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Excerpt from Facilities and Construction Programs of the Department of Veterans Affairs: Hearing Before the Committee on Veterans' Affairs, United States Senate, One Hundred Third Congress, First Session; May 6, 1993

Mr. Chairman, you also requested that we address the Depart ment's enhanced-use leasing program and our actions to manage Pershing Hall, which is a building located in Paris, France. The Department is now in the process of testing the feasibility of an enhanced-use lease program with this project, and I'll ask Mr. Kushnir later on to explain some more of that process to you.

The first use of this enhanced-use authority was for a child care center at the Washington, DC, VA Medical Center which was awarded April 30. With this project, the Department will get a child care center for its employees at no cost to the Government and reduced rates for the employees.

The other use of this authority to date is for the collocation of a Houston VA benefits office on VA medical center land. The proposal selected will provide for the required vba regional office and associated parking and a square feet of non - VA retail space. Several other enhanced-use projects are under development for child care centers, parking structures, research labs, and training facilities. We are optimistic that this program will prove to be a cost-effective means of obtaining needed facilities.

During the past 18 months, the Department has been engaged in an ongoing effort to assume control over the operations of Pershing Hall. We have made progress but issues concerning its use and operations still remain.

Because of the financial impact of these inherited occupancy problems, the Department is requesting authority to transfer up to from the major construction working reserve fund to the Pershing Hall Revolving Fund. This fund will allow VA to continue operation of the building until VA is able to redevelop the building as required by Public Law 102-86. As with the original amount made available toward this effort, the construction fund will be reimbursed from future funds received with the lease.

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