VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS AFFAIRS, Hon. LISTER HILL, Chairman, Committee on Labor and Public Welfare, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: We are pleased to respond to your request for a report on S. 619, 90th Congress. The bill proposes to authorize and direct the Administrator of Veterans Affairs to convey, not later than December 31, 1970, without consideration, to the State of Tennessee for use of Memphis State University, all right, title and interest of the United States in and to a tract of land of 145 acres, more or less, with improvements thereon which constitute the present Veterans Administration hospital reservation at Memphis, Tennessee. Pursuant to section 2 of the bill the Administrator would be authorized to convey the tract or portions thereof earlier than December 31, 1970, under stated conditions. Under section 3 the property would revert to the United States if it were ever used for other than educational purposes. The cost of any necessary survey and all other expenses of preparation and recording of necessary legal documents would be paid by the Memphis State University, according to section 4 of the bill. On August 26, 1946, the then War Department transferred to the Veterans Administration approximately 146 acres with 121 buildings and structures thereon. We currently operate a 1091-bed general hospital on the property. We have been unable to verify the statement, at lines 1 and 2 of page 2 of the bill, that all the reservation acreage was paid for by the City of Memphis and the County of Shelby, Tennessee. For your information, however, an Ownership Map of the property in question prepared by the Corps of Engineers in 1944, indicates 129.06 acres were donated by the City of Memphis and 17.27 acres were acquired in fee from private ownership. It is anticipated that the new Veterans Administration Hospital in Memphis, approximately seven miles from the present hospital, will be activated in late summer or early fall of this year. At that time the land and buildings of the present Veterans Administration Hospital will be excess to our needs. In this connection, the City of Memphis has an easement on the southwest corner of the property and has built a fire station there. Several of the hospital buildings are presently being used by the Memphis State University under lease from the Veterans Administration. Our principal interest in S. 619 is to assure that any portion of the tract conveyed under section 2(b) of the bill is not used in a manner inimical to the proper and effective operation of the Veterans Administration Hospital on the remaining portion of the tract. That section of the bill provides adequate authority to safeguard the interest of the Government in that respect. In view of the Administrator of General Services' responsibility under the public law for disposal of public property your Committee may desire to obtain his views on S. 619. Insofar as the Veterans Administration is concerned, there would be no objection to favorable consideration of the bill by your Committee. The Bureau of the Budget has advised with respect to a similar report to the Chairman, House Committee on Veterans' Affairs, dated March 13, 1967, on bills with the same purpose as S. 619 (H.R. 3945, H.R. 3967 and H.R. 4717, 90th Cong.), that while there was no objection to the submission of that report, it believes that, unless there are circumstances of which it is not aware, the property in question should be disposed of under existing provisions of law for the following reasons: (1) it appears that substantial improvements exist on the property; (2) the Bureau understands that the property has not yet been declared excess to the General Services Administration and therefore there has been no opportunity to determine whether it is actually excess to the needs of the Federal Government; and (3) if it is eventually determined that the property is excess to those needs, it could be made available for donation for public educational uses (as these bills contemplate) under the provisions of existing law. Sincerely, W. J. DRIVER, Administrator. 77-357 0-67 EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., April 4, 1967. Hon. LISTER HILL, Chairman, Committee on Labor and Public Welfare, U.S. Senate, New Senate Office Building, Washington, D.C. DEAR MR. CHAIRMAN: This is in respone to your request for the views of the Bureau of the Budget on S. 619, a bill “To authorize the conveyance of certain lands owned by the United States to the State of Tennessee for the use of Memphis State University, Memphis, Tennessee." S. 619 would direct the Administrator of Veterans Affairs to convey, without monetary consideration, to the State of Tennessee for the use of Memphis State University, title to approximately 145 acres of land including the improvements thereon, which constitute the present Kennedy Veterans Administration hospital reservation at Memphis, Tennessee. The conveyance would be required not later than December 31, 1970. However, the Administrator would be authorized to convey the entire tract or portions thereof earlier than December 31, 1970, under certain stated conditions. The bill further provides that the property would revert to the United States if it were ever used for other than educational purposes. The report of the Veterans Administration notes that an ownership map prepared in 1944 indicates that the land in question is composed of about 129 acres donated to the Government by the City of Memphis with the balance acquired in fee from private ownership. The Veterans Administration currently operates a 1,091-bed general hospital on the site. VA anticipates that the land and buildings thereon will become excess to its needs when a new VA hospital at another site is opened in Memphis in the near future. The property has not been reported excess by the VA to the General Services Administration for futher Federal utilization or disposal. S. 619 represents a departure from the provisions of general law whereby, if property is excess to the needs of one Federal agency, the GSA first ascertains whether there is a further Federal need for its use. If no other Federal use exists, GSA then disposes of the property as surplus; and under existing law, it could, among other dispositions, be made available through the Department of Health, Education, and Welfare for educational purposes at a public benefit allowance of up to 100 percent. In this connection, we have been advised by HEW that two other educational institutions have expressed an interest in the property. This bill would preclude that Department from considering what educational need and use of the property would be in the greater public interest. In light of the above, and unless unique or unusual circumstances exist, we recommend against enactment of S. 619 and favor instead disposal of the property under existing provisions of law. Sincerely yours, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. GENERAL SERVICES ADMINISTRATION, Hon. JENNINGS RANDOLPH, Washington, D.C., April 4, 1967. Chairman, Subcommittee on Veterans' Affairs, Committee on Labor and Public Welfare, U.S. Senate, Washington, D.C. DEAR SENATOR RANDOLPH: Your letter of March 28, 1967, requested the views of the General Services Administration on S. 619, 90th Congress, a bill "To authorize the conveyance of certain lands owned by the United States to the State of Tennessee for the use of Memphis State University, Memphis, Tennessee." The bill would direct the Administrator of Veterans' Affairs to convey all of the land comprising the Kennedy Veterans' Hospital in Memphis, Tennessee, to the State of Tennessee for the use of Memphis State University without monetary consideration, subject to such terms and conditions as the Administrator may prescribe and to reversion to the United States if the college alienates the land or violates any provision in the deed. The conveyance would be made not later than December 31, 1970, or at the time the Administrator of Veterans' Affairs determines that the property is no longer needed by the Veterans' Administration. According to the bill the land was donated by the city of Memphis and the county of Shelby, Tennessee, to the United States as a site for a Veterans' Administration hospital, which the Veterans' Administration subsequently constructed and is now operating, but which will be relocated when the construction of a new facility is completed. The property in question has not been reported by the Veterans' Administration to GSA for further Federal utilization or disposal. If this property were to be reported to GSA as excess real property, we would first ascertain whether there is a further Federal need for its use. If none were found, plans would then be made by GSA for the disposal of the property as surplus pursuant to the Federal Property and Administrative Services Act of 1949, or other applicable statutes. In such case, in accordance with normal procedure, our regional office at Atlanta, Georgia, would notify the appropriate State, county and city officials of the availability of the property. We consider that a former owner who has voluntarily donated property to the Federal Government has been adequately compensated through the development of the property by the Government for the purpose for which the donation was made and through the realization of such direct or indirect benefits as may have resulted from such development. Inasmuch as the Veterans' Administration facility of Memphis was constructed on the property donated by subdivisions of the State, we believe that the objectives of the donation have been accomplished, and the fact that the two parcels in question were originally a part of the property donated for this purpose does not now provide a basis for their conveyance to the State without consideration. In addition, enactment of S. 619 would preclude the opportunity for further utilization of the property by Federal agencies. Ordinarily, GSA would object to legislation which would have such a result. If, however, the land were surplus to the needs of the Federal Government, it could me made available for the proposed use under existing law through the Department of Health, Education, and Welfare, at a public benefit allowance of up to 100 percent. GSA would therefore have no objection to S. 619 if it were amended to provide that conveyance thereunder would not take place until the property is determined to be surplus to the needs of all Federal agencies. 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 yours, Hon. JENNINGS RANDOLPH, LAWSON B. KNOTT, Jr., DEPARTMENT OF THE ARMY, Chairman, Subcommittee on Veterans' Affairs, DEAR MR. CHAIRMAN: Reference is made to your recent inquiry addressed to the Secretary of the Army requesting that the Corps of Engineers furnish a record of the acqusition and disposal by this Department of real property formerly known as the Kennedy General Hospital, which property is the subject of S. 619, 90th Congress, a bill "To authorize the conveyance of certain lands owned by the United States to the State of Tennessee for the use of Memphis State University, Memphis, Tennessee." An examination of the realty records of this office discloses the following information. The Kennedy General Hospital, located in Shelby County, Tennessee, was originally authorized in 1942 for the construction and establishment of a 1,000-bed hospital. The acquisition of the site of this hospital, comprising 146.33 acres of land, was authorized by the Secretary of War in three increments by directives dated 16 January 1942, 23 June 1942, and 21 September 1942. The land cost of this entire area aggregated $66,383. Of this cost, the county of Shelby and the city of Memphis donated $58,689 for 129.06 acres and the Federal Government expended $7,294 for 17.27 acres of land. There is inclosed a copy of the real estate project map of the Kennedy General Hospital Military Reservation indicating boundaries, acreage and former ownerships of the tracts acquired. A brief summary of the acquisition aspects is as follows: a. The 121.05 acres, comprising tracts numbered 1 through 12 were acquired by the United States by condemnation proceedings filed on 24 March 1942 in the Federal District Court for the Western District of Tennessee. Total compensation payments were $55,485, the full amount of which was paid from funds donated by the county of Shelby and the city of Memphis. Detailed data are set forth on the inclosed copy of Tract Register for Directive No. 550. b. The 8.01 acres comprising tracts numbered 13 and 14 were acquired by donation by two deeds from the city of Memphis to the United States each dated 2 March 1942. Cost to the city for the purchase of these properties was estimated at $3,204. Inclosed is a copy of the Tract Register for Directive No. 1694 relating to these tracts. c. The 17.27 acres comprising tracts numbered 15 and 16 were acquired by the United States by two deeds dated 12 March 1943 and 29 March 1943 at a total purchase price of $7,294. Inclosed is a copy of the Tract Register for Directive No. 1144 relating to these tracts. d. Construction of the 1000-bed hospital complex was mostly accomplished during 1942 at a total cost approximating $10,000,000. This entire facility, comprising 146.33 acres of land together with all improvements, was transferred to the Veterans' Administration by letter from the Secretary of War dated 26 August 1946. I trust the above information will be satisfactory for your requirements in this matter. 4 Incls. Sincerely, MAX MCCORD, Colonel, Corps of Engineers, Director of Real Estate. 1. Real Estate Project Map (The inclosures referred to above may be found in the files of the subcommittee.) Senator RANDOLPH. Senator Gore, we are delighted to have you make an opening statement or present your colleague and to counsel with the subcommittee as we begin to hear the witness or witnesses. We are very happy to have you here today. STATEMENT OF HON. ALBERT GORE, A U.S. SENATOR Senator GORE. Thank you, Mr. Chairman. I want to express to you on my behalf and on behalf of my distinguished colleague sincere appreciation for the manner in which you have handled this bill, S. 619. As you have said, Senator Baker and I are cosponsors, and we are grateful for the time you have devoted to it in talking with us several times and in conducting this hearing today. This legislation is in the nature of a private bill, but it in actuality is not a private bill. It is of national importance since it has a bearing on the opportunities for higher education for several thousand young people not only of Tennessee but of the entire Mid-South. The bill provides authority and direction for the transfer of certain property now known as the Kennedy Hospital, a property under the jurisdiction of the Veterans' Administration, to the State of Tennessee for the use of Memphis University. I realize that we have established procedures for the disposition of property surplus to the needs of the U.S. Government. I am well aware, too, that the bill before you provides an exception. Mr. Chairman, I wish to indicate why I think an exception is justified in this instance. Witnesses from the university will make this more explicit. An exception, as I see it, is justified, first, because of an urgent educational need. Memphis State University now has an enrollment of more than 14,000 students. The curriculum of the university has been expanded to meet the needs of the student body, and the student body is constantly growing, as is the city of Memphis. It is anticipated that by 1970 this will be a university of more than 20,000 students. They are virtually spilling out into the street. Memphis is one of the largest and one of the most rapidly growing cities in America. Both the city and the university are of genuine importance to the entire Midsouth. This is a regional school and is rapidly becoming more so. Naturally, those who first established the campus and the physical layout of the university did not envision-indeed, who could have envisioned then-that this would become a university of truly major proportions in so short a period of time. Nevertheless, the problem is upon us. It is not just a local problem. but a State and a regional problem as well; therefore, it is truly a national problem. The urgency of the need, the good purposes to be served, and the need for expeditious action, would justify this exception to which I have referred. There is an urgent requirement for prompt action on this bill. There are a number of unused buildings on the property at the present time. The university can make considerable use of these buildings temporarily, particularly if they are acquired before further deterioration takes place. Indeed, some buildings are already in use by the university under lease from the Veterans' Administration. Most of the land involved was paid for originally by the city of Memphis and Shelby County and given to the Federal Government. As for the improvements, they are of a highly specialized type and of little value for any purpose, as I see it, other than one similar to the use contemplated in this legislation, and then suitable only for temporary use as facilities while others can be constructed. The Federal Government, through our regular surplus property disposal program, has donated many millions of dollars worth of property for educational uses. In this case, the present governing officials of Memphis and Shelby County have indicated their desires that this property be donated for the purpose set out in the bill now before you. I do hope this bill can be approved in its present form. Mr. Chairman, I would like to submit for the record a copy of a resolution passed today by the City Council of the city of Memphis, and copies of telegrams from the mayor and the city council, and also from the county judge and County Court of Shelby County, indicating the desire of both these governmental units, which contributed a large portion of the land in the first place to the Veterans' Administration, that it now be transferred to the State of Tennessee for the educational purposes now in the bill. Senator RANDOLPH. Senator Gore, the material will be made a part of this record. Thank you very much. |