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B-205685 1 (1981-12-22)

handle is hein.gao/gaobadjyo0001 and id is 1 raw text is: DECIBION THrEl COMPTPO0LLI SRGIENIERAL OF THE UNITED STATIES WASHINGTON, 0,a, 02040 FILE: B-205685 DATE: December '12, 1981 MATTER OF; Secretary of the Army-Leasing authority DIGEST; Army may not accept offer from City of Bell, California -o construct a new National Guard Armory on Army-controlled parcel of land in lieu of paying monetary compensatbtn for its lease of a different parcel of land, The only exception to requirements in 40 U,S,C, S 303b that the United States must lease itQ property for money consideration only is found in 10 UtS,C. S 2667, which permits defense agencies to lease military property in exchange for riain- tenance, protection, repair, or restoration of the property leased, by the lessees, The City of Bell offer does not fit within the exception because the Armory would not be located on land leased to the City. The Director of Real Estate, Office of the Chief of Engineers, Department of the Army, requested our opinion on whether the Army way a6cept a new Wational Guerd armory rather than money, as compensation for leasing Army-controlled land to the City of Bell, California, The Army may not accept the armory for the reasons stated below. The Cit' owns two acres of land abutting Army-controlled land. Both parcels were formerly part of the Cheli Air irce Base. The Army land Is licensed to the California National Guard. The Guard uses the property for vehicle maintenance and storage, The Government buildings the Guard uses are wood-frame warehouses constructed during brld War II and which are not really suitable for maintenance and storage purposes. The City wants to turn its property into taxable real estate by allowing a private developer to build a hotel and restaurant on it. However, the developer is interested in building the restaurant and hotel only if he can also build recreational facilities on the eastern portion of the adjacent Army land. tie City would therefore like to lease the eastern portion from the Army in order to accomrodate the developer. Under the City's prcposal, the National Guard would relin- quish its license on the eastern portion but retain its licenne on the western portion of the Army land. The City offers to raze the out.dated buildings on the western portion and replace them with a new $1.5 million armory and maintenance shop as consideration for the lease. t f N

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