CCP 06-09-2003 - Laserfiche WebLink

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building or structure to the LRA and the LRA would lease back only part of the building or structure to the federal tenant. . A recognized LRA is the only entity eligible to receive property under a leaseback. At the close of the federal property screening process, an LRA interested in a leaseback should discuss the option with the military department and the federal agency requiring use of the property. The leaseback should then be incorporated into the LRA's redevelopment plan. The LRA should make a formal request for a leaseback transfer as soon as possible after submission of the redevelopment plan to DOD and HUD.lfthe LRA is pursuing an EDC, then the request for a leaseback should be part of the EDC application. If the LRA is not pursuing an EDC, then it should submit its request for a leaseback to the appropriate military department. . City-Base Concept . An innovative concept that shows promise for the future is the "city- base concept", which is being demonstrated at Brooks Air Force Base (Brooks AFB) in San Antonio, Texas. In October 1999, Congress passed special legislation authorizing the "Brooks Efficiency Pilot Project", which was designed to improve mission effectiveness and reducc costs at Brooks Air Force Base in Texas (Brooks was on the BRAC list and was eventually removed in 1995). The project authorized the Air Force to transfer the entire 131 O-acre base to the city in exchange for receiving fair market value for the property and municipal services provided by the city. Furthermore, the city is required to lease back to the Air Force all 1310 acres of land and buildings. The lease is a 20-year lease and has four 20-year extensions. As property is no longer needed by the Air Force or is desirable for development (and the project is agreeable to both parties), it is released from the Air Force master lease. If the Air Force leaves, the city retains ownership of the property and has no further obligations to the Air Force. This allows the city to plan for economic development and avoid the cumbersome GSA disposal process should the Air Force determine in the future that certain parcels of property are no longer needed to perform its mission. The idea behind the Brooks city-base concept is to leverage the existing assets at Brooks AFB along with San Antonio-provided incentives to create a world class location to foster the development of key industry sectors such as: health services, biotechnology, and other associated uses. Additionally, the Air Force not only is able to maintain its mission at the base, but the ability to perform that mission is actually strengthened through partnerships with nearby companies and universities. . A non-binding agreement has been signed between the city and the Air Force. According to the terms of the lease, the parties share any "net revenues" from future development at 50/50 split. Analysis of financial forecasts for the Project through cash flow modeling has determined that base operating costs will be reduced by up to 35% and that future savings to the Air Force will approximate $8 to $10 million per year.