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Covering your bases
(Professional Builder Via Thomson Dialog NewsEdge)In November 2005, the Base Realignment and Closure (BRAC) commission
approved 22 closures, recommended realignment for seven and left five bases
open. What does this mean for builders? Those 22 closed bases will eventually
appear on the market for sale. In a time of decreasing availability of
developable real estate, bases closings which often are near large
metropolitan areas can provide some of the largest expanses of undeveloped
and valuable land in the country.
Researching & purchasingIn February 2005, Lennar Corporation came in with the highest bid for
Marine Air Station, El Toro, Calif., in an online auction. Lennar's purchase of
the four-parcel property totals 3,718 acres, for $649.5 million. The El Toro
base closed as a result of the 1993 BRAC list. Thirteen years later, the real
estate was purchased.
The Navy who handled the sale asked for $525 million as the
minimum bid and required all bidders to put up cash or letters of credit to
enter the auction. Lennar's purchase price exceeded the Navy's minimum bid by
$124.5 million.
Although El Toro sold in an online auction, that may not occur for all
future sales. Each base will be dealt with on a case-by-case basis, depending
on land availability and approval of environmental safety. In addition, whole
bases may not sell in single auctions. "More likely what will happen is
different parts of the base will be bid at various times," according to Richard
Dorrier. He is principal and vice president in EDAW Inc.'s Alexandria, Va.
Office. EDAW Inc. works with the government and developers to redevelop base
closings from a land and community planning prospective.
Waiting for possessionBuilders and developers purchasing bases must work with the local as
well as federal government officials. The local government must establish a
Local Redevelopment Authority (LRA) to initiate and guide the reuse process. To
assist communities, Congress enacted the Base Communities Assistance Act (BCAA)
in 1994. The BCAA helps overcome job loss due to base closings by supporting
economic development and helping workers learn new job skills.
In addition, it provides assistance resolving environmental issues and
delivers planning grants.
Relocating current Military personnel takes place before process
planning begins. "The government has to have new buildings and homes already
constructed or available at another base to move those people," Dorrier
says.
After relocation, the government prepares and cleans the land. Some
bases contain environmental contamination, inadequate infrastructure, buildings
not up to code, and, occasionally, unexploded weaponry. The BCAA expedites
clean up, but the developer/builder must stay in the loop.
Working togetherPossession of the land passes to the developer/builder after clean up.
As part of possession, builders must negotiate building new utility systems,
roads, parks, schools, and public service facilities.
Once everyone agrees to a final plan, building starts. In all, the
process of purchasing and redeveloping a military base closure can take up to
ten years. "They are and can be very rewarding to certain developers if you're
willing to work in the kind of environment that has more regulatory and
government oversight," Dorrier says.
Ten Principles for Base RedevelopmentLaura ButallaJoin the Army (Navy or Air
Force)
. Early partnerships with the military can make the sale and
transition operate more smoothly.
Think Big.
The success of
redeveloped land requires planners to have a large, overall vision of its
possibility.
Partner for Success.
The local
community must buy into the redevelopment, which requires strong partnerships
with both public and private interests.
Know the Market.
The property end
use must be supported by the local community's market realities.
Know the Politics.
To move the
redevelopment process along, builders must be aware of the local political
process and how to make things happen.
Understand Potential Hurdles and How to
Overcome Them.
Every community has different obstacles, legal or
physical, which will create unique obstacles.
Knit the Installation Back into the
Community.
Successful reuse requires integrating the property and
the community.
Create a New Image.
To help win
local support welcome centers and open buildings create excitement and
interest.
Take It One Step at a Time.
It
often takes more than a decade to complete redevelopment and involves multiple
simultaneous deals and land transfer negotiations.
Be Flexible.
The original plan
will probably not be accepted due to obstacles such as changing trends,
political realities and market forces. Be prepared to adapt.
Provided by: Richard Dorrier, AICP, principal
and vice president in EDAW Inc.'s Alexandria, Va. office.
Lessons From Tustin FieldLaura ButallaThe Marine Corps Air Base in Tustin, Calif. was among 26 major bases
closed from the 1991 BRAC list. John Laing Homes purchased 55 acres of the
approximately 1600 acres and bought an additional 5 adjoining acres from a
private land owner. During an online auction, 210 acres of the 700-acre package
were sold to William Lyon Company and Lennar. Much of the property will be
divided for commercial building parks, and the remainder remains unsold with
Centex Homes and Shea Homes in negotiation.
John Laing Homes did not get involved directly with the military
during the purchase. "The city of Tustin had already negotiated the conveyance
of title from the U.S. Government to the City prior to JLH getting involved,"
Steve Kabel, president for the south coast division of John Laing Homes says.
Instead, the John Laing Homes' involvement began with a response to the city's
Request for Proposal. "The response included our qualifications as a
residential builder and land developer, our concept of a land plan and product,
and our economic proposal including price and terms," says Kabel.
Laying the foundation for this project required working with the
public agency staff, policy makers and neighborhood advocacy groups. "In the
instance of Tustin Field, we recognized early on that the policy makers [City
Council] had a very definite vision for what they wanted to accomplish," Kabel
says. "The City Council also empowered a very capable staff to implement the
vision."
It's also common for the U.S. Government to convey former military
bases to public agencies with the caveat that a portion of the former base be
set aside to assist the needs of local faith-based entities. "We worked with
the Salvation Army to provide transitional living/housing both onsite and
offsite in accordance with the conditions imposed by the military as a
predicate to the conveyance of the base property to the City of Tustin," Kabel
says.
Overall, John Laing Homes found it important to collaborate with all
the groups involved. "Initially, we listened a lot to the policy makers and
their designated military base conversion staff," Kabel says. "Then we began to
settle in on a strategic planning process that would permit the project to
evolve through an understanding of the community's needs.
"This is traditional land use design process on steroids," Kabel says.
"It is a process that moves you from pure, traditional zoning to place making.
We relied heavily on city staff, planning commission, and city council
meetings."
Other Available ResourcesLaura ButallaU.S. Department of Defense (DOD) -
www.defenselink.mil/brac
Air Force Real Property Agency -
www.afrpa.hq.af.mil
U.S. Navy (USN) -
www.navy.mil
Environmental Protection Agency -
www.epa.gov
Office of Economic Adjustment -
www.oea.gov
U.S. General Accounting Office -
www.gao.gov
National Association of Installation Developers -
www.naid.org
Taxpayers for Common Sense -
www.taxpayer.net
International City/County Management Association -
www.icma.org/basereuse
Major ClosuresLaura ButallaArmy (12)
Riverbank Army Ammunition Plant, Calif.
Fort Gillem, Ga.
Fort McPherson, Ga.
Newport Chemical Deport, Ind.
Kansas Army Ammunition Plant, Kan.
Selfridge Army Activity, Mich.
Mississippi Army Ammunition Plant, Miss.
Fort Monmouth, N.J.
Umatilla Chemical Deport, Ore.
Lone Star Army Ammunition Plant, Texas
Deseret Chemical Deport, Utah
Fort Monroe, Va.
Navy (5)
Naval Air Station Atlanta, Ga.
Naval Station Pascagoula, Miss.
Naval Air Station Willow Grove, Pa.
Naval Station Ingleside, Texas
Naval Air Station Brunswick, Maine
Air Force (5)
Kulis Air Guard Station, Ark.
Onizuka Air Force Station, Calif.
Brooks City Base, Texas
General Mitchell ARS, Wis.
Cannon Air Force Base, N.M.*
*Closure recommendation goes into effect if the Secretary of the Air
Force does not designate a new mission for the installation by December 31,
2009.
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