1. 1 Old Point Comfort in Transition: Update on Fort Monroe BRAC Briefing for the Hampton City Council May 27, 2009 Bill Armbruster Executive Director Fort Monroe Federal Area Development Authority FMFADA

2. 2 Fort Monroe Federal Area Development Authority  Is a political subdivision of the Commonwealth, established by the General Assembly in 2007  Policy is set by a Board of Commissioners with appointees representing the City of Hampton, Virginia General Assembly, Governor’s Cabinet and two preservation and tourism professionals  FMFADA will hold and manage the property as a trust for the benefit of the public  FMFADA Executive Director leads staff and consulting team

3. 3 Re-Use Planning – Process Overview  Hampton and Hampton FADA led early efforts (2005-2006) – significant citizen participation (~600 people at community design charrettes)  FMFADA recognized as LRA in 2007  Since 2007, FMFADA planning has been guided by the Governor’s 5-point charge  Must follow National Historic Preservation Act (NHPA) Section 106 process for impact on historic resources  Determining appropriate treatment of the historic resources involved 30+ consulting parties and a programmatic agreement (PA) with the US Army, the federal Advisory Council on Historic Preservation (ACHP), the National Park Service (NPS), the Commonwealth of Virginia and FMFADA as signatories

4. 44 Governor Kaine’s 5-point charge for Creating Re-use Plan  Respect Fort Monroe’s history  Maintain large-scale open space and park areas  Keep it fully open to the public  Include limited new development within strict limits  Ensure economic sustainability

5. 5 PA Protects Fort Monroe’s Landmarks and History  PA = Programmatic Agreement  Virginia’s Department of Historic Resources role as State Historic Preservation Office (SHPO)  Interpretive Master Plan will guide nature and character of public programs and use 5

6. 6 Ultimate Vision for Fort Monroe – What will it look like?  Historic Village  Inner Fort  Entry/North Gate  Wherry Quarter  Parks & Recreation

7. 7 Re-Use Planning Five Management Zones  Select areas and buildings for public use inside and outside the moated fort  Lease historic homes and non-residential buildings  Change North Gate from industrial to mixed use  Short-term leases and rental of Wherry housing units and non- contributing buildings, with long range plans to be determined

8. 8 Key BRAC Events  2005 BRAC Congress announced closure of Fort Monroe  2006-7 Hampton FADA built transition planning team  March 2007 Virginia General Assembly established the Fort Monroe Federal Area Development Authority (‘FMFADA’); the Department of Defense recognized the FMFADA as the local reuse authority (LRA) for Fort Monroe; City of Hampton continues as fiscal agent  August 2008 Virginia Governor Timothy Kaine signed the Reuse Plan

9. 9 Key BRAC Events  September 2008 KHA, BAE and FMFADA staff met with City of Hampton regarding provision of municipal services (fire, police, solid waste collection, wastewater collection, etc.)  September 2008 Homeless Assistance and Reuse Plan package submitted to US Dpt. of Housing and Urban Development  January – February 2009 FMFADA submitted appropriation requests for $96M in capital improvements to off-shore facilities (breakwaters and sand beaches) and to existing infrastructure (water, wastewater, streets, bridges, electrical and natural gas)

10. 10 Key BRAC Events  March 2009 Working group formed to study options for National Park Service role at Fort Monroe/Old Point Comfort  April 2009 PA is approved by signatory parties, official signing ceremony scheduled for June 1, 2009  April 2009 Working groups established to study Natural Resources and African American Culture at Fort Monroe  May 2009 Draft EIS submitted by consultant to Army for internal review

11. 11

12. 12 Upcoming Milestones  June 2009 Draft MOU for public services expected to be presented to the city councils of Hampton and Newport News  July 2009 Army will issue the draft EIS for public comment  July 2009 FMFADA becomes independent authority  August 2009 – March 2010 Infrastructure conditions assessments will be undertaken  ~June 2010 Draft Memoranda of Agreement (MOA) expected to be presented to the cities of Hampton and Newport News and to private utility providers as appropriate  September 14, 2011 military mission transfers from Fort Monroe

13. 13 Bottom Line Considerations  Successful reuse of closed military installations can result in greater economic activity and local property value than during operation of federal reservation  Links to the surrounding community will be a great reuse benefit, providing new recreation and other community resources  Real estate strategy will attract private investment and generate local property taxes & other fiscal benefits  Low interest public infrastructure loans and grants are available  Collaborative transition planning is critical to a seamless changeover and evolution

14. 14 Way Ahead  Army is responsible for environmental cleanup and current testing suggests dramatic reduction of costs associated with cleanup  FMFADA working with Army to make available and market the residential and commercial properties on an interim basis to soften the fiscal impacts of the base closure  FMFADA is building the organization that will manage the Commonwealth’s assets for the benefit of the public, both near and far

15. 15 Planning for the Transition: Infrastructure Briefing for the Hampton City Council May 27, 2009 Eddie Marscheider, P.E. Associate Kimley-Horn and Associates, Inc.

16. 16 Infrastructure and Municipal Services  Implementation phase for infrastructure  Alternatives reviewed for municipal infrastructure services in KHA December report  Recommended municipal services and utility providers  City of Hampton  Public Safety (Police, Fire, Rescue)  Solid Waste Collection  Wastewater Collection  Stormwater Collection  Streets and Bridges  Flood Protection  Newport News Waterworks (NNWW)  Water System

17. 17 Infrastructure and Municipal Services  City expectations prior to considering provision of services  Want to know what they are “inheriting”  Age, condition, capacity, and conformance to standards  Want to know how funding will be addressed

18. 18 Infrastructure and Municipal Services  Detailed Condition Assessments planned for FY 10  Goal is to better define condition of systems  Capital Improvement Program and costs will be identified and confirmed  Studies will be time consuming and expensive

19. 19 Infrastructure and Municipal Services  Memorandum of Understanding (MOU)  Good faith agreement on next steps toward eventual agreement  Agreement on scope of condition assessments  Agreement to continue discussions at conclusion of condition assessments  Does not include commitments by the City to provide services or funding for capital projects, operation, or maintenance  Goal to have completed draft completed by June FMFADA Board meeting

20. 20 Infrastructure and Municipal Services  Final Service Agreement  Discussions would commence at conclusion of condition assessments  Agreement would be final binding document addressing scope, payment for services, legal issues, etc.  City of Hampton not expected to pay for capital projects or municipal services with City funds

21. 21 Infrastructure and Municipal Services  Streets and Bridges  Conformance to VDOT minimum street widths for maintenance funding eligibility  Meeting held in April with VDOT and City of Hampton to discuss maintenance funding eligibility  VDOT stated that right-of-way requirements could be waived  VDOT will be reviewing the street inventory and make a judgment on eligibility  Street Condition assessment planned for May 30th  KHA will be reviewing 2008 Bridge Inspection Report

22. 22 Infrastructure and Municipal Services  Wastewater and Drainage  Represents majority of condition assessment scope of work  Review of applicability of Regional Consent Order to wastewater system  Flood Protection  Funding of completion of Corps of Engineers flood protection project is highest infrastructure priority  KHA December report of Sea Level Rise has recommended further recommendations for further flood protection improvements  Inclusion in City’s flood study program is high priority

23. 23 Infrastructure and Municipal Services  Private Utilities  Dominion Virginia Power  Virginia Natural Gas  Cox Communications  Verizon

24. 24 Planning for the Transition: Economics Briefing for the Hampton City Council May 27, 2009 Anita Morrison Project Consultant Bay Area Economics BAE

25. Service Requirement Discussions  During October and November, BAE met with City of Hampton department heads.  Focus on fiscal impacts, law enforcement, fire & rescue, schools, and parks & recreation.  Also participated in power and water utility discussions with Kimley- Horn.  Discussion re: assumptions in preliminary financial analysis.  Goal for each department/utility to identify: Ongoing service requirements; One-time capital requirements (e.g., new equipment/upgrades); Timing of requirement vis-à-vis leasing and rehabilitation activity; and

26. City Feedback - Public Safety  Hampton Police Department:  Exploring need for more officers & related equipment  Potential need for additional emergency dispatch console and dispatch staff  Expanded marina may require more additional equipment and patrol services  Fire and emergency rescue:  Additional equipment and emergency medical technicians  New building safety inspector with vehicle  BAE, FMFADA and City will continue to discuss and review public safety requirements

27. City Feedback - Other Departments  Hampton Schools:  General concurrence with preliminary financial model assumptions  Confirmed that no demand for new school anticipated  Interest in use of Fort Monroe buildings for support activities and a pre-school  Finance Department, Assessor’s Office, and Commissioner of the Revenue:  BAE provided model to City for “open book” dialog  Useful feedback received to refine revenue estimates  Comments will be incorporated in financial update  Parks and Recreation:  Has identified buildings and facilities of interest such as Community Center and Bowling Alley  Eco-tourism potential on Mill Creek  Partner with Convention Center for events at Fort Monroe  Needs to explore opportunities further

28. 28 Economics—Fiscal Impact May 2008 Analysis*  Current Fort Monroe employment level – 4,100 1,705 people in uniform 2,405 civilian and contract employees  Current Fort Monroe residents – 804 on post  Projected annual operations/maintenance costs – $4.0 - $4.7M  Projected net shortfall to Hampton (service costs v. revenues) 2011-2018  Should see a net positive in 2019  NOTE: FMFADA and City of Hampton continue to refine all projections – City has degree of control over costs * Updated November 2008

29. 29 Planning for the Long-Term: Real Estate Strategy Briefing for the Hampton City Council May 27, 2009 David Shiver Principal Bay Area Economics BAE

30. 30 Real Estate Strategy  The Fort Monroe Real Estate Asset Management Strategy: Sets the goals and objectives Identifies key challenges Formulates strategies to realize goals and objectives Real Estate Asset Management Plan RFQs/RFPs FMFADA Real Estate Staffing EDC Application Lease/Contract Terms

31. 31 Goals and Objectives Generate a stable stream of revenue to preserve and protect Fort Monroe’s and Old Point Comfort’s rich historical, cultural, and natural resources by obtaining a fair and reasonable rate of return on the Commonwealth’s assets. Strengthen Virginia’s attractiveness as a destination for recreation and business and enhance economic development in the City of Hampton and entire Hampton Roads region. Optimize results and control costs by establishing an efficient, highly flexible, and responsive FMFADA organization. Support and complement a broad and inclusive range of public uses at Fort Monroe and Old Point Comfort, including education, heritage tours, and beach tourism.

32. 32 Interim Leasing Concepts - Residential  Residential Rental Program, targeting: Military families renting “on the economy” Foreign personnel assigned to Tidewater area military commands Visiting faculty & graduate students at area colleges & universities Other federal agencies with “detail” employees Local public safety agency employee households  Seeking short-term tenancies to give FMFADA flexibility to implement long term rehabilitation and residential leasehold program  Minimal initial investment, “patch & paint”  Issue RFP for leasing and property management firm in 2010

33. 33 Interim Leasing Concepts - Commercial  Identify buildings that are ADA compliant and require minimal investment for occupancy, including: 13 recently constructed “butler” buildings with flexible floor plans (85,000 sq.ft. total) Building 100 (25,900 sq.ft.)  Target existing office tenants in local market  Target technology and clean-tech firms needing shop and storage space  Lay marketing and “proof of concept” ground work for identification of anchor tenant

34. 34 Residential Leasehold Program  Proposed concept: Offer long-term (50+ year) leases of historic residences with pre- payment of rent Establish endowment/pay for capital costs with proceeds  Issues: Pioneering product in Hampton Roads Need to develop support infrastructure (e.g, local lenders, brokers, title companies)  Examples: Sea Colony, Delaware Pensacola, Florida Jekyll Island, Georgia Palm Desert/Palm Springs, California Hawaii Santa Inez, California Universities/Colleges Land Trusts

35. 35 New Construction - Ground Leases  New development proposed in Entry Gate, North Gate and Historic Village (infill)  Lead for infrastructure planning, design, financing and construction Cost sharing agreements  Long term leases (50+ years) required  Potential structures: Base rent with reappraisals Participation leases LLC or JV

36. 36 RFQ/RFP Strategy  RFP for leasing and property management entity Action: Fiscal year 2010  RFQ, RFP, and ENA for Master Developer National outreach Experience and financial resources key criteria Action: Fiscal year 2010  RFP for marina operator in partnership with U.S. Army Element of negotiated fair-market value Economic Development Conveyance Upgrade and expand marina operations Action: Fiscal year 2011

37. 37 Questions???