GSA may use private funds for new D.C. federal complex

A bipartisan bill awaiting President Clinton's approval would give the General Services Administration permission to develop federal land in Washington using private-sector funds.

The bill (H.R. 3069) is designed to push the creation of the Southeast Federal Center, a long-planned multi-agency facility to be located on 55-acre parcel of land on the Anacostia River adjacent to the Washington Navy Yard. The bill allows for the private development of federal land for the first time. The land has lain dormant for nearly 30 years. Several attempts to relocate agencies to the area fell flat because of poor interest and lack of money.

"We had to think of a way to get some use out of land that had been lying there, very valuable land, for decades, producing no revenue for the federal government," Del. Eleanor Holmes Norton, D-D.C., told members of the Senate on Tuesday after it approved the legislation.

The bill releases the federal government from any debt, liability or obligation in connection with the development.

"This just gives us an opportunity to deal with public-private partnerships rather than depend on the federal government to fund the project," a GSA spokesman said. "It helps us to be a little more like the private sector."