1. “ Lemons to Lemonade ” Military Base Closure and Transformation Into Thriving Industrial Park National Governors Association Center for Best Practices Nashville, Tennessee September 19, 2005 Jim Hettinger, President and CEO Battle Creek Unlimited, Inc.

2. Lemons to Lemonade Battle Creek and Battle Creek Unlimited Fort Custer Military Training Base Steps taken Results If you are on the BRAC 2005 list

3. Battle Creek, Michigan –54,000 population 3rd largest city in Michigan (land mass) –Primary employment sectors Breakfast cereal processing Automotive-related manufacturing Government and military –By the late 1970s… Military base closure Durable goods producers shut down facilities Unemployment approaches 18% Lemons to Lemonade

4. Battle Creek Unlimited, Inc. –1972: created to oversee orderly transformation of Fort Custer –Private, nonprofit, IRS 501 (c) 3 –Community based board of directors –Gradually assumed most functions associated with an economic development entity Lemons to Lemonade

5. Fort Custer Military Training Camp –Construction began in 1917 Capacity for 35,458 troops 1,282 buildings including a hospital 9,139 acres –1919: training 90,000 troops –1936: 24,000 troops arrive for training –1940: 14,000 acres with 7,000 stationed troops and 3,000 civilian workers –WW II: 300,000 troops pass through for training and mobilization Lemons to Lemonade

6. 1959: Custer Air Force Station and North American Air Defense –1,000 personnel stationed with families Service clubs, pool, gymnasium, indoor tennis & boxing, softball, golf, base exchange, bowling alley, auto repair shop, laundry & dry cleaning, dispensary, and lodging quarters 1960: Job Corps Center for high school dropouts to learn job skills 1965: Secretary of Defense, Robert McNamara, orders closing of Fort Custer 1968: Formal closing ceremony Lemons to Lemonade

8. What steps did Battle Creek take? –Acquire 3,000 acres of abandoned military land –1972: Determine highest and best use –1976: Establish Customs port of entry –1978: Foreign-Trade Zone #43 –Relocate manufacturers from landlocked, antiquated downtown sites Lemons to Lemonade

9. Establish Tax Increment Finance Authority Re-use of abandoned structures Upgrade existing infrastructure Market for foreign direct investment Market airport properties Lemons to Lemonade

10. 34 underground storage tanks Lime pits Buried training aircraft, circa 1960s Radar structure to withstand bombing raids Large steel water storage tanks, gravity flow water system Wooden sewer lines Ordnance, live and deteriorated Remove and clean up railroad tracks Demolish 1600 structures Numerous concrete pads and foundations Lemons to Lemonade

11. Fort Custer Industrial Park –Marketed and managed by Battle Creek Unlimited –95 companies, 10,000+ jobs –Investment from US, Japan, Germany, Austria, Denmark Lemons to Lemonade

12. WK Kellogg Airport –Michigan Air National Guard –WMU College of Aviation –Duncan Aviation –WACO Classic aircraft manufacturer –2 nd -fastest growing airport in Michigan Lemons to Lemonade

13. Present challenges –Another BRAC –Post-9/11 opportunities and challenges Globalization Information technology Lemons to Lemonade

14. If you are on the BRAC list –Develop consensus –Acquire property –Work with a planning consultant –Line up local units of government –You will be one of many development projects nationwide –It won’t be painless Lemons to Lemonade

15. Questions? Lemons to Lemonade

16. Battle Creek Unlimited 4950 West Dickman Road P.O. Box 1438 Battle Creek, Michigan 49015 USA Telephone: 269-962-7526 Fax: 269-962-8096 www.bcunlimited.org