00-642. Record of Decision for the Disposal and Reuse of Naval Hospital Philadelphia, Pennsylvania  

  • [Federal Register Volume 65, Number 7 (Tuesday, January 11, 2000)]
    [Notices]
    [Pages 1602-1607]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 00-642]
    
    
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    DEPARTMENT OF DEFENSE
    
    Department of the Navy
    
    
    Record of Decision for the Disposal and Reuse of Naval Hospital 
    Philadelphia, Pennsylvania
    
    SUMMARY: The Department of the Navy (Navy), pursuant to Section 
    102(2)(C) of the National Environmental Policy Act of 1969 (NEPA), 42 
    U.S.C. 4332(2)(C) (1994), and the regulations of the Council on 
    Environmental Quality that implement NEPA procedures, 40 CFR Parts 
    1500-1508, hereby announces its decision to dispose of Naval Hospital 
    Philadelphia, which is located in Philadelphia, PA.
        Navy analyzed the impacts of the disposal and reuse of Naval 
    Hospital Philadelphia in an Environmental Impact Statement (EIS), as 
    required by NEPA. The EIS analyzed three reuse alternatives and 
    identified the Philadelphia Naval Hospital Community Reuse Plan (Reuse 
    Plan), approved by the City of Philadelphia on June 17, 1999, and 
    described in the EIS as the Naval Hospital Reuse Plan Alternative, as 
    the Preferred Alternative.
        The Preferred Alternative proposed to use the Naval Hospital 
    property for residential purposes and for commercial activities and to 
    develop public parks and recreational areas. The City of Philadelphia 
    is the Local Redevelopment Authority (LRA) for the Naval Hospital. 
    Department of Defense Rule on Revitalizing Base Closure Communities and 
    Community Assistance (DoD Rule), 32 CFR 176.20(a).
        Navy intends to dispose of Naval Hospital Philadelphia in a manner 
    that is consistent with the Reuse Plan. Navy has determined that the 
    proposed mixed land use will meet the goals of achieving local economic 
    redevelopment, creating new jobs, and providing additional housing, 
    while limiting adverse environmental impacts and ensuring land uses 
    that are compatible with adjacent property. This Record of Decision 
    does not mandate a specific mix of land uses. Rather, it leaves 
    selection of the particular means to achieve the proposed redevelopment 
    to the acquiring entity and the local zoning authority.
    
    Background
    
        Under the authority of the Defense Authorization Amendments and 
    Base Closure and Realignment Act, Public Law 100-526, 10 U.S.C. 2687 
    note (1994), the 1988 Defense Secretary's Commission on Base 
    Realignment and Closure recommended the closure of Naval Hospital 
    Philadelphia. This recommendation was approved by the Secretary of 
    Defense, Frank Carlucci, and accepted by the One Hundred First Congress 
    in 1989. The Naval Hospital closed on September 30, 1991.
        Naval Hospital Philadelphia is situated on 49 acres in the southern 
    part of the City of Philadelphia. The property is oriented along the 
    east-west axis with a rectangular border. The property is bounded on 
    the north by Hartranft Street; on the east by Broad Street; on the 
    South by Pattison Avenue; and on the west by 20th Street. There are 
    residential neighborhoods north of the Naval Hospital property; a 
    sports stadium complex composed of Veterans Stadium, First Union 
    Spectrum, and First Union Center located east and southeast of the 
    hospital; Franklin D. Roosevelt Park located south and southwest of the 
    hospital; and former Navy family residences known as Capehart Housing 
    to the west of the hospital.
        This Record of Decision addresses the disposal and reuse of the 
    entire Naval Hospital property, which is surplus to the needs of the 
    Federal Government. The surplus property, covering 49 acres, contains 
    56 buildings that provide about 687,000 square feet of space. The 15-
    story main Hospital building (Building 1) and its wings (Buildings 2 
    and 3) were built in 1935 and account for about half of the Hospital's 
    floor space. Nearly all of the remaining 53 structures are one-story 
    buildings.
        Navy published a Notice of Intent in the Federal Register on March 
    23, 1994, announcing that the Navy would prepare an EIS for the 
    disposal and reuse of Naval Hospital Philadelphia. On April 6, 1994, 
    Navy held a public scoping meeting at the Holy Spirit Roman Catholic 
    Church in Philadelphia, and the scoping period concluded on April 29, 
    1994. On July 8, 1994, Navy
    
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    reopened the scoping comment period for an additional 14 days.
        Navy distributed the Draft EIS (DEIS) to Federal, State, and local 
    agencies, elected officials, interested parties, and the general public 
    on February 24, 1995, and commenced a 45-day public review and comment 
    period. During this period, Federal, State, and local agencies, 
    community groups and associations, and interested persons submitted 
    oral and written comments concerning the DEIS. On March 22, 1995, Navy 
    held a public hearing at Holy Spirit Church to receive comments on the 
    DEIS.
        After the public comment period for the DEIS concluded, Navy 
    developed additional alternatives for the disposal and reuse of the 
    Navy Hospital and prepared a Supplemental Draft Environmental Impact 
    Statement (Supplemental DEIS). Navy distributed the Supplemental DEIS 
    to Federal, State, and local agencies, elected officials, interested 
    parties, and the general public on October 11, 1996, and commenced a 
    45-day public review and comment period. During this period, Federal, 
    State, and local agencies, community groups and associations, and 
    interested persons submitted oral and written comments concerning the 
    Supplemental DEIS.
        Navy's responses to the public comments on the Supplemental DEIS 
    were incorporated in the Final EIS (FEIS), which was distributed to the 
    public on October 29, 1999, for a review period that concluded on 
    November 29, 1999. During the period between conclusion of the comment 
    period for the Supplemental DEIS and distribution of the FEIS, Navy 
    engaged in the consultations concerning cultural resources prescribed 
    by section 106 of the National Historic Preservation Act of 1966, 16 
    U.S.C. 470f (1994). Navy concluded these consultations in August 1999. 
    Navy received one letter commenting on the FEIS.
    
    Alternatives
    
        NEPA requires Navy to evaluate a reasonable range of alternatives 
    for the disposal and reuse of this surplus Federal property. In the 
    FEIS, Navy analyzed the environmental impacts of three reuse 
    alternatives. Navy also evaluated a ``No Action'' alternative that 
    would leave the property in caretaker status with Navy maintaining the 
    physical condition of the property, providing a security force, and 
    making repairs essential to safety.
        On August 10, 1993, the Mayor's Commission on Defense Conversion 
    adopted the Philadelphia Navy Hospital Community Reuse Plan. Navy 
    identified this initial reuse plan as the Preferred Alternative in the 
    DEIS dated February 1995 and in the Supplemental DEIS dated September 
    1996. In mid-1999, the City of Philadelphia modified the 1993 reuse 
    plan by changing the mix of proposed uses to provide for the 
    development of administrative and training facilities for the 
    Philadelphia Eagles, a professional football team, at the eastern end 
    of the property. To accommodate these facilities, the City eliminated 
    the 120-bed nursing home proposed in 1993 and reduced the amount of 
    property to be used for parks and recreational activities from 30 acres 
    to seven acres. The Philadelphia City Planning Commission approved 
    these modifications to the 1993 reuse plan on June 17, 1999.
        The Reuse Plan approved in 1999 and identified in the FEIS as the 
    Preferred Alternative proposed a mix of land uses. The Preferred 
    Alternative would use about 15 acres for residential purposes; 27 acres 
    for the Eagles complex; and seven acres for parks and recreational 
    activities. It will be necessary to demolish nearly all of the 
    buildings, including the main Hospital building and its wings 
    (Buildings 1, 2, and 3), and to replace the property's utility 
    distribution systems to support the Reuse Plan's proposed redevelopment 
    of the site.
        In the western half of the property, the Preferred Alternative 
    proposed to build a townhouse residential complex on 15 acres that 
    would provide about 150 new townhouses. On seven acres east of the 
    residential complex, this Alternative would develop a park and 
    recreational area to be incorporated in the adjacent Roosevelt Park and 
    build a parking lot with a capacity of 1,000 vehicles to serve 
    Roosevelt Park and the adjacent sports stadium complex.
        In the eastern half of the property, the Preferred Alternative 
    would develop the Philadelphia Eagles administrative and training 
    complex on about 27 acres. This complex would consist of a building 
    with 104,000 square feet of space for administrative offices, training 
    activities, and a sports medicine and rehabilitation center; three 
    outdoor practice football fields; one indoor practice football field 
    covered by a fabric bubble; a maintenance garage; and a 200-vehicle 
    parking lot. A commercial medical care provider would manage the 
    rehabilitation facility in partnership with the Eagles, and the 
    facility would also be available for use by the public.
        Navy analyzed a second ``action'' alternative, described in the 
    FEIS as the Main Building Reuse Alternative. This Alternative would 
    retain the main Hospital building and wings (Buildings 1, 2, and 3) and 
    demolish the other structures on the Naval Hospital property.
        In the center of the property, the main Hospital building and its 
    two wings would be converted into a residential complex composed of 
    about 150 apartments. North of the Hospital wings, the Main Building 
    Reuse Alternative would build 100 townhouses on about ten acres.
        On about 15 acres at the western end of the property, the Main 
    Building Reuse Alternative would develop parks and recreational areas 
    to be incorporated in Roosevelt Park. On about 11 acres at the eastern 
    end of the property, this Alternative would develop a parking area with 
    a capacity of 1,100 vehicles to serve Roosevelt Park and the adjacent 
    sports stadium complex.
        Navy analyzed a third ``action'' alternative, described in the FEIS 
    as the Retail Alternative. Under this Alternative, all of the Naval 
    Hospital buildings would be demolished to permit the development of a 
    commercial retail center. This Alternative would also develop parks and 
    recreational areas similar in size and purpose to the Main Building 
    Reuse Alternative.
        In the center of the property, the Retail Alternative proposed to 
    develop a retail complex covering 23 acres. This complex would consist 
    of two retail buildings that would each provide 100,000 square feet of 
    space; fast food restaurants with 10,000 square feet of space; and a 
    parking lot with a capacity of 750 vehicles to serve the retail stores.
        On about 15 acres at the western end of the property, the Retail 
    Alternative would develop parks and recreational areas to be 
    incorporated in Roosevelt Park. On about 11 acres at the eastern end of 
    the property, this alternative would develop another parking area with 
    a capacity of 1,100 vehicles to serve Roosevelt Park and the adjacent 
    sports stadium complex.
    
    Environmental Impacts
    
        Navy analyzed the direct, indirect, and cumulative impacts of the 
    disposal and reuse of this surplus Federal property. The EIS addressed 
    impacts of the Preferred Alternative, the Main Building Reuse 
    Alternative, the Retail Alternative, and the ``No Action'' Alternative 
    for each alternative's effects on land use and zoning, socioeconomics, 
    community facilities and services, transportation, air quality, noise, 
    infrastructure, cultural resources, natural resources, and petroleum 
    and hazardous substances. This Record of Decision focuses on the 
    impacts that would likely result from
    
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    implementation of the Reuse Plan, identified in the FEIS as the 
    Preferred Alternative.
        The Preferred Alternative would not have any significant impact on 
    land use and would result in land uses that are compatible with 
    existing and planned uses in the surrounding community. Indeed, the 
    Naval Hospital property is zoned to permit the proposed redevelopment.
        The sports medicine and rehabilitation facility would be available 
    to the public. The proposed expansion of Roosevelt Park would serve 
    residents of the surrounding community by providing additional 
    recreational resources closer to their homes. The proposed parking lot 
    adjacent to Roosevelt Park would accommodate the parking requirements 
    generated by those visiting Roosevelt Park and the nearby sports 
    stadium complex.
        The Preferred Alternative would not have any impact on the 
    socioeconomics of the surrounding area. It proposed to build 150 new 
    townhouses that would provide housing for 480 people. This additional 
    housing would increase the population projected to live in south 
    Philadelphia in the full buildout year, 2002, by about 0.3 percent.
        The Preferred Alternative would not likely add a large number of 
    new jobs to the region, because the Philadelphia Eagles already 
    maintains administrative, training, and medical facilities in south 
    Philadelphia. The Eagles would, however, move 150 direct jobs 
    generating $70 million in direct payroll earnings to the proposed 
    facility on the eastern half of the property. By the year 2002, this 
    alternative would create about 10 direct jobs and 421 indirect jobs 
    that would generate about $0.4 million in direct payroll earnings and 
    $88 million in indirect earnings. The Preferred Alternative would 
    generate about $1.17 million annually in property tax revenue.
        The Preferred Alternative would not have any significant impact on 
    community services. By the year 2002, the Preferred Alternative would 
    generate an increase of about 119 school-age children living in the 
    area. This would increase the projected number of school-age children 
    in south Philadelphia about 0.44 percent. Property tax revenues would 
    increase as property previously owned by the Federal Government became 
    taxable and these revenues could be used to support local schools.
        The proposed redevelopment of Naval Hospital Philadelphia would not 
    increase the demand on fire, rescue, and police protection services in 
    south Philadelphia. By the year 2002, the population in this part of 
    the city will be five percent less than it was in the year 1990, and 
    this area already has adequate fire, rescue, and police protection 
    services. Additionally, implementation of the Preferred Alternative 
    would increase local government revenues by expanding the property tax 
    base. These revenues could be used to fund fire, rescue, and police 
    protection services.
        Implementation of the Preferred Alternative would increase the 
    amount of parks and open space in south Philadelphia. Under this 
    alternative, the expansion of Roosevelt Park would provide additional 
    recreational resources for residents of south Philadelphia. It would 
    also provide additional parking for those visiting Roosevelt Park and 
    the adjacent sports stadium complex.
        The Preferred Alternative would not have a significant impact on 
    transportation. By the year 2002, this alternative would generate about 
    2,000 average daily trips, a decrease of 1,850 average daily trips from 
    the conditions that prevailed when the Naval Hospital was active. The 
    Naval Hospital property has not generated a substantial number of 
    average daily trips since it was placed in caretaker status in 1993. 
    Thus, compared with the ``No Action'' Alternative, the Preferred 
    Alternative would increase the amount of traffic in the area.
        Implementation of the Preferred Alternative would cause a minor 
    delay at the intersection of Broad Street and Pattison Avenue. However, 
    this delay would not affect the operation of the intersection and would 
    not have a significant impact on transportation. There is adequate 
    public transportation in south Philadelphia to support the proposed 
    redevelopment of the Naval Hospital property.
        The Preferred Alternative would not have any significant impact on 
    air quality. The Naval Hospital property is located in a severe 
    nonattainment area for ozone as regulated by the Clean Air Act, 42 
    U.S.C. 7401-7671q (1994). Ozone, commonly known as smog, is produced 
    when volatile organic compounds and nitrogen oxides react in the 
    atmosphere. The Naval Hospital property is in attainment for all other 
    common air pollutants regulated under the Clean Air Act. However, 
    emissions of one common air pollutant, carbon monoxide (CO), would 
    increase under the Reuse Plan.
        Carbon monoxide is produced by the burning of fossil fuels. As a 
    result of vehicular traffic moving to and from the property, the annual 
    emissions of CO would increase slightly under the Reuse Plan. 
    Nevertheless, there would not be any violation of the national 
    standards governing emissions of carbon monoxide.
        The impact on air quality from sources of stationary emissions, 
    such as heating units, would depend upon the nature and extent of 
    activities conducted on the property. Developers of future facilities 
    will be responsible for obtaining the required air permits and for 
    complying with Federal, State, and local laws and regulations governing 
    air pollution. The temporary impacts on air quality resulting from 
    construction activities would not be significant.
        Section 176(c) of the Clean Air Act, 42 U.S.C. 7506 (1994), 
    requires Federal agencies to review their proposed activities to ensure 
    that these activities do not hamper local efforts to control air 
    pollution. Section 176(c) prohibits Federal agencies from conducting 
    activities in air quality areas such as Philadelphia that do not meet 
    one or more of the national standards for ambient air quality, unless 
    the proposed activities conform to an approved implementation plan. The 
    U.S. Environmental Protection Agency regulations implementing section 
    176(c) recognize certain categorically exempt activities. Conveyance of 
    title to real property and certain leases are categorically exempt 
    activities. 40 CFR 93.153(c)(2) (xiv) and (xix). Therefore, the 
    disposal of Naval Hospital Philadelphia will not require Navy to 
    conduct a conformity determination.
        The Preferred Alternative would not have any significant impact on 
    noise. No substantial change in ambient noise levels would occur as a 
    result of the increased vehicular traffic. In fact, at none of the six 
    sites analyzed would the increase in noise be perceptible to the human 
    ear, i.e., greater than three decibels. The existing noise levels in 
    the vicinity of the Naval Hospital are typical of an urban neighborhood 
    and are already high.
        The Preferred Alternative would not have any significant impact on 
    the capacity of the region's utility systems. The Reuse Plan's 
    projected daily demand for potable water would amount to less than one 
    percent of the City's excess water supply; therefore, there would not 
    be any significant impact on the supply of potable water.
        The proposed redevelopment of the Naval Hospital property would not 
    have a significant impact on the City's wastewater treatment capacity. 
    The Reuse Plan would require about 0.047 million gallons per day of 
    treatment capacity, which is substantially less
    
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    than the City's excess capacity of about 12 million gallons per day.
        The Preferred Alternative would generate less solid waste than Navy 
    did when the Naval Hospital was operational. Since the City has 
    adequate disposal capacity, no significant impact is likely to occur 
    from the disposal of solid waste.
        Implementation of the Preferred Alternative would result in 
    demolition of most of the buildings on the property. As a result, it 
    would be necessary to build new utility distribution systems to serve 
    the new facilities.
        The Preferred Alternative would have a significant impact on 
    cultural resources. Pursuant to section 106 of the National Historic 
    Preservation Act of 1966 (NHPA), 16 U.S.C. 470f (1994), Navy conducted 
    a cultural resource survey and determined that the Naval Hospital 
    property is eligible for listing as a historic district on the National 
    Register of Historic Places. In a letter dated February 28, 1994, the 
    Pennsylvania State Historic Preservation Officer (SHPO) affirmed the 
    SHPO's previous determination of the Naval Hospital's eligibility in 
    1987. Implementation of the Preferred Alternative would result in 
    demolition of all structures on the property with the consequent 
    adverse effect on the historic district.
        In accordance with section 106 of NHPA, Navy initiated consultation 
    with the Advisory Council on Historic Preservation (ACHP) in August 
    1997, to determine the appropriate mitigation for loss of the historic 
    district. Despite substantial efforts, Navy and the ACHP did not reach 
    agreement on ways to reduce or avoid adverse effects on the historic 
    district. Thus, Navy concluded that further consultation under section 
    106 would not be productive. In a letter dated April 2, 1999, Navy 
    informed the ACHP of its intent to terminate the section 106 
    consultation process.
        In a letter dated July 9, 1999, the ACHP provided its final 
    comments to the Secretary of the Navy and made three recommendations. 
    First, the ACHP recommended that Navy convey the property to the City 
    of Philadelphia on the condition that the City issue a request for 
    proposals to redevelop the property in a way that would preserve the 
    main Hospital buildings. Second, the ACHP recommended that Navy 
    complete recordation of the Naval Hospital property before conveying 
    it. Third, the ACHP recommended that Navy reevaluate its policy that 
    discourages conveying historic base closure property with a restrictive 
    preservation covenant when that restriction would conflict with local 
    redevelopment plans for the property.
        The Secretary of the Navy responded to the ACHP's recommendations 
    in a letter dated August 6, 1999, stating that Navy will not convey the 
    property with a preservation covenant but will complete recordation of 
    the Naval Hospital property before conveying it. The Secretary also 
    stated that Navy's policy concerning disposal of historic base closure 
    property seeks to strike a balance between historic preservation 
    concerns and local redevelopment and zoning considerations. With this 
    letter, Navy concluded the Section 106 process.
        The Preferred Alternative would not have any significant impact on 
    upland vegetation and wildlife. The existing vegetation on the property 
    consists largely of maintained lawns and ornamental and naturally 
    occurring trees and shrubs. The proposed redevelopment would preserve 
    many of the mature trees.
        Navy determined that there were no Federally-listed threatened or 
    endangered species, as defined by the Endangered Species Act of 1973, 
    16 U.S.C. 1531-1544 (1994), on the Naval Hospital property. Therefore, 
    the disposal and reuse of Naval Hospital Philadelphia would not have 
    any adverse effect on Federally-listed threatened or endangered 
    species. In a letter dated September 28, 1995, the United States Fish 
    and Wildlife Service concurred in Navy's determination.
        Implementation of the Preferred Alternative would reduce the amount 
    of impervious surface on the property from 34 acres to 15 acres. As a 
    result, the amount of stormwater runoff would also decrease. Stormwater 
    must be managed in accordance with Federal, State, and local laws and 
    regulations, and the acquiring entity will be responsible for building 
    adequate drainage facilities.
        Implementation of the Preferred Alternative would not have any 
    impact on floodplains. The Naval Hospital property does not lie within 
    100-year or 500-year floodplains.
        The Preferred Alternative would not have any significant impact on 
    the environment as a result of the use of petroleum products or the use 
    or generation of hazardous substances by the acquiring entity. 
    Hazardous materials used and hazardous wastes generated by the Reuse 
    Plan will be managed in accordance with Federal and State laws and 
    regulations.
        Implementation of the Preferred Alternative would not have any 
    impact on existing environmental contamination at the Naval Hospital. 
    Navy will inform future property owners about the environmental 
    condition of the property and may, when appropriate, include 
    restrictions, notifications, or covenants in deeds to ensure the 
    protection of human health and the environment in light of the intended 
    use of the property.
        Executive Order 12898, Federal Actions to Address Environmental 
    Justice in Minority Populations and Low-Income Populations, 3 CFR 859 
    (1995), requires that Navy determine whether any low-income and 
    minority populations will experience disproportionately high and 
    adverse human health or environmental effects from the proposed action. 
    Navy analyzed the impacts on low-income and minority populations 
    pursuant to Executive Order 12898. The FEIS addressed the potential 
    environmental, social, and economic impacts associated with the 
    disposal of Naval Hospital Philadelphia and reuse of the property under 
    the various proposed alternatives. Minority and low-income populations 
    residing within the region would not be disproportionately affected. 
    Indeed, the indirect employment opportunities, housing, and 
    recreational resources generated by the Reuse Plan would have 
    beneficial effects.
        Navy also analyzed the impacts on children pursuant to Executive 
    Order 13045, Protection of Children From Environmental Health Risks and 
    Safety Risks, 3 CFR 198 (1998). Under the Preferred Alternative, the 
    largest concentration of children would be present in the residential 
    and recreational areas. The Preferred Alternative would not pose any 
    disproportionate environmental health or safety risks to children.
    
    Mitigation
    
        Implementation of Navy's decision to dispose of Naval Hospital 
    Philadelphia does not require Navy to implement any mitigation measures 
    beyond those discussed here. Navy will take certain other actions to 
    implement existing agreements and regulations. These actions were 
    treated in the FEIS as agreements or regulatory requirements rather 
    than as mitigation. Before conveying any property at Naval Hospital 
    Philadelphia, Navy will complete recordation of the property to 
    mitigate adverse impacts to the Naval Hospital historic district.
        The FEIS identified and discussed those actions that will be 
    necessary to mitigate impacts associated with reuse and redevelopment 
    of the Navy Hospital property. The acquiring entity, under the 
    direction of Federal, State, and local agencies with regulatory 
    authority over protected resources, will be responsible
    
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    for implementing necessary mitigation measures.
    
    Comments Received on the FEIS
    
        Navy received comments on the FEIS from one private citizen. These 
    comments concerned issues already discussed in the FEIS and do not 
    require further clarification.
    
    Regulations Governing the Disposal Decision
    
        Since the proposed action contemplates a disposal under the Defense 
    Base Closure and Realignment Act of 1990 (DBCRA), Public Law 101-510, 
    10 U.S.C. 2687 note (1994), Navy's decision was based upon the 
    environmental analysis in the FEIS and application of the standards set 
    forth in the DBCRA, the Federal Property Management Regulations (FPMR), 
    41 CFR Part 101-47, and the Department of Defense Rule on Revitalizing 
    Base Closure Communities and Community Assistance (DoD Rule), 32 CFR 
    Parts 174 and 175.
        Section 101-47.303-1 of the FPMR requires that disposals of Federal 
    property benefit the Federal Government and constitute the ``highest 
    and best use'' of the property. Section 101-47.4909 of the FPMR defines 
    the ``highest and best use'' as that use to which a property can be put 
    that produces the highest monetary return from the property, promotes 
    its maximum value, or serves a public or institutional purpose. The 
    ``highest and best use'' determination must be based upon the 
    property's economic potential, qualitative values inherent in the 
    property, and utilization factors affecting land use such as zoning, 
    physical characteristics, other private and public uses in the 
    vicinity, neighboring improvements, utility services, access, roads, 
    location, and environmental and historic considerations.
        After Federal property has been conveyed to non-Federal entities, 
    the property is subject to local land use regulations, including zoning 
    and subdivision regulations, and building codes. Unless expressly 
    authorized by statute, the disposing Federal agency cannot restrict the 
    future use of surplus Government property. As a result, the local 
    community exercises substantial control over future use of the 
    property. For this reason, local land use plans and zoning affect 
    determination of the ``highest and best use'' of surplus Government 
    property.
        The DBCRA directed the Administrator of the General Services 
    Administration (GSA) to delegate to the Secretary of Defense authority 
    to transfer and dispose of base closure property. Section 2905(b) of 
    the DBCRA directs the Secretary of Defense to exercise this authority 
    in accordance with GSA's property disposal regulations, set forth in 
    part 101-47 of the FPMR. By letter dated December 20, 1991, the 
    Secretary of Defense delegated the authority to transfer and dispose of 
    base closure property closed under the DBCRA to the Secretaries of the 
    Military Departments. Under this delegation of authority, the Secretary 
    of the Navy must follow FPMR procedures for screening and disposing of 
    real property when implementing base closures. Only where Congress has 
    expressly provided additional authority for disposing of base closure 
    property, e.g., the economic development conveyance authority 
    established in 1993 by Section 2905(b)(4) of the DBCRA, may Navy apply 
    disposal procedures other than those in the FPMR.
        In section 2901 of the National Defense Authorization Act for 
    Fiscal Year 1994, Public Law 103-160, Congress recognized the economic 
    hardship occasioned by base closures, the Federal interest in 
    facilitating economic recovery of base closure communities, and the 
    need to identify and implement reuse and redevelopment of property at 
    closing installations. In Section 2903(c) of Public Law 103-160, 
    Congress directed the Military Departments to consider each base 
    closure community's economic needs and priorities in the property 
    disposal process. Under Section 2905(b)(2)(E) of the DBCRA, Navy must 
    consult with local communities before it disposes of base closure 
    property and must consider local plans developed for reuse and 
    redevelopment of the surplus Federal property.
        The Department of Defense's goal, as set forth in section 174.4 of 
    the DoD Rule, is to help base closure communities achieve rapid 
    economic recovery through expeditious reuse and redevelopment of the 
    assets at closing bases, taking into consideration local market 
    conditions and locally developed reuse plans. Thus, the Department has 
    adopted a consultative approach with each community to ensure that 
    property disposal decisions consider the LRA's reuse plan and encourage 
    job creation. As a part of this cooperative approach, the base closure 
    community's interests, as reflected in its zoning for the area, play a 
    significant role in determining the range of alternatives considered in 
    the environmental analysis for property disposal. Furthermore, section 
    175.7(d)(3) of the DoD of the DoD Rule provides that the LRA's plan 
    generally will be used as the basis for the proposed disposal action.
        The Federal Property and Administrative Services Act of 1949, 40 
    U.S.C. 484 (1994), as implemented by the FPMR, identifies several 
    mechanisms for disposing of surplus base closure property: by public 
    benefit conveyance (FPMR Sec. 101-47.303-2); by negotiated sale (FPMR 
    Sec. 101-47.304-9); and by competitive sale (FPMR 101-47.304-7). 
    Additionally, in Section 2905(b)(4), the DBCRA established economic 
    development conveyances as a means of disposing of surplus base closure 
    property. The selection of any particular method of conveyance merely 
    implements the Federal agency's decision to dispose of the property. 
    Decisions concerning whether to undertake a public benefit conveyance 
    or an economic development conveyance, or to sell property by 
    negotiation or by competitive bid, are left to the Federal agency's 
    discretion. Selecting a method of disposal implicates a broad range of 
    factors and rests solely within the Secretary of the Navy's discretion.
    
    Conclusion
    
        The LRA's proposed reuse of Naval Hospital Philadelphia, reflected 
    in the Reuse Plan, is consistent with the requirements of the FPMR and 
    Section 174.4 of the DoD Rule. The LRA has determined in its Reuse Plan 
    that the property should be used for various purposes including 
    residential, commercial, park and recreational. The property's location 
    and physical characteristics as well as the current uses of adjacent 
    property make it appropriate for the proposed uses.
        The Reuse Plan responds to local economic conditions, promotes 
    economic recovery from the impact of the closure of the Naval Hospital, 
    and is consistent with President Clinton's Five-Part Plan for 
    Revitalizing Base Closure Communities, which emphasizes local economic 
    redevelopment and creation of new jobs as the means to revitalize these 
    communities. 32 CFR Parts 174 and 175, 59 FR 16,123 (1994).
        Although the ``No Action'' Alternative has less potential for 
    causing adverse environmental impacts, this Alternative would not take 
    advantage of the property's location and physical characteristics or 
    the current uses of adjacent property. Additionally, it would not 
    foster local economic redevelopment of the Naval Hospital property.
        The acquiring entity, under the direction of Federal, State, and 
    local
    
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    agencies with regulatory authority over protected resources, will be 
    responsible for adopting practicable means to avoid or minimize 
    environmental harm that may result from implementing the Reuse Plan.
        Accordingly, Navy will dispose of Naval Hospital Philadelphia in a 
    manner that is consistent with the City of Philadelphia's Reuse Plan 
    for the property.
    
        Dated: December 21, 1999.
    William J. Cassidy, Jr.,
    Deputy Assistant Secretary of the Navy (Conversion and Redevelopment).
    [FR Doc. 00-642 Filed 1-10-00; 8:45 am]
    BILLING CODE 3810-FF-M
    
    
    

Document Information

Published:
01/11/2000
Department:
Navy Department
Entry Type:
Notice
Document Number:
00-642
Pages:
1602-1607 (6 pages)
PDF File:
00-642.pdf
CFR: (1)
41 CFR 101-47.304-9)