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Enhanced Use Leasing Presented to: DTI Community Military Partnership Conference

Enhanced Use Leasing Presented to: DTI Community Military Partnership Conference. Agenda. EUL Overview EUL Applications Ft. Sam Houston Case Study. EUL Overview. Enabled by 10 USC 2667 Allows the private sector to invest capital and other resources into military installations

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Enhanced Use Leasing Presented to: DTI Community Military Partnership Conference

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  1. Enhanced Use LeasingPresented to:DTI Community Military Partnership Conference

  2. Agenda • EUL Overview • EUL Applications • Ft. Sam Houston Case Study

  3. EUL Overview • Enabled by 10 USC 2667 • Allows the private sector to invest capital and other resources into military installations • Real Estate transaction; a lease, not a contract • Can be used in a wide variety of applications

  4. EUL Overview Benefits to the Government • Supplements under-funded facility costs • Modernization of Physical Assets • Cost Avoidance • Unleashes Captive Value of Real Estate Assets • Mission Compatible Tenants • Operating Cost Reduction

  5. EUL Overview Benefits to Private Sector • Chance to co-locate with clients • Market based Fees / Returns • Advantageous Locations • Returns are based on Risk Taken and Value Created

  6. EUL Overview – The Process • PHASE THREE • DEVELOPMENT • Conditional Lease • Business & Lease Plan (B&L) • Master Lease • Operations/Execution • PHASE ONE • CONCEPT DEVELOPMENT • Define Need • Get Concept Approval • Develop and Finalize Notice of Lease (NOL) • PHASE TWO • PROCUREMENT • Release Notice of Lease • (NOL) Package • Industry Day • Developer Proposal & • Presentation Preparation • Select Developer

  7. EUL Applications • Varying levels of implementation to date • Army has awarded over 15 projects • Navy has awarded 1 project • Air Force has awarded 1 project • Over 80 projects in various stages of planning

  8. EUL Applications EUL Project types • Office space • R&D / Laboratory • Central Utility Plant • Vehicle Proving Grounds • Retail Centers • Mixed-Use • Academic • Hotel / Conference centers • Medical

  9. Ft. Sam Houston Case Study • Historic Buildings – former hospitals • Roughly 500,000 sf in 3 buildings • Very low likelihood of getting rehabilitation funding • Asbestos, lead paint and other building toxics • EUL for Redevelopment awarded to Weston / Orion Team in 2000

  10. Ft. Sam Houston Case Study • Weston / Orion formed Ft. Sam Houston Redevelopment Partners • FSHRP entered into a Master Lease with the Army in June 2001 • To date roughly 370,000 sf has been redeveloped and sub-leased • Roughly $60,000,000 invested to date • Roughly $2,500,000 to Ft. Sam for in-kind services

  11. EUL - Conclusions • EUL is a powerful tool for installations, communities and private sector • Allows for investment to upgrade infrastructure, facilities and remove impediments • Funding is 100% private sector driven • EUL will gain significant momentum over the coming years

  12. For More Information:Thomas Swoyer, JrManager, Enhanced Use LeasingWeston Solutions, Inc.thomas.swoyer@westonsolutions.com210-308-4318

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