Office of Property Management
Surplusing of Public Property
Testimony of Lars Etzkorn, Director Office of Property Management
Adrian M. Fenty, Mayor
Committee on Workforce Development and Government Operations
Member-At-Large Carol Schwartz, Chairperson
Wednesday, 7 November 2007, 10 am
Council Chambers, John Wilson Building, Room 123
1350 Pennsylvania Avenue, NW
Washington, DC 20004-3003
Good morning Chairperson Schwartz and members of the Committee on Workforce Development and Government Operations. I am Lars Etzkorn, Director of the Office of Property Management (OPM) and I am pleased to testify today on the management of the District’s real estate under the authority of OPM.
OPM is committed to its mission: supporting District government through building operations, real estate management and capital construction. To determine the highest and best use for land in the District’s inventory, OPM maintains a close working relationship with other agencies, including the Office of Planning and the Deputy Mayor for Planning and Economic Development. Today I intend to discuss progress to date in the Fenty Administration and tasks remaining to address space needs of District agencies, including reducing our use of leased space and ensuring our employees are in suitable work environments.
Managing and Maintaining Property
Earlier this year, OPM posted on the web a comprehensive listing of District property. This posting allows easy public access to the inventory of property owned by the District along with details on current and future uses for many of the properties.
In September, OPM substantially updated and upgraded this list. With the support of the Office of the Chief Technology Officer, OPM incorporated DC GIS mapping technology into the database and increased searching capacity to locate properties in the inventory. We plan further improvements including integrating Google Earth.
OPM has initiated two planning projects to fulfill our management responsibility of District facilities.
The first of these is the District-wide facilities condition assessment. This project will provide OPM with the first comprehensive listing of the condition of our facilities, allowing OPM to develop priorities for maintenance and capital improvement. We will then be able to better serve our clients with respect to fire and life safety, ADA compliance, environmental conditions and any renovations necessary. This exercise will not only include OPM’s 127 maintained facilities, but also those of the Metropolitan Police Department, Fire and Emergency Medical Services and the Department of Parks and Recreation. OPM is currently developing the RFPs, one for each agency involved, and the goal is to begin to award the contracts in the first quarter of calendar year 2008, with the full facility condition assessment to be complete by the end of the year.
OPM is also finalizing pricing with several architectural planning firms to provide comprehensive planning for agency space needs. This will be a major step towards meeting the Fenty Administration space utilization goals, particularly reducing occupancy costs. The architectural planning firms will work with each agency’s strategic plan. This agreement is expected to be finalized by the end of November.
Once the contract is in place, several of the largest agencies will be among the first to take advantage of this opportunity. This first grouping of agencies includes the Department of Human Services, Department of Health and the Metropolitan Police Department with results expected within 180 days thereafter.
Vacant Properties
OPM has completed a comprehensive listing of all vacant space in the District’s property inventory. Of the 290 sites listed, 96 fall under OPM’s purview. (The balance is composed of properties that fall under agencies such as the Department of Housing and Community Development and the DC Housing Authority). These 96 parcels are made up of several properties that share the same address or are adjacent to one another and can be grouped into 38 distinct sites. These 38 sites can be classified into three categories. Twenty of these sites are part of the two planned government centers at Anacostia Gateway (6 parcels) and Minnesota-Benning (14 parcels). Of the balance of eighteen sites, we are reviewing the legal status of eleven. The remaining seven sites are vacant with no buildings on them and we are analyzing them to determine if they can be utilized by District agencies.
Disposition of Property
OPM’s disposal of District-owned real property is governed by Section 10-801 of the DC Code. As required, any disposal of District property includes a seven point analysis:
1. A determination that the property is no longer required for public purpose;
2. An economic analysis providing the factors that were considered in proposing the disposition and describing the manner in which the economic factors were weighed;
3. A fiscal impact statement from the Office of the Chief Financial Officer providing the estimated costs to the District;
4. A legal sufficiency certification from the Office of the Attorney General regarding the proposed resolution and contract;
5. 30-day notice to the Office of Advisory Neighborhood Commissions (ANC), each affected ANC, the ANC representing a single-member District and the affected Ward Councilmember;
6. 30-day notice published in the DC Register; and
7. Submission to Council for a 90-day period of review.
In accordance with title 10-1013, OPM is currently developing rules and procedures to govern the disposition of District-owned real property. The initial chapters of OPM’s rulemaking regarding acquisition and disposition of real estate will be completed by the end of this year and will be submitted to Council for review by early next year. The sections regarding disposal of real estate will provide standards for identifying surplus property, requirements for inter-agency transfers and utilization of surplus property to meet District space needs, criteria for obtaining appraisals and guidelines for identifying the method of disposition (negotiated sale versus public sale) and other provisions.
As you are aware, since the beginning of 2007, OPM has been involved in three dispositions of properties, which came before this Committee on 5 July 2007. These sites were the 800 block of Barnaby Road, SE, 6428 Georgia Avenue, NW, which was sold back to the developer from whom it had been purchased, and a property on Randle Circle, SE. Only the sale of the property on Georgia Avenue has been consummated.
OPM recognizes the important responsibility that comes with managing the District’s real property assets. It is our promise to work diligently to provide best practices to not only meet the needs of our client agencies, but also to ensure land in the District is used in a manner best serving the public.
Thank you for this opportunity to testify. I am happy to answer any questions at this time.