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[House Report 110-822]
[From the U.S. Government Publishing Office]

110th Congress                                            Rept. 110-822
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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         SALE OR EXCHANGE OF NOAA PROPERTY IN NORFOLK, VIRGINIA

                                _______
                                

                 August 1, 2008.--Ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5350]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 5350) to authorize the Secretary of Commerce to sell 
or exchange certain National Oceanic and Atmospheric 
Administration property located in Norfolk, Virginia, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SALE OR EXCHANGE OF NOAA PROPERTY IN NORFOLK, VIRGINIA.

  (a) In General.--The Secretary of Commerce may sell or exchange to 
the City of Norfolk, Virginia, in accordance with chapter 13 of title 
40, United States Code, real property under the administrative 
jurisdiction of the National Oceanic and Atmospheric Administration (in 
this section referred to as ``NOAA''), including land and improvements 
thereon, located at 538 Front Street, Norfolk, Virginia, consisting of 
approximately 3.78 acres, if the Secretary--
          (1) determines that the conveyance is in the best interests 
        of NOAA and the Federal Government; and
          (2) has provided prior notification to the Committee on 
        Natural Resources and the Committee on Appropriations of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation and the Committee on Appropriations 
        of the Senate.
  (b) Consideration.--
          (1) In general.--For any conveyance under this section the 
        Secretary shall require provision to the United States of 
        consideration having a value that is not less than the fair 
        market value of the property conveyed by the United States.
          (2) Form.--Consideration under this subsection may include 
        any combination of--
                  (A) cash or cash equivalents;
                  (B) other property (either real or personal); and
                  (C) consideration in-kind, including--
                          (i) provision of space, goods, or services of 
                        benefit to NOAA including construction, repair, 
                        remodeling, or other physical improvements of 
                        NOAA property;
                          (ii) maintenance of NOAA property; or
                          (iii) provision of office, storage, or other 
                        usable space.
          (3) Determination of fair market value.--The Secretary shall 
        determine fair market value for purposes of paragraph (1) based 
        upon an appraisal of the property conveyed under subsection (a) 
        conducted in conformance with the Uniform Appraisal Standards 
        for Federal Land Acquisitions.
  (c) Use of Proceeds.--Amounts received under subsection (b)(2)(A) by 
the United States as proceeds of any conveyance under this section 
shall be available to the Secretary, subject to appropriation, for--
          (1) activities related to the operations of, or capital 
        improvements, to NOAA property; or
          (2) relocation and other costs associated with the sale or 
        exchange.
  (d) Termination.--Authority granted to the Secretary under 
subsections (a) and (b) shall terminate at the end of the 24-month 
period beginning on the date of enactment of this Act.

                          PURPOSE OF THE BILL

    The purpose of H.R. 5350 is to authorize the Secretary of 
Commerce to sell or exchange certain National Oceanic and 
Atmospheric Administration (NOAA) property located in Norfolk, 
Virginia.

                  BACKGROUND AND NEED FOR LEGISLATION

    The City of Norfolk, Virginia has experienced recent 
significant economic growth. Downtown Norfolk has reemerged as 
the urban center of the Hampton Roads region through a 
comprehensive revitalization strategy which has spurred new 
commercial and residential development. In the late 1990s, 
Norfolk officials recognized the strategic location of the Fort 
Norfolk District and re-zoned the district for ``waterfront 
mixed-use.'' In 2001, at the City's request, the Urban Land 
Institute (ULI) conducted a intensive assessment of the Fort 
Norfolk District, and in 2002 ULI developed and provided for 
the City a comprehensive re-development plan for the 
approximately 50-acre District. The District holds significant 
value as the City's last major downtown waterfront development 
opportunity, and redevelopment is already underway.
    The National Oceanic and Atmospheric Administration (NOAA), 
which locates both its Marine Operations Center--Atlantic (MOC-
A) and its Chesapeake Bay Office in the city, has been an 
important federal partner in downtown Norfolk for many years. 
In 2002, NOAA was contacted by the Fort Norfolk Joint Venture 
with an unsolicited proposal asking NOAA to enter into a joint 
public-private partnership to exchange an under-utilized 
federal property under the control of NOAA in the Fort Norfolk 
District considered a vital link in fulfilling the 
comprehensive redevelopment strategy, for a long-term lease at 
another city site. The property of interest was a 3.78 acre 
parcel located at 538 Front Street near the Elizabeth River, 
with a single 7,000 square foot office building, surrounding 
parking, and lot storage area. The building on the property 
serves as offices and work space for NOAA's National Geodetic 
Survey (NGS) Norfolk Field Operations office. Other portions of 
the property, outside the main building, provide field areas 
for instrument calibration, field testing and training, and 
storage for vessels, marine equipment, and trailers. NOAA's 
MOC-A uses portions of the property to store some equipment. 
NOAA rejected this initial proposal citing a lack of explicit 
authority and unfavorable financial implications for the 
agency.
    Two years later in 2004, the city itself contacted then-
Secretary of Commerce Donald Evans to discuss draft legislation 
to authorize a conveyance or exchange of the Front Street 
property. The draft language of that legislative proposal, 
while similar to language contained in H.R. 5350, was also 
rejected by NOAA, principally because the terms of the 
conveyance were inflexible, the short- and long-term costs were 
disadvantageous to NOAA, and the city failed to identify 
appropriate alternate site options to relocate NOAA program 
functions and activities. Since that time, NOAA and the city 
have maintained amicable discussions to develop a framework for 
agreement for a future sale, conveyance or exchange of 
properties. H.R. 5350 would authorize such an agreement to be 
implemented should it be reached.

                            COMMITTEE ACTION

    H.R. 5350 was introduced by Rep. Robert C. ``Bobby'' Scott 
(D-VA) on February 12, 2008. The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Fisheries, Wildlife and Oceans. On April 24, 
2008, the Subcommittee held a hearing on the bill. A 
representative testifying on behalf of NOAA for the 
Administration and a representative testifying on behalf of the 
City of Norfolk each spoke in support of the legislation.
    On June 4, 2008, the Subcommittee on Fisheries, Wildlife 
and Oceans met to mark up the bill. Chairwoman Madeleine Z. 
Bordallo (D-GU) offered an amendment in the nature of a 
substitute. This amendment made NOAA's use of any proceeds 
subject to future appropriations; expanded the list of 
committees to notice of any transaction to include the 
Committee on Appropriations in both the U.S. House of 
Representatives and the United States Senate; required that any 
appraisals of value comply with applicable federal standards; 
and inserted a two-year self-executing sunset of authority 
granted to the Secretary under the legislation. The amendment 
was adopted by voice vote. The bill was then forwarded, as 
amended, to the Full Committee by voice vote. On July 16, 2008, 
the Full Natural Resources Committee met to consider the bill. 
A committee print reflecting the amendments adopted by the 
Subcommittee was ordered favorably reported to the House of 
Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Sale or exchange of NOAA property in Norfolk, Virginia

    Subsection (a) would authorize the Secretary of Commerce to 
sell or exchange to the City of Norfolk a 3.78 acre parcel of 
property under the administrative jurisdiction of the National 
Oceanic and Atmospheric Administration, including land and 
improvements thereon, located at 538 Front Street in the City 
of Norfolk. The Secretary would be required to determine that 
any conveyance is in the best interests of NOAA and the federal 
government, and to provide prior notice to the Committees on 
Natural Resources and Appropriations in the House of 
Representatives, and the Committees on Commerce, Science, and 
Transportation and Appropriations of the United States Senate.
    Subsection (b) would require any sale or exchange to be for 
no less than fair market value of the property conveyed by the 
United States, and that the form of consideration could be in 
the form of cash or cash equivalents, other properties, in-kind 
considerations, or any combination thereof. All determinations 
of fair market value are to be conducted in conformance with 
the Uniform Appraisal Standards for Federal Land Acquisitions.
    Subsection (c) would make the Secretary's use of any 
proceeds from such a transaction subject to appropriations and 
restrict the use of proceeds to activities related to the 
operations of, or capital improvements to, NOAA property or for 
relocation and other costs associated with the sale or 
exchange.
    Subsection (d) would terminate the authority granted to the 
Secretary under subsections (a) and (b) at the end of the 24-
month period beginning on the date of enactment of the 
legislation.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article IV, section 3 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize the Secretary of 
Commerce to sell or exchange certain National Oceanic and 
Atmospheric Administration (NOAA) property located in Norfolk, 
Virginia.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 5350--A bill to authorize the Secretary of Commerce to sell or 
        exchange certain National Oceanic and Atmospheric 
        Administration property located in Norfolk, Virginia, and for 
        other purposes

    H.R. 5350 would authorize the Secretary of Commerce to 
exchange or sell to the city of Norfolk, Virginia, 
approximately 4 acres of land. Under the bill, CBO expects that 
the Secretary would negotiate a sale of the land, which is 
valued at $1.5 million.
    Based on information from the agency, CBO expects that the 
administrative cost of the sale would be insignificant. The 
legislation stipulates that proceeds of the sale, estimated to 
total $1.5 million, would be available to the Secretary only if 
provided in a future appropriation act. Thus, enacting the 
legislation, would reduce direct spending by that amount. 
Enacting the bill would not affect revenues.
    H.R. 5350 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. The 
bill would benefit the city of Norfolk, Virginia, by 
authorizing the sale or conveyance of federal land to the city. 
Any costs the local government might incur would result from 
complying with conditions of aid.
    The CBO staff contact for this estimate is Tyler Kruzich. 
This estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 5350 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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