Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-07-11
Bill in House Kills
Lease-Purchase
Direct Buying
ByU. S. Ordered:
D. c. Excluded


A House Public Works SUBJ
committee today approved Q
bill to kill the Federal lease
purchase system for building
Government offices.
1t would substitute direct
appropriations by Congress for
construction of the projects
approved by congressional
committees for the General
Services Administration.
Exempted were nearly 5000
million of Federal buildings
slated to go up in the District.
Such buildings on District
sites would continue to be
financed under Government
contracts with private in
vestors. who build and cover
their costs by collecting rent
from Uncle Sam until their
construction bills are paid.
Then. the Federal Government
attainS title.
COntradictS Senate Bill
The measure was sponsored
by Subcommittee Chairman
Jones. Democrat of Alabama.
Due to go before the full House
Public Works Committee next
Wednesday, it directly CONTRA
diets a Senate-passed measure
to continue the lease-purchase
program for three years.
Representative Jones. after
the closed subcommittee action,
stressed that the 149 projects
now approved by Senate and
House Public Works Commit
tees for GSA were to cost STA
million. But Spiraling building
costs. interest rates and taxes
will boost that cost to Sit bill
lion by the time Uncle Sam
could actually own its buildings
in Is years, he said.
Two Amendments
The bill was reported out
with two amendments. both
relating to the District of CO.
lumbia.
Exempted from the direct
appropriation financing method
were the following buildings.
according to GSA spokesman.
Federal Office Building No. s
"A group of three buildings
proposed to flank the Tenth
street Mall in the Southwest.
$25.2 50,000. site and building
plans await development of
New York builder William
zeckendorf's program for this
area.
Building No. "a building
also in the Southwest, west Of
the Health. Education and We'll
fare headquarters on a tri.
angular site, already acquired,
$l6,275,000.
Building No. IA building
on Lafayette Square. which A
presidential commission has
urged be used for White House
Offices. $27,450.000. The Court
OF Claims also is scheduled to
go into this structure. Money
has been tied up for plans for q
year by a rider on the appro-
priation for the building.
Building No. "a building to
house the Food and Drug Ad-
ministration, just south and
east of HEW. $12.190,000. The
site is acquired. and architec-
tural drawings underway.
Now Drawing Plans
Building No. "a building
for the Civil Service Commits
sion on Nineteenth street be-
tween New York and Virginia
avenues NV. $22.1l5, 900. GSA
has the site and two firms are
drawing preliminary plans.
Building No. 10-Two man.
mouth buildings along hide
pendence avenue from Sixth to
Ninth street. separated by
Seventh street NV. $40.9 mil
lion. Architects drawings are
in process.
Another 1890, 900 building
for the Geological Survey on
an as yet unsolicited site would
fall under the exemption. The
Senate Public Works Commit
tee approved this project on
the condition that District land
could be found for it.
Tax Exemption Provided
The other amendment would
exempt from taxes those WASH
ington buildings for the term OF
the lease-purchase agreement.
Under present law. private con-
tractors are subject to taxes
until Uncle Sam buys" It from
them in installment payments.
subcommittee aides explained.
Representative Jones said this
change in the bill was aimed at
attracting investors to a pro-
gram begged down by red tape.
OF the l49 projects approved
throughout the country, he
said he believed only one was
under construction.