Progress Report and Work Plan Fort Monroe Federal Area Development Authority January 6, 2009

1. Progress Report and Work Plan Fort Monroe Federal Area Development Authority January 6, 2009

2. Today’s Agenda Summary of BAE/City/FMFADA discussions. Infrastructure cost update and economic impact estimate Preview of upcoming tasks: Updated financial analysis Real Estate Asset Management Plan Economic Development Conveyance Property Manager/Developer solicitations

3. Service Requirement Discussions • During October and November, BAE met with City of Hampton department heads. • Focus on fiscal impacts, law enforcement, fire & rescue, schools, and parks & recreation. • Also participated in power and water utility discussions with Kimley-Horn. • Discussion re: assumptions in preliminary financial analysis. • Goal for each department/utility to identify: • Ongoing service requirements; • One-time capital requirements (e.g., new equipment/upgrades); • Timing of requirement vis-à-vis leasing and rehabilitation activity; and

4. City Feedback - Public Safety • Hampton Police Department: • Exploring need for more officers & related equipment • Potential need for additional emergency dispatch console and dispatch staff • Expanded marina may require more additional equipment and patrol services • Fire and emergency rescue: • Additional equipment and emergency medical technicians • New building safety inspector with vehicle • BAE, FMFADA and City will continue to discuss and review public safety requirements

5. City Feedback - Other Departments Hampton Schools: General concurrence with preliminary financial model assumptions Confirmed that no demand for new school anticipated Interest in use of Fort Monroe buildings for support activities and a pre-school Finance Department, Assessor’s Office, and Commissioner of the Revenue: BAE provided model to City for “open book” dialog Useful feedback received to refine revenue estimates Comments will be incorporated in financial update Parks and Recreation: Has identified buildings and facilities of interest such as Community Center and Bowling Alley Eco-tourism potential on Mill Creek Partner with Convention Center for events at Fort Monroe Needs to explore opportunities further

6. Infrastructure Update - Economics • New preliminary cost estimate: $96.5M • Prepared by Kimley-Horn based upon work this past fall • Priority #1: Flood control and sand replenishment @$35M • Economic impacts of funding Fort Monroe’s infrastructure: • 600+ near term construction jobs for Virginia • Stimulates additional private investment of $426M • Additional 500+ construction jobs over a sustained period (10 to 15 years)

7. BAE Upcoming Work Program • Fiscal Model and Financial Model Updates • Formulate a real estate/asset management strategy • Interim leasing program • Alternative real property management structures • Refinement of residential leasehold concept • Pre-marketing concept testing and stakeholder meetings • Prepare an economic development conveyance application • For marina and North Gate area parcels • Need to demonstrate how the reuse of Fort Monroe will support local and regional economy by generating permanent jobs (IMPLAN model) • Property valuation • Supporting financial analysis

8. BAE Upcoming Work Program • Prepare developer/property manager solicitation documents • RFI/RFQ/RFP process • Timeline and critical path • Formulate mailing/contact lists • Draft solicitation documents • Technical support for evaluation

9. Board Input • To accomplish our work, we will need input from the FMFADA Board • Thoughts, concerns, or suggestions?