Military Bases

Revenues from property sales at closed military bases will be far less than the Defense Department's (DOD) original estimate of $4.1 billion. Most land is being kept by DOD or is being transferred to other federal agencies or to the states at no cost. Sales so far have yielded only about $92 million in revenue. Another 9,400 acres of property is planned for sale, so additional revenues may be realized. Meanwhile, many communities are seeking grants or other federal assistance to make use of former military property. For example, they have sought marketable, cash-producing properties, such as golf courses and housing units, and have requested building and infrastructure upgrades. GAO also noted several reasons for delays in the transfer of the property to the communities. Disagreements between federal agencies, homeless providers, Indian groups, and local community interests over reuse plans have caused delays at some bases. Changing laws and regulations have also created uncertainties for some communities planning to convert surplus base properties. In addition, environmental contamination at some bases will delay their transfer until they are cleaned up.

GAO found that: (1) revenues from military base property sales are expected to be far less than DOD anticipated; (2) the majority of the disposed property will be retained by DOD or transferred to other federal agencies, states, and localities at no cost; (3) where Congress has not specifically authorized a property transfer without reimbursement, it has specified that agencies receiving transferred property should reimburse DOD for 100 percent of the property's estimated fair-market value or acquire a reimbursement waiver; (4) $69.4 million of the projected $92 million in revenues from military base property sales has been realized and an additional $22.2 million is expected from pending property sales; (5) about $19 million in property sales has been the result of interagency transfers; (6) DOD could increase its revenues by selling an additional 9,400 acres of military property; (7) DOD continues to reduce its property sales revenue estimates as it obtains better property value and property availability information; (8) in addition to transfers of large portions of land at no cost, many communities have asked the government for cash grants, marketable revenue-producing properties, and building and infrastructure upgrades; (9) as of May 1994, 37 communities have received $107 million in cash grants; (10) additional funding requirements will increase as the base closure process continues; and (11) reasons for the delays in property transfers include disagreements over reuse plans between competing interests, changing laws and regulations, and unresolved environmental cleanup efforts at some bases.