[CPEO-MEF] Report Language Targets EDC's for Closer Review

[Aimee Houghton <aimeeh@cpeo.org>]

[In the Senate Armed Services Committee Report, under "Other Items
of Interest" economic development conveyances come under closer
scrutiny.  In the language that follows the Committee urges DOD to
review these conveyances on a case by case basis as well as identifying
the speed with which a community accepts a property as a critical factor.
--Aimee]



NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

OTHER ITEMS OF INTEREST

Economic development conveyances 

"Section 2821 of the National Defense Authorization Act for Fiscal
Year 2000 authorized the military departments to transfer base closure
properties for economic development purposes at less than fair market
value, to include conveyance of such property without consideration. When
the Department of Defense requested this legislative change, its stated
intent was to apply stringent criteria to this new authority. This new
authority was also intended to induce communities to accept conveyance of
such property earlier. Since enactment of this authority, every
conveyance of base closure property has been at no cost to the recipient.
The committee urges the Department of Defense to review their procedures
in this area and ensure that conveyances for economic development at less
than fair market value, in particular those to be conveyed at no cost,
merit such treatment in each case. The committee also urges the
Department of Defense to review the desirability of linking the
discounting of such properties below fair market value to the speed with
which the community accepts the property."

Please note new phone number and address below.

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Aimee R. Houghton                                 

Associate Director, CPEO

1101 Connecticut Avenue, NW, Suite 1000

Washington, DC  20036

tel: 202-452-8039; fax: 202-452-8095

Email: aimeeh@cpeo.org

www.cpeo.org

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