B-169992, SEP. 15, 1970
Highlights
THAT NASA DOES NOT HAVE AUTHORITY TO LEASE FEDERAL PROPERTY TO A NONPROFIT CORPORATION TO CONSTRUCT A CHAPEL OF THE ASTRONAUTS ON THE SITS. ALTHOUGH THE ESTABLISHMENT OF TRUST OR ESCROW FUND BY A NONPROFIT CORPORATION TO GUARANTEE THAT LEASED FEDERAL PROPERTY WILL BE RETURNED TO THE GOVERNMENT IN ORIGINAL CONDITION WILL GIVE GOVERNMENT ADEQUATE PROTECTION. IT WAS OUR VIEW THAT IT WAS DOUBTFUL THAT THE LEASE AUTHORITY OF NASA IN SECTION 203(B)(3) OF THE NATIONAL AERONAUTICS AND SPACE ACT. 42 U.S.C. 2473(B)(3) WAS INTENDED TO EXTEND TO A LEASE OF PROPERTY UPON WHICH WOULD BE CONSTRUCTED A SUBSTANTIAL BUILDING AND THAT. OUR DECISION WAS PREMISED ON ARTICLE 4. ENCLOSED WITH YOUR LETTER OF AUGUST 28 WAS A LETTER DATED AUGUST 20.
B-169992, SEP. 15, 1970
MISCELLANEOUS -- LEASE OF FEDERAL PROPERTY REAFFIRMING DECISION OF JULY 24, 1970, THAT NASA DOES NOT HAVE AUTHORITY TO LEASE FEDERAL PROPERTY TO A NONPROFIT CORPORATION TO CONSTRUCT A CHAPEL OF THE ASTRONAUTS ON THE SITS. ALTHOUGH THE ESTABLISHMENT OF TRUST OR ESCROW FUND BY A NONPROFIT CORPORATION TO GUARANTEE THAT LEASED FEDERAL PROPERTY WILL BE RETURNED TO THE GOVERNMENT IN ORIGINAL CONDITION WILL GIVE GOVERNMENT ADEQUATE PROTECTION, SUCH A DEVICE DOES NOT OVERCOME MATTER THAT NASA LACKS AUTHORITY TO LEASE FEDERAL PROPERTY TO A PRIVATE CORPORATION WITHOUT SPECIFIC STATUTORY AUTHORITY.
TO DR. PAINE:
ON AUGUST 28, 1970, YOU WROTE TO OUR OFFICE CONCERNING THE PROPOSED CHAPEL OF THE ASTRONAUTS AT THE JOHN F. KENNEDY CENTER, FLORIDA. IN B 169992, JULY 24, 1970, WE HELD THAT ABSENT SPECIFIC STATUTORY AUTHORITY WE QUESTION THE APPROPRIATENESS OF NASA LEASING FOR A THIRTY-YEAR PERIOD A PARCEL OF LAND ADJACENT TO THE VISITOR'S INFORMATION CENTER TO THE CHAPEL OF THE ASTRONAUTS, INC., A NONPROFIT FLORIDA CORPORATION. THIS PARCEL, CONSISTING OF APPROXIMATELY 5.5 ACRES WOULD BE THE SITE OF A NONDENOMINATIONAL CHAPEL TO BE CONSTRUCTED WITH FUNDS RAISED BY PUBLIC SUBSCRIPTION.
IT WAS OUR VIEW THAT IT WAS DOUBTFUL THAT THE LEASE AUTHORITY OF NASA IN SECTION 203(B)(3) OF THE NATIONAL AERONAUTICS AND SPACE ACT, AS AMENDED, 42 U.S.C. 2473(B)(3) WAS INTENDED TO EXTEND TO A LEASE OF PROPERTY UPON WHICH WOULD BE CONSTRUCTED A SUBSTANTIAL BUILDING AND THAT, ABSENT SPECIFIC STATUTORY AUTHORITY, WE FELT THAT NASA LACKED AUTHORITY TO ENTER INTO THE LEASE. OUR DECISION WAS PREMISED ON ARTICLE 4, SECTION 3, CLAUSE 2 OF THE CONSTITUTION OF THE UNITED STATES WHICH RESERVES TO THE CONGRESS THE POWER TO DISPOSE OF PUBLIC PROPERTY. WE CITED UNITED STATES V GRATIOT, 14 PET. 526, 39 U.S. 526 (1840) FOR THE PROPOSITION THAT DISPOSAL ENCOMPASSES LEASE AS WELL AS SALE OF PROPERTY.
ENCLOSED WITH YOUR LETTER OF AUGUST 28 WAS A LETTER DATED AUGUST 20, 1970, FROM THE CHAPEL OF THE ASTRONAUTS, INC., OFFERING TO SET UP A TRUST OR ESCROW FUND OF NOT LESS THA $300,000 THE PRINCIPAL OF WHICH WOULD BE AVAILABLE UPON THE EXPIRATION OF THE LEASE OR ITS TERMINATION TO RESTORE THE PREMISES TO ITS ORIGINAL CONDITION.
WHILE WE FEEL THAT THE ESCROW FUND DEVISE AFFORDS ADEQUATE ASSURANCE THAT THE PROPERTY WILL ULTIMATELY BE RETURNED TO THE GOVERNMENT IN ITS ORIGINAL CONDITION, THIS DEVISE DOES NOT ALLAY OUR PRIMARY CONCERN THAT UNDER PRESENT LAW NASA LACKS AUTHORITY TO ENTER INTO ANY LEASE OF THE PROPERTY INVOLVED FOR THE PURPOSE HERE UNDER CONSIDERATION. ACCORDINGLY, WE REMAIN OF THE VIEW THAT SPECIFIC AUTHORIZATION SHOULD BE OBTAINED FROM THE CONGRESS BEFORE ENTERING INTO THE PROPOSED LEASE OF THIS PROPERTY.
BECAUSE OF HIS INTEREST IN THIS MATTER A COPY OF THIS DECISION IS BEING FURNISHED SENATOR EDWARD J. GURNEY.