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I I. I I I I I I I .. I I I I I I I. I I zoning authority over the property. Once the LRA has been established, it should apply to the Secretary of Defense, Office of Economic Adjustment, for recognition. Once recognized, the LRA will be the sole entity recognized by the DOD in negotiating the transfer or otherwise disposing of the closed military installation. Once the LRA has been established and a redevelopment plan adopted and approved,6 the LRA can began to consider applying for an EDC. An EDC can transfer as little as one building or facility or as much as the entire installation. However, the DOD has stated that LRA's should use an EDC to obtain large parcels of the affected installation, rather then individual buildings. The income received from some of the higher value property should be used to offset the maintenance and marketing costs ofless desirable parcels. To spur economic development, the large parcels must be used to provide an income stream to assist the long-term development of the property. When the LRA has determined which parcels of the installation it wants to receive through an EDC, it must submit an application to the DOD for the property. The application must contain the following information: 1. An explanation of why an EDC is necessary for economic development and job creation. 2. A copy of the adopted redevelopment plan. 3. A project narrative including the following: a. A general description of the property requested. b. A description of its intended use. c. A description of the economic impact of closure on the local communities. d. A description of the rmancial condition of the community and the prospects for redevelopment of the property. e. A statement of how the EDC is consistent with the overall redevelopment plan. 4. A description of how the EDC will contribute to job creation including the projected number, and type, of new jobs it will assist in creating. 5. A business and development plan including such elements as: a. A timetable, phasing plan, and cash flow analysis. b. A market and rmancial feasibility analysis describing the economic viability of the project. c. A cost estimate and justification for infrastructure and other investments needed for development of the EDC parcel. d. Local investment and proposed fmancing strategies for the development. 6. A statement of why other types of transfers, such as public benefit transfcrs, public-bid transfers, or negotiated sales transfers, cannot be used to accomplish the desired economic and job creation goals. 7. If the transfer is requested for less then fair market value - with or without initial payment at time of transfer- then a statement should be provided justifYing the discount. The statement should include the type and amount and form of the proposed consideration, a payment schedule, the general terms and conditions for the conveyance, and the projected date of the conveyance. 8. A statement of the LRA's legal authority to acquire and dispose of the property. Additional information may be rcquested by the DaD to allow for a better evaluation of the application. Once the application has been evaluated and approved,7 the DOD has the discretion and flexibility to enter into one of two typcs of agreements. The fIrst type of agreement is where the consideration is within the estimated range of present fair market value, as determined by DOD. Under this type of agreement, the Secretary can be flexible about terms and conditions of payment, and can provide rmancing on the property. Methods of payment can include a shariog in the gross or net cash flow, deferred payments, mortgages or other rmancing arrangements. 6 A redevelopment plan is dermed as a plan that is agreed to by the redevelopment authority and provides for the reuse or redevelopment of the real property. It is within this redevelopment plan that the changes provided by the Base Closure Community and Homeless Assistance Act of 1994 take cffect. The procedures provided by that Act and those necessary for having the plan approved are discussed in the second portion of this memorandum, 7 The governing regulations provide a detailed list of the different factors the DOD should consider in determining if an EDC is appropriate in a given situation. Camiros, Ltd./SEH. Inc.lUIDL, Ltd. TeMP Framework Plan Page 7 Chapter VI