Military Base Closures:

Observations on Legislative Proposal for No-Cost Transfer of Surplus Property

T-NSIAD-99-215: Published: Jul 1, 1999. Publicly Released: Jul 1, 1999.

Additional Materials:

Contact:

David R. Warren
(202) 512-8412
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO discussed the proposal to amend the 1988 and 1990 base closure laws, focusing on the: (1) likelihood that the proposed legislation would expedite the property transfer process; and (2) expected financial consequences to the Department of Defense (DOD).

GAO noted that: (1) the proposed legislation provides an opportunity to expedite the economic development conveyance (EDC) process; (2) it would likely alleviate the frustration and burden communities and DOD experience in negotiating agreements; (3) in some instances, the elimination of lengthy negotiations over fair market value issues might have expedited property transfers; (4) however, it is not clear to what extent the legislation would uniformly shorten the timeframe for property transfers; (5) GAO's prior work also shows that other factors, such as communities' abilities to accept property transfers in a timely fashion and environmental cleanup considerations, are the primary factors that determine the pace of property transfers; (6) the legislation would impact 23 pending or anticipated EDCs; (7) however, the amendment would also allow up to 26 existing EDCs to be renegotiated if certain conditions are met; (8) DOD will lose revenue if the proposed amendment is enacted; (9) DOD would likely forgo revenue from the 23 EDCs that are either in the negotiating stage or expected to be submitted on or after April 21, 1999; (10) the extent of lost revenue for these properties would not be known until final agreements are reached; (11) the proposed legislation would also allow the Secretary of Defense to approve changes in prior agreements based on determinations of changes in economic circumstances; (12) DOD estimates that it would lose about $218 million between fiscal year (FY) 2000 and 2043 if all agreements are renegotiated as no-cost conveyances; (13) approximately $87 million, or 40 percent, of this revenue would be lost between FY 2000 and FY 2005, and the remaining revenue would be lost between FY 2006 and FY 2043; and (14) the Department projects the legislation will avoid about $12 million in costs that otherwise would be incurred in maintaining the closed bases prior to transfer.

Sep 22, 2016

Sep 21, 2016

Sep 19, 2016

Sep 12, 2016

Sep 8, 2016

Sep 7, 2016

Sep 6, 2016

Aug 25, 2016

Looking for more? Browse all our products here