A local lawmaker is questioning the federal government’s decision to sell the Anthony J. Celebrezze Federal Building and urging the Trump Administration to explain why it has been slated for “accelerated disposition.”
In a letter to the General Services Administration, Congresswoman Shontel Brown (OH-11) has asked the government to provide documentation surrounding its decision to sell the federal building and to explain how doing so will benefit the city, residents and local economy.
“While I appreciate the General Services Administration’s (GSA) stated commitment to fiscal responsibility and meeting the mission needs of customer agencies, I remain deeply concerned that the decision to dispose of this building on an accelerated timeline will not only erode the public’s ability to access government services but also negatively impact the economic well- being of Ohio’s 11th Congressional District,” Brown said in the letter.
Specifically, Brown questions the GSA’s analysis that the sale will generate a $149 million projected cost advantage that the government says it will receive by selling the building and leasing a different space elsewhere.
It’s a move that Brown said could negatively impact Cleveland.
“The Trump Administration’s plan to sell the Celebrezze building is a bad deal for Cleveland—bad for constituent services, bad for our local economy, and bad for federal workers. On top of that, I have serious concerns this plan will end up costing taxpayers, especially since Trump is demanding the sale on a shortened three-year timeline.
“The Administration claims their data shows that selling the building and leasing new space will save money. But without transparency, how can we trust that an outdated appraisal or faulty utilization data isn’t skewing their analysis? If their numbers are truly solid, they should have no problem releasing them. Clevelanders and federal taxpayers deserve nothing less than complete transparency and adherence to federal processes that protect their interests,” Brown said in the letter.
Specifically, Brown has requested the following from the GSA.
1. A copy of the comprehensive 30-year net present value (NPV) analysis comparing the cost of continued ownership of the property with the full financial implications of disposition, including the relocation of existing tenants and any anticipated leaseback arrangements;
2. A copy of the appraisal of the property used in your analysis, including the methodology used, date of valuation, and whether the appraisal considered any public benefit or historical use value;
3. A complete accounting of current tenants in the property and plans for their relocation;
4. All documents and communications with agency heads and personnel regarding the
property’s disposition and proposed tenant relocation;
5. All documents and communications with potential buyers;
6. All documents and communications concerning any known relationships between potential buyers and GSA personnel or other federal employees, including special government employees; and
7. A full and complete list, including descriptions, of the steps GSA is taking to comply with relevant federal laws and regulations concerning federal property disposition, including:
a. Requirements that real property be disposed of in the most economical manner consistent with the best interests of the government;
b. Requirements that real property be screened for possible transfer to other federal agencies;
c. Requirements for screening properties for public benefit conveyance, such as homelessness assistance or other public uses;
d. Requirements that any property not conveyed for public or federal benefit be sold at fair market value.
The federal building has been a part of the city’s skyline since it was erected in the 1960s. It’s located on East 9th Street in Downtown Cleeland and home to thousands of federal workers across various agencies such as the IRS, Veterans Benefits Administration and the Defense Finance and Accounting Service.
The building’s sale is part of the Trump Administration’s plan to slash government spending:
RELATED: Cleveland's federal office building is likely to hit the market soon. It could be a tough sell.
While the building had a $120 million facade facelift in 2016, its sale could be problematic for potential buyers as it needs some significant repairs, such as water pipe replacements, that could cost millions of dollars.
City and county officials previously said that ensuring the continued employment of the thousands of people who work in the building is top of mind, with some officials saying they don’t want the building sold.
