Re: El Toro Sales to fund Navy BRAC cleanup?

[Lenny Siegel <lsiegel@cpeo.org>]

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[I asked Navy headquarters about its "market sale" policy, and I
received the following reply. See the last sentence for a direct answer
to the question about what happens if the sale is delayed or falls
through. - LS]

***

Existing federal government property disposal laws and related GSA
regulations indicate a preference for sale of excess federal property.
The Navy will incorporate this "preference for sale" in their strategy
for BRAC 05.  Selling the property, where appropriate, maximizes the
return to the federal taxpayer.  Also, the proceeds from the sales must
be used in the BRAC account by law and thus help accelerate remaining
cleanups.  As an example, the Navy received net proceeds of $224 million
from the sale of certain parcels at Tustin, CA and Key West, FL.  These
proceeds are being applied directly to remaining BRAC I-IV cleanup
projects.

The "preference for sales" does not mean that other means of transfer
will not be used where appropriate.  For example, there may still be
federal-to-federal agency transfers, Public Benefit Conveyances and
Economic Development Conveyances.  Also, Navy will seek to transfer
conservation-type land to state and private conservation organizations
using new statutory authority.  In other words, a mixture of transfer
methods will be used as appropriate for each parcel at a base while
looking to maximize the return on property conducive to sale.

It is also our belief that Local Redevelopment Authorities (LRAs) are
best suited for master planning and zoning of excess government property
in their jurisdictions.  Based on these master plans and zoning
requirements, private developers are best suited to finance and complete
the actual redevelopment.  This method relieves LRAs from entering the
chain of custody of property and trying to become developers.

Additional proceeds are expected from the sale of El Toro, CA and other
locations in FY-05.  Based on the conservative estimates of land sales
revenues, the Navy can fully fund the remaining BRAC I-IV cleanups from
these proceeds.  Therefore, the Navy has not asked Congress for BRAC
funding in FY-05.  If for any reason the expected land sales revenues
are not received, the Navy will re-program funds internally or seek
additional funding in order to keep the BRAC cleanups on track.




> From: "Malewicz, Anne (DEP)" <Anne.Malewicz@state.ma.us>
>
> What happens if the sale does not go thru as planned or hoped? What
> funds do you have to keep the cleanup going? Just curious and I wish all
> goes as planned.
>

--


Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org

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