Base Closure Reuse Reform Act of 1997

Base Closure Reuse Reform Act of 1997 - Amends the Defense Base Closure and Realignment Act of 1990 and the Defense Authorization Amendments and Base Closure and Realignment Act to make inapplicable to the sale of real property at a closed military installation provisions of the Federal Property and Administrative Services Act of 1949 which are intended to prevent excess profits arising from the receipt of surplus Federal property.

Directs the Secretary of the military department concerned to permit the lessees of real and personal property located at a current or future closed military installation to make capital improvements to such property in order to facilitate its economic development. Sets forth conditions with respect to the cost and removal of such improvements upon lease expiration. Directs such Secretary to permit a lessee to sublet the property for profit during the term of an interim lease (a lease which runs before a final property disposal determination). Allows an interim lessee the first right to acquire the property at the time of its final disposal.

Approves the use of a lease with respect to property at a closed military installation that is transferred to the redevelopment authority of such installation. Directs the Secretary of Defense to give to such authority the first right to acquire such property upon lease termination or expiration.

Authorizes the Secretary to enter into an agreement for the provision by such authority of police, fire, airfield operation, and other community services at the military installation involved.