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Real Estate Asset Management Strategy Fort Monroe Federal Area Development Authority

March 19, 2009

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Today’s Agenda

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Current work summary Role of Fort Monroe/Old Point Comfort Real Estate Asset Management Strategy Real estate goals and objectives Interim leasing concepts

• • Residential Commercial

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BAE Scope of Work

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Updated financial analysis Real Estate Asset Management Strategy Economic Development Conveyance Property manager/developer solicitations

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Asset Management Strategy is Key Driver

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The Fort Monroe/Old Fort Comfort Real Estate Asset Management Strategy:

• • • • Sets goals and objectives Identifies key challenges Formulates strategies to realize goals and objectives Provides a direction and road map for FMFADA staffing & leasing activities

Real Estate Asset Management Strategy FMFADA Real Estate Staffing EDC Application RFQs/RFPs Lease/Contract Terms

Goals and Objectives

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Clearly articulate FMFADA’s goals and objectives

• • Focused on real estate dimension only FMFADA management consultant to focus on other dimensions (e.g., institutional management, cultural, interpretive, and recreational) 

Five areas to focus on today:

• Summary of Overall Goals and Objectives • Financial • Historic Preservation • Operational • Economic Development

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Overall Goals and Objectives

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Generate a stable stream of revenue to preserve and protect Fort Monroe’s rich historical, cultural, and natural resources

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Enhance the economic development of the City of Hampton and entire Hampton Roads Region

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Optimize results and control costs by establishing an efficient, highly flexible, and responsive FMFADA organization

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Support and complement public uses of Fort Monroe

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Financial

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Generate near-term revenues

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Optimize long-term value

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Achieve long-term financial self-sustainability

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Minimize upfront Commonwealth investment

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Achieve market-rate rates of return

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Enhance value with Fort Monroe/Old Point Comfort “brand”

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Financial

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Explore residential leasehold program to generate capital

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Establish an interim leasing program prior to transfer

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Generate fiscal benefits to City of Hampton to cover costs of municipal services

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Maximize the use of state and federal investment tax credits

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Historic Preservation

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Preserve historic buildings through interim leasing

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Facilitate long-term rehabilitation and adaptive reuse of historic structures

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Facilitate maintenance of cultural landscapes

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Ensure compliance with Fort Monroe Historic Preservation Design Standards

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Operational

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Build a responsive and flexible FMFADA real estate organization using best practices

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Control operating costs by minimizing permanent staffing requirements

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Provide an efficient permitting process

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Ensure “owner’s rep” project support

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Establish interim leasing program with contracted broker and property management firm

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Operational

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Privatize major rehabilitation and new development Capacity to enforce Programmatic Agreement for historic preservation

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Operate real estate programs to complement Long Range Interpretive Master Plan

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Ensure Army remediation meets standards set by Fort Monroe Reuse Plan

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Economic Development

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Strengthen local and regional competitiveness Collaborate with state & local ED officials to secure “anchor” tenant

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Promote “green-tech” or “clean-tech” industry Promote IT, aerospace, military, and NASA related commercial tenants

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Improve the region’s quality of life by making Fort Monroe the “front door” of the Hampton Roads Region

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Support the on going revitalization of Phoebus as “Fort Monroe’s neighborhood shopping district.”

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Interim Leasing

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Challenge:

Balance need for early revenue and historic preservation with protection of Fort Monroe/Old Point Comfort image 

Lessons Learned:

Presidio of San Francisco commercial leasing program

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Interim Leasing Concepts - Residential

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Proposed concept:

Fort Monroe Residential Rental Program Target market segments: • • • • Military families renting “on the economy” Foreign families assigned to NATO HQ Visiting faculty & graduate students at area colleges & universities Local public safety agency employee households 

Seeking credit-worthy, short-term tenancies to give FMFADA flexibility to implement long term rehabilitation and residential leasehold program

Interim Leasing – Residential

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Required improvements

: • • Limit to units requiring only cosmetic Improvements – “paint and patch” Improve landscaping at Wherry Housing 

Implementation:

• • • RFP for residential property manager Master lease with Army pending transfer Start mid- to late 2010

Interim Leasing Concepts - Commercial

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Identify buildings that are ADA compliant and require minimal investment for occupancy, including:

• • 11 recently constructed “butler” buildings with flexible floor plans Building 100 

Target existing office tenants in local market

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Target technology and clean-tech firms needing shop and storage space

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Lay marketing and “proof of concept” ground work for identification of anchor tenant