Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices 15567

VAOPGCPREC 9–97

Questions Presented

1. Can the issuance of a supplemental

statement of the case in response to

evidence received within the one-year

period following the mailing date of

notification of the determination being

appealed extend the time allowed to

perfect an appeal beyond the expiration

of that one-year period?

2. If a supplemental statement of the

case is not or cannot be issued before

the one-year period expires, does the

appeal expire and must such evidence

be considered an attempt to reopen a

finally adjudicated claim?

Held

1. If a claimant has not yet perfected

an appeal and VA issues a supplemental

statement of the case in response to

evidence received within the one-year

period following the mailing date of

notification of the determination being

appealed, 38 U.S.C. 7105(d)(3) and 38

CFR 20.302(c) require VA to afford the

claimant at least 60 days from the

mailing date of the supplemental

statement of the case to respond and

perfect an appeal, even if the 60-day

period would extend beyond the

expiration of the one-year period. To the

extent that 38 CFR 20.304 purports to

provide otherwise, it is invalid and

requires amendment.

2. If VA receives additional material

evidence within the time permitted to

perfect an appeal, 38 U.S.C. 7105(d)(3)

requires VA to issue a supplemental

statement of the case even if the oneyear period following the mailing date

of notification of the determination

being appealed will expire before VA

can issue the supplemental statement of

the case. Furthermore, 38 CFR 3.156(b)

requires that such evidence be

considered in connection with the

pending claim.

Effective Date: February 11, 1997.

VAOPGCPREC 10–97

Question Presented

Does a $1,100 cash distribution from

an Alaska Native Corporation and a

$16,338 dividend distribution by the

corporation to a settlement trust under

the Alaska Native Claims Settlement

Act, both of which were made in 1993,

constitute income to a veteran for

improved-pension purposes?

Held

Pursuant to VAOPGCPREC 12–89 and

VAOPGCPREC 4–93, if the nontaxable

portion of a cash distribution received

by a veteran from an Alaska Native

Corporation represents a distribution

from the Alaska Native Fund, that

portion of the distribution and an

interest in a settlement trust received by

the veteran from the Native Corporation

may be excluded from computation of

income for improved-pension purposes

under 38 U.S.C. 1503(a)(6) as

compensation for relinquishment of an

interest in property. If the taxable

portion of the cash distribution received

by the veteran was derived from

revenues earned by a Native

Corporation, that distribution

constitutes income for improvedpension purposes. Section 506 of Pub.

L. No. 103–446, 108 Stat. 4645, 4664

(1994), which excludes from income

computation for improved-pension

purposes cash distributions not

exceeding $2,000 per annum received

by an individual from an Alaska Native

Corporation, does not apply to

computation of income for improvedpension purposes for periods prior to

November 2, 1994, the date of its

enactment.

Effective Date: February 21, 1997.

By Direction of the Secretary.

Mary Lou Keener,

General Counsel.

[FR Doc. 97–8137 Filed 3–31–97; 8:45 am]

BILLING CODE 8320–01–P

Enhanced-Use Lease of Property at the

Department of Veterans Affairs Medical

Center in Atlanta, Georgia

AGENCY: Department of Veterans Affairs.

ACTION: Notice of Designation.

SUMMARY: The Secretary of the

Department of Veterans Affairs is

designating the Department of Veterans

Affairs Medical Center in Atlanta,

Georgia, for an Enhanced-Use lease

development. The Department intends

to enter into a long-term lease of real

property at the Medical Center with the

Development authority of DeKalb

County for the purpose of collocating

administrative office space for its

Veteran Benefits Administration

Regional Office onto such property and

for other ‘‘in-kind’’ consideration.

FOR FURTHER INFORMATION CONTACT:

Brian A. McDaniel, Office of Asset and

Enterprise Development (189), Veterans

Health Administration, Department of

Veterans Affairs, 810 Vermont Avenue,

NW, Washington, DC, 20420, (202) 565–

4307.

SUPPLEMENTARY INFORMATION: 38 U.S.C.

Sec 8161 et seq., specifically provides

that the Secretary may enter into an

Enhanced-Use lease, if the Secretary

determines that at least part of the use

of the property under the lease will be

to provide appropriate space for an

activity contributing to the mission of

the Department; the lease will not be

inconsistent with and will not adversely

affect the mission of the Department;

and the lease will enhance the property.

This project meets these requirements.

Approved: March 21, 1997.

Jesse Brown,

Secretary.

Notice of Designation and Intent to

Execute an Enhanced-Use Lease With

the Development Authority of Dekalb

County (Georgia) (Enhanced-Use Lease

Report) for the Collocation of a VBA

Regional Office at the VA Medical

Center, Atlanta, Georgia

Notice

Pursuant to the provisions of 38

U.S.C. 8161, et seq., ‘‘Enhanced Use

Leases of Real Property,’’ this serves as

notice that the Secretary of the

Department of Veterans Affairs (‘‘the

Department’’) intends to designate

approximately six (6) acres (‘‘the

Parcel’’) and other property under the

jurisdiction and control of the

department on the campus of the

Atlanta VA Medical Center for

development under the terms of an

Enhanced-Use lease. The Parcel is

located in the northwest corner of

Clairmont Road and Southern Lane,

adjacent to the VA Medical Center,

Atlanta, DeKalb County, Georgia.

Further, it is the Department’s intent

that after conclusion of successful

negotiations with the Development

Authority of DeKalb County

(‘‘Authority’’), to enter into an

Enhanced-Use lease of the Parcel with

the Authority. Such lease will include a

requirement for collocation of the

Department’s Veterans Benefits

Administration Regional Office in

Atlanta as well as potentially other VA

and non-VA uses on the Parcel. The

Authority, acting pursuant to its

statutory responsibilities, may provide

financing for the development and

select a developer with the approval of

the Department. The developer will

construct and operate the development

which will include both VA and nonVA uses.

This Notice and Report will be

supplemented by a subsequent Report to

be made not less than 30 days prior to

the closing of a development agreement

between the Department, the EnhancedUse lessee (the Authority) and the

developer. The Report will provide

updated information with respect to the

matters contained herein.

Background and Rationale

Under the provisions of 38 U.S.C.

8161, et seq., the Secretary is authorized
15568 Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices

to lease Department-controlled real

property to private or other public

entities over a term not to exceed 35

years, so that the property will, in part,

provide space for an activity

contributing to the mission of the

Department. As consideration for the

lease, the Secretary is authorized to

accept facilities, services, money, or

other ‘‘in-kind’’ consideration.

The Department intends to use its

Enhanced-Use leasing authority as a

means to obtain office space (‘‘VARO

Space’’) for its Regional Office activities

in Atlanta, Georgia, as well as for other

potential Department activities. The

Regional Office is now located in a

privately-owned office building leased

by the General Services Administration.

The currently occupied space is located

approximately 7 miles from the VAMC

Atlanta campus. By use of the

Enhanced-Use lease, the Department

would lease, on a long-term basis (35

years), all or a substantial portion of the

Parcel to the Authority. The Authority,

in turn, would competitively select a

developer who will finance, design,

constrict, manage and operate a mixeduse office complex that would include

the VARO Space requirement and nonVA uses. While such uses would need

to be further defined, it is intended that

both VA and non-VA uses will be

developed and operated pursuant to

local construction and land use

development requirements, to the extent

practicable. Any non-VA uses would

also be required to be compatible with

mission and operations of the VARO

and the adjoining VA Medical Center.

Depending on the value of the subject

parcel and market opportunity for the

non-VA uses, the developer would

provide office space to the VARO at

favorable terms, as well as other ‘‘inkind’’ consideration.

Description of Enhanced-Use Lease

Provisions

The Department proposes to lease the

site through an ‘‘Enhanced-Use lease’’ to

the Authority for a term consisting of up

to thirty-five (35) years under such

terms and conditions as authorized in

the Department’s Enhanced-Use leasing

authority. The terms of the arrangement

will generally be as follows:

Under the Enhanced-Use leasing

authority, it is the Department’s intent

to lease, on a long-term basis (up to 35

years), the Parcel to the Authority, an

instrumentality of DeKalb County.

Participation by the Authority will

permit the project to obtain lower cost

financing than if financed through

commercial sources. Under this

arrangement, the Authority will lease

the Parcel from the Department for the

purpose of selecting a developer and

thereafter assigning its interest to such

developer. The Authority may provide

financing to the developer who would

construct both VA and non-VA uses.

Any provided financing would be

through ‘‘revenue bonds’’ issued by the

Authority. The Department shall retain

approval of the selection of the

developer and of the development plan.

Should the Authority be subsequently

unable or chooses not to participate, the

Department intends to select a

developer/lessee through a solicitation

process.

The selected developer will be

responsible for the development of the

Parcel in accordance with the

parameters in the Enhanced-Use lease

and an approved development plan. In

addition, the developer will be

responsible for the financing, design,

construction, operation and

maintenance of the VARO Space. The

VARO Space would then be provided

for use by the Regional Office on a

‘‘lease-back’’ arrangement for a certain

duration on such terms and conditions

as agreed upon by the parties. Such

terms will include provision of VARO

Space including costs such as parking

and the VARO Space tenant build-out

will be reflected in the rent proposed by

the developer.

In return for the development rights

permitted under the Enhanced-Use lease

and the lease-back of VARO Space, the

developer will provide fair

consideration to the Department. Such

consideration may be in the form of

cash, or in the form of in-kind

consideration, such as a favorable leaseback rent, discounted operation and

maintenance costs, or the provision of

goods, services or benefits to the

Department, including construction,

repair, maintenance, remodeling, or

other physical improvements of

Department facilities, or the provision of

office, storage, or other usable space.

The amount and type of consideration

to be provided by the developer will

depend on the value of the land

involved. The developer would be

legally and financially responsible for

the operation, maintenance, and repair

of any properties and improvements

placed under its control by reason of the

Enhanced-Use lease.

In addition to the VARO Space, the

Enhanced-Use lease will contain

provisions allowing for a defined

amount of non-VA development. Such

development shall be constructed and

operated at the developer’s own risk and

expense. Such additional development

shall, to the extent practicable as

determined by the Department, be

required to comply with local laws and

other requirements pertaining to

construction, use and occupancy.

Further, any non-VA uses would also be

required to be compatible (and not

inconsistent) with the mission and

operations of the VARO and the

adjoining VA Medical Center. At the

conclusion of the Enhanced Use lease,

all of the improvements on the site will

become the property of the Department.

Public Hearing

On September 9, 1996, a public

hearing was held at The Pete Wheeler

Auditorium on the campus of the

Atlanta VA Medical Center. The public

hearing began at 7:00 p.m. and

concluded at approximately 9:00 p.m.

Department representatives at the

meeting included Mr. Gary Hickman,

Director, VARO Atlanta; and Dr. Bailey

Francis, Acting Director, VAMC Atlanta.

The Department received very strong

positive response from: Mr. Pete

Wheeler, Commissioner Georgia

Department of Veterans Affairs; Mr.

John Gwisdak, State Veterans of Foreign

Wars; Mr. Robert Morris, Georgia

Department of Veterans Services, and

other veterans on the basis that such

proposal will result in VARO Space that

will correct existing space deficiencies,

as well as provide better access and

parking for disabled veterans, compared

to the existing VARO leased space or the

new Atlanta Federal Center (AFC)

controlled by the U.S. General Services

Administration (GSA). These speakers

noted that a VBA Regional Office move

to the AFC would result in an inefficient

and counterproductive VARO office

layout, a corresponding substantial

increase in VARO’s payments to GSA,

and inadequate parking and access for

disabled veterans who would be visiting

the VARO.

Benefits cited by these speakers with

respect to the proposed collocation were

the potential for improving timeliness in

VARO claim-processing, and the

potential for financial savings as a result

of the ‘‘Enhanced-Use’’ of the Parcel,

and the prospect for obtaining VARO

Space at lower costs than by other

methods thus, alleviating budget

problems. Mr. David Chesnut, General

Counsel to the Authority, expressed

support for the project. Mr. Chesnut

noted that such proposed collocation

would result in increased employment

within DeKalb County, will further the

Authority’s objectives for sustained,

planned growth of economic

opportunities within the County, as well

as promote the general welfare of the

local community and the State. Mr.

Chesnut expressed the Authority’s

position that it was prepared to

participate as an Enhanced-Use lessee.
Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices 15569

Also speaking at the public hearing

were members from adjacent and nearby

neighborhood organizations. While

some acknowledged the potential

benefits of collocating VARO services to

veterans, other speakers expressed

concerns as to the potential size and

intensity of the Enhanced-Use

development and any corresponding

adverse impacts on traffic, lighting,

storm water run-off, as well as on other

environmental and community issues or

resources. The VARO Director provided

assurances that the Department will

undertake appropriate environmental

reviews of any proposed development

and that such development will, to the

extent practicable, comply with local

requirements pertaining to land use,

construction and occupancy. In

addition, the Director, VARO Atlanta,

expressed a willingness to work with

the organizations so that the local

community can have input into the

overall planning of the development.

Summary of Cost-Benefit and Other

Economic Factors in Support of the

Enhanced-Use Lease

In analyzing the cost-benefit and

economic aspects of obtaining the

VARO Space by means of an EnhancedUse lease, the Department examined the

life-cycle costs to the Government of

this approach in comparison with

leasing the subject space.

The analysis revealed that an

Enhanced-Use lease with the Authority

appears to be the most cost-beneficial

option. Input into this analysis for lease

costs was derived using similar criteria

from various sources. For instance,

assessment of market opportunities was

derived from an appraisal of the subject

Parcel conducted by an independent

appraiser; and private sector lease and

construction costs were based on

industry surveys.

Information received from the

commercial sector supporting this

analysis include: (1) the current

upswing in the commercial leasing

market in Atlanta makes commercial

leasing with no residual value to VA

economically unattractive; (2) demand

and development costs for

administrative office space and for other

uses in the sub-market in which the

Parcel is located; (3) non-VA use in the

development will result in a broader

allocation of development costs among

its user/tenants, thus resulting in lower

costs to the Department; and (4) access

to lower cost financing through the

Authority than what would be typically

available through commercial sources

will result in lower development

expenses and corresponding charges

passed to the users/tenants including

the Department.

Description of How The Proposed Lease

Will—

(1) Contribute cost-effectively to be

consistent with and not adversely affect

the mission of the Department.

The Department anticipates that,

using an Enhanced Use lease, it would

obtain its VARO Space at a lower cost

and in a shorter time period than could

be realized through ‘‘traditional’’ VA

construction or commercial leasing.

The Enhanced-Use lease will be

consistent with and not adversely affect

the mission of the Department by

providing both benefits and medical

services on a single campus resulting in

increased convenience to veterans

receiving services from a Regional

Office, as well as the VA Medical

Center.

(2) Affect services to veterans.

The Enhanced-Use lease provides that

the developer must design, construct,

operate and maintain space for

exclusive use by VBA on the Parcel,

thus providing significantly enhanced

service to veterans through the

convenience of collocation with the VA

Medical Center. In addition,

development of the Parcel for VBA

Space will provide for adequate parking

and access for disabled veterans who

would be visiting the VARO. Finally,

any financial benefits gained as a result

of lower lease-back rates for VBA Space

and/or income stream from private nonVA development has the potential to

fund services to veterans not currently

provided and/or expanding services

currently in existence.

[FR Doc. 97–8136 Filed 3–31–97; 8:45 am]

BILLING CODE 8320–01–M