[Comments on Review of Federal Financing Bank's Financing Arrangements for Federal Office Building Project]
B-248647: Published: Dec 28, 1992. Publicly Released: Dec 28, 1992.
- Full Report:
Pursuant to a congressional request, GAO reviewed the financing arrangements for the Federal Triangle International Cultural and Trade Center-Federal Office Building project, focusing on the authority of the Federal Financing Bank (FFB) to provide financing for this project. GAO noted that: (1) the federal government bears the risk of developing the project, since the land on which the project is being built belongs to the United States; (2) the developer must lease the building to the General Services Administration; (3) even during the period of the developer ownership, the government carries the principal rights and obligations associated with ownership; (4) FFB has legal authority to finance the development of the project; and (5) cancellation of the project would result in minimal savings.