National Park Service

America's Industrial Heritage Project consists of several sites scattered throughout southwestern Pennsylvania that will explain how the region's iron and steel, coal, and transportation industries contributed to the nation's industrial growth. The project is expected to revitalize the region's economic base through tourism. Much uncertainty exists, however, about the development and the completion of the project. Although one estimate pegs the cost of completing the project at about $355 million, including $155 million in federal funds, this estimate lacks documentation and the final scope of the project has yet to be defined. Uncertainty also exists about the operation and maintenance of project sites on nonfederal land. Although some of the sites will be run by the National Park Service, other projects built on nonfederal land are to be run by nonfederal entities. Yet GAO was told that federal funds will be used for up to 5 years to run several projects on nonfederal land. Finally, it is unclear who will be responsible for managing, operating, and maintaining the projects. The Southwestern Pennsylvania Heritage Commission, part of the Interior Department, has been overseeing the project's implementation, but the Commission's term expires in November 1998. Although the Commission favors the establishment of a not-for-profit corporation that would run all the projects, it has yet to make a final choice among the options being considered.

GAO found that: (1) although the Commission has not defined the number, size, and cost of AIHP projects, the total project cost is estimated at $355 million; (2) between 1989 and 1993, Congress appropriated $63 million for AIHP, of which $40 million was for planning, design, construction, and administration costs; (3) additional contributions from nonfederal entities have totalled $32 million; (4) AIHP project development recommendations come from individuals, the community, the Commission, and technical advisory groups; (5) the Commission is authorized to fund projects within the Park Service's control as long as they fit into the overall theme of AIHP and are included in the general management plan; (6) there is no funding or developmental relationship between AIHP projects and the Park Service's national project priorities list; (7) although nonfederal entities will operate and maintain completed AIHP projects located on nonfederal land, federal funding will be needed for 5 years to operate AIHP projects; (8) the Park Service will operate and maintain AIHP projects within its control using federally appropriated funds; (9) it is uncertain who will be responsible for the future management, operation, and maintenance of AIHP projects after the Commission's term expires in 1998; and (10) the Commission favors the establishment of a not-for-profit corporation to resolve future management problems, but it has not made a final decision on how to sustain projects for the long term.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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