The land, title to which is intended to be transferred by the provisions of this bill, totals about 44,000 square feet, but it is contiguous to, and a natural part of, land comprising some 145,000 square feet which is owned by the District. Development of this whole parcel has been delayed for several years because of the inability of the Agency to obtain clear title to the 44,000 square feet which is a part of it, thus depriving the District of Columbia of added tax revenues and resulting in increased project costs. For these reasons, therefore, the District strongly recommends the enactment of H.R. 4284 as a very necessary and desirable measure to help complete the development of Southwest Urban Renewal Project Area C and to supplement the revenues of the District. As a technical matter, we wish to call to your attention the erroneous reference in section 1 of the bill to the "District of Columbia Council". In consonance with the provisions of the District of Columbia Self-Government and Governmental Reorganization Act (87 Stat. 777), the name of the District of Columbia Council has been changed to "the Council of the District of Columbia". The Office of Management and Budget has advised that, from the standpoint of the Administration's program, there is no objection to the submission of this report to the Congress. Sincerely yours, WALTER E. WASHINGTON, Mayor. Hon. ROMANO L. MAZZOLI, COUNCIL OF THE DISTRICT OF COLUMBIA, Chairman, Subcommittee on Fiscal Affairs, Committee on the District of Columbia, U.S. House of Representatives, Longworth House Office Building, Washington, D.C. DEAR CONGRESSMAN MAZZOLI: The Council of the District of Columbia fully supports H.R. 4284, a bill to transfer certain real property of the United States to the District of Columbia Redevelopment Land Agency to be used for a future private development proposal in the southwest area of our city. The city's Redevelopment Land Agency has already acquired all interest in the property except bare legal title, which is necessary for marketing the land for redevelopment. Although this one triangular parcel of land has physical features which would make it difficult to market alone, it is the city's intent to dispose of it to a future private developer who would acquire an adjacent parcel which has higher marketability. From this disposal, the city would receive from the private developer, the full fair market value of the land. Favorable consideration by the subcommittee on H.R. 4284 would further enhance the much needed commercial development in the southwest employment center of our city. Sincerely, Hon. ROMANO L. MAZZOLI, STERLING TUCKER, Chairman. COUNCIL OF THE DISTRICT OF COLUMBIA, Chairman, Subcommittee on Fiscal Affairs, U.S. House of Representatives, Committee on the District of Columbia, Longworth House Office Building, Washington, D.C. DEAR MR. MAZZOLI: The Corporation Counsel and the Acting Director of the Department of Housing and Community Development have received inquiries from your subcommittee on H.R. 4284. This is a bill to transfer certain real property of the United States to the District of Columbia Redevelopment Land Agency. These are the appropriate entities within the executive office of the District of Columbia Government to address themselves to this matter. They have submitted positive responses after appropriate investigation of this matter. As advised by Mr. Michael Nevens of your staff. I hereby notify your subcommittee that I. as Chairperson of the Housing and Urban Development Committee, have been in consultation with the Executive Branch and concur with their decision. Sincerely, NADINE P. WINTER, Councilmember. Mr. MAZZOLI. Our witness this morning is Mr. Ralph Werner, special assistant corporation counsel. Mr. Werner, we welcome you today, and we appreciate your testimony on the question raised by H.R. 4284. STATEMENT OF RALPH WERNER SPECIAL ASSISTANT CORPORA- Mr. WERNER. Thank you, Mr. Chairman. I have voluminous testimony on behalf of Mr. Melvin A. Mister. Acting Deputy Director of the Department of Housing and Community Development. He cannot be here today, because he is at another meeting, and he asked me to testify on his behalf. Mr. MAZZOLI. His statement, too, will be made a part of the record. Mr. WERNER. Thank you very much. I will read his statement if you wish. It is rather brief. The purpose of this legislation is to authorize the mayor of the District of Columbia to transfer title to certain real property in southwest Washington from the United States to the District of Columbia Redevelopment Land Agency. PROPERTY IN QUESTION The property in question formerly comprised parts of public streets. Pursuant to acts of Congress approved on February 12, 1901 (31 Stat. 767), and on February 28, 1903 (32 Stat. 909), referred to as the Union Station Acts, certain public streets in southwest Washington were closed and abandoned, and perpetual use of these areas was granted to the Philadelphia, Baltimore, and Washington Railroad Co., the Baltimore and Ohio Railroad Co., and the Terminal Co. Title to these lands. however, remained in the United States. This grant was made to these railroads by the Congress in consideration for the exchange and transfer to the United States of certain land in the District then owned by the Railroads. For many years, these lands were used by the railroads for such purposes as switch tracks, freight warehouses, loading platforms, open air storage, truckloading areas, produce stalls, et cetera. During this time, also, the railroads paid taxes on this land to the District of Columbia. The Urban Renewal Plan for Southwest Project Area C, initially approved by the District of Columbia Board of Commissioners on November 30, 1956, and since reapproved by the Council, requires that the District of Columbia Redevelopment Land Agency acquire certain of these parcels and sell or lease them to private enterprise for the development of commercial facilities in accordance with the plan. Accordingly, during the period from 1958 through 1962, the Re development Land Agency purchased the rights and interests of the railroad companies in seven parcels, title to which was authorized to be transferred to the Agency by H.J. Res. 397 in 1965. Subsequently. the Agency found it necessary to acquire the property by negotiation in 1970 for $451,300. However, no further acquisitions of this kind are expected to be necessary in order to complete the project. VALUATION In view of the value of the land which the railroads had transferred to the United States in consideration for the right to use the parcels in question, and of the taxes the railroads had paid on these parcels over the years, it was the opinion of the Government's appraisers that the value of the railroads rights and interests in these parcels was equivalent to the value of the land had the fee simple title been in the railroads. The authority which would be granted by the enactment of H.R. 4284 is needed, therefore, to perfect the Agency's title to the land, thus facilitating its disposition for private redevelopment in accordance with the Urban Renewal Plan for Southwest Project C. When the Agency disposes of the land for private redevelopment, it will receive from the redeveloper the full fair market value of the land, thus compensating the Government for the cost of acquiring the railroads' rights and interests. That is the end of my prepared statement, Mr. Chairman. I am prepared to answer any questions you may have. Mr. MAZZOLI. Thank you very much, Mr. Werner. Is it a fair statement that this would be really a pro forma action? Mr. WERNER. It is just that. Mr. MAZZOLI. Is there any opposition that you are aware of, either on the part of private enterprise or any governmental agency, to the proposed transfer? Mr. WERNER. None whatsoever. NECESSITY FOR LEGISLATION Mr. MAZZOLI. Would you once again explain for the record the rulings of the Department of Justice, and I guess, GSA, which require that this transfer must be made by the Congress. Mr. WERNER. I would be glad to. When H.J. Res. 397 was being considered, it was on the strength of opinions that the Agency had received from the Department of Justice and GSA. The Department of Justice had written to the Agency on October 22, 1963, stating that there did not appear to be power in the District of Columbia to convey certain lands which were then public streets to the Agency, pursuant to the Urban Renewal Plan. It is suggested perhaps that the General Services Administration could have conveyed that property, under the Federal Surplus Property Act, and failing that, then it would appear that an act of Congress would be required. The Agency then communicated with the General Services Administration and received a letter on April 3, 1964, from its general counsel, who stated that it appeared to him that there was no authority in the General Services Administration to convey property under the Federal Surplus Act, because they never had control of the property. It appears that Congress had not given up its right to deal with the title to that land. So GSA then concurred with Justice that it appeared that an act of Congress was necessary. Those two letters, I think, were sent to you earlier. 59-988-75-2 Mr. MAZZOLI. Without objection, those two letters and other material which were sent to the committee will be made a part of the record. [The material referred to follows:] DISTRICT OF COLUMBIA GOVERNMENT, Washington, D.C. Hon. ROMANO L. MAZZOLI, Chairman, Subcommittee on Fiscal Affairs, U.S. House of Representatives, Com mittee on the District of Columbia, Longworth House Office Building, Washington, D.C. DEAR CONGRESSMAN MAZZOLI: I am responding to your letter, dated July 10, 1975, addressed to Mr. Saul Finn, Southwest Area Director, Department of Housing and Community Development (formerly, D.C. Redevelopment Land Agency) concerning H.R. 4284. The following are the responses to the questions you asked. 1. Can you establish clearly that the Federal Government does have bare legat title to the land and that all other title is now held by the RLA? Please submit documentation to support this. In 1965, the Agency acquired title to several similarly situated pieces of property in Southwest, pursuant to H.J. Res. 397 (89th Congress). At that time it was not clear that it would be necessary to acquire the property which is the subject of H.R. 4284, and consequently, it was not included. However, the legislative history of H.J. Res. 397 fully explains the need and the justification for the legislation, and is applicable as well to the property which is the subject of the present bill. Submitted herewith is the following documentation which establishes that RLA has acquired all interest in the property except bare legal title, which is held by the United States: Enclosure 1. A deed of bargain and sale from the Philadelphia, Baltimore and Washington Railroad Company, conveying all its right, title and interest in the subject property to RLA. Enclosure 2A and 2B. House report No. 647, 89th Congress, and H.J. Res. 397, which explain the need for legislation authorizing the transfer of title to similarly situated land, which explanations are equally applicable to subject property. Enclosure 3A and 3B. Letters from the Department of Justice and the General Services Administration, respectively, referred to in the report, which establish the absence of administrative authority to make the transfer without the legislation. 2. Are there any community or business objections to the transfer? The Agency is not aware of any community or business objections to the transfer, and does not anticipate any, since the transfer has no adverse effect on any community or business interests. 3. Will the transfer of the property affect Metro activity in any way? Metro is constructing a subway line beneath the surface of the property, with a fan shaft rising to the surface on the property. This construction is in accord with the approved urban renewal plan for the area, and will not be affected by the transfer. However, the transfer will eliminate questions which might otherwise arise about the Agency's authority to grant Metro deeds of easement for its facilities, as it has requested, by reuniting the fee with all the other incidents of ownership now held by the Agency. 4. Will the tax status of the property change as a result of the transfer? The property is fully taxed by the District of Columbia, and the transfer of title will not affect the status of the property for tax purposes. 5. What plans does the RLA have for the property and the buildings on the property? There are no buildings on the property, other than a fan shaft being constructed by Metro with the Agency's consent. Because the triangular property is surrounded by a sheer drop to the public street on one side, the railroad on the second side, and a disposition parcel on the remaining side, its only appropriate use is by the developer of the adjacent parcel. The RLA will seek to dispose of the property to a future developer of the adjacent parcel. 6. Can the city council pass an act to make this transfer, or must they act in any way to complete the transaction? This legislation is outside the scope of the Council's authority, since it concerns property of the United States, which the Council, under Section 602(a) (3) of the Home Rule Act, is powerless to affect. Since the Council has already approved an urban renewal plan which authorizes RLA to dispose of the subject property (once title is acquired), no further Council action will be required to carry out the Plan. 7. Please submit a map of the area indicating the property in question, and the adjoining RLA held property, and any nearby federal property or buildings. Enclosure 4 is the requested map of the area. Enclosure 5 is a map showing the precise area affected by the bill. S. Please have the legal counsel for the RLA summarize the bill section by section and suggest any technical amendments required. Section 1 authorizes the Mayor to transfer to the RLA, on behalf of the United States and in accordance with the adopted and approved urban renewal plan for the area, all right, title and interest of the United States in the subject property. Section 2 authorizes the RLA to sell or lease the property, in accordance with the District of Columbia Redevelopment Act of 1945, to one or more developers. Section 3 makes it clear that the transfer is not to be considered a local grant. in-aid for the purposes of Title I of the Housing Act of 1949. Section 4 defines certain terms used in the bill. I have examined the bill, and it is my opinion that the bill is technically correct and legally sufficient. Please let me know if your committee requires any further information concerning this matter. Sincerely, RALPH WERNER, Special Assistant, Corporation Counsel. DEED TO THE PROPERTY This deed, made the 16th day of March in the year of our Lord One Thousand Nine Hundred and Seventy (1970), Between the Philadelphia, Baltimore and Washington Railroad Company, a Corporation of the States of Maryland and Delaware and the Commonwealth of Pennsylvania, and Penn Central Transportation Company, also a Corporation of the Commonwealth of Pennsylvania, its Lessee, both Corporations having their principal offices at Six Penn Center Plaza, Philadelphia, Pennsylvania, 19104, hereinafter referred to as the Grantor, and District of Columbia Redevelopment Land Agency, a Government Corporation created by an Act of Congress (P.L. 592, 79th Congress, 60 Stat. 790), hereinafter referred to as the Grantee; Witnesseth that the said Grantor, for and in consideration of the sum of $990,000.00 lawful money of the United States, to it paid by said Grantee, does hereby grant and convey unto the said Grantee, the heirs or successors and assigns of the said Grantee, the premises described in Schedule "A" attached hereto and made a part hereof. SCHEDULE A All that parcel of land situate in the City of Washington, S.W., District of Columbia, and being a tract of land known for the purposes of assessment and taxation as Lot 801 in Square 493, described as follows: Beginning for the same at a point in the west line of 4th Street, S.W., distant 180.0 feet south of the south line of C Street, S.W., and running thence due south, with said west line of 4th Street, S. W., 89.0 feet; thence due west 374.0 feet; thence northwesterly 201.17 feet to the east line of 6th Street, S. W.; thence with said east line of 6th Street, S. W., due north 201.50 feet to said south line of C Street. S.W.; thence with said south line of C Street, S.W., due east 35.92 feet; thence leaving said south line of C Street, S.W., due south 115.0 feet to an angle point; thence southeasterly 73.36 feet to an angle point; thence still southeasterly 73.36 feet to an angle point; thence due east 397.50 feet to the point of beginning. Containing 53,715.00 square feet, all as shown on a Plat of Survey recorded in the Office of the Surveyor for the District of Columbia in Survey Book 188, at Page 91. |