Transcript Fort Monroe FADA

Fort Monroe FADA
Steps to Assume
Management of Fort Monroe
1
Goals FY2010 to FY2016

Achieve economic sustainability that generates a reliable return
on investment for the Commonwealth from Fort Monroe, a 570acre historic town that Virginia will own and operate in three
years.

Management Objectives:

Transition 2.4 million square feet of prime, waterfront, real estate
from Army occupancy to short and long-term private leases.

Preserve landmark structures and add new mixed use development
and in-fill housing.

Provide recreational opportunities for public enjoyment.

Provide educational public programs to encourage heritage tourism.
2
FMFADA needs seed money to
achieve economic sustainability



Today, FMFADA is seeking)
funding for an operating budget of $3.1 million for FY 2010. (property transfer--15
months
Next year, the operating budget for FY 2011 is estimated to increase to $4.6 million.
(property transfer--3 months)

Immediately following the 2011 transfer, a capital reserve of $40 million will be
required with a $30 million reserve to standardize infrastructure, roads, utility
systems and more environmental flood controls along with an additional $10 million
for building improvements. (Drawdown over 5 years)

In addition to the $40M reserve, budget and shortfall estimates for:
FY 2012
$6.7 million
FY 2013
$5.9 million
FY 2014
$5.3 million
FY 2015
$2.1 million
FY 2016
$1.65 million
FY 2017 Anticipate Fort Monroe will cover expenses.






By FY 2021 revenue sufficient for FMFADA to issue bonds to repay Commonwealth
($40M or existing balance)
3
Capabilities and Limitations


The Fort Monroe FADA is a political
subdivision of the Commonwealth with
enabling legislation to function
independently and finance its operations
and staffing needs.
However, it is limited by an economic model
that includes many unknowns. We have to
be able to move quickly and independence
is key to the flexibility we need.
4
FMFADA needs to operate as
Political Subdivision


Move the FMFADA from the Department of Housing
and Community Development to an independent
arrangement similar to the one used for Virginia
Economic Development.
Management Plan




Fund the interim budget of the FMFADA until 2011
property transfer $7.7 million, (2010) $3.1 (2011) $4.6
FY 2012 to FY 2016 --Fund budget short fall $20 million
Set up Capital Reserve $40 million – anticipate bond
money
Convene state financial agencies to develop a short and
long term financing plan for Fort Monroe
5
Risks and Rewards

Risks



Addressing Risk


The real estate industry may take five years to work though
current toxic asset inventory, therefore short-term rentals may be
our best option to produce income.
Mothballing of buildings will result in an increased cost of
rehabilitation. This will add millions of dollars to current
estimates.
FMFADA needs resources to generate revenue.
Rewards

Expected pay-off exceeds operational cost, and Fort Monroe will
achieve economic sustainability.