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LCD-79-305 1 (1979-03-06)

handle is hein.gao/gaobaayrw0001 and id is 1 raw text is: GAO United States General Accounting Office Logistics and Washington, DC 20548 Communications Division MARCH 6, 1979 The Honorable Joel W. Solomon Administrator of General Services 108710 Dear Mr. Solomon: As part of our review of the management of the General Services Administration's (GSA's) alteration and major repairs program, we examined the economic analysis support- ing your Agency's prospectus to renovate the U.S ustom-- hoseat 1 Bowling Green, New York, N.Y. The proposed reno- vation, at a cost of $24.7 million, would permit the U.S. Customhouse to be used as office space for Federal agencies and at the same time preserve it as arhistorical landmark. The prospectus for the project was approved by the Office of Management and Budget on May 15, 1978, and the Senate Committee on Environment and Public Works on August 16, 1978. It is still under consideration by the House Committee on Public Works and Transportation. We are bringing to your attention significant errors and omissions in the economic analysis supporting that prospectus. THE NEW YORK CUSTOMHOUSE The Customhouse was built in 1907, is on the National Register of Historic Places, and comes under New York City landmark regulations. As a registered historical struc- ture, it is subject to certain leqal and administrative restrictions regarding its preservation and restoration. Consequently, there are unique factors to be considered by GSA and the Public Works Committees in weighing the alter- natives of renovating the building, constructing a new build- ing to meet the same space needs, or leasing an equivalent amount of space. There is also the unresolved question of whether: (1) the property can be sold with its historical preservation restrictions, and at what price or (2) it must be retained by the Government, and if so, at what cost to prevent vandalism and further deterioration. LCD-79-305 (945337-I1) .5ei, 6j.. T6

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