At GSA, we manage an inventory that includes some of the oldest buildings in the country, buildings that not only need repairs to keep them in working order, but often require extensive renovations to ensure that they meet the standards of modern government. In today’s tight fiscal environment, those investments are not always possible. That is why GSA is looking to create partnerships with the private sector that enable them to utilize public assets that can no longer serve the federal government in exchange for resources that can.
In 2014, GSA reached an agreement to convert the historic Old Post Office in Washington, DC into a mixed-use development that will serve the local community. This secured $200 million in private sector funds for the restoration of this 114-year old building that was unable to provide adequate facilities for the government. In addition, this agreement established a base rent of $250,000 per month, which escalates, based on the Consumer Price Index, over the term of the 60-year lease. The funds that GSA receives from the Old Post Office lease can be used for the repair and upkeep of historic federal buildings throughout GSA’s inventory, saving additional taxpayer dollars.
We are also actively exploring new approaches to exchanging some of our older, outdated facilities, such as the FBI’s J. Edgar Hoover Building in Washington DC, for new, highly efficient space that is suitable for the needs of a modern government agency. Public private partnerships provide GSA with valuable resources that enable us to provide the American people with the level of service that they deserve.