CP/RES. 775 (1251/00)

APPROVAL OF THE PLAN FOR THE COMPREHENSIVE RENOVATION
OF THE GENERAL SECRETARIAT BUILDING

            THE PERMANENT COUNCIL OF THE ORGANIZATION OF AMERICAN STATES, HAVING SEEN the document entitled "Plan for the Comprehensive Renovation of the General Secretariat Building," CP/CAAP-2532/00 corr. 2);

CONSIDERING:

            That pursuant to resolution AG/RES. 1531 (XXVII-O/97), the General Secretariat conducted a study of the Organization's real estate to determine "options for maximizing the benefits to the Organization from the real estate," and it circulated an Executive Summary of that study (CP/CAAP-2370/98) to the Member States on February 1, 1999;

            That the study, which had been completed by a respectable firm of commercial real estate specialists contracted by the General Secretariat, recommended, inter alia, a comprehensive renovation of the General Secretariat Building ("GSB") so that the Organization might take full advantage of that building's value and usefulness;

            That by resolution AG/RES. 1697 (XXIX-O/99), the General Assembly authorized the Permanent Council to approve a plan for the renovation of the GSB that would permit more effective and efficient use of space by the General Secretariat and improve the value of the space that could be rented to third parties;

            That resolution AG/RES. 1697 (XXIX-O/99) further provided that the cost of the renovations to the GSB "shall be financed by a renewed mortgage on the building and [that] this mortgage shall be amortized with the current level of appropriation for the mortgage on the building together with rental income from the space rented";

            That as in the past, the refinancing of the GSB will require a waiver of the GSB's immunity from foreclosure to secure payment to the commercial lender in the event of default;

            That the Secretariat for Management has presented to the Permanent Council a GSB renovation plan which demonstrates that a satisfactory renovation can be completed at no additional cost to the Regular Fund Budget, in a timely fashion, and with minimal interruption in the activities of the General Secretariat and other organs which use the GSB,

RESOLVES:

            1.     To approve the recommendation of the Committee on Administrative and Budgetary Affairs in the attached document "Plan for the Comprehensive Renovation of the General Secretariat Building," CP/CAAP-2532/00 corr. 2, and to authorize the Secretary General to carry out that Plan.

            2.     To authorize the Secretary General to obtain the necessary refinancing for the renovation of the GSB and to mortgage that building as security for that financing, provided that the total of the indebtedness secured by the GSB, including the outstanding balance of the first mortgage loan currently so secured, does not exceed twenty-five million dollars ($25,000,000).

            3.     To reiterate to the Secretary General that he has the authority to waive the immunities of the General Secretariat Building (including its fixtures, equipment, attachments, and appurtenances) from legal attachment, foreclosure, and execution, as well as the corresponding immunities of the General Secretariat from service of process relating to such attachment, foreclosure, and execution, for the sole and limited purpose of permitting the lender providing the financing for the renovation to recover fully any damages and costs incurred by the lender as a result of the General Secretariat's default upon the Note, Deed of Trust, Environmental Indemnity Agreement, and other agreements that may be required in relation to that refinancing.

            4.     To instruct the Secretary General to insure that the General Secretariat amortizes the repayment of the indebtedness on the GSB with the current level of appropriation for the mortgage on the Building, together with rental income from space rented to tenants in the Building.

            5.     To instruct the General Secretariat to provide the Committee on Administrative and Budgetary Affairs (CAAP), until completion of the renovation and lease of the rental space, a quarterly progress report on the renovation and subsequent leasing of the rental space.

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