What in Heavens Name is a City-Base?Session: Federal/Local Partnering for Economic DevelopmentApril 15, 10:15 AM Dr. Brendan Godfrey
Reading a map has always worked wonderfully well when you know exactly where you want to go. Following directions has always been relatively easy when the process has already been clearly defined. When there is only a vision of a goal, and no step-by-step set of instructions to get there, bureaucracies often resort to a wait and see approach. Surely, somebody will tell us what to do. Surely, directions will come from somewhere. Reacting to whatever comes along has been the traditional approach to both federal and local bureaucratic planning. Rather than wait to react to predictable events, the Air Force and the City of San Antonio joined forces to define a new goal, develop a new process, and create an opportunity to plan for success -- instead of reacting to circumstances. The result is the planning process and implementation activities that will result in the Brooks Technology and Business Park. Reductions in federal defense spending in the mid-90s were evident in the San Antonio community as well as other military communities throughout the country. Kelly Air Force Base, on the southwest side of the City, had been designated for closure in the 1995 round of Base Realignment and Closure (BRAC) decisions. Kelly, one of the oldest and largest bases in the Air Force, was the site of aircraft depot maintenance activities employing up to 30,000 employees. Brooks Air Force Base, on the economically challenged southeast side of the City, is the home for Air Force aerospace medicine research and education, environmental technology, and technology transfer. Brooks AFB is the work site for approximately 4,000 highly skilled biotech workers. The City of San Antonio recognized that the tourism industry that has burgeoned over the years would not provide the local economy with a foundation of high-paying jobs. The Citys vision was to capitalize on the medical and research entities located in San Antonio and to become a nationally renowned life sciences/biotechnology center. Brooks AFB is an integral part of that biotechnology magnet. The City of San Antonio and the United States Air Force recognized in 1996 that it was time to start planning in order to create positive opportunities for the City of San Antonio and the Air Force. Rather than react to the forecast of political decisions, the City of San Antonio and Brooks Air Force Base leadership met and began to chart a course that would be beneficial to both the Air Force and the City of San Antonio. The reduction of base operating costs was the focus for the Air Force. Preservation of the highly skilled workers and the economic impact brought by Brooks AFB on the southeast side of the City was the focus for the City of San Antonio. It became apparent that the Air Force technologies on the base could serve as magnets for future growth and partnerships. Instead of developing a wait and see attitude, the Mayor appointed the Brooks Opportunities Task Force to meet with Air Force leaders and began to craft recommendations that would complement Air Force missions and contribute to City economic development efforts. Leaders from the City, universities, business, and the Air Force formally met in July 1998 to discuss the future of Brooks as an economic anchor within the southeast San Antonio community. The southeast quadrant of San Antonio has not experienced the growth of the more affluent northern sector of San Antonio. While existing as neighbors since 1917, it was apparent that there was not a clear understanding of what the Air Force really did on those 1,308 acres. The Base had been the home for flying operations until the early 1960s. When the United States took its first trips to space, Brooks became a focal point for research on the health effects of man in space and the center for aviation medicine. The City of San Antonio began the process of becoming very familiar with the Brooks missions. It became quickly apparent that the human performance and protection, biologic detection, environmental technology, and aerospace medicine education and training offered both the Air Force and the City an opportunity for partnerships between the Air Force and federal, state and local agencies. These missions also provided a basis for partnering with the private sector. In the fall of 1998, Congress directed the Air Force to undertake a Special Study to analyze the real costs involved with base operations and to identify opportunities for partnering. Most importantly, the Study identified statutory impediments to implementing what was being called a City-Base concept. Under this concept, the entire base would be conveyed to the City, and the Air Force would lease back only those properties required to carry out the missions. The City would supply essential services, including law enforcement and fire protection. The Air Force would remain on the property and focus on its missions rather than building and road maintenance, and custodial and other support services. The concept looked feasible on paper, and projected significant cost savings, but in order to carry it out, special legislation exempting the Air Force from some encumbering statutes regarding property disposition and enabling other concepts such as conveyance and leaseback would be required. By October of 1999, Congress passed legislation known as the Base Efficiency Project (Section 8168 of the Fiscal Year 2000 Defense Appropriations Act). Through the legislation, Congress authorized the Air Force to conduct a demonstration project at Brooks AFB. The purpose of the legislation was to evaluate and demonstrate methods for more efficient operations of military installations through improved capital asset management and greater reliance on the public and private sectors for less costly base support services, where available. With enactment of minor modifications in July 2000, the legislation allowed the Air Force to conduct joint activities with the community, state or private sector party for the benefit of the Base. The legislation provided the Air Force with authorities to depart from traditional methods of acquiring and disposing of real and personal property. It gave the Secretary of the Air Force the authority to lease real or personal property on the Base. The legislation provided the authority to dispose of real or personal property without the federal restrictions usually imposed on such processes. Most importantly, it provided the Air Force with the authority to enter into a conveyance and leaseback agreement for properties still needed by the Air Force. The legislation mandated that a Master Plan for the Development of Brooks City-Base be developed and submitted for review and approval. While the City of San Antonio was learning about Air Force missions, the Air Force was immersing itself in graduate level urban planning studies. City planners, experts in commercial business practices, and financiers met with Air Force leaders in a two-day venue to visualize the Base under a City-Base concept. Transportation planners, landscape architects, and proponents of new urbanism shared their thoughts on what could be. This charrette provided a basic framework for cooperative and collaborative actions between the Air Force and the City. Opportunities to incorporate academic institutions that could partner with Air Force missions were depicted on the map indicating Brooks perimeters. Potential zoning plans were discussed. Traffic flow, green spaces, and artists depiction of Brooks role in the heritage of United States development of air power were discussed. Options for security were addressed. Historical districts were addressed and folded into a vision for what would eventually develop into the Brooks Technology and Business Park. Activities involved with development of the vision, determination of implementation requirements, and the negotiation of the deal were beginning to happen in a simultaneous fashion. As a result, in some cases the activities of implementation were being developed at the same time the vision was being articulated. The National Environmental Policy Act (NEPA) mandates an assessment of the likely impacts on the environment of a proposed federal project. An Environmental Impact Statement (EIS) is required for property transfer from the military to new users. Public involvement in proposed plans is critical to the process. Citizens were invited to share their views on proposed development. Cleanup of existing contamination was progressing, and reports were shared with the community and environmental regulators. At the same time, the completion of the Environmental Baseline Study (EBS) was progressing to ensure that the property could be deemed suitable for transfer. The need for due diligence on the part of the City was critical in the environmental arena, and all Air Force records and studies were made available to City environmental officials. The legislation mandated that the property would be conveyed at fair market value. Lessons learned from previous Economic Development Conveyances (EDCs) throughout the country pointed out that a standard real estate appraisal is not always appropriate to determine fair market value. Comparable sales of properties in both size and complexity are not generally available. From these lessons learned, a joint appraisal that employed both an income and a sales approach was selected. A prominent local property appraiser, acceptable to both parties, was selected. The appraisal provided the single most important point of departure for determining the fiscal consideration required to ensure the deal met the fair market value intent of the legislation and provided the City with a sound foundation for its investment. Cash flow models based on development scenarios and capitalization provided the basis for the Air Force and the City to forecast potential values, develop budgets, and determine development priorities. The joint nature of the project produced a revenue sharing arrangement that would benefit the City and the Air Force equally after net expenses were covered. The Congressionally approved Master Plan developed a course of action and provided a point of departure for further negotiation and process refinement. Political leaders at the City and Federal levels had contributed mightily to ensuring success of this vital project. The State of Texas also recognized the opportunities that could develop from other military installations within the State. As a result, the State Legislature passed a bill allowing the formation of development authorities in communities with military bases that were not faced with Base Realignment and Closure actions. The City of San Antonio quickly passed an ordinance establishing the Brooks Development Authority (BDA). The BDA, comprised of eleven members appointed by the City Council, will be the designated recipient of the property rather than the City of San Antonio. The eleventh member of the board was appointed in December 2001, and the BDA immediately set about the tasks of establishing a charter, developing a financial infrastructure, and hiring a commercial property manager, Grubb and Ellis Management Service, to manage development and to provide essential services to the Air Force.The visualization, articulation, and implementation of the Brooks City-Base Project have evolved over a five-year time period. No first of its kind project evolves without some false starts. Trips down blind alleys were frequent. Fear of the unknown provided a fair amount of tension in negotiations. Frustration with regulations and obscure legal opinions often set nerves on edge. Leaders in the process changed once and then once again. Lack of understanding of budget processes and political realities on both sides created a feeling of uneasiness. . Federal environmental laws, historical preservation directives, and Air Force coordination processes provided unwanted extenders to almost every schedule. Despite the uncertainty of implementing something that has never been done before, the reality of the vision is becoming clearer. With each day, potential tenants are seeking to locate on the property, are seeking to partner with the Air Force missions, and plans for development of vacant land are being formulated. The vision that developed with the first meetings between the Air Force and the City of San Antonio back in 1996 has turned into a reality-based project with opportunities for not only the two principal parties, but also for the nation. Blending the attributes of a research and business park with the culture of a military base will be a focus for the BDA and Brooks military leadership over the course of the next several months. Determination of an optimal utilization of existing facilities and properties will be critical to ensuring land use plans are credible and effective. Development of routine procedures for leasing and partnering with Air Force mission organizations must be accomplished. Establishing a priority list for facility renewal and reinvestment into the Park is on the horizon. Planning for capital improvements for both the military and private sector partners will be a major focus as opportunities present themselves and military requirements evolve. The details of transition from federal ownership to private ownership will require the attention of experts on both the military and the civilian side. Marketing and development plans will be fine-tuned over the next several months. The tasks are many, they are complex, but their accomplishment contributes to a promising future. The schedule forecasts signatures on legal documents for June 2002.
Author and Copyright Information Copyright 2002 by author
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