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Treaties and Other International Acts Series 94-923 ______ TREATIES AND OTHER INTERNATIONAL ACTS SERIES 94-923 ________________________________________________________________________ PROPERTY Real Property Exchange Agreement Between the UNITED STATES OF AMERICA and GERMANY Signed at Bonn September 23, 1994 with Attachments NOTE BY THE DEPARTMENT OF STATE Pursuant to Public Law 89—497, approved July 8, 1966 (80 Stat. 271; 1 U.S.C. 113)— “. .the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence . of the treaties, international agreements other than treaties, and proclamations by the President of such treaties and international agreements other than treaties, as the case may be, therein contained, in all the courts of law and equity and of maritime jurisdiction, and in all the tribunals and public offices of the United States, and of the several States, without any further proof or authentication thereof.” GERMANY Property: Real Property Exchange Agreement signed at Bonn September 23, 1994; Entered into force September 23, 1994. With attachments. AGREEMI!:NT BETWEEN THE DEPARTMENT OF STATE OF THE UNITED STATES OF AMERICA AND THE MINISTRY OF FINANCE OF THE FEDERAL REPUBLIC OF GERMANY CONCERNING REAL PROPERTY EXCHANGE Considering that the Government of the Federal Republic of Germany proposes to relocate its seat of government from Bonn to Berlin between now and the year 2000, the Governments of the United States of America and the Federal Republic.of Germany, recognizing that, while Bonn will remain a federal city with several governmental ministries remaining there, the U.S. Government will relocate a major portion of its diplomatic mission staff from Bonn, where it owns extensive properties, to Berlin, where it owns only one residential property and existing office facilities are leased, and noting the extensive negotiations between representatives of the two Governments, have agreed as follows: I. PURPOSE This Agreement provides the framework to support the relocation by exchanging real property assets in Bonn and Berlin on a demonetized basis, and on terms and conditions which are acceptable to both governments. It is the objective of this Agreement to achieve the exchange of real property assets in Bonn and Berlin (identified in Attachment 2 - 10) giving consideration to the agreements between the Governments of the United States of America and the former German Democratic Republic on real property assets in Berlin, Washington D.C. and New York City. II. IMPLEMENTATION A. The coordination and implementation of this Agreement will be the responsibility of the designated representative of each government; the Chief of Section VI at the Federal Ministry of Finance, for the Government of the Federal Republic of Germany; and the Administrative Minister-Counselor of the Embassy of the United States, for the Government of the United States of America. 2 B. Should the Government of the Federal Republic of Germany not relocate its seat of government to Berlin by December 31 of the year 2005, some or all of the properties exchanged for this purpose may be returned to the ownership of the respective government by mutual consent. Compensation covering all improvements made to any and all properties as returned will be effected upon mutual consent. III. TERMS AND CONDITIONS A. G.EN.E.RAit - Inspection and Acceptance: All exchanged proper­ ties will be inspected and accepted by the receiving state prior to title delivery and/or transfer. The granting state will ensure that properties being transferred are habitable, clean and that all major systems, subsystems and components including structural, electrical, plumbing, heating, ventilation and air conditioning systems are serviceable at the time of transfer. B. BERLIN PROPERTIES In Berlin, the Government of the Federal Republic of Germany will provide to the U.S. Government the following properties under the terms and conditions specified: 1. The Government of the Federal Republic of Germany grants to the United States Government usufruct (Nutzungsrecht) for 156 residential properties specified in Attachment 2. The term usufruct, as used throughout this Agreement is defined as the full use and enjoyment of a property with the sAme rights and responsibilities conveyed by fee simple absolutd, except the right to convey title and/or hypothecate. This usufruct agree­ ment commences Jan. l, 1995 and expires December 31, 2093. No separate compensation will be charged. This Agreement incorporates any compensation otherwise due for the first 99-year usufruct. Upon expiration of the first usufruct agreement, the U.S. Government has the right (option) to extend this usufructuary term for an additional 99-year period. The compensation for the second 99-year usufruct agreement will be calculated based on the then prevailing value, applying the same principles and evaluation formula used for the initial 99 year term. (Annual rental value at the time of extension of the agree­ ment multiplied by the applicable factor commonly used in the Federal Republic of Germany for capitalizing rent. The factor, taken from the "Vervielfaltigungstabelle" contained in the Compilation of Regulations of the Federal Finance Administration, is based on the valid amortization rate for residential properties in the Federal Republic of Germany and the length of the agreement.) 3 2. The Federal Republic of Germany also grants the Government of the United States a 99 year usufruct for the Buildings 1056A, 105GB, 1056C, and 1056D at McNair Motor Pool, Goerzallee 189-223, situated on a 25,000 square meter site defined by the boundaries in the attached plan (Attachment 9). The content, the c.ommencement and expiration dates, as wel 1 as the right (option) to extend, and the calculation formula for the evaluation of the compensation are governed by the same terms and conditions as contained in paragraph 1. 3. In recognition of the U.S. Government's need for a future residence for its Ambassador in Berlin, the Government of the Federal Republic of Germany will ensure that fee simple title to the property located at FinkenstraBe 21 will be transferred from Land Berlin to the United States of America at the earliest possible date after the withdrawal of the U.S. military from Berlin. The purchase price, up to an amount of DM 12.5 million, will be paid by the Federal Republic of Germany to Land Berlin. 4. The U.S. Government is entitled to use all of Building II at Clay Compound, Clayallee 170-172, on the basis of the · existing lease agreement until the construction of the new U.S. Embassy is completed. The rent is fixed at the annual amount of DM 350,640.00 until the construction of the United States chancery in Berlin is completed. C. AGREEMENTS BETWEEN THE GOVERNMENTS OF THE USA AND THE FORMER GDR 1. The U.S. Government and the Government of the Federal Republic of Germany hereby conclude that the agreements for the properties listed in Attachment 3, 6 and 7, which previously existed between the U.S. Government and the Government of the former GDR, will be null and void immediately after this agree­ ment is entered into force and that the properties listed in Attachment 3 will be turned over to the Federal Republic of Germany within 30 days thereafter. 2. The two governments agree, however, that the lease contracts for the properties mentioned below, remain in effect: 2. a) The U.S. Government will retain leasehold interest in the properties located at Neustadtische Kirchstra3e 4-5 and MittelstraBe 25 until the construction of the U.S. chancery in Berlin is completed. The rental rates will remain frozen at the current annual amount of DM 1,361,888.08 for the property at Neustadtische KirchstraBe 4-5 and DM 206,000.00 for the annex at MittelstraBe 25, for the aforementioned period. 4 In the event that pending legal proceedings grant restitution of the former GDR property to the claimant, the U.S. Government will consult with the Government of the Federal Republic of Germany to resolve this matter. Should relocation be unavoidable, the Government of the Federal Republic of Germany agrees to assist the us Government with a temporary alternate relocation of the chancery until the new chancery building is completed. 2. b) The U.S. Government will retain its leasehold interest in the parking lot located in front of Neustadtische KirchstraBe 4-5 under the same terms and conditions set forth in the lease agreement of December 2, 1987, until the construction of the U.S. chancery is completed. In the event that pending legal proceedings grant restitution of this former GDR property to the claimant, the U.S. Government wiil consult with the Government of the Federal Republic of Germany to resolve this matter. 3. The Government of the Federal Republic of Germany relinquishes the right granted to the former GDR to purchase the building site known as Lot 5, International Chancery Center, Washington D.C. as well as the authorization granted to the former GDR to negotiate a corrunercial property lease.in New York City. D. ~QNN PROPERTIES In Bonn, the U.S. Government will transfer to the Federal Republic of Germany the fo~1owing properties and rights under the terms and conditions specified: 1. The Federal Republic of Germany will receive fee simple title to 156 residential properties specified in Attachment 4. A notary agreement will be concluded as soon as possible. The Government of the United States agrees to transfer all rights and responsibilities of ownership for these properties to the Federal Republic of Germany effective January 1, 1995, with the understanding that the U.S. Government will hand over 78 residential units within the calendar year starting January 1, 1995. The remaining 78 residential properties will be relinquished to the Federal Republic of Germany when no longer required by the U.S.
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