Legion has serious concerns with selling Pershing Hall and wants to address the leasing issue in the AIR Act.
American Legion National Veterans Affairs and Rehabilitation Division Director Louis Celli testified before Congress on Oct. 12 about two draft bills. These bills include the Asset and Infrastructure Review (AIR) Act of 2017 that would require the secretary of the Department of Veterans Affairs (VA) to develop criteria to assess and recommend changes to VA medical facilities, and House Resolution (H.R.) 2773 authorizing VA to sell Pershing Hall in Paris, France.
AIR Act of 2017
House Veterans’ Affairs Committee Chairman Phil Roe said AIR Act legislation "is bold, transformative and controversial. Veterans, VSOs (veterans service organizations), VA employees and taxpayers alike deserve more from each of us than to recognize how serious the problem before us is and to fail to act now to institute a solution.”
According to Celli’s written testimony, VA currently maintains a complex physical infrastructure of thousands of buildings that deliver coordinated care to more than nine million enrolled veterans. Over the years, many of the buildings that VA uses to deliver this care have been left to deteriorate in favor of fiscal savings.
Celli said a rehabilitative process is what needs to happen today. The VA, VSOs, Congress and the Commission on Care have known that VA needs to discard some of its properties, fix others and rebuild where demand requires it.
“Admittedly, this is a complicated process – one that will require a complete assessment of VA’s health-care delivery services and current physical capabilities,” Celli said. “VA will need to complete a comprehensive health-care market assessment, Veterans Integrated Service Network by Veterans Integrated Service Network , before anyone can offer a responsible assessment or recommendation on the modernization of VA’s assets and infrastructure.”
Celli said comparisons have been made between the proposed Asset and Infrastructure Review process contemplated by this draft legislation, and the Base Closure and Realignment Commission (BRAC) process that the Department of Defense (DoD) has used to realign and close excess bases.
It is important to note, Celli said, that BRAC was established because DoD had reduced its active duty force from nearly 3.8 million active-duty personnel following Vietnam, to more than 1.3 million in 2000. However, this is not the case with VA.
“The need to restructure is based on the need to refurbish and modernize infrastructure so that VA can provide 21st century medicine to a growing population of veteran patients at a controlled cost, with superior results,” he said.
According to Roe, the AIR Act would also establish an 11-member Asset and Infrastructure Review Commission. This commission would use criteria established by the VA secretary, including recommendations for action, to develop a report containing findings and recommendations for the modernization and realignment of VA medical facilities.
Celli said The American Legion opposes the establishment of a commission to oversee this process. More importantly, there have been issues with leasing health-care facilities over the past several years.
There is no better time than now, Celli said, to address the leasing issue in the AIR Act.
“This legislation will certainly miss the mark if we fail to fix this leasing issue once and for all,” he said. “I cannot stress strongly enough that the Legion will absolutely not support a commission whereby congressionally chartered VSOs, which are the most accurate representation of voices for millions of veterans, are not empowered to have collective veto power over what could turn into a runaway committee.”
For Celli, granting the commissioners unilateral authority to change or amend the VA secretary’s recommendations cannot happen under any circumstances.
“We have seen in the past how appointees have undermined this authority by accepting an appointment on a visionary committee, only to divorce themselves from their organization in favor of their personal opinions and leave the VSO community without a voice in the process,” Celli said. “This is shameful and unacceptable.”
When it comes to demographics, Celli said, The American Legion feels strongly that commission members should be representative of the average VA patient in today’s society, with an understanding of what their needs will be tomorrow.
“The structure of this commission calls for senior-level executives and experts to oversee millions of dollars in health care infrastructure,” Celli said. “If the reward for serving on this commission isn’t about serving veterans and having the honor of reporting to Congress and the president of the United States, then perhaps we should reevaluate the selection process.”
Roe said he appreciates the thoughtful comments from the VSO community and looks forward to incorporating many of their suggestions in the coming days.
“This bill is still a draft and I understand that there are still a number of concerns and questions about it, particularly with regard to the timeline, the composition of the commissioners and the involvement of veterans and advocates,” Roe said. “I intend to also incorporate provisions to its introduction to increase the threshold of minor construction projects and expand enhanced use lease authority.”
Selling of Pershing Hall, in Paris, France
Although many VSOs may not have a strong opinion regarding Pershing Hall in Paris, France, Celli said this property has a very historical and deep personal meaning for The American Legion.
“Nearly 100 years ago, members of the American Expeditionary Forces in World War I came together to preserve the memories and incidents of our associations in the Great Wars,” he said. “As the 100th anniversary of our founding approaches, The American Legion is still dedicated to that mission.
“The American Legion fought for the dedication of a memorial building in Paris, France, which is the city where the Legion was formed to recognize the service and sacrifices of members from the American Expeditionary Forces and General of the Armies John J. Pershing. We take our responsibility, to ensure the sacrifices of America’s military are not forgotten, very seriously.”
Simply put, Celli said the Legion has serious concerns with selling Pershing Hall. The building is currently in a 99-year-long lease with a company that renovated it to become a hotel.
Legion representatives in Paris have learned that the intent of the hotel owner is to buy the building using first rights of refusal when the building becomes available for purchase. The owner then wishes to terminate the lease once they have ownership of the building, according to Celli.
“Trying to dump it in a fire sale is a huge mistake not only in the interest of American history, but financially as well,” Celli said. “The market value of the property right now is more than $80 million. However, because of the existing lease, property appraisers will only appraise the property at a tenth of the actual value.”
Celli said The American Legion believes that Pershing Hall should remain in the ownership of the federal government, and therefore, opposes H.R. 2773.
“The preservation of these artifacts and the history it represents is a major concern that we have. The materials deserve to be kept together for the original purpose – to honor and remember general Pershing and those who fought in World War I,” he said. “We feel this legislation is a shortsighted attempt, and quick fix, to a larger issue with VA.
“Ultimately, selling Pershing Hall would mean veterans lose. We look forward to working with Congress to find the best outcome for this historic building.”
Click here to read Celli’s written testimony, including amended language and the Legion’s recommendations for the AIR Act.
- Legislative