NATIONAL PARK SERVICE: Federal Taxpayers Could Have Benefited More From Potomac Yard Land Exchange
Abstract
Settling 30 years of sometimes acrimonious dispute, in March 2000 the Department of the Interior's National Park Service and a private developer 1 completed an exchange of land interests on two vacant parcels of land in Potomac Yard, an approximately 380-acre former rail yard adjacent to the Park Service's George Washington Memorial Parkway near Washington, D.C. Although the developer owned both parcels, the Park Service also had an interest in them. On one parcel referred to as the Alexandria parcel the Park Service held a commitment from the developer to build an interchange on the Parkway; on the other parcel referred to as the Arlington parcel it held a development restriction known as an indenture. In the exchange, the Park Service allowed the developer to buy out its interchange commitment, lifted the indenture on the Arlington parcel, and acquired specific development restrictions on both parcels to protect the Parkway's scenic qualities. To estimate the fair market values of the interests being exchanged, the developer contracted with a private appraisal firm to prepare two appraisals (one for each parcel), which the Park Service reviewed and approved as conforming to federal appraisal standards. The appraisals reported that on balance the Park Service owed the developer $14 million. This represented the difference between the estimated value of potential development opportunities the developer gave up under the Park Service 's restrictions (totaling $29 million) and the estimated values of the indenture and interchange (totaling $15 million) given up by the Park Service. The developer waived the difference of $14 million.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2001
- Accession Number
- ADA388749
Entities
Organizations
- United States Government Accountability Office