Transcript Business Profile - Midcoast Regional Redevelopment Authority

Redevelopment Update
February 2014
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Implement the Reuse Master Plans for
NASB and Topsham Annex
Manage the transition of base
properties from military to civilian
uses
Redevelop former base properties to
create new high quality jobs
Actively engage the private sector in
the redevelopment effort
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A science and technology park in a campus
environment
Centers of excellence in advanced technologies
Regional Executive Airport
Quality business-focused educational facilities
Renewable Energy development
Smart Growth focus
Affordable housing opportunities
Open space and outdoor recreation
opportunities
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Opportunities for high quality job creation in:
Aviation and Aerospace
 Energy
 Composite Technologies
 Information Technology
 Biotechnology and Biomed
 Education
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 Key
to successful business
development
 Industry driven curriculum
 SMCC, UMaine
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Short-term goal: Recover direct civilian
job losses resulting from the base closure
(700 jobs)
Intermediate goal: Recover economic
losses and total job losses in the primary
impact community resulting from the
base closure ($140 million in payroll)
Long-term goal: Facilitate the maximum
redevelopment of base properties
(12,000 + jobs)
Property Dispositions
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Public Benefit Conveyances
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MRRA
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Education
270 ac
Education
20 ac
Family Focus
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850 ac
SMCC
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Recreation & Conservation
Bowdoin College
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998 ac
Town of Brunswick
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Airport
Child care
7 ac
Economic Development Conveyance
($$$$$$$)
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MRRA
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Economic Development
1,098 ac
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Of the space controlled by MRRA, roughly
•One third has been leased;
•One third has been sold;
•And one third is still available
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Economic Impacts of Redevelopment since May 2011
Creating more than 750 Jobs (by end of 2014)
Contracts awarded: More than $25 million
Total New Taxable Property: $51 million
Total Property Taxes: $684,674 (current fiscal year)
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Airport, Infrastructure, Education
Operations at Brunswick Executive Airport in 2013:
More than 9,000
Acreage owned by MRRA: 1,380
Square footage owned by MRRA: 910,100 SF
Square footage under lease/sale contract: 573,925 SF
Miles of paved road MRRA responsible for: 27
Miles of sewer pipe and water pipe MRRA maintains: 17
Miles of electrical power line MRRA maintains: 15
Amount of power load MRRA manages: 1 megawatt
Students enrolled at Southern Maine Community
College Midcoast Campus: 6oo
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Part 145 Repair station at Brunswick Landing: Conduct major
maintenance on Bombardier Global Express and Gulfstream II,
III, IV and V aircraft; adding Boeing and Airbus narrow and wide
body maintenance, interior completions
Tempus selected Brunswick to consolidate and expand its
MRO, engineering and completions capabilities due to:
•Availability of large, modern hangar facilities
•Partner with SMCC to utilize the former flight simulator facility
•Availability of skilled craftsman and technically knowledgeable
workforce; advanced communications infrastructure; adequate
housing for contract and short term labor
•Could employ up to 300 workers as they expand
•One of fastest deals in MRRA history. Lease signed just 3 weeks
after initial phone call
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•CEO is a former NASB aviator who was stationed here
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•New 79,000 SF $15
million manufacturing
facility built and owned
by MRRA, opened in
March 2013
•50 employees with
more than 100 jobs in
pipeline
•Huge company from Sweden is world leading manufacturer
of single-use surgical and wound care products for
professional health care sector
•Mölnlycke chose Brunswick Landing to be site of first North
American manufacturing site to make finished, packaged
wound dressings.
•Medical foam produced in Mölnlycke’s Wiscasset
manufacturing site
•May be able to take advantage of Brunswick Landing
Foreign-Trade Zone (FTZ)
Oxford Networks Data
Center provides high-security
data management services for
businesses and organizations
around the world
Oxford is expanding its storage
facility to quadruple current
capacity
Largest data center north of
Boston
Located in the Wing Building ,
which Navy used for classified
secure information and data
Re-purposes the military grade
building infrastructure to
provide the highest level of
physical and technical security
available
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•Startup company by Alan Klapmeier, former Cirrus CEO
•Developing a FAA certified, composite aircraft, propelled by a
single engine turboprop
•Drawn to Brunswick because of infrastructure already in place
•Kestrel attracted by well qualified workforce, including those
familiar with composite technology, and a supportive community
•42 employees in Hangar 6 with payroll of $3 million
•Brunswick facility -- composite parts production
•Other facility in Superior, Wisconsin -- manufacturing of plane
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•Worldwide company
headquartered in Houston
provides marine survey,
engineering and auditing
to international shipping
and offshore industries
•ABS Modeling Center in Brunswick Landing -- 30
technicians who create the computer-aided design (CAD)
models of clients’ vessels.
•Model used throughout life of vessel for multiple purposes
•Verify integrity of the hull, analyze stability of the vessel if it
is involved in a casualty
•ABS selected Brunswick Landing for its high-quality facilities
and the region’s talented workforce
•Founded in 1980, RollEase is
window covering fabricators based
in Stamford, CT
•Innovation Center at Brunswick
Landing (11,000 SF) for R & D
•Located in downstairs below ABS
•Opportunity to collaborate with the
University of Maine on joint
development projects
•VP Greg Farr, former Downtown
Director for Brunswick will direct
Maine operations
Private Sector Engagement
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MRRA’s goal is to engage the private sector in the redevelopment effort
through lease and sale of buildings and land
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Consistent with Reuse Master Plans, Zoning ordinances and Design Guidelines
Major property acquisitions at Brunswick Landing and Topsham Commerce
Park:
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Partnership with local real estate developers George Schott, Jim Howard, Tom
Wright, Hilary Rockett
MRRA has sold 245 acres of land to AMH (over 50 housing units sold to date –
McKeen Street)
Three major building acquisitions closed
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Three current land development proposals in process (42 acres)
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26 buildings (15+ acres)
$10 million in planned private investment
Sold hotel in December to Mr. Schott
Commissary sold in November to JHR Development for food hub (Wicked Joe’s and
Maine Harvest
More closing expected in spring for 20 acres, and Building 87 (Oxford), SeaBee
Compound, NEX
$50 – 60 million in planned private investment
MRRA must pay the Navy 25% of all sales and lease revenues after we hit $7
million, which we have a year earlier than forecast
MRRA is aggressively marketing property to international, national, statewide and local real estate developers and target sector businesses
MRRA has open listing policy and pays brokerage fees
MRRA retained CBRE Richard Ellis and REMAX to market key properties
MRRA has unique ability to be creative in real estate and project financing
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Must realize Fair Market Value (EDC)
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▪ TechPlace is part of an integrated project through Obama’s
“Make it in America Challenge (MIAC) Program
▪ Project one of only 11 in U.S. to win funding
Strengthening Regional Assets
• $750,000 funded by Economic Development Administration
•Must include a 1:1 Matching Share from non-Federal sources
($250,000 MRRA, $250,000 BDC, $250,000 Maine DECD)
Connecting Regional Supply Chains and Assisting SMEs
•$375,000 funded by National Institute for Standard and Technology &
Maine MEP
•No cost sharing requirement
Building a Highly Skilled & Diverse Workforce to Meet
Employer Demand
• $1.3 million funded by Employment and Training Administration/DOL
•Cost sharing or matching not required
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Objective: Create a premier advanced manufacturing
and technology accelerator at Brunswick Landing in
former Aircraft Intermediate Maintenance building
TechPlace community to include:
• Co-working office space
• Shared administrative
• Co-working
equipment
manufacturing/prototype lab • Shared administrative
• Warehousing
services
• Private office/shop space
• VTC enabled conference
room
• Access to support programs
and networks
Existing Floor Plan
Conceptual Floor Plan
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Grants
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Property Leases and Sales
Airport Revenues
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Jobs Bond ($3.25 million – infrastructure
improvements)
Jobs Tax Increment Financing
Town of Brunswick
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Special events
Fuel sales
Aircraft parking
Hangar rentals
State of Maine
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Department of Defense - Office of Economic
Adjustment (will phase out starting in 2014)
Federal Aviation Administration
Economic Development Administration
Maine Technology Institute
Tax Increment Financing
Challenges Affecting Rapid
Reuse
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Property conveyances are costly and complex real
estate transactions
Many buildings that are conveyed suffer from lack
of proper maintenance (major systems fail)
Most buildings do not meet current State & local
codes (ADA, Life Safety, etc.)
Aging utility systems require significant upgrades
MRRA has responsibility to maintaining:
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Airport runways & tarmac
27 miles of roads
17 miles of electric infrastructure
15 miles of water, sewer and storm drains
Some key properties are still awaiting
environmental clearances
These are unique properties that requires some
planning and code flexibility
Business friendliness at State and community level is
critical to success
Conclusion
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Redevelopment of former military
installations is a long, tedious
expensive and complex process. It
is a marathon not a sprint!
While still are very early in the
process, the Redevelopment of
NAS Brunswick is proceeding ahead
of schedule.
The NASB reuse effort is far
outpacing other 2005 BRAC
facilities around the country.
The annual lease absorption rates
at Brunswick Landing are outpacing
the region by a factor of 3x.
Conclusion Continued
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The ability of NAS Brunswick to
effectively and rapidly achieve its
reuse goals is dependent on several
key factors:
 The
condition of the national and
state economies;
 The availability of the financial
resources needed to re-purpose the
properties and improve and maintain
the infrastructure; and
 The level of federal, state, community
and public support for the
redevelopment effort!
Thank You
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