Viewing page 74 of 267

This transcription has been completed. Contact us with corrections.

-64-

[[underlined]]Smithsonian Service Center (North Capitol Street)[[underlined]]

Mr. Jameson started that the Institution leases a 160,000 square-foot multi-purpose building (Shipping, receiving, exhibits production, collection storage, etc.) with parking for about 75 cars on North Capitol Street just north of the Government Printing Office. Four one-year lease extension options (effective October 1, 1980, and subsequent years) remain. The FY 1980 rental is about $490,000. It is our intention to remain in this building because of its utility and convenience to other Smithsonian facilities.

A Washington, D.C. investment firm recently signed a contract to purchase the building with settlement expected by October 1, 1980. There is a possibility that the expected purchasers will attempt to void the present lease and renegotiated a new one at higher rates. While aware that the Institution presently has no authority to enter into a multi-year lease the firm wishes such a document which they can use as a guarantee for their own borrowing purposes.

In order to help assure the Institution's continued use of the building, we are in the process of requesting clearance from the Office of Management and Budget to seek authority from the Congress to contract for a multi-year period in advance of receipt of appropriations. The likely financial advantages to the Institution would appear to make our request attractive.

Should the present purchase not be completed, the present owner wishes to find a buyer and would be responsive to a proposal from the Smithsonian. It is possible that a purchase with trust funds might be worked out for approximately the same amount over a ten-year period as is now being budgeted for rental expenses at L'Enfant Plaza. The Institution plans to explore this alternative and will keep the Board of Regents fully informed.