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B-145650 1 (1972-12-29)

handle is hein.gao/gaobaaeex0001 and id is 1 raw text is: 






ANALYSIS OF A DECISION TO ABROGATE AN                        B-145650 ........
EXISTING LEASE ARRANCIGENENT AN!D PURCHASE A                 12-29-72
POSTAL.FAVIL    IN  O TON HMASSACHSETTS        ,     £ D
UNITED STATES POSTAL, SERVICE


                                RESTRICTED                    LM9O0155


     Report to Congressman James A. Burke pursuant to his request,

     The report presented analyses of certain data regarding the

economics of a decision by the Postal Service to abrogate an existing

Vease arrangement and to acquire by eminent domain the South Boston

Postal Annex Addition, Boston, Masbachusettso We used the present-

value method to estimate cos-K7under the leasing and purchasing alternatives.

     Our review showed that the Postal Service, in accordance with its

policy, did not consider real estate taxes foregone by the City of

Boston as a cost of ownership when comparing the costs of leasing and

purchasing the South Boston property, Therefore, purchasing appeared

to be less costly and was selected. @'e.ana~ys.ssho'aad..a purchasing



. &      ....-.....      If however, the Postal Service had included as

a cost of ownership real estate taxes foregone5 tho comparo would hav e



a leasing advantae-e-'e'tr'-.-l' 'm'          e''' 'r incLi,,,as



     The ,,pr,,,,ed,,,e,the Postal Service has recently changed its policy

and now considers the effect of removing property from local tax rolls,

so that its policy is cons-stent with that followed by other Federal

agencies, as prescribed by an instruction of the Office of Management and


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