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Enhanced Use Leasing


									Headquarters U.S. Air Force
Integrity - Service - Excellence

Enhanced Use Leasing
                  George A. Davies
                  Consultant, Northrop Grumman
                  Air Force Real Property Agency

   Enhanced Use Leasing Overview

 Air Force Portfolio
 Authority
 Asset Management Tool
 Use of Proceeds
 Corporate Program
 Execution Process
 EUL Myths
 Projects Under Consideration

      Integrity - Service - Excellence   2
                        Major Air Force Installations in US
                   McChord AFB

             Fairchild AFB                                       Minot AFB
                                      Malmstrom AFB
                                                                Grand Forks AFB

                                                                                                                                        Hanscom AFB
                             Home AFB                           Ellsworth AFB                                                            Otis ANGB
          Beale AFB                                                                                                    Westover ARB
                                                FE Warren AFB                               Selfridge ANGB
                                                                                                                                  McGuire AFB
                                     Hill AFB                     Offutt AFB             Grissom ARB                              Dover AFB
         Travis AFB
                                                         Buckley AFB                                                           Andrews AFB
                                     USAF Academy           Schriever AFB                Scott AFB     Patterson AFB           Bolling AFB
Vandenberg AFB                         Peterson AFB                                                              Langley AFB
                        Nellis AFB                               McConnell AFB     AFB
                                                                                                                            Seymour Johnson AFB
                 Edwards AFB                                           Vance AFB
                                                                                        Arnold AFB             Pope AFB
                                           Kirtland AFB                     Tinker AFB
Los Angeles AFB                                                                                                       Shaw AFB
                            Luke AFB                                   Altus AFB
         March ARB                  Cannon AFB                                   Little Rock
                                                                                                   Dobbins ARB        Charleston AFB
                                                 Dyess AFB                       AFB      Columbus
                     Davis-Monthan AFB                            Sheppard AFB
                                   Holloman AFB                                                             Robins AFB
                                                                           Barksdale AFB                      Moody AFB
                                                   Goodfellow AFB                            Maxwell AFB
                                                                              Kessler AFB             Eglin AFB
            Eielson AFB
                                                                                                          Tyndall AFB
                                                             Randolph AFB
            Elmendorf AFB                                                                   Hurlburt
                                          Laughlin AFB                                      Field
                                                                   Lackland AFB                                     Patrick AFB
                             Hickam AFB             Kelly AFB                                                   MacDill AFB
                                                            Brooks AFB

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           10 USC 2667 Enhanced Authority

    Original Authority                      Enhanced Authority
   Consideration in cash or in-kind      Consideration in cash or in-kind
   In-kind consideration limited to      In-kind consideration expanded to
    maintenance, protection, repair        include:
    and restoration                            Maintenance, protection, alteration,
   In-kind consideration may be                repair, improvement and restoration
    used only at installation where             (including environmental restoration)
    leased property is located                 Construction of new facilities
   Only 50% of cash proceeds                  Provision of facilities
    available for installation use,            Operation support
    remainder to military department           Other appropriate services
                                          In-kind consideration may be used at any
                                          Not less than 50% (and up to 100%) of
                                           cash proceeds available for installation

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                            AFRPA Strategic Plan
   Manage Property to Maximize Return

   Refine Business Strategy

   Strengthen Partnerships
       AFCEE – Environmental Execution Agent

   Support AF Corporate Objectives

   Capitalize on AFRPA Consultant Expertise
       Implement Corporate EUL Program

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                    ―Enhanced Use Leasing‖
                      Asset Management Tool
A lease of underutilized land, natural infrastructure
    and/or buildings for consideration equal to
              the assets’ fair market value
Unlocking & Returning the Value
  Consideration may be cash or in-kind
  In-kind consideration may be allocated corporately
  A minimum of 50% of cash consideration must be allocated to
  installation providing the asset

                EUL Handbook published June 15, 2005

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                          ―Enhanced Use Leasing‖
                            Asset Management Tool
   Implements Federal policies requiring efficient, business-like
    management of Federal real property assets (Executive Order
    13327 - Federal Real Property Management)
   Powerful capability
        Increases ability to respond to mission shifts and realignments
         (i.e. Base Realignment and Closure (BRAC))
        Allows use of underutilized assets to support unfunded Air Force
        Provides greater flexibility in application of lease proceeds
        Provides an alternative to property disposal

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                              EUL: Use of Proceeds
   Proceeds used to sustain, restore, and modernize Air
    Force (AF) infrastructure

   Primary categories of consideration:
     Construct new AF facilities
     Alteration, repair, and restoration of AF-owned facilities
     Address natural infrastructure needs
     Pay for base operating support, e.g., supplies & services

Challenge: Apply corporate process & find incentives for
 installations to bring EUL’s forward for consideration
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                             Corporate Program

   Centralized program for effective management of AF land,
    natural infrastructure, or equipment
      Team approach involving Installations, MAJCOMs and Air
       Force Real Property Agency (AFRPA) in developing
       candidate EULs to be considered by the Executive
       Steering Group (ESG)

       ESG will endorse programs that support AF validated
        unfunded requirements leading to project acquisition

       AF process has been for the outlease and proposed
        consideration (cash or in-kind) to be presented and
        approved together

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                                         EUL: Execution Process
   PHASE I               PHASE II                    PHASE III                 PHASE IV               PHASE V
    Project               Project                     Project                   Project                Project
 Identification          Definition                 Acquisition               Management              Closeout

•Identify and          •Develop                   •Develop                     •Track               •Determine
evaluate candidate     concept                    notice of                    cash or              mission
                       •Business Case             opportunity to               in-kind              requirements
•Perform market                                   lease                        consideration        •Terminate or
feasibility study                                 •Solicit &                   •Monitor             extend lease
                                                  select offerors              lessee
•Define preliminary    concept
                                                  •Congressional               compliance
concept                approval
                                                  notification*                •Portfolio
                                                  •Execute lease               Management
                                                                                               *Required if over $750,000

                                               Team Members
Installation          Installation              Installation                 Installation          Installation
MAJCOM                MAJCOM                    MAJCOM AFRPA                 MAJCOM                MAJCOM
AFRPA                 AFRPA                     SAF/GCN-RPO                  AFRPA                 AFRPA
SAF/GCN-RPO           SAF/GCN-RPO               SAF/FMB/FMC                  SAF/GCN-RPO           SAF/GCN-RPO
SAF/FMB/FMC           SAF/FMB/FMC               SAF/IEI, AF/ILE,             SAF/FMB/FMC           SAF/IEI, AF/ILE
SAF/IEI, AF/ILE,      SAF/IEI, AF/ILE,          SAF/IEE**                    SAF/IEI, AF/ILE       SAF/IEE**
SAF/IEE**             SAF/IEE**                                              SAF/IEE**
                                 Action --- Coordination --- Approval
                                         **For Natural Infrastructure Asset EUL Projects

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                                    EUL Myths

 Must be severable land
 Consideration in-kind can only be used at the host
 EUL’s are only “land deals”
 All resources and funding for studies and analysis
  must come from installation or MAJCOM
 Corporate approach precludes installations and/or
  commands from nominating proposed projects

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                    Projects Under Consideration

   Hill AFB, UT - West Side Development Technology Park (3)
   Kirtland AFB, NM - Technology Park (2)
   Park City, UT – Silver Mountain Development
   Hanscom AFB, MA - Technology Park
   Tinker AFB, OK – Office Building/Childcare Facility
   Robbins AFB, GA – Office Building
   Wright-Patterson AFB, TX – Medical MRI/Hyperbaric Chamber (2)
   Air Combat Command - Radar Sites (4)
   Patrick AFB, FL – Off-Base Parcels (2)
   Lackland AFB, TX – Medical Facility Utility/Support Facility (2)
   Tyndall AFB, FL – Off Base Parcel/Support Facility (2)
   Andersen AFB , Guam – Off-Base Parcels (2)

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Technology Park – Kirtland AFB, NM

  Integrity - Service - Excellence   13
                       Off-Base Parcels – Patrick AFB, FL

                                                                                   Cape Canaveral
                                                                                  Air Force Station

  Banana River

                             PHILLIPS PARKWAY (SR 401)                      East

                            West                          Site Location
                            Turning                       Middle
                            Basin                         Turning

                                                  Port Canaveral

                                                                                               Atlantic Ocean

                                                           Cape Canaveral


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                        Cape Canaveral AFS
                      Administration Complex

Estimated Cost: $21M                               100,000 SF
50,000 SF Air Force Building
50,000 SF Navy Building

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                 Silver Mountain Site, Park City, UT

  Banana River


                                Port Canaveral

                                      Silver               Atlantic Ocean
   TO ORLANDO                           in


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             Administrative Space – Hill AFB, UT

   Phase 1
      130 acres                              1
      Within 1-7 years
      Admin/retail
   Phase 2
      140 acres
      Within 7-20 years
      Admin
   Phase 3
      330 acres
      Within 15-25 years
      Admin/ light industrial
    ON F-22 MILCON.

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                     Hill AFB WSD EUL Concept
                                Phase 1—North

                               Office     660,000 Sq. Ft.
                               Hotel       60,000 Sq. Ft.
                               Retail      15,000 Sq. Ft.

NOTIONAL DATA ONLY             Restaurant 22,500 Sq. Ft.

                               Total     757,500 Sq. Ft.

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                     Hill AFB WSD EUL Concept
                               Phase 1—South

                              Office 875,000 Sq. Ft.
                                Hotel 63,000 Sq. Ft.
                               Retail 15,000 Sq. Ft.
NOTIONAL DATA ONLY            Restaurant 22,500 Sq.
                               Total 975,500 Sq. Ft.

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            Hill AFB WSD EUL Concept
   Phase 1A—South (S&M Complex only)

NOTIONAL DATA ONLY             Offices 350,000 sq ft

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            Desired End State!!!


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                                          Points of Contact
Ms. Kathryn Halvorson, AFRPA Director
(703) 696-5501, DSN 426-5501

Mr. Gerald Johnson, AFRPA/COO
(703) 696 5540, DSN 426-5540

Mr. Richard Jenkins, AFRPA/COO Deputy
(703) 696-5552, DSN 426-5552

Mr. Paul Macpherson, AFRPA/EUL Chief
(703) 696-5246, DSN 426-5246

Mr. George Davies, AFRPA/EUL Consultant
(703) 696-3480, DSN 426-3480

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