Outleasing minimizes federal maintenance costs, generates federal revenue that can be used for preservation purposes, and preserves these historic facilities themselves. Agencies with often very specialized properties, like NASA or the Department of Energy, have found leasing a viable alternative to demolishing them. At the same time, the leasing of historic properties to house federal functions, where practicable, extends the lives of those properties and provides a cost and maintenance advantage to the government. Of the agencies responding to the Section 3 request for data, the federal agency with the most experience in leasing and exchanging federal property is GSA. Its use of Section 111 authority for leasing unneeded federal space to nonfederal entities, and finding space in non-federally owned historic properties, continues to make an important difference at historic buildings, especially in smaller markets, with buildings requiring only modest reinvestment to remain viable. Most outleases fill vacant space or provide retail services in buildings predominantly housing federal agencies. While some are long-term and entire buildings are outleased, others consist of discretely placed rooftop antennae and short-term event space rentals. Between 2015 and 2017, GSA’s short-term event space outleasing program has grown; historic buildings served as locations for more than 25 movies and television shows filmed by 21production companies, including, among others: Alexander Hamilton U.S. Custom House, New York, New York ( Billions, 2017, Showtime); U.S. Custom House, Baltimore, Maryland ( House of Cards, 2013-present, Netflix Original Production); and, Federal Center, Chicago, Illinois ( Batman vs. Superman: Dawn of Justice 2015, Warner Bros. Pictures). GSA’s national preservation program supports this stewardship funding source with online guidance, along with sample documents that include GSA’s standard license, permit application, special conditions and clauses for protection of historic finishes and fixtures. GSA regional preservation programs supplement this guidance with regionally focused training programs, manuals, brown bag events, and blogs that promote outleasing successes to GSA employees nationwide. In accordance with the authority, GSA’s outlease revenue is reinvested exclusively in historic buildings through a rigorous and highly competitive process, in which projects are required to meet the Secretary of the Interior’s Standards. Combined with other funding sources, proceeds from Section 111 leases fill critical gaps and enable GSA to seize opportunities for meeting stewardship goals. Highlights: ›› Nationwide: VA Secretary Shulkin approved use of the authority found in NHPA Section 111 to lease historic VA properties to external parties. The Office of Construction and Facilities Management is charged with implementing the program. A handbook detailing leasing procedures has been drafted, and initial solicitation for a pilot project in Sausalito, California, has been initiated. More than a dozen vacant cemetery lodges are also being considered for partnerships under this authority. At the same time, VA also continued to pursue multiple leases across the county, pursuant to its Enhanced Use-Lease (EUL) Program. The EUL Program allows VA to outlease its underutilized real estate to the private sector for up to 75 years for the purpose of developing supportive housing for homeless and at-risk veterans and their families. One such notable EUL currently under development, was the reuse of several NHL properties at the Clement J. Zablocki VA Medical Center in Milwaukee, Wisconsin, which will be rehabilitated for veterans’ housing using historic tax credits.
IN A SPIRIT OF STEWARDSHIP: A REPORT ON FEDERAL HISTORIC PROPERTY MANAGEMENT 2018 | 51
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