U.S. General Services Administration

May 2010May 2010

Funding the Relocation and Exchange of Federally Owned Property: GSA & USCG

Partnership

Funding the Relocation and Exchange of Federally Owned Property: GSA & USCG

Partnership

Real Property Utilization & Disposal Division 4PZ

Ms. Debra Young Ms. Patricia DixonProject Manager Realty SpecialistGSA, 4PZ U. S. Coast GuardAtlanta, GA Miami, FL

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If Your Federal Property Is

Antiquated and or inefficiently designed

Overcrowded

Underutilized, though with current mission need

Perhaps it is a candidate for GSA’s Real Property Relocation!

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Overview of Relocation Authority

Established December 1987 by Public Law 100-202

Codified in Section 584, Title 40, of the United States Code

Allows GSA to front the costs to relocate a Federal landholding agency, or mission, to a new location and proceed to sell the vacated property

GSA recovers Relocation costs from the sale proceeds generated by the disposition of the vacated property

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Unique Benefits

GSA pays for a Federal landholding agency to relocate from high maintenance, obsolete and/or underutilized facilities

• Improves agency operations

• Optimizes real estate value

• Reduces operational costs

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Benefits of Relocation

Agency moves to modern, energy efficient “green” facilities tailored to meet mission needs

No out of pocket costs

Improved employee morale and productivity

Enhances asset management; helps right-size portfolio

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Other Benefits

Allows for expedited disposal

No excess or surplus screenings

Repositioning the Federal asset benefits the community

Taxes and jobs

Returns funds to the Federal Government

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Costs to acquire land and buildings/facilities

Construction of new facilities

Due Diligence

Site selection, appraisals, title, surveys, environmental, engineering, architectural, design, construction

Allowable Uses of Relocation Funds

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Lease payments

Fixed equipment

Moving costs Hauling and handling, transportation New furniture

Other Uses

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Agency Identifies potential Relocation candidate

Contacts GSA

GSA and landholding Agency identify project scope and considerations

Timing, logistics

Identify Issues, complexities

Gather data for analysis

The Process

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Outline of Steps

GSA conducts cost/benefit analysis

GSA prepares Interagency Agreement

Establishes terms, conditions, & activities of the Relocation project

Identifies roles and responsibilities

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Next in the Process

GSA prepares Relocation Package

Obtains approvals:

–Landholding Agency, GSA, OMB

OMB apportions Relocation funds

GSA pays to relocate agency

GSA markets & sells vacated property

Reimburses Relocation Fund

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Active mission related function that can berelocated within same commuting area

Current property is considered economically excess not functionally excess

Government return on investment in Relocation costs should generally be a 2:1 ratio

Thirty year discounted cash flow analysis (A-94) must show a cost savings from the Relocation

Determining Project Viability

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Identifies Relocation candidates

Determines preferable option for Relocation

Submits Report of Excess for “Relocation Purposes” along with Proposal

Provides inputs for cost benefit analysis

Plans and oversees the Relocation project Or, GSA may provide turn-key project

Role of Holding Agency

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Collaborates with Agency on Relocation Plan

Processes Report of Excess

Prepares cost benefit analysis

Secures project funding Markets and sales vacated property

– Executes conveyance documents

Role of GSA

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Checklist

Verify proposed property is a viable candidate Conduct appraisals Calculate all costs Conduct the cost benefit analysis (2:1)

Establish Interagency Agreement

Prepare Relocation Package

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Relocation Package

Summary Report

Project description, background, studies, reports, surveys, etc.

Dollar amount of funding requested

Authorities to be used

Appraisals

Communication Plan

A-94 Analysis (key element)

Agency’s approved Spending Plan (key element)

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Agency’s Spending Plan

Must be approved by Agency’s CFO, or designee

Includes total amount of project funds required

Itemizes expenditures by line item

Includes OMB object classes and–Planned dates of obligation for each line item

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GSA & OMB Approvals GSA Public Buildings Service (PBS) Regional:

Real Property Utilization & Disposal Director Regional Commissioner

GSA PBS Headquarters: Deputy Assistant Commissioner Real Property Utilization &

Disposal Assistant Commissioner for Budget & Financial Management Commissioner Chief Financial Officer

Office of Management and Budget Final approval

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GSA delegates Relocation funds to other Federal agencies to execute on GSA’s behalf

Unique sub-accounts, (CHILD) “Allocation Accounts” of GSA’s Relocation Funds (PARENT), are created in the

United States Treasury

–The two funds are linked (IMPORTANTIMPORTANT))

–Provides for reporting of obligations & outlays incurred by other agencies

Real Property Relocation Fund

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GSA & the Landholding Agency are accountable to OMB for the entire project

Agency submits mandated reports to GSA

–GSA consolidates & reports to OMB

–Accuracy and timeliness are critical

OMB monitors closely

Accountability and Reporting

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Partnership is a key element to success

Clearly identify roles and responsibilities

Communicate and clarify procedures Hold roundtable discussions

– Include multiple staff involved

Coordination is essential

Lessons Learned

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GSA & U. S. Coast Guard Partnership – Current Relocation Project

•39+/- acres sold to Miami-Dade County for redevelopment

•Metro Zoo Entertainment District

Miami, FL, USCG - Richmond Housing ROI 1.6:1

Sales Price: $16.2 million; Relo Funds: $10 million

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Asset Management Benefits to USCG Divesture of

underutilized, yet valuable USCG property

Mission Relocation to Florida Keys

Survey & boundary realignment of remaining properties maximized asset management

• Exchange Store

• Comm Station

• Antenna Field

• Civil Engineering

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GSA & U. S. Coast Guard PartnershipCurrent Project

The Relocation Program funded $10 million used for site acquisition, design, materials, & construction of USCG military family units and a storage/maintenance building

Coast Guard received $6.1 million net proceeds

First Negotiated Sale using Relocation Authority

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Underutilized USCG Housing in Miami

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Underutilized Miami Housing

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Relocation Site – Grassy Key, FL

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Homes Under Construction

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USCG Family Housing, Grassy Key, FL

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Construction in Progress

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Exterior View

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Interior Under Construction

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Completed Single-Family Home

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Kitchen

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View from Backyard

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Leed Certified

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Neighborhood View

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New “Bonus” Playground

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Beautiful Flowers

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Ribbon Cutting Ceremony 4/9/2010

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Ready for Occupancy!

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Happy U. S. Coast Guard Family

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Success: Mission Relocation

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PBS Office of Property Disposal Locations

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PBS Office of Property Disposal POCs

New England Region; Boston, MA (Region 1) (617) 565-5700 Great Lake Region; Chicago, IL (312) 353-6045

Southeast Sunbelt Region; Atlanta, GA (Region 4) (404) 331-5133

Greater Southwest Region; Ft. Worth, TX (Region 7) (817) 978-2331

Pacific Rim Region; San Francisco, CA (Region 9) (888) 472-5263 Northwest Arctic Region; Auburn, WA (253) 931-7547

National Capital Region; Washington, DC (Region 11) (202) 205-2127

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Questions

For additional information, contact:GSA, 4PZ, Debbie Young, 404-331-3625debrab.young@gsa.gov