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1 Redevelopment Update February 2014. Implement the Reuse Master Plans for NASB and Topsham Annex Manage the transition of base properties from military.

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Presentation on theme: "1 Redevelopment Update February 2014. Implement the Reuse Master Plans for NASB and Topsham Annex Manage the transition of base properties from military."— Presentation transcript:

1 1 Redevelopment Update February 2014

2 Implement the Reuse Master Plans for NASB and Topsham Annex Manage the transition of base properties from military to civilian uses Redevelop former base properties to create new high quality jobs Actively engage the private sector in the redevelopment effort 2

3 A science and technology park in a campus environment Centers of excellence in advanced technologies Regional Executive Airport Quality business-focused educational facilities Renewable Energy development Smart Growth focus Affordable housing opportunities Open space and outdoor recreation opportunities 3

4 Aviation and Aerospace Energy Composite Technologies Information Technology Biotechnology and Biomed Education Key to successful business development Industry driven curriculum SMCC, UMaine Opportunities for high quality job creation in: 4

5 Short-term goal: Recover direct civilian job losses resulting from the base closure (700 jobs) Intermediate goal: Recover economic losses and total job losses in the primary impact community resulting from the base closure ($140 million in payroll) Long-term goal: Facilitate the maximum redevelopment of base properties (12,000 + jobs) 5

6 Property Dispositions 6 Public Benefit Conveyances MRRA Airport 998 ac Town of Brunswick Recreation & Conservation850 ac Bowdoin College Education270 ac SMCC Education 20 ac Family Focus Child care 7 ac Economic Development Conveyance ($$$$$$$) MRRA Economic Development 1,098 ac

7 7 Of the space controlled by MRRA, roughly One third has been leased; One third has been sold; And one third is still available

8 8 Economic Impacts of Redevelopment since May 2011 Creating more than 750 Jobs (by end of 2014) Contracts awarded: More than $25 million Total New Taxable Property: $51 million Total Property Taxes: $684,674 (current fiscal year)

9 9 Operations at Brunswick Executive Airport in 2013: More than 9,000 Acreage owned by MRRA: 1,380 Square footage owned by MRRA: 910,100 SF Square footage under lease/sale contract: 573,925 SF Miles of paved road MRRA responsible for: 27 Miles of sewer pipe and water pipe MRRA maintains: 17 Miles of electrical power line MRRA maintains: 15 Amount of power load MRRA manages: 1 megawatt Students enrolled at Southern Maine Community College Midcoast Campus: 6oo Airport, Infrastructure, Education

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12 12 Part 145 Repair station at Brunswick Landing: Conduct major maintenance on Bombardier Global Express and Gulfstream II, III, IV and V aircraft; adding Boeing and Airbus narrow and wide body maintenance, interior completions Tempus selected Brunswick to consolidate and expand its MRO, engineering and completions capabilities due to: Availability of large, modern hangar facilities Partner with SMCC to utilize the former flight simulator facility Availability of skilled craftsman and technically knowledgeable workforce; advanced communications infrastructure; adequate housing for contract and short term labor Could employ up to 300 workers as they expand One of fastest deals in MRRA history. Lease signed just 3 weeks after initial phone call CEO is a former NASB aviator who was stationed here

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14 Huge company from Sweden is world leading manufacturer of single-use surgical and wound care products for professional health care sector Mölnlycke chose Brunswick Landing to be site of first North American manufacturing site to make finished, packaged wound dressings. Medical foam produced in Mölnlyckes Wiscasset manufacturing site May be able to take advantage of Brunswick Landing Foreign-Trade Zone (FTZ) New 79,000 SF $15 million manufacturing facility built and owned by MRRA, opened in March 2013 50 employees with more than 100 jobs in pipeline

15 15 Oxford Networks Data Center provides high-security data management services for businesses and organizations around the world Oxford is expanding its storage facility to quadruple current capacity Largest data center north of Boston Located in the Wing Building, which Navy used for classified secure information and data Re-purposes the military grade building infrastructure to provide the highest level of physical and technical security available

16 16 Startup company by Alan Klapmeier, former Cirrus CEO Developing a FAA certified, composite aircraft, propelled by a single engine turboprop Drawn to Brunswick because of infrastructure already in place Kestrel attracted by well qualified workforce, including those familiar with composite technology, and a supportive community 42 employees in Hangar 6 with payroll of $3 million Brunswick facility -- composite parts production Other facility in Superior, Wisconsin -- manufacturing of plane

17 Worldwide company headquartered in Houston provides marine survey, engineering and auditing to international shipping and offshore industries ABS Modeling Center in Brunswick Landing -- 30 technicians who create the computer-aided design (CAD) models of clients vessels. Model used throughout life of vessel for multiple purposes Verify integrity of the hull, analyze stability of the vessel if it is involved in a casualty ABS selected Brunswick Landing for its high-quality facilities and the regions talented workforce

18 Founded in 1980, RollEase is window covering fabricators based in Stamford, CT Innovation Center at Brunswick Landing (11,000 SF) for R & D Located in downstairs below ABS Opportunity to collaborate with the University of Maine on joint development projects VP Greg Farr, former Downtown Director for Brunswick will direct Maine operations

19 Private Sector Engagement 19 MRRAs goal is to engage the private sector in the redevelopment effort through lease and sale of buildings and land Consistent with Reuse Master Plans, Zoning ordinances and Design Guidelines Major property acquisitions at Brunswick Landing and Topsham Commerce Park: Partnership with local real estate developers George Schott, Jim Howard, Tom Wright, Hilary Rockett MRRA has sold 245 acres of land to AMH (over 50 housing units sold to date – McKeen Street) Three major building acquisitions closed 26 buildings (15+ acres) $10 million in planned private investment Sold hotel in December to Mr. Schott Commissary sold in November to JHR Development for food hub (Wicked Joes and Maine Harvest More closing expected in spring for 20 acres, and Building 87 (Oxford), SeaBee Compound, NEX Three current land development proposals in process (42 acres) $50 – 60 million in planned private investment MRRA must pay the Navy 25% of all sales and lease revenues after we hit $7 million, which we have a year earlier than forecast MRRA is aggressively marketing property to international, national, state- wide and local real estate developers and target sector businesses MRRA has open listing policy and pays brokerage fees MRRA retained CBRE Richard Ellis and REMAX to market key properties MRRA has unique ability to be creative in real estate and project financing Must realize Fair Market Value (EDC)

20 20 TechPlace is part of an integrated project through ObamasMake it in America Challenge (MIAC) Program Project one of only 11 in U.S. to win funding Strengthening Regional Assets $750,000 funded by Economic Development Administration Must include a 1:1 Matching Share from non-Federal sources ($250,000 MRRA, $250,000 BDC, $250,000 Maine DECD) Connecting Regional Supply Chains and Assisting SMEs $375,000 funded by National Institute for Standard and Technology & Maine MEP No cost sharing requirement Building a Highly Skilled & Diverse Workforce to Meet Employer Demand $1.3 million funded by Employment and Training Administration/DOL Cost sharing or matching not required

21 21 Objective: Create a premier advanced manufacturing and technology accelerator at Brunswick Landing in former Aircraft Intermediate Maintenance building TechPlace community to include: Conceptual Floor Plan Existing Floor Plan Co-working office space Co-working manufacturing/prototype lab Warehousing Private office/shop space Shared administrative equipment Shared administrative services VTC enabled conference room Access to support programs and networks

22 Grants Department of Defense - Office of Economic Adjustment (will phase out starting in 2014) Federal Aviation Administration Economic Development Administration Maine Technology Institute Property Leases and Sales Airport Revenues Special events Fuel sales Aircraft parking Hangar rentals State of Maine Jobs Bond ($3.25 million – infrastructure improvements) Jobs Tax Increment Financing Town of Brunswick Tax Increment Financing 22

23 Challenges Affecting Rapid Reuse 23 Property conveyances are costly and complex real estate transactions Many buildings that are conveyed suffer from lack of proper maintenance (major systems fail) Most buildings do not meet current State & local codes (ADA, Life Safety, etc.) Aging utility systems require significant upgrades MRRA has responsibility to maintaining: Airport runways & tarmac 27 miles of roads 17 miles of electric infrastructure 15 miles of water, sewer and storm drains Some key properties are still awaiting environmental clearances These are unique properties that requires some planning and code flexibility Business friendliness at State and community level is critical to success

24 Conclusion 24 Redevelopment of former military installations is a long, tedious expensive and complex process. It is a marathon not a sprint! While still are very early in the process, the Redevelopment of NAS Brunswick is proceeding ahead of schedule. The NASB reuse effort is far outpacing other 2005 BRAC facilities around the country. The annual lease absorption rates at Brunswick Landing are outpacing the region by a factor of 3x.

25 Conclusion Continued 25 The ability of NAS Brunswick to effectively and rapidly achieve its reuse goals is dependent on several key factors: The condition of the national and state economies; The availability of the financial resources needed to re-purpose the properties and improve and maintain the infrastructure; and The level of federal, state, community and public support for the redevelopment effort!

26 Thank You 26

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