[Senate Report 115-307]
[From the U.S. Government Publishing Office]
Calendar No. 526
115th Congress } { Report
SENATE
2d Session } { 115-307
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UDALL PARK LAND EXCHANGE COMPLETION ACT
_______
July 23, 2018.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Energy and Natural
Resources, submitted the following
R E P O R T
[To accompany H.R. 1547]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 1547), to provide for the unencumbering
of title to non-Federal land owned by the city of Tucson,
Arizona, for purposes of economic development by conveyance of
the Federal reversionary interest to the City, having
considered the same, reports favorably thereon without
amendment and recommends that the Bill, do pass.
PURPOSE
The purpose of H.R. 1547 is to provide for the
unencumbering of title to non-Federal land owned by the city of
Tucson, Arizona, for purposes of economic development by
conveyance of the Federal reversionary interest to the City.
BACKGROUND AND NEED
In 1980, the City of Tucson, Arizona entered into a long-
term lease from the Bureau of Land Management (BLM) for a 172.8
acre parcel of land that was improved for public use by the
city and named ``Udall Park,'' after Rep. Morris K. Udall, who
represented the Tucson area in the House of Representatives
from 1961 until 1991. Title to Udall Park was later conveyed to
the City of Tucson in 1989 by the BLM under the authority of
the Recreation and Public Purposes Act (RPPA). Both the lease
and title conveyance (patent) included a reversionary clause
prohibiting certain commercial uses of the property.
At the time of conveyance of the Udall Park property to the
City in 1989, the BLM Arizona State Office and the City were
negotiating a multi-part land exchange with the approval of the
Mayor and City Council of Tucson.
Under the proposal, the City would acquire permanent rights
and full use of Udall Park, and the BLM would receive 297 acres
from the City and the City would help resolve a long-standing
sand and gravel trespass that was under litigation. The City
also paid $135,000 to move a United States Geologic Survey
facility from Udall Park to nearby Federal lands.
At the time, the City expected that BLM would support
legislative efforts to eliminate the reverter clause in the
patent. Documents from the period indicate that time
constraints in the ongoing litigation required use of an RPPA
patent rather than a transfer of fee title to the City.
The then-BLM State Director recommended support for future
legislative efforts to eliminate the reverter clause. However,
legislation was never introduced and the City has managed Udall
Park since that time under the RPPA lease.
The City has testified that it will continue to manage
Udall Park as a public park. However, the City's attempts to
permit a farmer's market at the park and to allow for the
installation of a communications tower at Udall Park were
denied by the BLM and raised questions about the City's
authority to manage the park.
The bill resolves this uncertainty by conveying the Federal
reversionary interests to the City.
LEGISLATIVE HISTORY
H.R. 1547 was introduced in the House of Representatives by
Representative McSally on March 5, 2017, and referred to
Committee on Natural Resources. H.R. 1547 was reported by the
Committee on Natural Resources on August 29, 2017 (H. Rept.
115-280), and passed the House of Representatives by a vote of
401-0 on October 2, 2017.
Companion legislation, S. 612, was introduced in the Senate
by Senators Flake and McCain on March 13, 2017.
The Subcommittee on Public Lands, Forests and Mining held a
hearing on H.R. 1547 and S. 612 on February 7, 2018.
In the 114th Congress, Senators Flake and McCain introduced
similar legislation, S. 2379, on December 9, 2015. The
Subcommittee on Public Lands, Forests, and Mining held a
hearing on S. 2379 on April 21, 2016. In the House of
Representatives, Representative McSally introduced a similar
measure, H.R. 5520, on June 6, 2016.
The Committee on Energy and Natural Resources met in open
business session on May 17, 2018, and ordered H.R. 1547 and S.
612 favorably reported.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on May 17, 2018, by a majority voice vote
of a quorum present recommends that the Senate pass H.R. 1547.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
Section 1 contains the short title.
Section 2. Definitions
Section 2 contains key definitions.
Section 3. Conveyance of Federal reversionary interest in land located
in Tucson, Arizona
Section 3(a) authorizes the Secretary of the Interior
(Secretary) to convey to the City of Tucson, Arizona, without
consideration, the reversionary interests of the United States
in and to the non-Federal land for the purpose of unencumbering
the title to the non-Federal land to enable economic
development of the non-Federal land.
Subsection (b) directs the Secretary to determine, in a
manner satisfactory to the Secretary, exact legal descriptions
of the non-Federal land as soon as practicable after the date
of enactment of this Act.
Subsection (c) authorizes the Secretary to require
additional terms and conditions to the authorized conveyance,
consistent with subsection (a), as the Secretary considers
appropriate to protect the interests of the United States.
Subsection (d) requires the City of Tucson, Arizona to pay
all costs associated with the authorized conveyance, consistent
with subsection (a), including the costs of any surveys,
recording costs, and other reasonable costs.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
H.R. 1547 would require the Secretary of the Interior to
convey the reversionary interest of the United States in 173
acres of land to the city of Tucson, Arizona. Under current
law, the city holds title to those lands and will retain title
as long as the lands are used for public purposes. If the city
stops using the lands for such purposes, title would revert
back to the federal government.
Using information provided by the city of Tucson, CBO
expects that, under current law, the city will continue to use
the affected lands for public purposes and will hold title to
those lands over the next 10 years. Furthermore, under the act,
any administrative costs associated with conveying the
reversionary interest in those lands would be paid by the city;
therefore, CBO estimates that implementing the act would have
no effect on the federal budget.
Because enacting H.R. 1547 would not affect direct spending
or revenues, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 1547 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 1547 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
On August 18, 2017, CBO transmitted a cost estimate for
H.R. 1547, the Udall Park Land Exchange Completion Act, as
ordered reported by the House Committee on Natural Resources on
July 26, 2017. The two versions of the legislation are similar,
and CBO's estimates of their budgetary effects are the same.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out H.R. 1547. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of H.R. 1547, as ordered reported.
CONGRESSIONALLY DIRECTED SPENDING
H.R. 1547, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of the Interior at
the February 7, 2018, hearing on S. 612, companion legislation
to H.R. 1547, follows:
Statement of Brian Steed, Deputy Director for Policy & Programs, Bureau
of Land Management, U.S. Department of the Interior
Thank you for inviting the Department of the Interior
(Department) to testify on S. 612, the Udall Park Land Exchange
Completion Act. The bill provides for the conveyance of the
Federal government's reversionary interest in a 173-acre parcel
of land known as Udall Park located in the City of Tucson,
Arizona.
Under the Federal Land Policy and Management Act (FLPMA),
the Bureau of Land Management (BLM) is authorized to convey a
reversionary interest upon payment of fair market value
determined by an appraisal. The Department supports the goal of
conveying the reversionary interest to the City of Tucson and
could support S. 612 if amended to ensure payment of fair
market value for the reversionary interest.
We are mindful that legislated transfers of land and
interests in land often promote varied public interest
considerations that may not lend themselves readily to the
standard appraisal process or to equal value exchanges in all
cases. In these instances, the balancing of important public
policy considerations, including ensuring a fair return for the
American taxpayer, ultimately rests with Congress.
Background
The BLM regularly transfers public land to local
governments and nonprofits for a variety of public purposes.
These transfers are typically accomplished under the provisions
of the Recreation and Public Purposes (R&PP) Act or through
direction supplied through specific Acts of Congress. The R&PP
Act is a statute frequently used by the BLM to help States,
local communities, and nonprofit organizations obtain lands--at
no or low cost--for important public purposes such as parks,
schools, hospitals and other health facilities, fire and law
enforcement facilities, courthouses, social services
facilities, and public works. Because these public purpose
lands are conveyed at far below market value, R&PP Act
conveyances and many similar legislated conveyances include a
reversionary clause requiring that lands be used for public
purposes or revert to the Federal government. Over the years,
the BLM has consistently required the payment of fair market
value for the reversionary interest, in accordance with FLPMA's
requirements for disposal of lands or interests in land.
Udall Park is a popular, heavily used urban recreation park
located in the eastern part of the City of Tucson (City). The
173-acre park was established in 1980, when the City entered
into an R&PP Act lease with the BLM. Udall Park then was
transferred to the City in 1989, under an R&PP Act patent. Both
the lease and patent transferring title to the City included a
clause requiring that the lands be used for public purposes.
Prior to the issuance of the 1989 R&PP Act patent, the City
had expressed interest in acquiring the parcel through sale or
exchange. Extensive discussions with the BLM about a potential
exchange followed, although no appraisals of either the parcel
or the land proposed for exchange were conducted at the time.
The City elected to receive the parcel under an R&PP Act patent
rather than as part of a land exchange. The City conveyed land
to the BLM; however, no appraisal was conducted. The Department
notes that the City's conveyance to the BLM and the BLM's
issuance of an R&PP Act patent to the City, when taken
together, do not constitute a land exchange. A land exchange
would have required appraisals of the properties and
equalization of values. The R&PP Act patent to the City
contains the reversionary clause requiring that the lands be
used for public purposes.
The BLM has authority under FLPMA to convey a reversionary
interest retained by the Federal government under the R&PP Act
at fair market value in accordance with uniform appraisal
standards. In the Udall Park case, the BLM and the City have
explored the possible conveyance of the reversionary interest
at fair market value, enabling the City to allow commercial
uses of the land such as the installation of a cellular tower.
S. 612
S. 612 would transfer the Federal reversionary interest in
the Udall Park parcel to the City to facilitate economic
development. All administrative costs associated with the
conveyance would be the responsibility of the City.
FLPMA, which is the authority under which BLM generally
disposes of public land or interests without limit, requires
receipt of fair market value for public lands or interests
transferred out of public ownership. This serves to ensure that
taxpayers are fairly compensated for the removal of public
lands or interests from Federal ownership. The Department
supports the goal of conveying the reversionary interest
outlined in this section. As with previous such proposals, we
recommend amending S. 612 to ensure the payment of fair market
value for the reversionary interest. However, the Department
recognizes that there may be circumstances, as determined by
Congress, in which the public benefits of a proposed transfer
outweigh financial considerations.
Conclusion
Thank you for the opportunity to testify. We look forward
to working with the sponsor and the Subcommittee to address the
needs of the City of Tucson.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill as ordered
reported.
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