The Federal and District of Columbia Government Real Property Act of 2006 was intended to provide the District with property for economic development to help expand its tax base and decrease the District’s financial dependence on the federal government. Expanding the District’s tax base should help reduce the District’s structural fiscal imbalance. A structural fiscal imbalance exists when the cost of providing an average level of public services exceeds the amount of revenue a government raises by applying average tax rates. We highlighted this structural imbalance in a 2003 report, finding that the District’s public service costs far exceeded that of the average state fiscal system, and these costs were largely beyond its control, due to factors such as its large low-income population. The report estimated that the imbalance likely exceeded $470 million annually and could have been as high as $1.1 billion, depending on the assumptions used. Our analysis indicated that the cost of delivering an average level of services per capita in the District exceeded that of the average state fiscal system by approximately 75 percent (or $2.3 billion more annually than if it faced average cost circumstances) and was over one third more than the second-highest cost fiscal system, New York. We found that even if the District addressed its underlying management problems, such as inadequate financial management, billing systems, and internal controls, such actions would not be enough to offset the structural imbalance because the imbalance is determined by other factors, as previously mentioned, largely beyond the District’s direct control. We also stated that addressing the imbalance may require changes to federal policies to expand the District’s tax base or to provide additional financial support. If the assumptions underlying this structural imbalance analysis change, then estimates of the amount of the structural imbalance could change in either direction. Development of the properties conveyed or transferred from the federal government to the District through Public Law 109-396 is intended to enable the District to expand its tax base. The federal government and the District must comply with environmental laws when completing the transfers and conveyances. Two environmental laws relevant to the properties involved are the National Environmental Policy Act (NEPA) and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). NEPA requires federal agencies to assess the likely environmental effects of the projects that they propose. Federal agencies must prepare EISs for proposed major actions significantly affecting the quality of the human environment. Upon completing the EIS, a federal agency prepares a public record of its decision addressing how it incorporated the findings of the EIS, including consideration of alternatives into its decision-making process. The NEPA process is designed to involve the public and gather the best available information so that decision makers can be fully informed when making their choices. The public may participate in the NEPA process by attending NEPA-related hearings or public meetings and by submitting comments directly to the lead agency. The lead agency must take into consideration all comments received from the public and other parties on NEPA documents during the comment period. The entire NEPA process can take several years to complete. CERCLA was enacted in 1980 to clean up highly contaminated hazardous waste sites across the country. CERCLA requires that parties statutorily responsible for cleaning up pollution bear the costs of cleaning up contaminated sites. CERCLA established that past owners or operators of contaminated property, including the U.S. government, may be held responsible for the contamination. No property conveyances between the District, GSA, and NPS had occurred as of June 6, 2008. However, all transfers of administrative jurisdiction, which do not involve the transfer of title, became effective the day (Dec. 15, 2006) that the President signed the Federal and District of Columbia Government Real Property Act of 2006. (See fig. 1 and table 1 for information on all conveyances of title and transfers of administrative jurisdiction.) The legislation directs the following exchanges: Property to the District government: Conveyances of eight NPS properties. Conveyances of two GSA properties. Transfers of administrative jurisdiction of seven NPS properties. Property to the federal government: Conveyances of two District properties to the Secretary of the Interior. Conveyances of five buildings on the West Campus of St. Elizabeths from the District to the Administrator of General Services. Conveyance of up to 12 acres from the District to AOC. Transfers of administrative jurisdiction of nine District-controlled properties to the Secretary of the Interior for administration by the NPS Director (a portion of one property (land over I-395) transfers to the AOC). All conveyances between the District and the Secretary of the Interior, except for Poplar Point, are expected to be completed by the end of summer 2008. For the conveyance of Poplar Point to occur in the fall of 2009 as intended, the District must complete a number of tasks to meet conditions in the law including development of a Secretary-approved land- use plan (see fig. 2.). The date for the completion of conveyances of title between GSA and the District is uncertain and depends on agreement between the District and the AOC on not more than 12 acres of District property for the AOC. The AOC’s current proposed use for the up to 12 acre property is an offsite delivery facility. Although the District and the federal government have taken several steps toward completing the conveyances, several factors have affected their efforts, and additional steps must be taken to complete the conveyances. The District and NPS formed working groups as a first step toward completing the conveyances. However, negotiations about cleanup, testing properties for contamination, and disagreement over land to be conveyed as part of the Boathouse Row properties have slowed the completion of District and NPS conveyances. The District and GSA have completed a property exchange agreement, but the agreement is contingent on the key step of conveying up to 12 acres of District property to the AOC. In addition, the District must complete several steps to complete the conveyance of Poplar Point by the fall of 2009. According to District and NPS officials, the two parties are working cooperatively and formed four working groups to complete the conveyances. A NPS and USPP Facilities Replacement team has been established to discuss various aspects of the pending relocation of existing facilities at Poplar Point. A Planning for Poplar Point team has been established to develop a land- use plan for the site and produce this plan as a document in accordance with NEPA as a way for (1) the District to consider a variety of options for developing Poplar Point and satisfying the District’s Environmental Policy Act and (2) the District and NPS to use in making decisions about NPS and USPP facilities at Poplar Point and their possible relocation. A Environmental Compliance team has been established to ensure compliance with the provisions of CERCLA that govern the transfer of property by federal agencies. A Conveyance Documents team has been established to complete the deeds by which the District and United States will convey properties. The staffs of the District government and NPS also cooperated to complete preparatory work, including drafting conveyance documents, assessing property conditions, completing land-use plans, and identifying potential new facilities for NPS and USPP. In addition, both the District and NPS independently conducted environmental site characterizations for each of the conveyed properties. GSA and District staffs also worked cooperatively to complete preparatory work, including drafting conveyance documents. Several factors have affected efforts to complete the conveyances between the District and NPS. For example, the time frame for conveying Poplar Point was extended when the District and NPS determined in summer 2007 to develop an EIS for this property to (1) avert potential lawsuits and (2) address the concern that decisions made by the Secretary of the Interior about Poplar Point might be considered a major federal action. According to District and NPS officials, they had mutually agreed in early discussions that a full NEPA process involving development of an EIS would not be required before the conveyance; however, once they moved into more details of the transfer and proposed development of Poplar Point, both parties agreed that meeting NEPA requirements by developing an EIS appeared to be the most prudent course. Despite the extended time frame for Poplar Point, the District and NPS originally hoped to have the other conveyances completed by the fall of 2007. However, NPS’s desire to conduct soil sample tests to determine property contamination levels, as well as negotiations over environmental elements of the exchange agreement for Boathouse Row, have lengthened the time needed to complete these conveyances. In October 2007, NPS tested soil and groundwater samples taken from Waterside Mall (Reservations 721, 722, and 723) and Virginia Avenue properties (Reservations 128, 129, 130, and 299) for potential contamination. The analysis of the collected samples did not indicate the presence of contamination as defined by CERCLA. The District and Secretary of the Interior have completed agreements called a Finding of Suitability for Early Transfer (FOSET) and a Site Specific Memorandum of Agreement for Reservations 343D and 343E (the Boathouse Row properties) and Reservation 298. According to senior District and NPS officials, the agreements for Reservations 298 and 343D outline how the Washington Gas remediation plan for Reservations 343D and 298 will be modified to meet the requirements of applicable law and take into account the District’s proposed changes in land use. According to senior District and NPS officials, the District and NPS agreed to identify a new cleanup plan before going jointly to Washington Gas to negotiate its agreement (or compel it) to undertake the necessary cleanup. These officials also stated that Reservation 343E, which is contaminated as a result of the prior operations of a NPS concessioner, is covered in the FOSET agreement. The District and NPS will identify and agree on a remediation plan for portions of Reservations 343D and 343E and Reservation 298 after completion of a land use plan, the development of which began in the spring of 2008 and is scheduled to be complete by the fall of 2008. In short, the District and DOI have come to an agreement about the process for reaching cleanup agreements for these properties. The District and DOI agree that in doing so they are meeting the requirements of CERCLA, Section 120(h) applicable to property transferred by federal agencies, including use of a “deferral” of certain actions until after the properties are transferred to the District. An additional factor affecting the exchange agreement between the District and NPS involves disagreement between the District and the U.S. Army Corps of Engineers (the Corps) over a small land parcel currently administered by the Corps on the Boathouse Row property. From a docking area within Reservation 343D, the Corps operates a debris removal facility that helps remove trash from the Anacostia River. According to NPS and the Corps, although this property was mistakenly included in an aerial photograph sent to the District at one point, this land was never intended to be part of the conveyance. Prior to the enactment of Public Law 109-396, the Corps and NPS attempted to complete a transfer of jurisdiction through the District of Columbia Office of the Surveyor transferring a small parcel of additional land from NPS to the Corps to facilitate their existing operation. However, according to a senior District official, NPS and the Corps were unable to secure the approval for the proposed transfer from the District Office of the Surveyor. The Corps will have to be temporarily relocated from the existing site during part of the Washington Gas cleanup efforts. The District disagrees with NPS’s and the Corps’ position and has stated (1) that there is no documentary evidence showing that the Corps has interest in the property and (2) that, therefore, it should be conveyed to the District. The District and the Corps are currently negotiating to devise a solution that is acceptable to both parties. According to the District, the Corps’ current location is not a good spot because it would disrupt the Riverwalk Trail, a proposed trail that runs along the Anacostia River and passes through the Boathouse Row property, hinder the value and desirability of surrounding boathouses and marinas, and is incompatible with the planned use of the site. Other factors affecting the completion of the conveyances between the District and the Secretary of the Interior, according to stakeholders, was the change in mayoral administrations in the District at the beginning of 2007 and the dissolution of the District’s development corporations later that year. The change of mayoral administrations brought new personnel into city departments and put interaction with the federal agencies briefly on hold, according to senior NPS officials. Also, the new administration dissolved the Anacostia Waterfront Corporation (AWC) and the National Capital Revitalization Corporation (NCRC) and transferred their duties to the Office of the Deputy Mayor for Planning and Economic Development (DMPED) in September 2007. AWC and NCRC were quasigovernment entities tasked with managing a variety of economic development projects, with AWC focusing on the Anacostia Waterfront Initiative area and NCRC covering the rest of the city. The mayor and D.C. Council cited a number of reasons for the dissolution. The mayor and D.C. Council wanted more direct control of development activities, because the quasigovernment entities were seen as less accountable. In particular, city officials were frustrated by the disagreement between the two corporations over control of properties along the Southwest Waterfront. In addition, the District wanted to improve management by reducing redundancies in staff and improving effectiveness. The ultimate goal of direct control and streamlined management is to speed-up delivery of the projects, while reducing costs, according to District officials. The dissolution resulted in staff changes and attrition. According to a senior District official, the staff of DMPED has increased from 33 full-time equivalents (FTEs) in September 2007 to 63 FTEs in June 2008 and is expected to grow to a total of 73 FTEs by August 2008 which is allowing the agency to increase its capacity and more effectively respond to its increased mission. According to senior NPS officials, the inevitable transition time that the District needed for restructuring and reorganization appears to have resulted in delays to the process of completing the conveyances. On January 17, 2008, the District government and GSA executed an agreement that established the terms and conditions of the property conveyance between the two parties. Under the terms of the agreement, GSA will convey Reservation 13 and the Old Naval Hospital to the District in exchange for five buildings on the West Campus of St. Elizabeths. However, the conveyance of Reservation 13 from GSA to the District government is conditioned on the District’s conveyance of not more than 12 acres of District property to the AOC, which the AOC currently intends to use for an offsite delivery facility. The completion of the District–GSA exchange agreement was slightly delayed by negotiations over conditions for the Court Services and Offender Supervision Agency (CSOSA) remaining on Reservation 13. The issues concerning the length of an extended CSOSA lease and the location of parking spaces were resolved in a supplemental lease agreement signed on January 8, 2008. According to District and GSA officials, the conveyance of properties between the District and GSA has been delayed by the need to agree upon this site of not more than 12 acres for the AOC. After months of researching possible sites, the District proposed four options in August 2007. The two parties met in October 2007 to further discuss these options: that is, three options in the D.C Village area at the extreme southern tip of the District of Columbia and one option in Beltsville, Maryland. In May 2008, an AOC letter to the District stated that three of these options did not meet the AOC’s needs, while a fourth option is still subject to further investigation as the AOC requested geotechnical, utility, and other information on the District’s 12 acre wooded parcel at the southernmost edge of the DC village complex. According to AOC officials, the Beltsville site is too far away and has entry through small roads that will make access by large trucks difficult. These officials said that two options at D.C. Village will not work because the AOC already has plans for the 10.8 unused acres at their current interim location that the District suggested be combined with additional land offered by the District. Negotiations to find agreement on a property of not more than 12 acres are ongoing. As part of the exchange agreement signed with GSA on January 17, the District must use its best efforts to complete the conveyance within 6 months. According to AOC officials, the identification and conveyance of a 12-acre District property to the AOC is not close to completion, and therefore the date of the District-GSA property conveyances is uncertain. For the conveyance of Poplar Point to occur by the fall of 2009 as planned, the District must complete several steps to meet conditions in Public Law 109-396. For example, before Poplar Point can be conveyed, the District must complete a land-use plan that receives the approval of the Secretary of the Interior. The statute requires a land-use plan that reserves no fewer than 70 acres for park purposes; identifies existing facilities and related property used by NPS, and provides for relocation to other suitable facilities and related property; sets aside at least two sites within the designated parkland for is consistent with the Anacostia Waterfront Framework Plan, to the greatest extent practicable. The District must consult with the NPS Director about the identification of existing and replacement facilities and properties for NPS. The Secretary of the Interior must certify that the statute’s requirements for the land-use plan are met. The District and DOI must also meet all requirements of NEPA by considering the environmental impacts of their proposed actions at Poplar Point and reasonable alternatives to those actions. The NEPA process is designed to involve the public and gather the best available information so that decision makers can be fully informed when making their choices. At the end of the NEPA process, DOI will issue a record of decision selecting a preferred alternative at Poplar Point. District officials said that meeting NEPA requirements will likely take 12 to15 months, which means that this process will not be completed until about the fall of 2009. In addition, the District anticipates that all CERCLA requirements will be fully explored during the NEPA process. The District issued a request for proposal (RFP) for NEPA consultants in the fall of 2007 and received three proposals on November 30. The District selected a NEPA consultant in February 2008. The District and the federal government must also meet the requirements of CERCLA. For contaminated DOI property, such as Reservations 343D, 343E, and 298, the District and DOI have come to agreement about the process for reaching cleanup agreements for these properties, which they believe meets applicable requirements set forth in CERCLA governing the transfer of property by federal agencies. According to a senior NPS official and a senior District official, these cleanup agreements, once completed, will allow conveyances of the property from the Secretary of the Interior to the District before the property is remediated pursuant to the use of the so-called “deferral” or “early transfer alternative” set forth in CERCLA at 42 U.S.C. §9620(h)(3)(C). According to these officials, use of this option requires that the transferring federal agency, here the DOI, remain responsible for cleanup costs incurred post transfer. In addition, these officials also say that the District may recoup cleanup costs from other responsible parties, where appropriate, in the future. The facilities and related property currently used by NPS will not be conveyed until the NPS Director certifies that replacement facilities and related property are ready to be occupied or used by NPS. The NEPA and relocation processes together could take almost 3 years, according to the District government, NPS, and USPP, in part because construction of these facilities must wait for the aforementioned Secretary-approved land-use plan for the site. The current facilities encompass 100,000 square feet; sit on approximately 18 acres; and include NPS National Capital Parks East Headquarters, the USPP Anacostia Operations Facility, and the USPP Aviation Unit. The District and NPS are still determining relocation plans for the facilities. Perhaps the most likely option, according to District and NPS officials, is to relocate the NPS offices; the offices for USPP District 5; and the other USPP facilities, including the canine unit and shooting range to the northern end of Poplar Point near the 11th Street Bridge. The USPP aviation unit would move to a yet-to-be identified site that meets the 5-acre landing area and 10-acre safety zone requirement for their helicopter pad. The District reissued a request for proposals (RFP) for architecture and engineering firms for the facilities on December 3, 2007, after an initial RFP in November received no responses. The District selected a firm in March 2008 to begin the design process. The selected contractor will work with NPS and USPP to design replacements for the NPS and USPP facilities currently located at Poplar Point. The District anticipates construction will take at least 18 to 24 months after the site is secured. Therefore, the relocation will not likely be complete until 2011. The District is restricted from initiating other construction until the NPS Director certifies that the facilities and associated property to which NPS is to be relocated are ready to occupy. Therefore, private development of Poplar Point is not likely to begin until 2011. NPS was evaluating the definition of what constitutes a “construction project” under the statute to determine which types of preconstruction work may be done prior to the completion of the replacement facilities. Limited development has occurred on property transferred or to be conveyed between the District and the federal government. Development of the two largest properties, Poplar Point and Reservation 13, to be conveyed between the District and the federal government is in its early stages and will likely take up to a decade to complete. As the largest properties to be conveyed, Poplar Point and Reservation 13 are planned to have the most development and, thus, are likely to generate most of the tax revenue to reduce the District’s structural fiscal imbalance. Development of the other exchanged properties, to the extent applicable, is also in its early stages and will take many years to complete as the District and the federal government develop plans for use of each property. Poplar Point is the most significant development opportunity involved in the land exchange with the federal government and on the District’s waterfront. The District government envisions Poplar Point, which is a 110-acre DOI/NPS property east of the Anacostia River (see fig. 2), as a mixed-use development that features a 70-acre waterfront park serving as a green gateway to the Anacostia River and a series of river parks. District plans envision residential development at Poplar Point to help reconnect the historic Anacostia neighborhood back to the river that shares its name. The District says that the Anacostia Waterfront Framework Plan guides its vision for the site. As we have previously discussed, Poplar Point’s conveyance is not likely to occur until the fall of 2009 because a number of conditions, such as the development of a Secretary-approved land-use plan, must be met before the entire conveyance can occur. To develop the vision for Poplar Point’s future and help devise alternative development scenarios for the NEPA process, the District selected a Master Developer for the site in February 2008. The Master Developer’s vision for Poplar Point includes 1.5 million square feet of office space, 3.8 million square feet of residential units, 405,000 square feet of retail space, 70 acres of parks, a waterfront entertainment district, a deck over I-295 to connect the site with Historic Downtown Anacostia, and an option for a soccer stadium (see fig. 3). The District has required that at least 51 percent of the new jobs created as a part of the development go to District residents. In addition, the project must include affordable housing, and 35 percent of the contracting dollars must be awarded to small and local businesses. This Master Developer will be part of a long-term collaborative planning and development process with the community, according to the District. An EIS consultant will work with the District, the Master Developer, and NPS to create a stakeholder engagement process that will comply with the requirements of NEPA. The District worked with NPS and USPP to select an architectural and engineering firm in March 2008 to design replacement facilities for the NPS and USPP facilities located on Poplar Point. According to a senior District official, commercial and residential construction will not likely begin on the site until 2011, and development will take many years, perhaps up to a decade. Current plans call for Reservation 13, a 67-acre property along the shores of the Anacostia River at the southeastern end of Capitol Hill, to be transformed into an urban multiuse waterfront district that is in accordance with the Anacostia Waterfront Framework Plan and the Hill East Master Plan approved by the D.C. Council in 2002 (see fig. 4). Once complete, DMPED expects that the site can accommodate about 3,000 new units of housing for residents at all income levels, nearly 5.5 million square feet of mixed-use development, new public park spaces, and more than $80 million in new infrastructure upgrades. The District intends for the project to create thousands of new permanent jobs and construction jobs. The District’s correctional facilities will remain on the site, along with Anne Archbold Hall, which was recently made a historic landmark. The District has completed or is in the process of completing a number of development activities at Reservation 13, even though the site has yet to convey. For example, the District has completed several design activities for the site, including 100 percent of the interim plaza and 90 percent of Phase I infrastructure design drawings. Over the last few months, the District has begun construction on an interim plaza adjacent to the southern Stadium/Armory Metrorail Station and planning for the extension of Massachusetts Avenue. The District has remediated and selected a contractor to demolish Building 25, but the bulk of the buildings will be remediated and demolished by the Master Developer. The District issued a request for expressions of interest (RFEI) for a Master Developer in May 2008 and expects to select one for Reservation 13 by the end of 2008. Completion of 100 percent of Phase I infrastructure design is expected by August 2008, and construction should begin in the fall of 2008. Development of Reservation 13 may take as long as a decade. Development of the other exchanged properties, to the extent applicable, is also in its early stages. The District has commercial or residential redevelopment plans for at least part of two conveyed NPS and GSA properties beyond Poplar Point and Reservation 13 (see table 2). For example, some of the Potomac Avenue triangles (Reservations 243, 244, and 245) are properties targeted for commercial and residential development in conjunction with the baseball stadium, while Reservation 247 is part of the new baseball stadium. Also, Reservation 248, just east of the Nationals baseball stadium, will be developed by the group currently redeveloping the Southeast Federal Center and will include the proposed Diamond Teague Park, which is part of the Anacostia Riverwalk Trail (see fig. 5). Construction of residential and office space is expected to begin within 2 years of the conveyance of this property. Twelve properties will be used as open space, parks, or for recreational uses. For example, the Boathouse Row properties (portions of Reservations 343D and 343E), 12- and 6- acre properties located on the western shores of the Anacostia River, will be used for recreational uses (see fig. 6). Currently classified as land with a light industrial use, according to District and NPS officials, portions of Reservation 334D required a more stringent cleanup agreement than previously existed between Washington Gas and NPS because the District intends to change the land use from light industrial to recreational. The District issued a request for proposals in December 2007 to select a firm to assist in the creation of a master plan for these properties with the goal of increasing use of and access to the Anacostia River, while expanding opportunities for maritime development. The District selected a planning firm in April 2008. This planning effort is under way and expected to be completed by the end of September 2008. In addition, construction of the Riverwalk Trail is under way and the portions along Boathouse Row are expected to be completed in late 2008. In addition, the Eastern Market properties (Reservations 44 to 49), located next to the Eastern Market metro station, will be rehabilitated and enhanced to create a gateway and link to a recently renovated commercial strip along 8th Street, SE, called Barracks Row (see fig. 7). Reservations 721, 722, and 723 will be reconfigured as parks or streets for the Waterside Mall redevelopment, which is currently under way. Reservation 174 is a 0.25 acre property located at New York Avenue and 11th Street, NW, to be conveyed from the Secretary of the Interior to the District, whose conveyance is conditioned on the District’s enacting a final plan for the development of the former Convention Center Site. The plan must be developed through a public process and set aside no fewer than 1.25 acres of the former Convention Center Site as open space. The Reservation 174 triangle will remain open space to complement the surrounding residential and commercial development. Reservations 128, 129, 130, 298, and 299 are triangles located on Virginia Avenue that will be reconfigured into usable open space in conjunction with the redevelopment of adjacent private property, in accordance with the Anacostia Waterfront Framework Plan. The District will use at least part of four conveyed properties for other public uses. For example, the Old Naval Hospital, an almost 0.75 acre property in southeast D.C. near Capitol Hill conveyed from GSA to the District, will be developed into a community center to be used for educational classes, lectures, recitals, art shows, and community events and will be operated by the Hill Center/Old Naval Hospital Foundation (see fig. 8). The community center is scheduled for opening in early 2010. Also, GSA plans to use the five buildings on the St. Elizabeths campus for federal use, as part of the proposed Department of Homeland Security (DHS) headquarters. For example, Building 37 Hitchcock Hall, will be used as a DHS conference center. All of the exchanged properties are discussed in more detail in appendix II. The transfer of many properties between the District and the federal government provided management efficiencies for both parties. The 77A Secretary of the Interior transferred the jurisdiction of Reservations 2 and 277C (North Capitol, Florida, and Lincoln Streets); 404 (Canal Road); portions of 470 (Fort Reno Park); and 8 (Mount Vernon Square), which were underutilized properties under NPS management, to provide the District with continuity of management benefits or the interest to prop maintain them. For example, Reservation 8, which the United States continues to own although jurisdiction has been transferred to the Di surrounds the City Museum (Carnegie Library), which the District owns (see fig. 9). This transfer provides uniform administration and more efficient management of the entire square by the District. The Distric the other hand, transferred properties, such as portions of Audubon Terrace, NW (Reservation 402), and Barnaby Street, NW (Reservation 545), to the Secretary of the Interior for administration by the NPS Director to ensure that planned streets that were originally contemp to bisect NPS parkland will never be built (see fig. 10). Senior NPS officials commented that these transfers can be seen as improving management efficiency, since most surrounding land is NPS parkland and NPS would no longer have to be concerned about the construction of new streets. The District and the federal government face challenges as the District moves forward to develop or manage the transferred or to be conveyed properties. For example, cleanup and development uncertainties will likely affect the timeliness of property development at Poplar Point. Other challenges facing the District include (1) transitioning the Deputy Mayor’s Office from policymaking and oversight roles to the lead in coordinating development, a function that has not been the Deputy Mayor’s Office core business, and (2) reaching community agreement about development at Poplar Point. Cleanup and development uncertainties may affect the timeliness of the development of Poplar Point. These uncertainties include the extent and location of cleanup required, cost of environmental cleanup, determination of responsibility for paying for the environmental potential complications of relocating U.S. Park Police facilities on amount of construction that is allowed prior to the Secretary of the Interior’s determination that NPS facilities are ready to be occupied. The District is conducting a series of environmental assessments on the Poplar Point site, the completion of which should begin to clarify the cleanup issues. One senior NPS official said that multiple government agencies could be responsible for contamination on the site. The District’s current plan is to complete the necessary cleanup and then seek reimbursement from the responsible federal agencies. According to District and NPS officials, the federal government is potentially responsible for the majority of the costs of the cleanup on Poplar Point, the scope of which is still in the process of being determined. Any contamination that is found in areas where residential construction is planned could delay the progress of construction until the cleanup is finished or construction plans are modified. If cleanup costs for the site are higher than expected, delays could result if funding is not available. In addition, if significant federal funding is needed by the District to complete the cleanup, a negative impact on future agency budgets is possible. The quicker the District is able to develop property such as Poplar Point, the more quickly the District will potentially be able to reduce the structural fiscal imbalance that it faces. According to a senior NPS official and a senior USPP official, replacing U.S. Park Police facilities may be complicated and might affect the timeliness of the conveyance of the Poplar Point site to the District, which in turn will affect when development on the site begins. Replacing the NPS National Capital Parks Headquarters East facilities should be relatively straightforward because the building is an ordinary office building, but the replacement of USPP facilities will be more challenging. For example, according to a senior NPS official and a senior USPP official, USPP needs space for helicopter landings and a firing range. These facilities have flight space, noise, and safety implications that will affect neighbors substantially, therefore the District and DOI will require community input. The process could make identifying a site difficult and delay the conveyance. In addition, a senior USPP official said that USPP prefers that the motorcycle and special event units remain close to downtown because even a mile or two difference can affect response times. USPP’s preference could complicate site identification. The timeliness of the conveyance of the Poplar Point site to the District for development may also be affected by the legal interpretation of the statute’s restriction on the initiation of construction projects on Poplar Point. Under the statute, existing NPS facilities and properties must be withheld from conveyance until the NPS Director certifies that the facilities and related property to which NPS is to be relocated are ready to be used and occupied by NPS. The District may not initiate any construction project on Poplar Point, except for any required to prepare facilities for occupation by NPS, until the NPS Director makes this certification. However, what qualifies as a “construction project” and what various types of preconstruction work, utility relocation, soil-boring, or environmental remediation would be allowed, is unclear, according to a senior NPS official. NPS lawyers were examining this issue at the time of our review. Therefore, the definition of “construction project” that is ultimately decided upon will impact the speed of development and what could be completed concurrently. A senior NPS official stated that NPS wants to ensure that NPS and USPP have no disruption of operations while they remain at their current facilities, which may further limit activities on-site before the relocation. For example, he said that he would not be comfortable with the District’s working on the utilities on which NPS and USPP currently rely. With the dissolution of AWC and NCRC and the transfer of their functions to DMPED, this office faces the challenge of moving from policy-making and oversight roles to the lead in coordinating development—taking on responsibilities that had not been DMPED’s core business. For example, DMPED is moving from overseeing the activities of AWC and NCRC to actually being responsible for hiring master developers, NEPA consultants, and architecture and engineering firms and for managing their work. District officials told us that they believe they can succeed because the transition has included the integration of many former AWC and NCRC employees. NPS officials also spoke positively about interactions with senior District officials and their seeming ability to achieve results. Some stakeholders, including local community groups, one D.C. Council member, and a Ward 8 economic development organization, have expressed concern about whether the District has enough personnel to efficiently manage the District’s development projects given all of the construction projects under way throughout the city. For example, a community group and an economic development organization said that DMPED, as a result of the AWC dissolution, has over 100 development projects to manage across the city, and they expressed concern that some projects would end up receiving less priority and be delayed as other development projects progressed. A D.C. Council member expressed concern that putting $10 billion worth of development under the direct purview of the mayor may be overwhelming, given all of the mayor’s other responsibilities. Other stakeholders, including a representative for a D.C. Council member and an environmental community group, noted that the District had recently dissolved two development authorities, AWC and NCRC, because they were generally considered to be ineffective. These stakeholders maintained that it was probably too early to tell whether the District’s current structure to manage development and construction throughout the city would be effective. Another challenge could be reaching community agreement about how to develop some of the properties. Reaching community agreement at any of the sites could be a challenge, but particularly at Poplar Point because of the size of the potential development and the millions of dollars at stake. According to most stakeholders, including several community groups and the D.C. Council’s Ward 8 representative, Ward 8 residents want affordable housing; commercial amenities, such as retail stores, restaurants, and grocery stores; and community benefit packages for Ward 8, such as jobs and business preferences. However, opinion is divided on whether a soccer stadium should be a part of Poplar Point’s development. Some stakeholders, including the District community groups One D.C. and the D.C. Association of Community Organizations for Reform Now, believe that the stadium is not a priority for members of the Ward 8 community. Others, including the Ward 7 and Ward 8 D.C. Council members and a President of an Anacostia economic development organization, disagree and believe that the survey is not indicative of the true sentiment of Ward 8 residents. Some maintain that a stadium has community support and could transform Anacostia in a way that retail amenities could not, by bringing in citizens who would not otherwise travel to and spend money in the area. As a result of these varying views, incorporating community input such that development at Poplar Point meets the needs and concerns of much of the community in an equitable and timely manner will be a challenge as the District develops the largest unimproved property currently remaining in the District. We provided a draft of this report to the District of Columbia, DOI, GSA, and the AOC for review and comment. DOI and GSA agreed with our major findings and provided technical comments and clarifications, which we incorporated as appropriate. DOI’s comments are contained in appendix III. The District and AOC did not comment on our overall findings, but provided technical comments and clarifications via e-mail which we incorporated as appropriate. AOC officials also expressed concern that even though all transfers of administrative jurisdiction occurred on December 15, 2006, the AOC has not received supporting instruments (deeds) of transfer, including surveys and legal descriptions, from the District. We are sending copies of this report to the congressional committees identified in the mandate, the Administrator of General Services, the Architect of the Capitol, the Secretary of the Interior, and the Mayor of the District of Columbia. We will also make copies available to others upon request. In addition, the report will be available at no charge on GAO’s Web site at http://www.gao.gov. If you or your staffs have any questions about this report, please contact me at (202) 512-6923 or dornt@gao.gov. Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this report. GAO staff who made key contributions to this report are listed in appendix IV. Conveyances from the General Services Administration (GSA) to the District of Columbia (District) (Section 101(a)(1)) 1. U.S. Reservation 13 2. Old Naval Hospital Conveyance from the District to GSA (Section 101(c)) 1. Building Numbers 16, 37, 38, 118, and 118A (and underlying real property) on the West Campus of St. Elizabeths Transfers of Administrative Jurisdiction from the District to the Secretary of the Interior (Section 201(a)(1)) 1. An unimproved portion of Audubon Terrace, NW (within U.S. Reservation 402) 2. An unimproved portion of Barnaby Street, NW (abuts U.S. Reservation 545) 3. A portion of Canal Street, SW, and V St., SW (abuts U.S. Reservation 467) 4. Unimproved streets and Alleys at Fort Circle Park (within U.S. Reservation 497) 5. An unimproved portion of Western Avenue, NW (abuts U.S. Reservation 339) 6. An unimproved portion of 17th Street, NW (abuts U.S. Reservation 339) 7. An unimproved portion of 30th Street, NW (within U.S. Reservation 515) 8. Land over I-395 bounded by Washington Avenue, SW, 2nd Street, SW, and the C Street, SW, ramps to I-295 (for Memorial to Disabled Veterans) 9. A portion of U.S. Reservation 357 at Whitehaven Parkway, NW Transfer of Administrative Jurisdiction from the District to the Architect of the Capitol (AOC) (Section 201(a)(3)(A)) 1. Additional land over I-395 (see #8 above) a. Northernmost 0.249 acres to NPS with approval of the AOC (for special needs parking) b. Remaining portion to the AOC Transfers of Administrative Jurisdiction from the Secretary of the Interior to the District (Section 201(b)) 1. A portion of U.S. Reservation 451 2. A portion of U.S. Reservation 404 3. U.S. Reservations 44, 45, 46, 47, 48, and 49 4. U.S. Reservation 251 5. U.S. Reservation 8 6. U.S. Reservations 277A and 277C 7. Portions of U.S. Reservation 470 Conveyances from the District to the Secretary of the Interior (Section 202(b)) 1. Lovers Lane, NW (abuts U.S. Reservation 324) 2. Needwood, Niagara, and Pitt Sts., NW (within C&O Canal National Historic Park) Conveyances from the Secretary of the Interior to the District (Section 202(c)(1-6), 203, and 301)) 1. U.S. Reservation 17A 2. U.S. Reservation 484 3. U.S. Reservations 243, 244, 245, 247, and 248 4. U.S. Reservations 128, 129, 130, 298, and 299 5. Portions of U.S. Reservations 343D and 343E 6. U.S. Reservations 721, 722, and 723 7. U.S. Reservation 174 (former Convention Center Site) 8. Poplar Point (The District must find new sites for NPS facilities or those facilities stay) Property Name: Poplar Point Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service (NPS) Property Acreage: Approximately 110 acres Property Location: East side of the Anacostia River across from the Washington Naval Yard and the site of the new baseball stadium. The property is bounded on the north by the Anacostia River, on the northeast by and inclusive of the southeast approaches of the 11th Street bridges, on the southeast by and inclusive of I-295, and on the northwest by and inclusive of the Frederick Douglass Memorial Bridge approaches to Suitland Parkway. Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 301 Property Status: Conveyance awaits completion Property Description: NPS currently manages this property as part of Anacostia Park. In addition to 60 acres of managed meadow and several sports fields, the site also includes the U.S .Park Police Aviation Section Facility, the U.S. Park Police Anacostia Operations Facility, and the National Capital Parks-East Headquarters. Poplar Point also contains an area formerly occupied from 1927 to1993 by two nurseries, the D.C. Lanham Tree Nursery and the Architect of the Capitol Nursery, which left behind pesticides and other pollutants. Lastly, infrastructure for the 11th Street and Frederick Douglass bridges covers portions of the site on the perimeter of Poplar Point. The District has a long-range plan to move the Frederick Douglass Bridge, freeing-up additional land on Poplar Point, by about 2015. Conveyance of title to the District will permit redevelopment of the property by the District consistent with the November 2003 Anacostia Waterfront Framework Plan. The conveyance is subject to a number of terms, including those related to a deed restriction that 70 acres be used for park purposes, the completion of a land-use plan, the setting aside of sites for potential memorials, and the relocation of existing NPS and USPP facilities. Estimated Conveyance Completion: Fall 2009 (excluding NPS and USPP facilities) Proposed Use: Parks, Recreation, and Open Space; Local Public Facilities; High Density Residential and Commercial Estimated Development Completion: Yet to be determined, but likely up to a decade Property Name: U.S. Reservation 13 (Hill East Waterfront) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: General Services Administration (GSA) Property Acreage: Approximately 67 acres Property Location: Along western shore of Anacostia River, south of RFK stadium. This property is bounded by Independence Avenue, SE, to the north; 19th Street, SE, to the west; G Street, SE, to the south; and U.S. Reservation 343 to the east. Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 101(a)(1)(A) Property Status: Conveyance awaits completion Property Description: Reservation 13 has been occupied by District of Columbia institutional uses since the 1850s and currently includes the D.C. Jail, the Court Services and Offender Supervision Agency (CSOSA), the remains of D.C. General Hospital, and several active health-care agency functions. GSA transferred administrative jurisdiction to the District in 2002 with a number of conditions, including reserving the right-of-way to continue Massachusetts Avenue to the waterfront; maintaining the presence of CSOSA; and stipulating that if the District wanted to lease a portion of land for 15 years or longer, the city must verify the lease with GSA. Conveyance of title will give the District flexibility that it does not presently have, in land use and multi-use development, as well as private development. Over the last few months, the District has begun construction on an interim plaza adjacent to the southern Stadium/Armory Metrorail Station and planning for the extension of Massachusetts Avenue. The District has also remediated and selected a contractor to demolish Building 25; however, the other buildings will be remediated and demolished by the Master Developer. The District expects to issue a request for expressions of interest for a Master Developer in May 2008 and select one by the end of 2008. While initial construction on Reservation 13 may begin by the end of 2008, construction may not be completed until 2018. The conveyance is included in the exchange agreement signed by the District and GSA on January 17, 2008, and awaits resolution of the AOC conveyance for the deal to be complete. Estimated Conveyance Completion: Uncertain Proposed Use: Medium Density Commercial; Local Public Facilities; Road Extension Estimated Development Completion: Approximately 2018 Property Name: Old Naval Hospital (Lot 802, Square 948) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: General Services Administration Property Acreage: 0.705 acres Property Location: 921 Pennsylvania Avenue, SE Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 101(a)(1)(B) Property Description: Built in 1864, this site, known as Old Naval Hospital served as a Navy hospital until 1911, then a boarding house for veterans pursuing pension claims. GSA transferred administrative jurisdiction of the property, together with the 15,187 square foot antebellum brick house and 2,200 square foot carriage house to the District in 1962. The District neglected the building to the point of decay. Conveyance of title will allow the District to obtain capital investment to renovate the property for adaptive reuse. In August 2007, the District selected the Old Naval Hospital Foundation’s plan for the Hill Center, a community center that will offer a variety of lifelong learning opportunities, as well as providing meeting and performance space for community groups and office space for neighborhood nonprofits. The D.C. Office of Property Management is currently negotiating a long-term ground lease with the Hill Center/Old Naval Hospital Foundation, and the center is scheduled to open in early 2010. Community groups have expressed support for the project. The conveyance is included in the exchange agreement signed by the District and GSA on January 17, 2008, and awaits resolution of the AOC conveyance for the deal to be complete. Estimated Conveyance Completion: Uncertain date in 2008 Proposed Use: Community Center Estimated Development Completion: 2010 - Hill Center opens Property Name: St. Elizabeths West Campus: Buildings Numbers 16, 37, 38, 118, and 118A Type of Exchange: Conveyance of title Entity Receiving Property: General Services Administration Entity Conveying Property: District of Columbia Government Property Acreage: 6.55 acres Property Location: Buildings are scattered throughout the site. St. Elizabeths is bounded by Martin Luther King Avenue on the east, South Capitol Street and I- 295 on the west, the Barry Farm residential community on the north, and National Park Service Shepherd Parkway land and the Congress Heights residential community on the south. Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 101(c) Property Status: Conveyance pending Property Description: Building numbers 16, 37, 38, 118, and 118A, located on the 176-acre, 61 building, St. Elizabeths West Campus in Anacostia are to be conveyed from the District to the Administrator of GSA. Ownership of the five buildings will give GSA the ability to comprehensively reuse and develop the site for the planned Department of Homeland Security (DHS) headquarters consolidation. The District vacated the buildings in 2004. Building 16, the Pumping Station, will be needed until the water service is upgraded, after which it will likely be demolished to fit the needs of the site master plan. Building 37, Hitchcock Hall, will be renovated and used as a DHS conference center. Building 38, Hagen Hall, will also be renovated for campus-wide use, likely related to the conference and training center at neighboring Building 37. Buildings 118 and 118a, known as the Warehouse, are to be demolished as part of the site for a new Coast Guard Headquarters building. The conveyance of title is included in the exchange agreement signed by the District and GSA on January 17, 2008, and awaits resolution of the Architect of the Capitol conveyance for the deal to be complete. Estimated Conveyance Completion: Uncertain Proposed Use: Part of proposed Department of Homeland Security Headquarters Estimated Development Completion: 2015 Property Name: U.S. Reservation 17A (Trash Transfer Station) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 1.273 acres Property Location: This property is bounded by New Jersey Avenue, Canal Street and 2nd Street SE Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(1) Property Status: Conveyance awaits completion Property Description: The site was transferred to the District for trash disposal purposes in 1947. Conveyance of title will permit the District to implement redevelopment plans for a high density commercial and residential use, as well as reinstitute the street grid of I Street. This development would complement the neighboring redevelopment of the former Capper/Carrollsburg public housing project. The District plans to complete all underground storm drainage and utilities work within 12 months after conveyance and commence construction of residential and office space within 24 months after conveyance. Estimated Conveyance Completion: End of summer 2008 Proposed Use: High Density Commercial; Road Realignment Estimated Development Completion: Yet to be determined Property Name: U.S. Reservation 484 (Randall Recreation Center) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 8.508 acres Property Location: 65 I Street, SW Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(2) Property Status: Conveyance awaits completion Property Description: This property at Randall Recreation Center and park was transferred to the District for recreation purposes in 1973. The District intends to use the land for park, recreation, and open space uses. The property adjoins the Randall School purchased by the Corcoran Gallery of Art for development of art studios, classrooms, and residential units. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: Yet to be determined Property Name: U.S. Reservations 243, 244, 245, 247, and 248 (Potomac Avenue Triangles) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 2.69 acres (243 - 0.47; 244 - 0.48; 245 – 0.55; 247 - 0.51; 248 – 0.68) Property Location: Along Potomac Avenue, SW and SE, between 2nd Street, SW, and 2nd Street, SE Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(3) Property Status: Conveyance awaits completion Property Description: These five triangles along Potomac Avenue were transferred to the District for highway purposes in 1944. Reservations 243 and 245 are currently open space. A salt dome currently occupies Reservation 244. A WASA storage facility occupies Reservation 248. Reservation 247 is under the new baseball stadium and, thus, has already been redeveloped. According to D.C. government plans, the rest of the triangles will be part of the commercial and residential redevelopment around the baseball stadium. Reservation 248 will include part of the Anacostia Riverwalk. Estimated Conveyance Completion: End of summer 2008 Proposed Use: High and Medium Density Commercial and Residential; Local Public Facilities (Baseball Stadium) Estimated Development Estimated Development Completion: In March 2008, Nationals’ Baseball Stadium, partly located on Reservation 247, opened. Development completion dates on the other reservations are yet to be determined. Property Name: U.S. Reservations 128, 129, 130, 298, and 299 (Virginia Avenue Triangles) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 0.96 acre (128 - 0.21; 129 - 0.35; 130 - 0.12; 298 - 0.10; 299 - 0.18) Property Location: Along M Street and Water Street, SE, where Virginia Avenue would extend Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(4) Property Status: Conveyance awaits completion Property Description: Conveyance of title will allow the District to reconfigure these small triangles into useable open space in conjunction with the redevelopment of adjacent private property in accordance with the Anacostia Waterfront Framework Plan. Reservation 298 contains contamination from a neighboring property formerly occupied by a coal to liquid facility operated by Washington Gas. Because the District desires a future recreational use requiring a more stringent clean-up, the District and NPS recently agreed on the process of how to come to a cleanup agreement with Washington Gas to modify the previous environmental remediation efforts. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space (in conjunction with adjacent development) Estimated Development Completion: Yet to be determined Property Name: Portions of U.S. Reservations 343D and 343E (Boathouse Row) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: Approximately 19 acres (343D – 13 acres; 343E - 6.34 acres) Property Location: This property is bordered by the Anacostia River on the east; Water Street, SE, and M Street, SE, to the west; 11th Street, SE, and 11th Street Bridges to the south; and the Anacostia River and CSX Railroad Bridge to the north. Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(5) Property Status: Conveyance awaits completion Property Description: A narrow stretch of Anacostia Park along the western shore of the Anacostia River, these properties are currently occupied by District Public Works facilities; U.S. Army Corps of Engineers (Corps) facilities; District Water and Sewer facilities; Anacostia Community Boathouse Association, Inc.; Washington Yacht Club; District Yacht Club; Eastern Power Boat Club; Seafarers Boat Club; and the Anacostia Marina. The District plans to enhance the park qualities of the properties to become a “Boathouse Row,” which would accommodate various waterfront recreation activities, including boating, and a portion of the Anacostia Riverwalk trail. Conveyance of title to the District will provide the opportunity for the District to redevelop and enhance the marina, which cannot be achieved under NPS authorities. Portions of both parcels contain environmental contamination, 343D from a neighboring property formerly occupied by a coal-to-liquid facility operated by Washington Gas and Reservation 343E as a result of the prior operations of the Anacostia Marina. Because the District wants a future recreational use requiring a more stringent cleanup, recent District and NPS agreements for Reservations 298 and 343D outline how the Washington Gas remediation plan for Reservations 343D and 298 will be modified to meet the requirements of applicable law and take into account the District’s proposed changes in land use. The inclusion in the conveyance of a small notch within Reservation 343D, occupied by the Corps facilities is the subject of disagreement between the District, NPS, and the Corps. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: 2011 Property Name: U.S. Reservations 721, 722, and 723 (Waterside Mall) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 3.248 acres (721 - 1.132; 722 - 1.490; 723 - 0.626) Property Location: This property is bordered by I Street, SW, to the north; 3rd Street, SW, to the east: K Street, SW, to the south; and 6th Street, SW, to the west. Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 202(c)(6) Property Status: Conveyance awaits completion Property Description: Three reservations at Waterside Mall were created as urban parks as part of the southwest urban renewal in the 1970s. Conveyance of title will provide the District with an opportunity to reconfigure the property in association with the private redevelopment of Waterside Mall. Reservations 721 and 723 will be used as parks, while Reservation 722 will include the extension of 4th Street, SW. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space; Road Realignment Estimated Development Completion: Yet to be determined Property Name: U.S. Reservation 174 (Old Convention Center; Lot 849, Square 374) Type of Exchange: Conveyance of title Entity Receiving Property: District of Columbia Government Entity Conveying Property: National Park Service Property Acreage: 0.31 acre Property Location: Northwest corner of the Old Convention Center site. This property is bordered by New York Avenue, NW, to the north; 10th St., NW, (to be built) to the east; I Street, NW, (to be built) to the south; and 11th St., NW, to the west. Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 203 Property Status: Conveyance awaits completion Property Description: A 13,500 square foot reservation at New York Avenue and 11th Street, NW, NPS transferred Reservation 174 to the District in the 1970s as part of the site for the Old Convention Center, with the condition that it was to remain as open space adjacent to the structure. The law conditions conveyance of title to the District upon completion of a final plan for the Old Convention Center site through a public planning process, the consideration of an alternative that maintains Reservation 174 as open space, and the final plans inclusion of 1.25 acres of open space. In compliance with these conditions, the District proposed a triangular- shaped park on Reservation 174. This new park will be created in conjunction with the reopening of 10th and I Streets which border the property. In May 2007, the National Capital Planning Commission commented favorably on the concept design for the new park. The District expects conveyance of this property to occur shortly and separately, as permitted under the law, from the other conveyances between the District and DOI. Estimated Conveyance Completion: June 2008 Proposed Use: Parks, Recreation, and Open Space (part of High Density Development) Estimated Development Completion: Yet to be determined Property Name: Lovers Lane, NW Type of Exchange: Conveyance of title Entity Receiving Property: National Park Service Entity Conveying Property: District of Columbia Government Property Acreage: 0.52 acre Property Location: North of R Street, NW; between Dumbarton Oaks and Reservation 324 (Montrose Park) Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 202(b)(1) Property Status: Conveyance awaits completion Property Description: This property is a one-block-long former roadway located adjacent to Montrose Park and Dumbarton Oaks, owned by Harvard University. The conveyance will facilitate elimination of the unused roadbed and would provide NPS and Dumbarton Oaks with sufficient interests to perform maintenance along walls and other park facilities adjacent to the roadway. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Needwood, Niagara, and Pitt Streets, NW (C&O Canal National Historic Park) Type of Exchange: Conveyance of title Entity Receiving Property: National Park Service Entity Conveying Property: District of Columbia Government Property Acreage: 1.350 acres (Needwood - 0.670; Niagara - 0.449; Pitt – 0.231) Property Location: North side of the C&O Canal in Georgetown; Needwood is at 29th Street, NW; Niagara is between 31st and Wisconsin Avenue, NW; and Pitt is at 33rd Street, NW Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 202(b)(2) Property Status: Conveyance awaits completion Property Description: These properties include three former street rights-of-way and have been occupied by the C&O Canal since the 19th century. The conveyance will provide NPS with sufficient interests to manage these heretofore District-owned portions of the C&O Canal National Historical Park in Georgetown. Estimated Conveyance Completion: End of summer 2008 Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: A portion of U.S. Reservation 451 Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 0.475 acre Property Location: Along the north edge of Gallatin Street, NE, west of South Dakota Avenue Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(1) Property Status: Transfer completed December 15, 2006 Property Description: This parkland was encumbered with a one-block section of Gallatin Street, NW, which provides access to an existing District public works facility. Proposed Use: Road/Access to local public facilities Estimated Development Completion: No development planned Property Name: A portion of U.S. Reservation 404 (Canal Road, NW) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: Survey pending Property Location: Canal Road, NW, from Foxhall Road to the Chain Bridge (North Glebe Road) Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(2) Property Status: Transfer completed December 15, 2006 Property Description: This property is beneath Canal Road, NW, and was the subject of a right-of-way permit to the District. This transfer provides the District with the requisite interest to adequately operate and maintain the existing roadway. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: U.S. Reservations 44, 45, 46, 47, 48, and 49 (Eastern Market) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 1.114 acres (44: 0.243; 45: 0.186; 46: 0.032; 47: 0.020; 48: 0.261; 49: 0.372) Property Location: Along Pennsylvania Avenue between 7th and 9th Streets, SE Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(3) Property Status: Transfer completed December 15, 2006 Property Description: This transfer includes six reservations of parkland around the Eastern Market Metro stop. Community leaders, led by Barracks Row Main Street (BRMS) and backed by local businesses, want to redesign the parks into a town center square for Capitol Hill. According to a member of Barracks Row Main Street’s Board of Directors, the plans have the support of District officials and the financial backing of BRMS and the local businesses. These redesigned parks would link the revitalized areas of 8th Street, SE; “Barracks Row”; and 7th Street, SE, “Market Row,” and would serve as a gateway to the community with unique neighborhood markers and kiosks around the Metro. A complementary gateway park will also be created at the southern end of 8th Street, SE, on Reservation 251. The transfer of administrative jurisdiction was needed to allow the kiosks, since commercial transactions are not allowed on NPS land, as well as to facilitate the redesign of the parks. BRMS has commissioned a design study, which should be completed by August or September 2008, and will provide design alternatives for community input. BRMS anticipates that construction could begin by the end of 2008. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: 2009 - 2010 Property Name: U.S. Reservation 251 Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 0.151 acre Property Location: M Street, SE, between 8th and 9th Streets, SE Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 201(b)(4) Property Status: Transfer completed December 15, 2006 Property Description: This property is a triangle at the southern end of the Barracks Row commercial strip. Community leaders and local businesses want to redevelop it as an urban park to serve as a gateway to the commercial strip known as Barracks Row and to complement similar development at the northern end around the Eastern Market Metro. The park will likely feature a sculpture. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: 2009 - 2010 Property Name: U.S. Reservation 8 (Mount Vernon Square) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 2.748 acres Property Location: Mount Vernon Square; between 7th and 9th Streets, NW Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(5) Property Status: Transfer completed December 15, 2006 Property Description: This park property at Mount Vernon Square surrounds the City Museum (Carnegie Library), which is owned by the District. The transfer provides uniform administration and more efficient management of the entire square by the District. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: U.S. Reservations 277A and 277C Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 0.131 acre Property Location: Reservation 277A at North Capitol Street and Florida Avenue, NW; and Reservation 277C at North Capitol Street and Lincoln Road, NE Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(6) Property Status: Transfer completed December 15, 2006 Property Description: These two properties are located along North Capitol Street. Through a misunderstanding, the District issued permits to local community groups authorizing the landscaping of these properties. The transfer provides continuity of management for the District. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Portions of U.S. Reservation 470 (Fort Reno Park) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: District of Columbia Government Entity Transferring Property: National Park Service Property Acreage: 1.556 acres Property Location: In Fort Reno Park along Donaldson Place, NW Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(b)(7) Property Status: Transfer completed December 15, 2006 Property Description: This property contains a salt dome and leaf collection and storage operation that the District has operated under permits from NPS for many years. The transfer provides the District with the proper interest in the property to administer and maintain new facilities at this location. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Audubon Terrace, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 0.381 acre Property Location: East of Linnean Avenue, NW, within Reservation 402 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(A) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved wooded property was encumbered by an unbuilt street right-of-way surrounded by NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Barnaby Street, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 0.436 acre Property Location: North of Aberfoyle Place, NW; abuts Reservation 545 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(B) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved wooded property was encumbered by an unbuilt street right-of-way surrounded by NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Canal Street, SW, and V Street, SW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 3.732 acres Property Location: Portions of Canal Street, SW and V Street, SW, each of which abuts Reservation 467 along the Anacostia River Anacostia Waterfront Framework Plan Area: Yes Section of Public Law 109-396: 201(a)(1)(C) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved property is comprised of portions of unbuilt street rights-of-way that abut NPS parkland. The transfer facilitates implementation of an approved plan to enhance an existing NPS concession-operated marina. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: Yet to be determined Property Name: Streets and Alleys at Fort Circle Park Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 4.35 acres Property Location: Within Fort Circle Park/Reservation 497 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(D) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved wooded property was encumbered by several contiguous unbuilt street rights-of-way within NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Western Avenue, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 1.081 acres Property Location: Western Avenue, NW, north of Oregon Avenue, NW, abuts Reservation 339 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(E) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved property was encumbered by an unbuilt street right-of-way surrounded by NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: 17th Street, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 0.268 acre Property Location: 17th Street, NW, south of Shepherd Street, NW, abuts Reservation 339 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(F) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved wooded property was encumbered by an unbuilt street right-of-way abutting NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: 30th Street, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 0.343 acre Property Location: 30th Street, NW, north of Broad Branch Road, NW, within Reservation 515 Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(G) Property Status: Transfer completed December 15, 2006 Property Description: This unimproved wooded property was encumbered by an unbuilt street right-of-way surrounded by NPS parkland. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Land over I-395 (Including additional land along/above I-395) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 1.69 acres Property Location: This property is bounded by Washington Avenue, SW, 2nd Street, SW; and the C Street, SW, ramps to I-295. Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(H) Property Status: Transfer completed December 15, 2006 Property Description: This property includes landscaped traffic islands and ramps above I-395 in the vicinity of the Rayburn House Office Building. The transfer provides for the establishment of the Memorial to American Veterans Disabled for Life, which will be managed by NPS. The District retains jurisdiction of the subsurface area beneath the memorial for the tunnel, walls, footings and related facilities. An additional 0.249 acre of an adjoining parcel was transferred to NPS and, subject to AOC approval, will be landscaped or used for special-needs parking associated with the proposed memorial. The Disabled Veterans Life Memorial Foundation, which is responsible for developing and fund-raising and constructing the memorial, hopes to seek preliminary design approval from the U.S. Commission of Fine Arts and the National Capital Planning Commission this summer, with final approval following in early 2009. Some street realignments and utilities relocation will be involved. The street realignment will take about 12 months and the Memorial construction will take 18 months. Currently, the memorial foundation anticipates a possible dedication on Memorial Day 2011. Proposed Use: Memorial for Disabled Veterans; Parking for Memorial Estimated Development Completion: May 2011 Property Name: Whitehaven Parkway, NW Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 1.80 acres Property Location: Portion of Reservation 357 at Whitehaven Parkway, NW, and Foxhall Road, NW Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(1)(I) Property Status: Transfer completed December 15, 2006 Property Description: This property was previously transferred to the District for a proposed mayoral residence at this location, which was never built. The transfer provides continuity of management by NPS. The property will remain parkland. Proposed Use: Parks, Recreation, and Open Space Estimated Development Completion: No development planned Property Name: Remaining land over I-395 (AOC) Type of Exchange: Transfer of administrative jurisdiction Entity Receiving Property: Architect of the Capitol, National Park Service Entity Transferring Property: District of Columbia Government Property Acreage: 0.504 acre Property Location: This property is bounded by 2nd Street, SW; C Street, SW, ramp to I-295; the D Street, SW ramp to I-395; and I-295. Anacostia Waterfront Framework Plan Area: No Section of Public Law 109-396: 201(a)(3)(A) Property Status: Transfer completed December 15, 2006 Property Description: These additional lands above and along I-395 are next to the site for the American Veterans Disabled for Life Memorial. The northernmost 0.249 acre was transferred to NPS and is subject to AOC approval as to whether the property is landscaped or used for special- needs parking associated with the memorial. The remaining portion was transferred to the AOC. (See “Lands over I-395 (for Memorial to Disabled Veterans)” to NPS). The District retains jurisdiction of the subsurface area beneath the memorial for the tunnel, walls, footings, and related facilities. In addition to the individual listed above, David Sausville, Assistant Director; Colin Fallon; Ryan Gottschall; Kathleen Gilhooly; Kieran McCarthy; and Joshua Ormond made significant contributions to this report.

Summary: The Federal and District of Columbia Government Real Property Act of 2006 (Public Law 109-396) mandated GAO's review of the property exchange between the District and the federal government. None of the conveyances had occurred by the beginning of GAO's audit phase. After consulting with the congressional committees specified in the law, GAO developed research questions that reflect an assessment of property exchanges and development progress to date. GAO's objectives were to determine (1) the status of the conveyances and transfers of the properties identified in the law; (2) what steps the District and the federal government have taken toward completing the conveyances, what factors have affected their completion, and what additional steps remain; (3)what preliminary development has occurred on the properties exchanged between the District and the federal government, and what are the current plans for use of these properties; and (4)what development challenges the District and federal government face going forward. GAO analyzed planning and property documents; conducted site visits; and interviewed senior officials from the District and the Department of the Interior (DOI) among others. DOI and the General Services Administration agreed with our findings, while the District and the Architect of the Capitol (AOC) did not comment on our overall findings. All provided technical clarifications which we incorporated as appropriate. No property conveyances between the District and the federal government have occurred as of June 6, 2008. All transfers of administrative jurisdiction, which do not involve the transfer of title, became effective the day (Dec. 15, 2006) that the President signed the Federal and District of Columbia Government Real Property Act of 2006. Nine conveyances between the Secretary of the Interior and the District, excluding Poplar Point, are planned to be completed by the end of summer 2008. The District intends to complete the conveyance of Poplar Point by the fall of 2009, if it is able to meet several conditions in the law, including developing a Secretary of the Interior approved land-use plan. The date for the completion of the conveyances of title between the General Services Administration and the District is uncertain and depends on an agreement between the District and the AOC on the District conveying not more than 12 acres of District property to the AOC. Although the District and the federal government have taken several steps to complete the conveyances, several factors have affected their efforts, and additional steps must be taken to complete the conveyances. The District and the National Park Service formed working groups as a first step toward completing the conveyances. However, negotiations about cleanup; testing properties for contamination; disagreement over land to be conveyed as part of the Boathouse Row properties, two properties along the western shores of the Anacostia River; and decision changes about environmental impact statement development for Poplar Point have slowed the completion of the conveyances between the District and Secretary of the Interior. Limited development has occurred on property already transferred or to be conveyed between the District and the federal government. Development will take many years to complete because the District must first develop plans for most of these sites. For example, commercial and residential development of Poplar Point is not likely to begin until 2011 because of the steps, such as the development of a land-use plan, which must be completed before the conveyance can occur. Development may take over a decade to complete at Poplar Point. The District and the federal government face several challenges as they move forward to develop or manage the exchanged properties. For example, some cleanup and development uncertainties, such as the extent and location of the cleanup required, will likely affect the timeliness of property development at Poplar Point. Other challenges facing the District include (1) transitioning the Deputy Mayor's Office from policymaking and oversight roles to the lead in coordinating development, a function that has not been the Deputy Mayor's Office core business, and (2) reaching community agreement about development at Poplar Point.