Real Property Exchange / Relocation Programs

1. Real Property Exchange / Relocation Programs General Services Administration Public Building Services Office of Real Property Disposal

2. Real Property Exchange • Exchange is another tool in GSA’s tool box to help agencies manage their real property. • It is used in very limited circumstances to acquire, dispose and manage agency holdings.

3. Definition Exchange: Is a transaction in which Government owned real property or interest in real property is traded for other real property or interest owned by another party.

4. Authority • Federal Property and Administration Services Act of 1949, as amended (The Act) • Subsection 203 (c) {40 USC sec. 484 } “…any agency disposing of surplus property may do so by sale, exchange, lease, permit, or transfer, for cash, credit, or other property….”

5. Authority • Public buildings Act of 1959: limited to Government owned properties in PBS inventory .

6. Requirements = The properties or interests being exchanged must be of equal value. < If the Government’s property or interest is of a lesser value and the Grantee declines to waive payment of the difference, a supplemental payment may be made.

7. Requirements > The Government may never waive the difference if its’ property or interest exceeds the value of the other property or interest to be acquired.

8. Exchange • GSA doesn’t accept Reports of Excess for the exchange of property • Exchange under the 49 Act is primarily used for correcting property line issues

9. Example Denver Federal Center Lakewood, Colorado (2008) • City of Lakewood, CO • Federal Property Act – Negotiated • Received $18.32 Million for FBF • Acquired Upgraded Water and Sewage Capacity $8Million • Disposed of 65.27 Acres in DFC • Required GSA Consent for Annexation of DFC into Lakewood • Remediation of Contamination

10. Example • Air Rights • Des Moines, Iowa • (1992) • Federal Property Act Exchange • City of Des Moines • Disposed of Air Rights Over Surface Parking Lot serving adjacent Court House. • Acquired 75 spaces in secured, covered, gated, lighted and cleaned parking garage. • Asset Advantage – retained fee ownership & enhanced value of Courthouse. • Asset Value received $3 M

11. Notes - All the rules and regulations governing acquisition and development of a Government project still apply. - Exchanges require a explanatory statement be prepared for the appropriate congressional committee

12. Notes • Exchanges are only negotiated with owners of property for mutual convenience • It must be in the be in the best interest of the Government

13. Program Overview • Real Property Relocation Program • Relocate high value, underutilized properties • Economically Excess • Allow for immediate disposal • No excess/surplus screenings • Public Law 100-202 • Funds provide payment to Federal Agencies for relocation functions

14. Program Benefits • Acquisition and moving expenses paid for by GSA • Release high-value underutilized properties • Relocate agencies to more modern, affordable sites • Market and sell vacated property quickly • No federal or Public Body Discount Conveyance screenings • Return proceeds to the Federal Government

15. Relocation Costs Relocation expenses that can be covered thru this program: Transportation Costs Contractual Services Appraisals Site Inspections Real Property Acquisitions Lease Payments Fixed Equipment Hauling & Handling

16. Past Successes Hyde Park, MA USCG Housing Sales Price: $5,800,000 Relocation Request: $811,000 ROI – 7:1 • 4.7 acres • 35, 3-story duplex housing units • Vast repairs required to all homes • Relocation funds used for renovations of housing at old Naval Air Station in South Weymouth • Most homes at Hyde Park were sold to first time homebuyers

17. Past Successes Miami, FL USCG Housing Sales Price: $16,400,000 Relo Request: $10,000,000 ROI – 1.6:1 • 100 residential housing units • Directly next to Miami-Dade County Metropolitan Zoo • Site was underutilized • Relocation funds used to acquire 15-30 units in Marathon, FL

18. Past Successes San Bruno, CA Navy – Commodore Station Sales Price: $25,553,998 Relo Request: $9,475,330 ROI – 2.7:1 • 20 acres located on NW corner of San Bruno Freeway and El Camino Real • 30 1- and 2- story buildings constructed prior to WWII • Used funds to acquire: • 25,000 sq ft 5- year lease • Workstations • Furniture • IT system

19. Auburn Region 9San Francisco Region 7Ft. Worth GSA Program Contacts Region 1Boston Boston Chicago NCRWash. D.C. Region 4Atlanta

20. Washington, DC Central Office 202.501.0084 Boston, MA Region 01 617.565.5700 Atlanta, GA Region 04 404.331.5133 Chicago, IL Region 05 312.353.6045 Ft. Worth, TX Region 07 817.978.2331 San Francisco, CA Region 09 888.472.5263 Auburn, WA Region 10 253.931.7547 Washington, DC National Capital Region 202.205.2127 GSA Program Contacts