Selling off Federal Property a Simple Way to Raise Money

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Selling off Federal Property a Simple Way to Raise Money in this Market ..

According to officials familiar with the talks, the White House suggested the government could raise $12 billion by selling unneeded federal land, with as much as $5 billion coming from this one Los Angeles property. "Sell it," said Rep. Eric Cantor...

Selling off federal property might seem a simple way to raise money. But in reality, officials say, red tape and the costs of shuttering a building, as well as allaying local concerns, have stymied such efforts in the past.
"While local politicians and leaders love to [preside] over ribbon-cutting ceremonies, getting rid of property can be a much less rewarding experience," said Jeffrey Zients, chief performance officer at the White House Office of Management and Budget.
The Government Accountability Office reported this year that 24 federal agencies own more than 45,000 under-utilized buildings that cost $1.66 billion annually to operate.
The idea of selling properties remains under consideration as part of the deficit package now being negotiated, officials said.
Earlier this year, the White House proposed a new process for selling properties akin to how the government closes military bases. A board would make recommendations to Congress, and several properties would be packaged together and sent to Congress. Then Congress would vote either yes or no to the whole package, making it harder for lawmakers to protect home-state favorites. House Republicans have readied similar legislation.
Some properties marked for sale have little or no value—a supply shed or air-traffic control tower. Others are worth a lot, perhaps none more than the West Los Angeles Medical Center, situated on prime real estate.

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