Implementation of legislation that U.S. Rep. Jeff Denham (R-CA) wrote to liquidate unused federal properties, saving taxpayers billions of dollars, was the subject of a committee hearing on Tuesday.
U.S. Rep. Lou Barletta (R-PA), the chairman of the House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management, said he convened the hearing to ensure that Denham’s Federal Assets Sale and Transfer Act (FASTA) succeeds.
The measure, which was signed into law in December, calls for the establishment of the Public Buildings Reform Board. The independent, presidentially-appointed panel will identify unused or underused federal properties over the next six years and recommend selling or redeveloping underused sites. The bill is projected to save taxpayers up to $8 billion.
“We have before us an opportunity to consolidate federal assets and sell high-value underutilized or vacant properties to reduce the size of the federal footprint,” Denham said. “I am proud of the progress we have made through FASTA and look forward to continued success for American taxpayers.”
In addition to saving taxpayer dollars, Barletta said during Tuesday’s hearing, selling underused federal properties could spur economic development and create jobs in local communities.
“A recent example is the Volpe Transportation Systems Center in Cambridge, Massachusetts,” Barletta said. “The DOT facility sits on a small portion of a 14-acre site, walking distance from downtown Boston and next to MIT. That property is now going to be redeveloped in a deal benefitting the federal taxpayer by $750 million. The DOT will get a new building, MIT will redevelop the property, and the local community is looking forward to the economic growth it generates.”
But in order to redevelop or sell properties like the Volpe Transportation Systems Center, Barletta said, the Public Buildings Reform Board has to have necessary resources to identify opportunities and make recommendations.
“To that end, FASTA authorizes the board to use General Services Administration contracts to hire real estate experts, and FASTA authorizes GSA to detail staff and provide other support to the board,” Barletta said. “For FASTA to be successful, these and other resources are critical in helping the board carry out its duties and develop recommendations to sell and redevelop properties.”
The federal government currently owns more than 267,000 buildings that total 2.8 billion square feet of space, according to the General Services Administration.