ari- zona, offering the last straw trying to break the back of the low income people in New York, and saying OK we took this away from you, but we are not going to give it back. For God's sake and for humanities' sake, I ask you to vote down this amendment. Give these low income people of New York City their land back that we took from them and which we did not use. Mrs. ABZUG. Mr. Chairman, I move to strike the last word. The Morgan Annex property was ad- quired to build the Morgan Annex Post Office nearly 9 years ago. The gentle- man from Illinois {Mr. Gaiky) has indi- cated what the extensive hearings re- vealed?dislocation for tenants and for bitziaesses, and loss of income to the city of New York. There were statements made time and- time again?not only before the Com- mittees on Public Works and Post Office, before and daring the time I have been a Member of Congress?but to officials of the New York City Housing and De- e lif", 0106414 AtIMIDP-811402044k000100081/7 4, 1972 facility had been constructed in Secau- cus, N.J. Two hundred million dollars of the taxpayers' money has been spent to build this New Jersey Post Office bulk facility. All this time, the Post Office authorities were saying that as soon as the New Jer- sey facility was built the Morgan Annex land, where they originally intended to have the facility, would become excess and would be returned to the city of New York as a site for much-needed housing. Before the Post Office took over this land, there was housing on it. That homing was torn down by them, and many poor and working people were compelled to relocate. When the Post Office became an in- dependent corporation, it decided that the Morgan Annex site was valuable land which would be able to produce a profit. So, postal officials suddenly decided that they had to park trucks there. They are asking to park trucks instead of al- lowing the land to be used for desper- ately needed housing. One thousand units of low and moderate income hous- ing can be built on this site, but, no, the Post Office needs it to park trucks. The Postal Service proposed a four- story VMF, two floors above ground and two below, with walls and foundations sufficiently reinforced to allow construc- tion of 20 stories of housing above the garage. For the reinforcement, the Postal Service would require $2.7 million from the city of New York. This proposal was met with virtu- ally unanimous disapproval from city officials. The Economic Development Administration, the Housing and De- velopment Administration, the City Planning Commission and the Depart- ment of Air Pesources. Senator Jscon JAVITS expressed con- cern and telegrams from Borough Pres- ident Percy E. Sutton and from Com- munity Planning Board No. 4, located in the Chelsea neighborhood, were also sent. These individuals and organizations gave the following reasons for concern: The site was promised repeatedly for housing. The area Is residential and so zoned as to forbid such a facility as the Postal Service proposes. It is, however, zoned for housing. No explanation has been given as to why the Secaucus facility will not re- move the trucks from Manhattan as promised. - Trucks of such number and size are a health and safety hazard to residents of the surrounding neighborhood. Pollution from the trucks will severely damage air quality levels in. mid-Man- hattan, acoordizig to deputy tilnti,etor of the department of air resources of the city of New York. Traffic patterns in the area would be disrupted and gross congestion would increase in the already crowded garment district. - In response to these objections, Senior Assistant Postmaster General H. F. Faught, testifying before the Subcom- velopment Administration and the mayor xnittee on Postal Facilities and Mail on of New Yor ? enclACIR declared exklfttwiToirmosrmoo/Poolfstal-FeevictiMPRer? June of 1970 and July of 1971 were "un- fortunate" since they did not tally with the results of a subsequent study of Postal Service future needs. No further defense of the shattered agreements was made. Mr. Faught further declared that the Army Corps of Engineers feasibility study of the Morgan Annex site as pro- jected by the Postal Service?with hous- ing over the truck facility?would deal more fully with the questions of ti attic hazard and congestion, zoning, and rein- forcement and insulation costs. ds planned, he said, traffic danger would be reduced by provision of separate en- trances for people and for trucks on op- posite sides of the building. Mr. Faught stated that in his own per- sonal experience, the sentiment of Chel- sea community residents was favorable to the proposal. This was desaite the esct that community opposition to anytiang hut housing on the site was expressed in strong terms earlier in the year in tele- grams, letters, and public demonstrations at the May 14 hearing. The most telling objection to the pres- ence of the ro:1: al -Service at Mot;:,i.an Annex, however, is that an eminently satisfactory alternative site for the needed truck facility is available nearby. It is a full block, half owned by the city and half by the Sharp Development Corp., at 30th Street and 12th Avenue. It possesses all the advantages the Postal Service cites for Morgan Annex: A lower Manhattan location. available space. and reasonable fmancing? In atation, thr szfe would not interfere with exciting traffic patterns, would not disrupt a residen- tial area and would aid in revitalleing the 12th Avenue area for eosimerce. - However, the Pcs:t Orilco the Sharp site arty cur iery-aitention dstnissed isa iThanciaily urn iorkabie on grounds a- Vii!v1IF there would cost 735 million while the same facility at the Morgan site would cost only S5.1 mil- hon?a $28 million difference. The Sharp site was not even included in the feasi- bility study the Postal Service commis- sioned from the Army Corps of Engi- neers. However, a General Accounting OfSee report commissioned by ecrigressworn Asztio revealed that the Postal Service's cost analysis had been prepared from preliminary data in 1 day. It fht?tl-ier showed that according to standard C: AO accounting methods, the cost differential between the two sites was not $88 million but only $2.1 million. The Sharp Development Corp., work- ing with the New York Economic Devel- onent Acinistration. has sauce made another off. to the Pastel ,..7,21?vice tact ,7'?:;t1A 1:11:07L, ?hf': bir.;Ck e,.-?n less away, tons nr-aaie balance in favor of ice site. Senator Jinars and Senator BUCKLFY, my friends on the other side of the aisle, have been working with me in proving to the Post Office that this alternate a place wile:E.' trucks can be parked with- out creating traffic congestion, without creating noise pollution, without depriv- 0114V0010001907-8 he arp proposal as been drawn 1111 eC0- . Aprieppr9y0 For Rel 91WAcliklappW_OfigAgt000100080037-8 3291 ek4ARQR by the city and includes concessions which would make it a cheaper facility than the one they now seek to build in the Morgan area. At Morgan, the Post Office would not only have to pay more but would be depriving people of decent low- and moderate-income housing. - There is no justification for the Post Office to take the Morgan Annex land for the parking of trucks when there is an alternate site available at a lower cost. Has the Post Office something else in mind? This is a square city block which might be a very valuable piece of prop- erty and which could make it appear that the Post Office is in the black instead of in the red. Is it going to be utilised for the purpose of being sold rather than for the purpose they claim here? There is unanimous disapproval from the people and authorities of the city of New York for the Postal Service proposal. Additionally, it seems incredible that the city is now being asked to pay $3 million for the site. That is, the Postal Service says it must have $2.7 million from the city in order to strengthen the founda- tions of its truck facility so that they will support housing. From the city's point of view this is the same as being asked to pay the Postal Service that money for the land. And if that were to happen, the cost of each apartment would increase by at least 33,000. That is not the land cost for low- or moderate- income housing; that much money goes for luxury housing ? sites, It means the city could never build low- and moder- ate-income housing on the facility. We have a crying need for housing in that area, anti for low- and moderate-income housing - especially. We have been de- prived of this housing by the Pest, Office for no reason. Postai authorities now tell us they trust have millions of dollars in compensation --for the land. First, they ignore the com- mitment they made to provide the land at no cost, during the time that that sort of action was commonplace. The Postal Service should have fulfilled its commit- ments when those commitments were made. It is unthinkable that now the city -should reward them for breaking those Promises. In addition, the Post Of- fice has been incredibly compensated al- ready by being granted the Secaucus, N.J., facility?where it has spent $200 million in public money. What has the city received in return? Nothing?no land, no revenues, just hardship and broken promises. It goes against any human logic to pay the Post Office for its shattered com- mitments, for the suffering of those peo- ple who were displaced a thout cause and for the continual uncertainty the city has expered becaue of the Pcsnii Serv- ice's has faith. There are those who will say that we must be practical, that money is money, that the city has no right to get some- thing for nothing. But let us also con- Sider the precedent such an action would set. If we now reward the Postal Service for breaking its word, what faith can we have in future Postal Service promises? Is not the strength of an agreement the sciadredrin rule f oditrarmiliAt - W- 2 CANOtOadet =1"tkrOS1054,044401010140140V4sVnTle. sider the human consequences, eluded, any part of a rate Inc-romp to So I simply suggest we vote clown tile We understand the need for the malls to continue. We are prepared to see that the trucks deliver the mail. We have gone out of our way, working with Senator JAM'S aild Senator BUCKLEY, to create a facility where these trucks can be housed. A letter has been sent by both Senator jAVILS and Senator BUCKLEY and my office to the Board of Governors of the Postal Service, which has not yet acted on the truck facility proposal for the Moroan site. I make a fervent, plea to the House that there be an opportunity for us to have this housing, of which the people of the city of New York have Ion gbeen deprived, and I urge that this amendment be de- feated. AMENDMENT OFFERED WE MR. GROSS TO TB= AMENDMENT OFFEIW..D BY MR. 'UDALL Mr. GROSS. Mr. Chairman, I oiler an amendment to the amendment. The Clerk read as follows: Amendment offered by Mr. GROSS to the amendment offered by Mr. 'UDALL: on page 2, line 6, strike out the words "without reim- bursement" and iniett in lieu thereof the fa- lowing ''at the fair market value". (Mr. GROSS asked and was given per- mission to revise and extend his re- marks.) Mr. GROSS. Mr. Chairman, let me read the second paragraph of the amendment offered by the gentleman from Arizona (Mr. UDALL). It states: If within 24 months after the City of New York has complied with the provisions of /.re,c,raplis at and in ofsubs:?ction ((WI) of this section, the United States Posat Service has not awarded a contract for the construction of its facility, the Postal Serv- ice shall convey to the City of New oui reiniOr irse rn e Without reimbursement? of the rrrhi, tide and interest to the abtr- desoribed real property, And so forth. My amendment wollId merely strike out "without reimburre- ment" and insert the words "at the market value." Members of the House, we are dealing with a fair market value, I am told, of approximately $7 million. This is mat exactly chicken feed. It may be ecam higher than $7 million, but it is at lexist that much. If the Udall amendment is adopied and for some reason the Post Office De- partment does not come to terms with the city of New York in 24 months or the city does not perform in 5 years. this property could go as a gift to the city of New York. I have always contended in the Howe of Representatives that there should be the fair market value for any land that is dimosed of by time :Federal Govern- ment unless that laud was a gnt to tile, Government in the first place. Moreover, the Postal Service in this instance, if and when it should turn this property over to the city of New Yenk as a gift, would be relinquishing Si mil- lion in capital assets. Let me point est that to replace those capital assets would contribute to the necessity for an ba- crease in postal rates, and I am mot give New York $7 million worth of property. Mr. BOW. Mr, Chairman, will the gen- tleman yield? Mr. GROSS. I yield to the gentleman from Ohio. Mr. BOW. Mr. Chairman, I under.' and that on this property there would be built a 1,000-unit, high-rise apartment. Does the gentleman know who is going to pay for it? ? Mr. GROSS. I do not know \r ho is going to pay for it., but I SIAS pec;:, money will come from the usual sonree. Mr. BOW. As I understand, this is lie housing housing under 236, end the Feciesiii Government will pay for it, and in a tion to the $7 million, the land We are providing now, for the -building of a 1,000-unit high-rise. Mr. GROSS. I thinir the city of New York, if it does obi nn title to this .?c(:.p-- erty, ought to pay for it just c States and municipalities would hsv 0 do. Mr. UDALL. ?-Ti. Chairman, will the gentleman yield? Mr. GROSS. I yield to the: gent:Ionian. from Arizona. Mr, UDALL. To my regret. I cermat support the gentleman's amend:a-met z.o my amendment, but it does pinI3C1A conalvomise in the nature et inent I offered. We are giving oeier ie air rights and the public land ift)C. ' - eral Government bought and order that this public c bunt upon it. r simply see.C.:e;?-A int; ment was a 1,.-er5' CA:tt; offered to the people the city of New York, I thought. ? Mr. GRAY. Mr. Chairm'7,11, position to the arra ne , - ment. I thInk looked. The Posen this property and a. income people. Most in lone, ea, ? their property. In most. (a:as, the- '.it no relocation costs,. Ti e not use that property for Lee intended. Do we not owe thoee si pie something in the its of pee-vie:11g public housing for them? That is num- ber one. No. 2, we paid only $3 million when we took it. There have been no itrun-ove- merits made on it. How can it now be worth $7 million? Third, the public housing.. as the gen- tleman from Ohio has point 3a cut. is subsidized by the Federal Gov-emir:ult. This committee bill does not the construction of bigh-r:e merely says when the low- rent iictistn is built, it win be built on This does not constitute housing a uthorrzrefion, perfectly clear. But in equity, do We 4.2 tiv:, something? We kick-.aii tlicin off ie property and did not use it for the teir- pose intended. That is what the (Jolorrit- tee bill says. We _say they cell it back, but wlmn they Wein, irei eecet iree housing, it will be built there. It ter elm. be taken by the city of New 'York and sold and the money put in its coffers, it is Approved For ReleWe 2000/09/14: CIA-RDP86-002404000100080037-8 H 3292 CONGRESSIONAL RECORD -HOUSE April 19, 1972 amendment to the amendment and the amendment. Mr. WYDLER. Mr. Chairman, will the gentleman yield? Mr. GRAY. I yield to the gentleman from New York. Mr. WYDLER. Mr. Chairman, there is one thing I do not understand about this whole proposition, which is -why we are handling this particular matter in such a unique fashion. We have laws which apply to all surplus Government property matters and which are applied throughout the country to dispose of property the Government no longer needs. There are surplus property disposal cedures where in the normal course of events the city would get an opportunity to acquire the property. Here we are leg- islating a special rule for this one parcel of land, and I do not understand why. Mr. GRAY. I am delighted to answer, in two parts. No 1, it was our committee which au- thorized the taking of that property in the first place, in 1966. We were deceived by the Postal Service. They did not use it for the purposes intended. We gave them the authority, and they went over to New Jersey, and instead of spending the $50 million authorized they went over and bought additional land at the ex- pense of the taxpayers, and spent a quar- ter billion dollars. No. 2, as I said earlier, we gave away the committee's authority. We would not be here today if we had not given away that authority. That is water down the stream. We are back here, because the Postal Serv- ice administratively usurpted the prerog- atives of this committee. Mr. WYDLER. The point is that we are trying, it seems to me, to punish the Postal authority for not doing what we wanted them to do, but we are not really punishing them much at all. We are really going to punish the whole Federal establishment by making this particular site available for other needs of the Fed- eral Government, which might very well exist and be valid. What I say is that we have established Government procedures for the disposing of surplus Federal property. That is sup- posed to give the Federal Government an opportuntiy to use it, for what it needs, and the localities an opportunity to acquire it if it is surplus to the Gov- ernment needs. In this particular case we look at a particular piece of property and say that we are going to legislate it into the hands of one particular person. Mr. GRAY. I want to make clear to my friend from New York that the sur- plus Property Act does not now apply to this private corporation downtown. We gave away that authority. We have no control under the Surplus Property Act. There is no criterion for this. We have to legislate it. Mr. KOCH. Mr. Chairman, I move to strike the last word. Mr. Chairman, I rise in support of the committee bill and in opposition to Mr. GROSS. The Federal Government the amoweinedm Just a block away from my district, and I have worked with the tenants in this area and I know the site well. It is in an area called Chelsea. It is a marvelous integrated area of low, mod- erate, middle, and "posh" housing. It is an area which suffered tremen- dously when this particular site was taken by the Post Office. If it had been used for the purpose intended?while we did not think the Post Office should actu- ally use a site in that particular area?so be it, if they had built the building we would have accepted it. But they did not do that. People were thrown off their property. The area suffered. Now we find the Post Office has de- cided they really cannot use the prop- erty. It is going to build elsewhere. We applaud that decision. The community went to work with the mayor and with the low-income housing authority and with all the people there. I know, for I worked very closely with them. They went to work to get housing built. I do not have to tell the Members how desperate the housing situation is, and not just in that particular area, though it is an area which requires housing desperately. In the whole city of New York we have slums that are just not describable, where people are living in rat-infested apartments. Apartments could be built on this site. But if we tack on an expense of, let us say, $7 million, which the gentleman from Iowa suggests, as the fair market value, if we add an expenditure for this property which could only, under the committee bill, be used to erect low- income housing, we are going to make the low-income housing impossible to build. That is the problem. There are limi- tations on low- and moderate-income costs. I serve on the Banking and Cur- rency Committee out of which low-in- come and moderate-income housing comes. There are limitations on what ex- penses can be entailed in building low and moderate-income housing. The building costs in New York have become very high. There are a host of reasons, one of which includes the cost of the land. What. we are asking you to do with this particular piece of property, and what we are asking you to do for the city of New York, is something that we do not ask for very often, but is what you do so often in your own districts. If there are rivers to be channeled, the Congress proved the money for it. If there are farm subsidies that are required in order to help you with your crops, you do not have any hesitation to c:ene neve and ask for and get them. Well, e do not grow crops or channel rivers. but we have people to house. We are asking you to do a certain amount of equity. The Public Works Committee did equity, and I hope you will support the bill. Mr. GROSS. Will the gentleman yield? Mr. KOCH. Of course. I am delighted to yield. Javg*PVIMEOMIMEMANNItS0 York ought not to pay the fair market value for this land? On top of that New York will be getting a 235 low-income housing unit to get these people above the rats you are talking about. Mr. KOCH. The gentleman is incor- rect when he refers to 236 money M this bill. There is no housing money in the bill. Mr. GROSS. Will the gentleman yield further? Mr. KOCH. I decline to yield further. What I said to the gentleman and the Members of the House is we have a cry- ing need for housing in the city of New York. We cannot build it because, for one thing, the 236 money and the low- income money is not available, and when it is -availablt the costs of the property on which the structures have to be built are too high for us to build low- and moi:- erate-income housing. We are asking-you to do for us what you do so often for your own district's needs?give us a break. Mr. RUTH. Will the gentleman yield?' Mr. KOCH. I am happy to yield to the gentleman. Mr. RUTH. Will the gentleman ex- plain to me why you put low-income housing on a $7 million piece of prop- erty? Mr. KOCH. Why we what? Mr. RUTH. Why would you put it on a $7 million piece of property? Mr. KOCH. I will explain to you woy it is. In the city of New York we have problems where property that you -would not consider desirable because of its lo- cation costs a lot of mohey. The islond of Manhattan is a very small place. piece of real property is very expeisve. We do not want the island of 7:iiso.so- ten to be a place just for the very -- We think we have a successfulisianu because it has low-income people and moderate-income people and middle- income and posh people, and we do tiat want to change that. Mr. BRASCO. Mr. Chairman, I move to strike the requisite number of vosi-d.s. Mr. Chairman, I rise in support of the committee bill and against the two Ing amendments. Let me say this: when this proposition was brought to the attention of the Com- mittee on Post Office and Civil Service the Committee decided that we should turn the matter over to Congressman NIN7. the chairman of the Subcommittee on Postal Facilities. He held some independent hearings in connection with this very matter before the committee. Interestingly enough?and I am sine It was pointed out before?as late as No- vember 1971 Mr. Reynolds. the coneres-. si(mal liaison officer 01 the indicated that there wouiti be no this particular faciiity and its relates to the Postal Service organi,J11.. Thereafter he flip-flopped and changed his mind, after the city of New York made preparations to use this land for low-income and moderate-income- hous- ing. Also and interestingly enough, as a re- sult of the hearings Mr. Nix had it was cpagijrual pen, es it is not directly in my district, but it is there and saying that the city of New were declared excess and turned over to April Appssayed For Relkikttgf49144144t M45111P4138141(264A000100080037-8 11 3293 local governments in separate letters dated November 8, 1971. And, as a result, postal facilities were ? turned over to local governments located in Augusta, Ga.; Miami, Fla.; Rock Hill, S.C.; Carbondale, Ill.; Commerce, Tex.; Keene, N.H.; Mansfield, Ohio; Midland. Tex.; Saint Martinville, Lan Ville Platte, La., and West Palm Beach, Fla. Now, after all of these facilities were turned over to those local governments, we are only asking that the same kind of consideration be given to the city of New York in order for it to cope with a very critical problem. The need for housing. I am not here, my friends, to recrimi- nate with anyone about some of the ob- servations that have been made about the cost of this property, that in fact that if there is low-income housing to be built here, the Federal Government would have to be involved with the expenditure of 239 funds. Sometimes I think we talk about this money as if it were our own money. This is taxpayers' money and .we use it as Members of Congress for multi purposes all across the land. T have voted for the expendituee of taxpayers' money to be used for many purposes such as irriga- tion, watersheds, and highways, and, in f act, for all types of purposes related to the needs of citizens across our coun- try. The city of New York has taxpayers also who contribute to these projects. All we are asking for now is some consid- eration in this very same manner. I think some clay we really have to learn to swim together or otherwise we will drown together. Mr. Chairman, this is a problem that we hove in New York. I am asking my friends to give it their very serious con- sideratien? Mr. WYDLER. Mr. Chairman, will the gentleman yield? - Mr. BRASCO. I am glad to yield to the gentleman loom New York. Mr. WYDLER. I am very sympathetic to what the gentleman has said, but I think what you just said supports the point I am trying to make. You are going about this particular case in the wrong way. Whatever happened with reference to the Post Office Department is one thing. However, we are not here today to talk about one department of the Government. We have to consider the en- tire Federal Government. These other properties that you talk about were not turned over to local governments. They were turned over to the Administrator of the General Services Administration to be disposed of according to law and ac- cording to their rules and regulations to whomever should get it. I a ireti with the gentl,r1;311.. I would like to see the seine thMg done with ref- erence to this property that We are doing with reference to other properties and that is turn this property over to the GSA to dispose of under the surplus pro-p- erty law and rules and regulations. Mr. BRASCO. As the gentleman knows, we are talking about the opportune time to do something. Those properties, as I understand it, went back to the local governments. Therefore, this is the op- portune glintWOO?dalPer Rete theory is Mei-same, although the-v-elifee may be a little different. I subscribe to what my friend from Illinois indicated, the chairman of the subcommittee (Mr. GRAY), We threshed this business out very thoroughly when we discussed the Postal Reorganization Act and he was very correct in his observations that he made at that time and today in this Chamber. Mr. BOW. Mr. Chairman, I move to strike the requisite number of words. (Mr. BOW asked and was given per- mission to revise and extend his re- marks.) Mr. BOW. 'Mr. Chairman, I rise in sup- port of the amendment to the amend- ment offered by the gentleman from Iowa (Mr. Gaoss).. I would like to make inquiry from the distinguished chairman of the subcom- mittee as to what is the situation with reference to this property. What is going to be built on this property? Am I cor- rect in the assumption that there is a 1,000-unit high rise housing project go- ing to be built on it? Mr. GRAY. Mr. Chairman, if the gen- tleman will yield. I would say to my dis- tinguished friend from Ohio that we do not in the legislation now pending before us stipulate what type of building will be put there. We merely limit the use of it to public housing through normal chan- nels, if such a project is authorized. We merely state that it has to be used for the purpose it was primarily used for low-income or medium housing when it was taken. We want merely to try to have equity here. Let us go back to the origi- nal use of that property. We are saying that we are giving it to them but it has got to be used for public housing. How- ever, Nre do not authorize that housing. I hope that answers the question. Mr. LOW. I thank the gentleman for his answer, but it seems to me very ob- vious that in addition to the giving back of the piece of property which I am ad- vised is worth something over $7 million, that if a 1;000-unit high-rise is to be built, the information I have is that it would be built out of 236 funds. So, ac- tually the 'Federal Government would not only lose $7 million, but would be called upon to make some payment for this 1,000-unit high-rise. Also, the argument has been made here that this high-rise is to make a place for the displaced people who have lost housing. I also find here in the files that actually there were 300 families. and not 1.000 families, who were dis- placed, that you are going to build the high-rise for. So it seems to me we should give real consideration to the amendment offered by the gentleman from Iowa 4.Mr. ?Ross) and not only find the Federal Governmara. nvtng away $7 mt;lion, but also getting them- selves in a position where they are going to have to pay for a 1,000-unit high- rise, and the cost of that high-rise I do would be?I have no it will run into mil- of dollars. Chairman, will the not know what it idea, but certainly lions and millions Mr. GRAY, Mr. gentleman yield? Mr. BOW, I will 20R0/09M47 to t gentleman first yield to the gen- 9ori Mr. GROSS. Mr. Chairman, I thank the gentleman for yielding. A letter of November 8, 1971. from the Post Office Department of the Honorable Robert L. Kunzig of the General Services Administration, it lists several post of- fices that are surplus to the needs of the postal service. One of them is in Carbon- dale, Ill. I suspect the gentleman from Illinois (Mr, GRAY) understands where Carbondale, Ill., is, and that post office is going to be disposed of. This letter states among other things that: The General Services 'Administration fur- ther agrees to return to the Postal Service the net proceeds, if any, received from the disposal of these propertics. So it is the established policy to return these proceeds to the Poi, Office Depart- ment rather than dissipate the canita assets of the Post Office Departin nit, anti then insist that those capital esane he restored through increased postal rates that would be loaded on all the citizens of the country. Mr. BOW. I agree with the gentleman. I think he is absolutely right, Now I will be haeoy to yield to tate gentleman from Illinois, ? Mr. GRAY. Mr. Cliairman, I know my friend, the gentlemen from Iowa GRoss) is laboring tattier the asarairtitai that this proposed ameintlintrit helping the Postal Service, but let me remind my friend that in all of tiat ci its alluded to by the gentleman from York a moment ago in cccate York and Caitonc.,1, _ man has just mentioned. thtit money goes to the GGA, anti not to the iitaslot Service if any is collect,f.d. Postal Service isthat araga GSA. then they iatss it Not one of the PO.Z.J1. Service, toad any effect upon the postai rates. I am sure the taintleman Oties not want to leave 'the iivreng impression with the House. Mr. C.ili-ZOSS. If the gentleman vtrl yield further, does the gentleman front Illinois deny the authenticity of the let- ter which states e:tectly contri",'to what the gentleman from Illinois says? Mr. GRAY. I do. The Postal Service has told us 15 different stories. I can show you three letters from Assistant Postmaster General Lehne stating they are going to give the property bacit. to New York City. I held hearings in New York. and I talked to the regional three- tor. and I said: - Are you not going Lo uphold the pro rise given lar the ASsi-i117. General to give this property He said: I can't 1;.6-0,!or t 11;tt queitmn. He tone, the fah amentini- . our 'congressional committee: . Mr. BOW. I think what the gentle- man is saying is virtually correct, if the property is sold: that is. Pre owned by the Post Office Dern i ata the money will go into the Postal Depart- ment, into the private corporation. These other items that you have in this 44R00011000pow-8urplus, and turned over to t ta. , and for that H324pproved For ReletwitAgpAbIN,Aql*MU:293394,000100080017-8. pnl 19, 1972 reason that would not happen, but if you have property, and it is sold; that is, Postal Service property, and it is sold for $7 million, that money would go into the Post Office Department, and would not be money that is taken away, as the gentleman has suggested, because-- The CHAIRMAN. The time of the gentleman from Ohio has expired. (By unanimous consent, Mr. Bow was allowed to proceed for 1 additional minute.) Mr. GRAY. Mr. Chairman, will the gentleman yield to me for a clarifica- tion? Mr. BOW. Certainly I will yield to the gentleman. Mr. GRAY. I would say to my friend, the gentleman from Iowa (Mr. Gaoss) that under the Property Disposal Act these properties are given by the Post Office to the GSA, and the first screen- ing is for other Federal agencies to have the right to come in and ask for them. The second screening is that the cities and States have a right to take that property for public use such as housing needs in that city. Now, do you know of any city that is offered a site that is not going to take it for nothing? So where is the money go- ing to come from? Mr. BOW. I agree with the gentleman that if it is surplus property it goes back to the GSA. This has not been declared surplus property, it is still Post Office property. If it is sold for $7 mil- lion, then the money will go back to the Post Office Department. Mr. GRAY. I have two letters stating that they did intend to declare it sur- plus. Is not the word of an Assistant Postmater General worth anything? Mr. RYAN. Mr. Chairman, I rise in support of the committee bill and in op- position to both the Gross amendment and the Udall amendment. The gentleman from Illinois (Mr. GRAY) stated very ably the equitable case for the committee position. Section 7(d) of H.R. 10488 provides that the Postmaster General shall con- vey to New York City the real property known as the Morgan Annex?a square block between Ninth and 10th Avenues, and 28th and 29th Streets?without monetary consideration and upon condi- tion that the real property is used for publicly assisted housing. The committee adopted this provision after very thorough consideration and after reviewing the history of the U.S. Postal Service's behavior toward the Chelsea community. This site was acquired a ml cleared for the construction of a postal facility. Sev- eral hundred families were uprooted and displaced from their homes. Then the Postal Service changed its mind and de- cided not to build the facility. The land lies vacant; the people have been scattered; and the community has been disrupted. In an effort to make amends, the committee bill would make the site available for housing?housing which the site tenants and neighborhood Approved For Release people can afford. That is only fair and equitable. To require New York City to pay the fair market value would be to insure that low- and moderate-income housing could not be built. The cost of the land, in addition to escalating construction costs, would make it economically unfeasible. The effect of adopting the Gross amend- ment would be to deprive the local com- munity of desperately needed housing. It is specious and misleading to argue, as the gentleman from Ohio (Mr. Bow) did, that the conveyance of this site will result in the Federal Government paying for 1,000 units of housing which other- wise would not be contracted for. In the first place, there is no housing money authorized or appropriated in this bill. Second, Federal money in the form of annual contributions to local public hous- ing agencies and for section 236 interest subsidies is allocated by HUD. HUD determines how much money is to be provided to New York City for new hous- ing starts in each fiscal year. So whether there are a thousand units at this site or a thousand units at an- other site, the number of housing units will be the same. The committee bill will not result in the Federal Government financing an additional 1,000 units. How- ever, it will provide a site where new housing can be built without the dis- placement and relocation of people, and that is critically important to us in New York City where there is a severe short- age of decent housing and some 135,000 families are on the waiting list for public housing. As far as the Udall amendment is con- cerned, the Postal Service has played fast and loose with the cr.urnuriity on this is- sue for too long. It has not used the site. It should not be permitted to use it for parking purposes. The community needs it for long promised housing. Simple justice dictates a return of this land to provide housing for the poor peo- ple who have been displaced and others in the Chelsea community which has al- ready suffered through torture for 6 or 7 years. I urge my colleagues to vote down the amendments and to support the bill as reported out by the committee. The CHAIRMAN. The question is on the amendment offered by the gentleman from Iowa (Mr. GROSS) to the amend- ment offered by the gentleman from Ari- zona (Mr. UDALL) . The question was taken; and on a divi- sion (demanded by Mr. GRAY) , there were?ayes 39, noes 32. TELLER VOTE WITH CLERKS Mrs. APZT.M. Mr. Chairman, I demand tellers. Tellers were ordered. Mrs. ABZUG. Mr. Chairman, I de- mand tellers with clerks. Tellers with clerks were ordered; and the Chairman appointed as tellers Mrs. ABZUG and Messrs. GROSS, GRAY, and UDALL. The Committee divided, and the tell- ers reported that there were?ayes 196 [Roll No. 114] [Recorded Teller Vote] AYES-196 Andrews, Ala, Gibbons ' Andrews, Gooclling N. Dak. Gross Archer Grover Mends Gubser Ashbrook Gude Baker Haley Baring Hall Belcher Hamilton Bennett Hammer- Betts Schmidt Bevill Hansen, Idaho Biester Harvey Bow Hastings Bray Hechler, W. Va. Brinkley Heckler, Mass. Broomfield Heinz Brotzman Hulls Brown, Ohio Hogan Broyhill, N.C. Horton Broyhill, Va. Hosmer Burke, Fla. Hull Burleson, Tex. -Hunt Burlison, Mo, Hutchinson Byrnes, Wis, Ichord Byron Jacobs Camp Jarman Carlson Jonas Carter Jones, N.C. Cederberg Jones, Tenn, Chamberlain Keating Chappell Keith Clancy Kemp Clausen, King Don H. Kuykendall Clawson, Del KYI Cleveland Lfindgrebe Collier Latta Collins, Tex. Lennon Conte Lent Cotter Lloyd Coughlin Lujan Crane McClory Daniel, Va. McClure Davis, S.C. McCollister Davis, Wis. Dellenback McDadd Dennis /t.InDrazild, Derwinskt Devine MCEWE/2 Downing Duncan du Pont Edmondson 5;SI ina Edwards, Ala. Martin Erlenhorn Mathias, Calif, Evans, Colo. Mayne Fascell Mazzoli Findley Michel Fisher Miller, Ohio Flowers Mills, Md. Flynt Minsb all Ford, Gerald R. Mizell Forsythe Montgomery Frenzel Myers Frey Natcher Fuqua Nelsen NOES-170 Caffery Casey, Tex. Coller Chisholm Collins, Ill. Conyers Carman Daniels, N.J. Danielson Davis, Ga. de la Ctarza Delaney Duncell Dorn Dow Abourezk Abzug Adams Acidabbo Alexander Anderson, Calif. Annunzio Aspin Aspinall Bacillio Barrett Nichols Obey O'Hara OBonski Pan:anal; Pelly Pettis Piroi Pot! Powen Price, Tex. Qui d Qati)lerl Far,lsback Randall Itarick Rhodes Robinson, Va. - Roush Rulknels Ruppe tit St Germain Sandman Satterfield Scherle Sclunitz Schneebeli Sch,vengel Scott Se be? ius Stm, to StIriver Sgkes S]'-;:tesktz St;!;