1. McClellan Reuse: Successes & Challenges 2006 Update Jeanette M. Musil, M.S. Deputy Director Kathy Broderick Senior Reuse Coordinator Sacramento County Department of Economic Development and Intergovernmental Affairs at McClellan

2. Overview Background Tenants & Employees Redevelopment & Reuse Airport Community & National Perspectives Environmental Issues & Early Transfer Delayed Land Transfer

3. Tenants & Employees 50% Space Leased Business Diversity Job Sectors Educational Campuses Joint Powers Authority Coast Guard 2 nd Year Lease Extension McClellan Technology Incubator

4. Number of Jobs Job Diversity Sectors at McClellan Park February 2006

5. Redevelopment & Reuse Housing (Serna Village, Wherry Housing, Historical Town Homes, Skyway Terrace Apartments) Infrastructure & Improvements (roads, drainage, beautification) – Sanitary Sewer Replacement Project ($50M) – Dudley Blvd. Improvement Project ($8.3M) Public Transportation (bus & rail) – Regional Transit Relocation & Expansion Project Sacramento Metro Fire Annexation

6. More Redevelopment & Reuse Aerospace Museum of California Public/Private Partnerships Investment Strategy North Highlands Visions Plan – Freedom Park Drive – E Street Corridor Amenities – Watt Ave. Streetscape Improvements

7. Airport Users: US Coast Guard, US Forest Service, CA Dept. of Forestry, Sac Metro Fire District, Calstar, Flight Options, Private Jets Airport Improvements -New Instrument Landing System (ILS) Zone Boundary Change Fuel Flowage Fee

8. Community & National Perspective Public Meetings & Testimony Good Neighbor Policy North Highlands Service Center California Coalition of Local Redevelopment Authorities State & Federal Rule Changes and Legislation (Holland & Knight) Association of Defense Communities - Presenting Member

9. Environmental Issues Groundwater Cleanup Dispute Radiation Indoor Air & Shallow Soil Gas Biological Opinion Issued Focused Strategic Sites = 90% of McClellan Contamination Cleanup and Reuse Concerns – $476M cleanup costs spent by Air Force to date – Less than 5% of Land Transferred

10. Early Transfer/Privatized Cleanup Designed to Expedite Property Transfer & Cleanup Federal Law Amended to Allow Transfer of Contaminated Real Property IF... – County accepts land & assumes remediation responsibility in exchange for AF funds Status of Southwest Business Campus (60-acres) – Cost differences with Air Force being resolved – First in a series of proposed McClellan sites – Could be first NPL site in nation – Environmental regulators, community, California delegation, and Board of Supervisors supportive

11. Delayed Land Transfer Less than 5% Fee Title Transfer New Air Force Policies FOST vs. FOSET Institutional Controls & Land Use Covenants Cost, Risk and the Unknown Exploring “Fence to Fence” & “Mega FOSET” Transfer Ideas Need for New County Policies Consequences/Impact

12. Conclusions County Goal: Support Reuse & Integrate McClellan Into Surrounding Communities Continue to Provide Successful Leasing Opportunities Future Success is Dependent on Land Transfer Air Force Must Retain Responsibility for Past Contamination Need Continued Support from the California Delegation and Sacramento County Board of Supervisors