Transcript Hampton City Council Briefing

Old Point Comfort in Transition:
Update on Fort Monroe BRAC
Briefing for the Hampton City Council
May 27, 2009
Bill Armbruster
Executive Director
Fort Monroe Federal Area Development Authority
FMFADA
1
Fort Monroe Federal Area
Development Authority

Is a political subdivision of the Commonwealth, established by
the General Assembly in 2007

Policy is set by a Board of Commissioners with appointees
representing the City of Hampton, Virginia General Assembly,
Governor’s Cabinet and two preservation and tourism
professionals

FMFADA will hold and manage the property as a trust for the
benefit of the public

FMFADA Executive Director leads staff and consulting team
2
Re-Use Planning – Process Overview

Hampton and Hampton FADA led early efforts (2005-2006) –
significant citizen participation (~600 people at community
design charrettes)

FMFADA recognized as LRA in 2007

Since 2007, FMFADA planning has been guided by the
Governor’s 5-point charge

Must follow National Historic Preservation Act (NHPA) Section
106 process for impact on historic resources

Determining appropriate treatment of the historic resources
involved 30+ consulting parties and a programmatic agreement
(PA) with the US Army, the federal Advisory Council on Historic
Preservation (ACHP), the National Park Service (NPS) and the
Virginia Department of Historic Resources (DHR) as principals
3
Governor Kaine’s 5-point charge
for Creating Re-use Plan

Respect Fort Monroe’s
history

Maintain large-scale open
space and park areas

Keep it fully open to the
public

Include limited new
development within strict
limits

Ensure economic
sustainability
4
PA Protects Fort Monroe’s
Landmarks and History

PA = Programmatic
Agreement

Virginia’s Department of
Historic Resources role as
State Historic Preservation
Office (SHPO)

Interpretive Master Plan will
guide nature and character
of public programs and use
5
Ultimate Vision for Fort Monroe –
What will it look like?

Historic Village

Inner Fort

Entry/North Gate

Wherry Quarter

Parks & Recreation
6
Re-Use Planning
Five Management Zones

Select areas and
buildings for public
amenities inside and
outside the moated fort

Lease historic homes
and non-residential
buildings

Change North Gate
from industrial to
mixed use

Short-term leases and
rental of Wherry
housing units and noncontributing buildings,
with redevelopment
expected in the
medium to long-term
7
Key BRAC Events

2005 BRAC Congress announced closure of Fort Monroe

2006-7 Hampton FADA built transition planning team

March 2007 Virginia General Assembly established the Fort
Monroe Federal Area Development Authority (‘FMFADA’); the
Department of Defense recognized the FMFADA as the local
reuse authority (LRA) for Fort Monroe; City of Hampton
continues as fiscal agent

August 2008 Virginia Governor Timothy Kaine signed the
Reuse Plan
8
Key BRAC Events

September 2008 KHA, BAE and FMFADA staff met with City of
Hampton regarding provision of municipal services (fire,
police, solid waste collection, wastewater collection, etc.)

September 2008 Homeless Assistance and Reuse Plan
package submitted to US Dpt. of Housing and Urban
Development

January – February 2009 FMFADA submitted appropriation
requests for $96M in capital improvements to off-shore
facilities (breakwaters and sand beaches) and to existing
infrastructure (water, wastewater, streets, bridges, electrical
and natural gas)
9
Key BRAC Events

March 2009 Working group formed to study options for
National Park Service role at Fort Monroe/Old Point Comfort

April 2009 PA is approved by signatory parties, official signing
ceremony scheduled for June 1, 2009

April 2009 Working groups established to study Natural
Resources and African American Culture at Fort Monroe

May 2009 Draft EIS submitted by consultant to Army for
internal review
10
Upcoming Milestones

June 2009 Draft MOU for public services expected to be
presented to the city councils of Hampton and Newport News

July 2009 Army will issue the draft EIS for public comment

July 2009 FMFADA becomes independent authority

August 2009 – March 2010 Infrastructure conditions
assessments will be undertaken

~June 2010 Draft Memoranda of Agreement (MOA) expected
to be presented to the cities of Hampton and Newport News
and to private utility providers as appropriate

September 14, 2011 military mission transfers from Fort
Monroe
11
Bottom Line Considerations

Successful reuse of closed military installations can result in
greater economic activity and local property value than during
operation of federal reservation

Links to the surrounding community will be a great reuse
benefit, providing new recreation and other community
resources

Real estate strategy will attract private investment and
generate local property taxes & other fiscal benefits

Low interest public infrastructure loans and grants are
available

Collaborative transition planning is critical to a seamless
changeover and evolution
12
Way Ahead

Army is responsible for environmental cleanup and current
testing suggests dramatic reduction of costs associated with
cleanup

FMFADA working with Army to make available and market the
residential and commercial properties on an interim basis to
soften the fiscal impacts of the base closure

FMFADA is building the organization that will manage the
Commonwealth’s assets for the benefit of the public, both
near and far
13
Planning for the Transition:
Infrastructure
Briefing for the Hampton City Council
May 27, 2009
Eddie Marscheider, P.E.
Associate
Kimley-Horn and Associates, Inc.
14
KHA Slides
To be added as modification of
5/19/09 presentation to FMFADA
Board
15
Planning for the Transition:
Economics
Briefing for the Hampton City Council
May 27, 2009
Anita Morrison
Project Consultant
Bay Area Economics
BAE
16
Service Requirement Discussions





During October and November, BAE met with City of Hampton
department heads.
Focus on fiscal impacts, law enforcement, fire & rescue, schools,
and parks & recreation.
Also participated in power and water utility discussions with KimleyHorn.
Discussion re: assumptions in preliminary financial analysis.
Goal for each department/utility to identify:
 Ongoing service requirements;
 One-time capital requirements (e.g., new equipment/upgrades);
 Timing of requirement vis-à-vis leasing and rehabilitation activity;
and
City Feedback - Public Safety

Hampton Police Department:
 Exploring need for more officers & related equipment
 Potential need for additional emergency dispatch
console and dispatch staff
 Expanded marina may require more additional
equipment and patrol services

Fire and emergency rescue:
 Additional equipment and emergency medical
technicians
 New building safety inspector with vehicle

BAE, FMFADA and City will continue to discuss and review
public safety requirements
City Feedback - Other Departments



Hampton Schools:
 General concurrence with preliminary financial model
assumptions
 Confirmed that no demand for new school anticipated
 Interest in use of Fort Monroe buildings for support activities
and a pre-school
Finance Department, Assessor’s Office, and Commissioner of the
Revenue:
 BAE provided model to City for “open book” dialog
 Useful feedback received to refine revenue estimates
 Comments will be incorporated in financial update
Parks and Recreation:
 Has identified buildings and facilities of interest such as
Community Center and Bowling Alley
 Eco-tourism potential on Mill Creek
 Partner with Convention Center for events at Fort Monroe
 Needs to explore opportunities further
Economics—Fiscal Impact
May 2008 Analysis*






Current Fort Monroe employment level – 4,100

1,705 people in uniform
 2,405 civilian and contract employees
Current Fort Monroe residents – 804 on post
Projected annual operations/maintenance costs – $4.0 - $4.7M
Projected net shortfall to Hampton (service costs v. revenues)
2011-2018
Should see a net positive in 2019
NOTE: FMFADA and City of Hampton continue to refine all
projections – City has degree of control over costs
* Updated November 2008
20
Planning for the Long-Term:
Real Estate Strategy
Briefing for the Hampton City Council
May 27, 2009
David Shiver
Principal
Bay Area Economics
BAE
21
Real Estate Strategy

The Fort Monroe Real Estate Asset
Management Strategy:



Sets the goals and objectives
Identifies key challenges
Formulates strategies to realize goals and
objectives
FMFADA Real
Estate Staffing
Real Estate Asset
Management Plan
EDC Application
RFQs/RFPs
Lease/Contract Terms
22
Interim Leasing Concepts - Residential

Residential Rental Program, targeting:





Military families renting “on the economy”
Foreign personnel assigned to Tidewater area military commands
Visiting faculty & graduate students at area colleges & universities
Other federal agencies with “detail” employees
Local public safety agency employee households

Seeking short-term tenancies to give FMFADA
flexibility to implement long term rehabilitation
and residential leasehold program

Minimal initial investment, “patch & paint”

Issue RFP for leasing and property
management firm in 2010
23
Interim Leasing Concepts - Commercial

Identify buildings that are ADA compliant and
require minimal investment for occupancy,
including:


13 recently constructed “butler” buildings with flexible
floor plans (85,000 sq.ft. total)
Building 100 (25,900 sq.ft.)

Target existing office tenants in local market

Target technology and clean-tech firms needing
shop and storage space

Lay marketing and “proof of concept” ground
work for identification of anchor tenant
24
Residential Leasehold Program

Proposed concept:
Offer long-term (50+ year) leases of historic residences with prepayment of rent
Establish endowment/pay for capital costs with proceeds

Issues:



Pioneering product in Hampton Roads
Need to develop support infrastructure (e.g, local lenders,
brokers, title companies)
Examples:




Sea Colony, Delaware
Pensacola, Florida
Jekyll Island, Georgia
Palm Desert/Palm Springs, California




Hawaii
Santa Inez, California
Universities/Colleges
Land Trusts
25
New Construction - Ground Leases

New development proposed in Entry Gate, North
Gate and Historic Village (infill)

Lead for infrastructure planning, design, financing
and construction
 Cost sharing agreements

Long term leases (50+ years) required

Potential structures:



Base rent with reappraisals
Participation leases
LLC or JV
26
RFQ/RFP Strategy

RFP for leasing and property management entity


RFQ, RFP, and ENA for Master Developer




Action: Fiscal year 2010
National outreach
Experience and financial resources key criteria
Action: Fiscal year 2010
RFP for marina operator in partnership with U.S.
Army



Element of negotiated fair-market value Economic
Development Conveyance
Upgrade and expand marina operations
Action: Fiscal year 2011
27