[(b)](2) for foreign currencies or credits, or substantial benefits or the discharge of claims resulting from the compromise or settlement of such claims by any executive agency in accordance with the law, whenever the head of the executive agency concerned determines that it is in the interest of the United States to do so. Such property may be disposed of without advertising when the head of the executive agency concerned finds so doing to be most practicable and to be advantageous to the Government. The head of each executive agency responsible for the disposal of foreign excess property may execute such documents for the transfer of title or other interest in property and take such other action as he deems necessary or proper to dispose of such property; and may authorize the abandonment, destruction, or donation of foreign excess property under his control which has no commercial value or the estimated cost of care and handling of which would exceed the estimated proceeds from its sale.

(b) Any executive agency having in any foreign country any medical materials or supplies not disposed of under subsection (c) of this section, which, if situated within the United States would be available for donation pursuant to section 203 of this Act, may donate such materials or supplies without cost (except for costs of care and handling), for use in any foreign country, to nonprofit medical or health organizations, including those qualified to receive assistance under sections 214(b) and 607 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2174 (b) and 2357).

(c) Under such regulations as the Administrator shall prescribe pursuant to this subsection, any foreign excess property may be returned to the United States for handling as excess or surplus property under the provisions of sections 202, 203 (j) and 203 (1) of this Act whenever the head of the executive agency concerned determines that it is in the interest of the United States to do so: Provided, That regulations prescribed pursuant to this subsection shall require that the transportation costs incident to such return shall be borne by the Federal agency, State agency, or donee receiving the property.

91ST CONGRESS 1st Session

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SENATE

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REPORT No. 91-425

RELEASING THE CONDITIONS IN A DEED WITH RESPECT TO A CERTAIN PORTION OF THE LAND HERETOFORE CONVEYED BY THE UNITED STATES TO THE SALT LAKE CITY CORPORATION

SEPTEMBER 24, 1969.-Ordered to be printed

Mr. ALLEN, from the Committee on Government Operations,
submitted the following

REPORT

[To accompany S. 1366]

The Committee on Government Operations, to which was referred the bill (S. 1366) to release the conditions in a deed with respect to a certain portion of the land heretofore conveyed by the United States to the Salt Lake City Corporation, having considered the same, reports favorably thereon with amendments and recommends that the bill as amended do pass.

AMENDMENTS

Page 1, lines 8 and 9, strike out, "released only with respect to the following described tract", and insert in lieu thereof, "waived, for the limited purpose of permitting the repair and lighting of a large concrete "U" (an emblem of the University of Utah) situated on a tract of approximately 3.73 acres".

Page 1, line 10, delete the "comma", and insert a "period".

Page 2, strike out all of the material from line 1 to and including line 25.

Page 3, strike out line 1 through line 4.

These amendments were proposed by the General Services Administration for the purpose of authorizing the Salt Lake City Corp. and the University of Utah Alumni Association to repair a large concrete block "U" and install floodlights thereon without violating any of the restrictions as to the use of such property pursuant to

section 13(h) of the Surplus Property Act of 1944, or the conveyance dated November 15, 1961. Adoption of these amendments will not release any of the restrictions as to use, but merely will give the parties interested in effecting such improvements authority to make the repairs or installation without jeopardy or fear of loss of ownership. This new language also removes the need for pages 2 and 3 because the description contained in the bill as originally drafted covered the entire tract comprising about 30 acres, whereas the amendments merely waive the restriction on the use of 3.73 acres for the purpose of making the improvements and installation of lighting facilities.

The sponsor of the bill, Senator Frank E. Moss, has approved this new language and concurs in adoption of the amendments.

PURPOSE

S. 1366 would release a restriction placed on a tract of land conveyed to the Salt Lake City Corp. on November 15, 1961, pursuant to section 13(h) of the Surplus Property Act of 1944, which authorizes the disposal of surplus real property to States, political subdivisions thereof, and municipalities at 50 percent discount for park and recreational use. Under the terms of the conveyance, the property will revert to the United States in the event it is not used for park and recreational purposes. To avoid automatic reversion of the property this bill, as amended, would waive the reverter clause for the limited purpose of allowing the Salt Lake City Corp. to make the necessary repairs to the concrete block "U" situated on the property and install lights thereon without violating the restrictions as to use

thereof.

BACKGROUND

An Ad Hoc Subcommittee on Surplus Property, of the Committee on Government Operations, held hearings on this and several other bills on July 9-10, 1969, at which time representatives from the various departments and agencies testified on the proposed legislation. There appeared to be a difference of opinion as to whether the proposed improvements to the property could be made without violating the restrictions of limitations placed thereon by the conveyance. By letter dated November 29, 1968, to Senator Moss, the Director of the Bureau of Outdoor Recreation held as follows:

We note that the 1961 instrument of transfer conveying the property containing the block U to the Salt Lake City Corp. provides only for the use of such property for public park and recreational purposes. Under the terms of this instrument the corporation agreed to utilize such property in accordance with the approved program as set forth in an isometric map which was part of the transfer agreement. We also note that no provision was made in this program for maintenance of the block U. We have carefully reviewed the corporation's proposal to renovate the block U and install permanent lighting facilities for it, and have determined it. would not be in compliance with the terms of the instrument of transfer.

However, on May 26, 1969, the Solicitor of the Department of the Interior advised the Secretary of the Department that the block U

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was on the land when conveyed to the Salt Lake City Corp., in 1961, and that:

It cannot now be said that its existence is incompatible with the terms of the grant. Mere illumination of the U would not change the use of the tract and therefore cannot be considered as incompatible to the grant.

The enactment of S. 1366 would remove any ambiguity concerning the right to repair and illuminate the block, without losing title to the property on which the block is located.

AGENCY COMMENTS

The following reports and recommendations on the bill were received from the General Services Administration, Bureau of the Budget, Departments of the Interior, and Health, Education, and Welfare:

GENERAL SERVICES ADMINISTRATION,
Washington, D.C., July 14, 1969.

Hon. JOHN L. MCCLELLAN,
Chairman, Committee on Government Operations,
U.S. Senate,

Washington, D.C.

DEAR MR. CHAIRMAN: Your letter of March 10, 1969, requested the views of the General Services Administration on S. 1366, 91st Congress, a bill "To release the conditions in a deed with respect to a certain portion of the land heretofore conveyed by the United States to the Salt Lake City Corp."

We understand that the property described in the bill is 3.73 acres of land located in Salt Lake City which is part of a 30-acre tract conveyed to the Salt Lake City Corp. by deed dated November 15, 1961, at a consideration of $34,750. The conveyance was made pursuant to section 13(h) of the Surplus Property Act of 1944, as amended (50 U.S.C. 1622 (h)), which authorizes the disposal of surplus real property to States, political subdivisions thereof, and municipalities at a 50-percent discount for park and recreational purposes. Under the terms of the conveyance, the property will revert to the United States in the event it is not used for park and recreational purposes. It is understood, also, that the deed contains a clause under which the reverter could be released as to the 3.73 acres upon payment to the Government of the current fair market value of that portion of the property, less a pro rata portion of the price originally paid by the grantee for the entire 30-acre tract.

According to the explanatory statement which was made by Senator Frank E. Moss to the Senate at the time S. 1366 was introduced (Congressional Record, Mar. 4, 1969, p. S2304), the purpose of the bill is to permit the Alumni Association of the University of Utah to reconstruct the large concrete "U" which was erected on the 3.73 acres approximately 50 years ago. It appears that Senator Moss assumed that, because of the restriction in the deed relating to the use of the property, it would be necessary to release the reverter to permit reconstruction and lighting of the concrete “U.”

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We believe the stated purpose could be accomplished under existing law by the Secretary of the Interior who, under section 203 (k) (2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484 (k) (2)), has the authority to agree to variations in use which are not inconsistent with park and recreational purposes as well as the authority to grant a release of the 3.73-acre tract under the provisions of the deed. While these actions would be subject to the disapproval of the Administrator of General Services, we would not interpose any objection. Moreover, it is understood that by letter dated June 5, 1969, to Senator Wallace F. Bennett, the Secretary of the Interior stated that the illumination of the "U" would be consistent with the terms of the conveyance and would not effect a change in land use so that legislation on the matter is not required.

Even if the stated purpose could not be accomplished under existing law, GSA would have difficulty in endorsing the bill in its present form. Generally, GSA does not favor special legislation authorizing the disposal of the Government's interest in real property at terms less favorable than those provided for in statutes of general application. However, in view of the fact that the "U" was constructed prior to the time the property was sold by the Federal Government, GSA would not object to the limited project described in the introductory statement of Senator Moss. On the other hand, since the property is of some value, we would recommend that the bill be amended to provide either (1) that the reverter clause be waived for the limited purpose of permitting reconstructing and lighting of the concrete "U" or (2) that the Secretary of the Interior grant a release of the Government's interest in the 3.73-acre tract upon payment by the corporation of the current fair market value thereof, less a pro rata portion of the price originally paid for the 30-acre tract.

The Bureau of the Budget has advised that, from the standpoint of the administration's program, there is no objection to the submission of this report to your committee.

Sincerely,

ROBERT L. KUNZIG, Administrator.

The following memorandum was subsequently received from the General Services Administration incorporating proposed amendments to the bill:

GENERAL SERVICES ADMINISTRATION, Washington, D.C., July 25, 1969. Subject: S. 1366, to release the conditions in a deed with respect to a certain portion of the land heretofore conveyed by the United States to the Salt Lake City Corp.

To: Mr. Glenn K. Shriver, professional staff member, Senate Government Operations Committee.

This will confirm our telephone conversation of yesterday regarding suggested language in the subject bill which would incorporate the first of the two options recommended in the penultimate paragraph of our report to the committee of July 14, 1969.

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