bae Fort Monroe Economic Advisory Services Bay Area Economics

bae About BAE  Award-winning urban economists and development advisors  25 person firm, founded in 1986  Offices in San Francisco Bay Area, Washington, DC, New York City & Sacramento  Core Services: Redevelopment/Revitalization Development Feasibility Public/Private Transactions Fiscal Impacts Analysis Economic Development Affordable Housing Military Base Reuse

bae Military Base Reuse Experience  More than 25 bases and host communities Advance Planning Economic Development Strategies Housing Assessments Market Studies Financial Analysis and Feasibility for Reuse Infrastructure Financing Conveyance Processes Negotiations with Military Services Developer Solicitations Transaction Support Short- and Long-Term Lease Transactions Business Planning and Strategic Advisory Services

bae The Presidio of San Francisco Major historic and natural resource Transferred to the National Park Service with a requirement to become financially self-sufficient Operating and maintenance budget Service District Charge for municipal services provided by NPS Detailed financial modeling Developer solicitations Lease negotiations Governance options Park business operations support

bae Key Areas of Responsibility: Fiscal Impacts  Evaluating reuse/development alternatives  New services required of the City of Hampton  New revenues and costs generated by building reuse and new development  Annual phasing of costs and revenues

bae Operating and Maintenance Costs  Dissect the Army’s current $15 million annual O&M cost  Pare it down to essential activities  Build a “bottom-up” budget based on private-sector and municipal cost structures  Allocate between services provided by the City, services provided by the tenants/owners and services provided by the governance entity  Adjust for buildings leased or sold and no longer maintained by FMFADA  Adjust for vacant buildings

bae Sale vs. Lease of Sites and Buildings  Short-term “patch and paint” leasing  Draw upon prior market analysis  Revenue potential  Impacts on financing  Balance between up-front revenue vs. long-term revenue to maintain historic and public use resources

bae Financial Model  Detailed financial cash flow modeling on an annual basis for a 20-year planning period  Flow of revenues and costs  Infrastructure and code compliance costs  Multiple alternatives  Model available for FMFADA operations going forward  Assess overall financial sustainability

bae Governance Alternatives  Many options Governmental entity Public/private entity Non-profit developer Private developer  Pro’s and con’s  Issue of National Park Service role