RESOLUTION
NO.______
A Resolution of the Mayor and Council of Columbus, Georgia; requesting support
of the Georgia delegation to the United States Congress to work with the
Department of the Army Leadership to request of prohibition of use of PAL
Facilities by the general public and to prohibit the mandatory use of Pal
Facilities as government-provided lodging for soldiers who travel where per
diem is centrally-funded; and for other purposes.
WHEREAS, in 2002, the Department of the Army implemented the Privatized Army
Lodging (PAL) program as an extension of the Military Housing Privatization
Initiative and moved forward in 2004 to privatize lodging facilities due to
poor facility conditions and the high cost to renovate them Army-wide;
WHEREAS, in October 2005, the Department of the Army selected Actus Lend Lease,
an Australia-based developer of property and infrastructure, as the private
developer for the PAL program and retained ownership of the land but conveyed
ownership of the buildings to the developer via a 50-year lease;
WHEREAS, the Department of the Army selected the Intercontinental Hotel Group
(IHG), a United Kingdom-based operator of hotels world-wide, as the operator
and manager of PAL properties under the Department?s Lodging Development and
Management Plan who will build new lodging facilities on Army installations, to
include Fort Benning, to meet the standards of IHG extended stay brands such as
Candlewood Suites and Staybridge Suites, and renovate some existing facilities
to meet the standards for the Holiday Inn Express brand;
WHEREAS, the General Accountability Office (GAO) reported to Congress in 2006
that the PAL program faced a challenge since once privatized, a PAL facility is
no longer considered government lodging and therefore official travelers will
no longer be required to stay in PAL facilities;
WHEREAS, in 2010 the GAO advised that the Department of the Army reported to
Congress that the 2008 economic downturn negatively affected Actus Lend Lease?s
ability to obtain long-term, low-rate financing for the PAL project thus
causing the GAO to opine that the need for proven occupancy at PAL facilities
negatively affected Actus Lend Lease?s ability to obtain financing for the
project and the credit agencies rating of the PAL program as ?below investment
grade;?
WHEREAS, in 2010, the GAO further reported to Congress that the basic premise
of the PAL concept as outlined in 2005 that the ability of authorized travelers
to select the hotel of their choice as an overriding risk factor and that only
after receiving information that authorized travelers would still come to PAL
facilities would the credit rating agencies consider changing the risk profile
and granting better investment grade ratings;
WHEREAS, as late as mid-2012, both Actus Lend Lease and the Department of the
Army officials were stating to the press that no requirement existed for
individual soldiers on temporary assignment to stay in PAL facilities in spite
of requirements to the contrary imposed by the Army Institutional Training
Lodging and Directed Meals program that is enabled by an ?in-license? agreement
between the Department of the Army and Actus Lend Lease to maintain lodging on
installations as government-provided lodging for soldiers;
WHEREAS, The Columbus Council recognizes the financial challenges facing the
Department of the Army in light of severe budget cuts and continuing
sequestration and the benefits to the Department of divesting itself of
non-core functions such as hotel management;
WHEREAS, The Columbus Council also recognizes that the addition of over 820
more hotel rooms in a hotel constructed as a private enterprise enjoying tax
and fee exemptions not available to hotels in the Columbus area and, with those
rooms available to the general public at a discount, create a profound economic
disadvantage.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
The Columbus Council hereby reaffirms its support for soldiers, their families,
and civilian employees of the Department of Defense and its continued
recognition of the value of Fort Benning to our economy and national defense.
Further, in keeping with the original purpose of an Army lodging facility, the
Columbus Council hereby requests the support of the Georgia delegation to the
United States Congress to work with the Department of the Army leadership to
request the following:
(1) That the use of PAL facilities be restricted to those visitors with
military ID;
(2) That the PAL facility be an independent hotel as opposed to a recognized
name brand or branded hotel and that such facility not be otherwise marketed to
unofficial visitors; and
(3) That the Army refrain from imposing mandatory per diem reductions on any
local private lodging facilities which accomodate official visitors who
overflow the PAL facility capacity.
Further, that the Clerk of Council is hereby directed to send a copy of
this Resolution to each member of the Georgia delegation to the United States
Congress.
_____________________
Introduced at a regular meeting of the Council of Columbus, Georgia held on the
25th day of February, 2014, and adopted at said meeting by the affirmative vote
of ______ members of Council.
Councilor Allen voting____________.
Councilor Baker voting____________.
Councilor Barnes voting___________.
Councilor Davis voting____________.
Councilor Henderson voting________.
Councilor Huff voting_____________.
Councilor McDaniel voting_________.
Councilor Pugh voting_____________.
Councilor Thomas voting___________.
Councilor Woodson voting__________.
______________________________ ______________________________
TINY B. WASHINGTON TERESA PIKE TOMLINSON
CLERK MAYOR
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