LEASES OF PROPERTY, NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA.

SEC. 2834. LEASES OF PROPERTY, NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA. (a) Lease Authorized With Union Pacific Railroad Company.— (1) The Secretary of the Navy may lease to the Union 106 STAT. 2614Pacific Railroad Company (in this subsection referred to as the “Company”) not more than 15 acres of real property, together with improvements thereon, located at the Naval Supply Center, Oak-land, California. (2) The lease authorized in paragraph (1) shall— (A) be for an initial period of not more than 25 years; (B) contain an option for the Company to extend the lease for an additional period of not more than 25 years; and (C) contain the restriction that the Company use the leased property only for freight transportation purposes. (3) (A) As consideration for the lease of the real property under paragraph (1), the Company— (i) shall pay to the Navy the long-term fair market rental value of the leased property; and (ii) may be required to furnish additional consideration as provided in subparagraph (B). (B) The Secretary may require that the lease include a provision for the Company— (i) to pay the Navy an amount (as determined by the Secretary) for the costs of replacing at the Naval Supply Center, Oakland, California, the facilities vacated by the Navy on the leased property or to construct the replacement facilities for the Navy; and (ii) to pay the Navy an amount (as so determined) for the costs of relocating Navy operations from the vacated facilities to the replacement facilities. (4) (A) Section 2667(d) of title 10, United States Code, shall apply to amounts paid under paragraph (3)(A)(i). (B) The Secretary may use amounts received under paragraph (3)(B) to pay for constructing new facilities, or making modifications to existing facilities, that are necessary to replace facilities vacated by the Navy on the leased property and for relocating operations of the Navy from the vacated facilities to the replacement facilities. (5) The Secretary may authorize the Company to demolish existing facilities on the leased property and, consistent with the restriction required by paragraph (2XC), construct new facilities on the property for the use of the Company. (b) Lease Authorized with City or Port of Oakland.— (1) The Secretary of the Navy may lease to the City of Oakland, California, or the Port of Oakland, California (in this subsection referred to as the “City” and the “Port”, respectively), not more than 195 acres of real property, together with improvements thereon, located at the Naval Supply Center, Oakland, California. (2) The lease authorized under paragraph (1) shall— (A) be for a term of not more than 50 years; and (B) shall contain the restriction that the City or the Port (as the case may be) use the leased property in a manner consistent with Navy operations conducted at the Naval Supply Center. (3) (A) As consideration for the lease of the real property under paragraph (1), the City or the Port (as the case may be)— (i) shall pay to the Navy the long-term fair market rental value of the leased property; and (ii) may be required to furnish additional consideration as provided in subparagraph (B). (B) The Secretary may require that the lease include a provision for the City or the Port (as the case may be)— 106 STAT. 2615 (i) to pay the Navy an amount (as determined by the Secretary) for the costs of replacing at the Naval Supply Center, Oakland, California, the facilities vacated by the Navy on the leased property or to construct the replacement facilities for the Navy; and (ii) to pay the Navy an amount (as so determined) for the costs of relocating Navy operations from the vacated facilities to the replacement facilities. (4) The Secretary may not enter into the lease authorized by paragraph (1) until 21 days after the date on which the Secretary submits to the Committees on Armed Services of the Senate and House of Representatives a report containing an explanation of the terms of the proposed lease and a description of the consideration that the Secretary expects to receive under the lease. (5) (A) The Secretary may use amounts paid under paragraph (3)(A)(i) to pay for improvement, maintenance, repair, construction, or restoration activities at the Naval Supply Center, Oakland, California. (B) The Secretary may use amounts received under paragraph (3)(B) to pay for constructing new facilities, or making modifications to existing facilities, that are necessary to replace facilities vacated by the Navy on the leased property and for relocating operations of the Navy from the vacated facilities to the replacement facilities. (6) The Secretary may authorize the City or the Port (as the case may be) to demolish existing facilities on the leased property and, consistent with the restriction required by paragraph (2)(B), construct new facilities on the property for the use of the City or the Port. (c) Additional Terms.— The Secretary may require such additional terms and conditions in connection with the leases authorized under this section as the Secretary considers appropriate to protect the interests of the United States. (d) Repeal of Superseded Authority.— Section 2338 of the National Defense Authorization Act for Fiscal Years 1988 and 1989 (Public Law 100–180; 101 Stat. 1225) is repealed.