1. bae Real Estate Asset Management Strategy Fort Monroe Federal Area Development Authority March 19, 2009

2. bae Today’s Agenda  Current work summary  Role of Fort Monroe/Old Point Comfort Real Estate Asset Management Strategy  Real estate goals and objectives  Interim leasing concepts Residential Commercial

3. bae BAE Scope of Work  Updated financial analysis  Real Estate Asset Management Strategy  Economic Development Conveyance  Property manager/developer solicitations

4. bae Asset Management Strategy is Key Driver  The Fort Monroe/Old Fort Comfort Real Estate Asset Management Strategy: Sets goals and objectives Identifies key challenges Formulates strategies to realize goals and objectives Provides a direction and road map for FMFADA staffing & leasing activities Real Estate Asset Management Strategy RFQs/RFPs FMFADA Real Estate Staffing EDC Application Lease/Contract Terms

5. bae Goals and Objectives  Clearly articulate FMFADA’s goals and objectives Focused on real estate dimension only FMFADA management consultant to focus on other dimensions (e.g., institutional management, cultural, interpretive, and recreational)  Five areas to focus on today: Summary of Overall Goals and Objectives Financial Historic Preservation Operational Economic Development

6. bae Overall Goals and Objectives  Generate a stable stream of revenue to preserve and protect Fort Monroe’s rich historical, cultural, and natural resources  Enhance the economic development of 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 public uses of Fort Monroe

7. bae Financial  Generate near-term revenues  Optimize long-term value  Achieve long-term financial self-sustainability  Minimize upfront Commonwealth investment  Achieve market-rate rates of return  Enhance value with Fort Monroe/Old Point Comfort “brand”

8. bae Financial (continued)  Explore residential leasehold program to generate capital  Establish an interim leasing program prior to transfer  Generate fiscal benefits to City of Hampton to cover costs of municipal services  Maximize the use of state and federal investment tax credits

9. bae Historic Preservation  Preserve historic buildings through interim leasing  Facilitate long-term rehabilitation and adaptive reuse of historic structures  Facilitate maintenance of cultural landscapes  Ensure compliance with Fort Monroe Historic Preservation Design Standards

10. bae Operational  Build a responsive and flexible FMFADA real estate organization using best practices  Control operating costs by minimizing permanent staffing requirements  Provide an efficient permitting process  Ensure “owner’s rep” project support  Establish interim leasing program with contracted broker and property management firm

11. bae Operational (continued)  Privatize major rehabilitation and new development  Capacity to enforce Programmatic Agreement for historic preservation  Operate real estate programs to complement Long Range Interpretive Master Plan  Ensure Army remediation meets standards set by Fort Monroe Reuse Plan

12. bae Economic Development  Strengthen local and regional competitiveness  Collaborate with state & local ED officials to secure “anchor” tenant  Promote “green-tech” or “clean-tech” industry  Promote IT, aerospace, military, and NASA related commercial tenants  Improve the region’s quality of life by making Fort Monroe the “front door” of the Hampton Roads Region  Support the on-going revitalization of Phoebus as “Fort Monroe’s neighborhood shopping district.”

13. bae Interim Leasing  Challenge: Balance need for early revenue and historic preservation with protection of Fort Monroe/Old Point Comfort image  Lessons Learned: Presidio of San Francisco commercial leasing program

14. bae Interim Leasing Concepts - Residential  Proposed concept: Fort Monroe Residential Rental Program Target market segments: Military families renting “on the economy” Foreign families assigned to NATO HQ Visiting faculty & graduate students at area colleges & universities Local public safety agency employee households  Seeking credit-worthy, short-term tenancies to give FMFADA flexibility to implement long term rehabilitation and residential leasehold program

15. bae Interim Leasing – Residential (continued)  Required improvements: Limit to units requiring only cosmetic Improvements – “paint and patch” Improve landscaping at Wherry Housing  Implementation: RFP for residential property manager Master lease with Army pending transfer Start mid- to late 2010

16. bae Interim Leasing Concepts - Commercial  Identify buildings that are ADA compliant and require minimal investment for occupancy, including: 11 recently constructed “butler” buildings with flexible floor plans Building 100  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