38 U.S.C. § 316 — Colocation of regional offices and medical centers

(a) To run regional offices more cheaply, efficiently, and effectively, the Secretary must arrange for at least three regional offices to share a site with VA medical centers. That site must be either (1) VA property at the medical center itself, or (2) property next to the medical center that the VA owns because it was given to the United States specifically for this colocation. (b) (1) Despite any other law, the Secretary may lease the property described in (a)(1) or (2) to an outside party, with or without payment, for up to 35 years, at no more than seven locations. (2) That leased land becomes the site for a facility that (A) the outside party (the lessee) builds and owns, and (B) is then leased back to the Department under subsection (c)(1) for use as a regional office and any other activity the Secretary approves. (c) (1) The Secretary may lease space in that facility for up to 35 years, on whatever terms best serve the Department. (2) Every such lease agreement must state that (A) the government's duty to pay depends on Congress appropriating the money, and (B) ownership of the facility passes to the United States once the lease ends. (d) (1) The Secretary may then sublease space in that facility to yet another party, but never for less than (A) the rent the Secretary pays for that space under subsection (c), plus (B) the Secretary's share of the costs to run the facility, including operations, maintenance, utilities, and repairs. (2) Any sublease must include terms the Secretary thinks are needed to protect the government if the other party defaults or fails to perform. (e) The Secretary must use the money collected from leasing the land under subsection (b) to pay for leasing the facility under subsection (c). (f) (1) Subject to paragraph (3)(A), the Secretary had to issue, by April 18, 1990, an invitation for offers covering three colocations under this section. That invitation had to include, for each colocation: (A) which site is being developed; (B) the minimum office space needed; (C) design standards for the facility; (D) a plan for security and parking; (E) current and projected rent and other costs; (F) the estimated construction cost, the estimated yearly cost of leasing regional-office space, and the estimated yearly cost of leasing the whole facility; (G) a plan for getting the needed licenses, easements, and rights-of-way; and (H) the lease terms and conditions the Secretary had already approved. (2) Subject to paragraph (3)(B), the Secretary had to (A) sign an agreement for one colocation within a year of issuing the invitation, and (B) sign agreements for two more colocations within 180 days after that, unless the Secretary decided it was not economically worthwhile, weighing all the costs and benefits, tangible and intangible. (3) The Secretary also had to (A) send a copy of the invitation to the Senate and House Veterans' Affairs Committees at least 10 days before issuing or publishing it, and (B) send those Committees a copy of the chosen proposals at least 30 days before signing any agreement. (g) The authority to sign new agreements under this section expired on September 30, 1992.