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B-171136 1 (1970-12-30)

handle is hein.gao/gaobabkto0001 and id is 1 raw text is: ,. .... : ... ' ; '' , .... 4 2 - , e. - 7 6 COMPTROLLER GENERAL OF THE UNOTED STATES WASHINGTON, D.C. 20548 RELEASED B-171136 DEG 30 1970 Dear Mr. Patten: LM089900 Your letter of October 27, 1970, requested that we investigate several aspects of the action of the General Services Administration (GSA) for conveying to Broadway Associates certain land at Camp Kilmer, New Jersey. You asked whether any employees of the U.S. Government, or any other persons, had violated any U.S. laws in the handling of this transaction and whether there had been anything improper or unethi- cal about the transaction, particularly the payment of a finder's fee of $100,000 to Mr. Joseph Danzo by Broadway Associates. We examined pertinent laws and GSA regulations relating to the disposal and sale of surplus Government property and reviewed GSA records of the conveyance to determine if there had been anything un- usual or improper about the conveyance transaction, Our review of these records did not reveal that there had been any improprieties or that a finder's fee had been paid to Mr. Danzo by Broadway Associates. We did not discuss the conveyance with either Mr. Danzo or Broadway Associates. In February 1966 GSA offered about 353 acres of land at Camp Kilmer for public sale through solicitation of sealed competitive bids. Broadway Associates' bid of $1.8 million was the highest of the 31 re- sponsive bids received. This amount was below GSA's estimate of the value of the property; therefore, GSA afforded Broadway Associates the opportunity to increase its bid. Broadway Associates submitted an amended bid of $2 million which exceeded GSA's estimate and which GSA accepted on May 5, 1966. Broadway Associates made a down payment of 20 percent of the pur- chase price and executed a note for the balance. The note required quarterly payments of $40,000 extending over a 10-year period, plus interest on the unpaid balance at the rate of 5 percent a year. The note permitted prepayments and, according to GSA, a principal balance of only $76,400 remained unpaid on the note at June 30, 1970. Our review of GSA records did not reveal any evidence of viola- tions of U.S. laws or any improper or unethical practices in connection with this transaction and did not indicate that a finder's fee had been paid by Broadway Associates to any person. ~L/477 A-

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