EreFILE CRPYSUPPLEMENT

PLANNING CIVILIANREUSE OF FORMER

MILITARY BASES

DTICELECTE

o Og5u

The President's EconomicAdjustment Committee

J Appoved n-If W .~s'21,11

SUPPLEMENT: PLANNING CIVILIAN REUSEOF FORMER MILITARY BASES

Community Guidance Manual XIV

Prepared for:

The President's Economic Adjustment CommitteeOffice of Economic AdjustmentOffice of the Secretary of DefenseWashington, D.C. 20301

Prepared by:

EDAW, Inc.601 Prince StreetAlexandria, VA 22314

June 1990

THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

WASHINGTON, D.C. 20301-4000

FORCE MANAGEMENT 3 0 APR lgAND PERSONNEL

Community Officials and Leaders:

This publication supplements the 1978 manual, pLaffINgCIVILIAN REUSE OF FORMER MILITARY BA ES, as it was republishedin March 1989 by the Office of Economic Adjustment (OEA).

Our experience in working with impacted communities asa result of base closures or realignments indicates thatcommunities have developed capacities to organize, plan, andeffectively implement civilian reuses of surplus Defensefacilities. This supplement seeks to complement thesecapacities by summarizing recent trends in land use planning,real estate development, and property management.

The supplement will further facilitate effective localleadership strategies for determining economic recoveryopportunities, formulating final base reuse plans, and assuringproper implementation through local zoning and communitymonitoring.

OEA hopes this supplement will help community leaders intheir continuing local planning efforts that are so essentialto the successful reuse of surplus Defense facilities.

Robert M. RaunerDirector

Office of Economic Adjustment

Accession For__

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ACKNOWLEDGEMENTS

This Supplement: Planning Civilian Reuse of Former Military Bases was prepared under theguidance of Patrick J. O'Brien of the Office of Economic Adjustment (OEA) staff. Thereport's primary authors were Richard Dorrier, Stephen Fuller, Ben Herman, and Sue Edwardsof EDAW, Inc. Detailed and helpful contributions were provided by Wallace Bishop, PaulDempsey, Doris Faircloth, Earl Godfrey, LTC Len Hassell, Dick Kinnier, John Lynch, DavidMacKinnon, Ken Matzkin, Bob Rauner, Marliece Williams, Cassie Kramer, and WallaceMersereau.

TABLE OF CONTENTS

AcknowledgementsTable of Contents

1.0 Introduction .......................................................................................................................................... 1

1.1 R eport Purpo se ........................................................................................................................... 11.2 R eport O rganization .................................................................................................................. 2

2.0 B ase R euse Planning .......................................................................................................................... 3

2.1 Planning Process ......................................................................................................................... 32.2 Implementation of Planning through Zoning ................................................................ 122.3 Covenants, Conditions and Restrictions ........................................................................ 142.4 Long-term Planning and Redevelopment .................................................................... 172.5 Parties Involved in Planning ............................................................................................ 20

3.0 Property M anagem ent ...................................................................................................................... 22

3.1 M anagem ent R esponsibility ............................................................................................ 223.2 Sale and Lease of Property .............................................................................................. 233.3 M anaging T enants .................................................................................................................... 273.4 M arketing Strategy ................................................................................................................... 28

References

ii

1 . 0 INTRODUCTION

1.1 REPORT PURPOSE

The purpose of this document is to supplement apreviously published report entitled Planning Civilian PLANNING CIVILIANReuse of Former Military Bases. This latter report was REUSE OF FORMERoriginally prepared by the Office of the Economic MILITARYAdjustment (OEA) within the Department of Defense in BASES19-78 and reissued in 1989 as a guide to communitiesdealing with base closures. The report summarized theexperience that OEA had gained over a seventeen-yearperiod prior to 1978 in assisting communities with thecivilian reuse of former military bases.

This upplement describes some of the recent trends inreal estate development that are particularly relevant to asuccessful reuse of former military buildings and landareas. This information is intended to familiarizecommunities with the planning, property managementand marketing techniques typically used when convertingbase facilities to new uses. Information on financingdevelopment or various funding mechanisms used in theimplementation process is not provided in this documentbut is available separately from OEA on request.-----

The philosophy behind this document and other OEApublications on this subject is that communitiesexperiencing a base closure or realignment need torealize the long-term positive benefits which can bederived from such activity. As a result of base closingsand realignments, sizable assets are being made available Reference QEAs Communitiesto the neighboring community and region as a whole. infern s iti esDespite the short-term economy impacts to the in Transition for a description ofcommunity, through proper planning, management and 20 communities which benefitedmarketing, these impacts can be overcome and the from acquisition of surplusavailable assets turned into new uses employing military facilities.community residents and providing long-term economic,stability for the community and region.LThIN-d-o--ce-nt isintended to help communities realize these benefits andproceed with the proper planning required to achieve asuccessful conversion of a former military base to civilianuses, " ., p , ;. r ( -

L. ".4

INTRODUCTION

1.2 REPORT ORGANIZATION

This Supplement is organized in two sections as follows:

The first section - Planning for Base Reuse -includes information on the: (1) overall planningprocess, (2) market studies, (3) facility surveys, and(4) land use controls available to communities todirect redevelopment of base facilities and landareas. This information supplements theinformation provided in the original document ondevelopment strategies and base reuse planningobjectives.

The second section - Property Management -discusses recent innovations that are now standardpractices in managing real estate property. Thesefactors were not covered in the originalpublication and represent current practices amanagement organization should consider whenleasing and marketing former military assets.

In addition, a reference section is added to identifysources of information which may be useful tocommunities preparing for a base closure. Thisreference list identifies documents available from thegovernment, as well as recent books and reportscontaining information on real estate developmentrelevant to reuse of surplus military property.

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2.0 BASE REUSE PLANNING

2.1 PLANNING PROCESS

A base reuse strategy and plan is a critical element in thesuccessful civilian reuse of a former military facility. Thisplan is best developed by a community Task Force orgroup which represents the community, and studies indetail the various development potential of facilities andland uses on the base, as well as the market potential fortransferring these assets to private developers, non-profitinstitutions, community agencies or other groups whichcan maintain and effectively utilize them. The reuseplanning process typically followed by a communityreuse organization includes the following majorcomponents:

(1) Evaluation of community goals for the future as Reuse Planning Processthey relate to potential use of the former militaryfacilities and land areas.

Icorunrity I

(2) Market studies or surveys to evaluate the regional Goalseconomic setting and trends and pressuresaffecting base reuse. This also may include a"Highest and Best Use" study of existing assets. Market Facility

S Stdies Suey]

(3) Surveys and inventories of on-base facilities to

determine their condition, quality and reuse atio Land Areaspotential (and/or liability). This also includessurveys of utilities systems, transportation systems, on U

undeveloped land areas and any unique physical Local IInastructureconditions; e.g., historic sites, archeologic 4resources, hazardous waste sites, etc., which may iaffect reuse. Plans

(4) Development of reuse aiternatives responding tomarket conditions, community goals, and reuse Comuitypotential of existing assets. Consensus

(5) Review of alternative strategies with the Implementationcommunity at-large and consensus building for a Jpreferred development strategy.

Once a strategy is developed and agreed upon,implementation of the plan can proceed. This istypically handled by a designated development authorityor community agency charged with property

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BASE REUSE PLANNING

management functions. The community group or TaskForce which developed the plan may be retained as an"overseer," again representing the community at-large,to see that the plan's intent is fulfilled or changed asnecessary to respond to changing development pressureswhile still meeting the objectives of the community forbase reuse.

The market analysis, Highest and Best Use Study, andfacility surveys conducted as part of the reuse plan arediscussed separately in the following three sections of theSupplement. These aspects of the planning process aremore technical in nature and sometimes are performedby outside consultants.

2.1.1 Market Demand Analysis

Understanding the nature of the local market and itsinherent potentials for supporting new business locationsand expansions and the development of alternative usesis a key element in formulating a realistic reuse plan.Market demand may derive from within the surroundingcommunity or may be generated by a proposed newactivity. Care must be taken in evaluating existing localdemand to distinguish unserved demand from that whichis served elsewhere in the immediate area by existingactivities. To achieve "rca" economic growth, it isessential that new market demand be the focus of thereuse strategy.

To identify realistic development opportunities and toassess their market feasibility requires that a marketstudy be conducted. The scope of the market studyshould be sufficiently broad to include all realisticallypossible land use types. (A list of current uses for a A summary of completedselect number of former military facilities is provided in military base economicTable 1. A more complete summary of major land adjustment projects is providedreuses at former military sites is provided in Appendix B in Appendix B of the originalof the original OEA manual.) Identifying these by OEA manual.means of market screening and local input, and securingbroad-base consensus among community leaders thatthese target markets are appropriate, is the first step inthe study. This must precede the actual evaluation as thetechnical requirements of the market analysis varyamong land use types.

Even though a list of candidate developmentopportunities has been prepared as the initial step in the

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BASE REUSE PLANNING

Table 1: Current Major Land Uses at Former Military Sites (A Sample List)

Use Former Military Base Location

Office/Industrial Park Brookley AFB Mobile, ALBenicia Arsenal Benicia, CASchilling AFB Salina, KSPresque Isle AFB Presque Isle, MESpringfield Arsenal Springfield, MALincoln AFB Lincoln, NEMcCoy AFB Orlando, FLChennault AFB Lake Charles, LARaritan Arsenal Edison, NJ

Commercial/Retail Use Donaldson AFB Greenville, SC

Larson AFB Moses Lake, WACharleston Navy Shipyard Boston, MAWatertown Arsenal Watertown, MANaval Ordnance Plant Forest Park, IL

Vocational-TechnicalTraining Schilling AFB Salina, KS

Chennault AFB Lake Charles, LAPresque Isle AFB Presque Isle, MERossford Arsenal Toledo, OHDonaldson AFB Greenville, SC

University/College/Community College Brookley AFB Mobile, AL

Larson AFB Moses Lake, WAStead AFB Reno, NVDow AFB Bangor, MEMcCoy AFB Orlando, FLSpringfield Arsenal Springfield, MA

Recreation Facilities Larson AFB Moses Lake, WAClinton-Sherman AFB Burns Flat, OKGreenville AFB Greenville, MSNaval Supply Center Tonance, CAFort MacArthur Los Angeles, CA

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BASE REUSE PLANNING

Airport James Connally AFB Waco, TX(Commercial and/or Stewart AFB Smyrna, TN

General Aviation) Stead AFB Reno, NVLincoln AFB Lincoln, NEMcCoy AFB Orlando, FL

Civilian Housing Clinton Sherman AFB Burns Flat, OKDow AFB Bangor, MEGlynco Naval Air Station Brunswick, GACharleston Na-vy Shipyard Boston, MA

Prison/Rehabilitation Webb AFB Big Spring, TXCenter Kincheloe AFB Kincheloc, MI

Hospital Walker AFB Roswell, NMLaredo AFB Laredo, TXCharleston Navy Shipyard Boston, MA

Retirement Community Hastings Naval Ammunition Depot Hastings, NBWalker AFB Roswell, NMHarlingen AFB Harlingen, TX

Source: 25 Years of Civilian Reuse: Suminary of Completed Military Base EconomicAdjustment Projects, 1986, Office of Economic Adjustment; 30 Years of CivilianReuse: Summary of Completed Military Base Economic Adjr ,tment Projects, to bepublished in 1990, Office of Economic Adjustment.

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BASE REUSE PLANNING

market study, it should be expected that the analysis willtest the feasibility of these candidate uses as well asidentify other prospective uses that initially may havebeen overlooked. These are likely to include thosedependent on external market demand, although somelocal sources of demand are frequently discounted, too,by the local community.

The following general approach can be modified to fitthe technical requirements of the market study for eachtype of market demand:

(1) Define Market Area

The market area includes the primary resources ofdemand that potentially could support a specificdevelopment project. It should be thought of as thestudy area for the subsequent analysis of market demandand competition.

(2) Evaluate Area Economic TrendsMarket Study Components

In order to pronerly evaluate the dynamics of eachmarket being studied, it is essential to analyze theeconomic conditions that may shape the broader future Definition ofdemand structure in the area. These should include: Market Areapopulation, employment and unemployment, personalearnings and household income, retail sales, vacancyrates, general real estate conditions, and any other area- Area Reviewlcvel conditions that may impact the health of theeconomy in the near term.

DemandSupply

(3) Analyze Demand lysisAnaysis Analysisi

For each type of market demand being evaluated, locally IIJgenerated, indigenous demand should be determined.Projected demand, based on increased or decreased Marketpopulation and disposable income also should be Forecastcomputed. In addition to directly measuring demand,demand conditions may be assessed from secondaryindicators such as absorption trends, sales volumes, timeduration from sales listing to contract, vacancy trends,and demographic and labor force trends.

(4) Analyze Competition

To determine whether the identified market demand isbeing satisfied within the local economy, it is necessaryto assess the sources of supply that presently serve each

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BASE REUSE PLANNING

identified sub-market. This will involve an inventory ofcomparable uses and projects that may come on lineduring the planning period. These should be evaluatedto determine the extent to which they are serving localdemand. Annual sales volumes per square foot, vacancyrates, duration of vacancy, price range, and lease costsand trends may provide indications of the magnitude ofunsatisfied market demand.

For those activities dependent on non-local marketdemand, a similar scope of competitive analysis isrequired. The market area should be appropriatelyscaled for that specific use and reflect regional ornational supply and demand conditions. Assessing non-local market demand is particularly critical for siteswhich have weak local markets becausc of the lack of alarge population center or stagnant population growth.

It should be noted that the major demand for basefacilities in the past often has come from companies orentrepreneurs outside of the local market area who wantto enter new markets rapidly. Existing buildings andinfrastructure at a surplus military site can be readilyused to provide production and distribution facilitieswith little or no lead-time required for permitting,construction, and/or other start-up activities at the site.

(5) Forecast Market Demand

Based on the projection of market demand by land usetype and a comparison of these demand levels with local(national) competition and supply conditions, the natureof market opportunities that may be served by newfacilities provided locally can be identified by type,volume, timing or schedule, price or lease range, quality Forecasting maket demand inand marketing requirements. These findings will provide decative maretudesa range of development opportunities that may be dinitive terms requiresappropriately located on or attracted to the installation detailed analysis based onin question and provide the framework for a reuse accurate national, regional andstrategy and plan. The ability to capture this identified local market data.market demand at a specific location will be a functionof its physical assets, accessibility, quality, availability ofsupport services, implementation program and schedule,and other tangible and intangible factors.

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BASE REUSE PLANNING

2.1.2 Highest and Best Use Studies

A common means of analyzing base reuse options isthrough a Highest and Best Use Study. Used bycommunities to determine the uses for a parcel thatmaximize the benefits to the community, this type ofstudy combines community objectives with economicvalue. Long-term community goals and objectives areprioritized, compatible reuses are identified, andeconomic values are derived as a function of possiblereuses. The conclusions of such a Highest and Best Usestudy, therefore, provide the community with economicdata required for preparing a community base reuseplan.

Highest and Best Use studies also provide data that isespecially useful in accommodating local land usepriorities. Once these priorities are identified, real estatedisposal agents can seek to dispose of the property (inaccordance with the disposal schedule) to entitiesproposing compatible land uses. Private developers canalso use this data to readily identify the community'sneeds and to propose compatible projects. In addition,other public agencies can easily identify whether theirproposed reuse; i.e., distribution center, detentionfacility, etc., is agreeable with the goals and objectives ofthe local community. Highest and Best Use Study

Another type of "Highest and Best Use" study existswhich is often used by the real estate industry to Site Communitydetermine the uses for a parcel that generate the highest Assets Contextland values (in economic terms solely). Very often this 11 1type of study is undertaken in support of property Potential Landappraisals. Notably absent from such studies are Use Programcommunity planning objectives; i.e., open space, historicpreservation, etc.

Evaluation of Demand

The process for developing a Highest and Best Use study Comparables Analysisfor appraisal purposes begins with gauging viable zoningdesignations for the former military facility through the Mar echaracter and zoning of the surrounding community. MakeThese zoning classifications are then used to extrapolate Demanda land use program for the property that maximizeseconomic yield. The prospective land use program, Real Propertyincluding type of land use, size, density, location and Valuationproposed amenities is then evaluated in terms ofcomparable projects to determine market demand. This

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BASE REUSE PLANNING

process ensures that the program of land uses istranslated in economically viable terms. The result ofthis analysis is a detailed program of land uses with anestimated absorption and phasing schedule. Theeconomic value of the overall project is then used toassign value to the real property.

2.1.3 Land Use and Facility Surveys

As an initial step in planning for a military base closure,an assessment of land use character within the base andof the adjacent community must be made. Thisassessment documents the type of land use, location anddensity occurring on the base transferable to newownership. Such information assists in evaluating whatfuture use can be made of the base and where potentialland use conflicts could occur. For example, if an areaon or off the base contains residential uses, developmentof an airfield for an air-related industrial park may causeconflicts with these residential uses because of aircraftnoise. The potential for land use conflicts orincompatible uses must be carefully evaluated prior toredevelopment of the base to successfully integrate thebase into the land use "fabric" of the surroundingcommunity.

When evaluating land use compatibility, as well as reusepotential, the existing facilities and land areas at a givenbase must be thoroughly inventoried and mapped.Facilities built for certain functions by the military; e.g.,training classrooms, hospital, barracks, etc., are usuallyonly suitable for reuse for these same functions.Adaptation of these facilities to different uses is typicallytoo expensive to be worthwhile. Therefore, the intent ofa detailed survey is to evaluate the condition and qualityof these facilities to determine their general suitabilityfor new uses without incurring major expenses forrenovation or rehabilitation. This initial inventory,however, is not intended to preclude the imaginativeindustry-specific adaptation of the existing basestructures.

Typical factors included in a facility inventory are listedin Table 2. These same factors are often alreadydocumented by the military base planner or public worksofficer as part of the facilities management program forthe base. The reuse coordinator, base planner or publicworks officer for the military base will readily provide

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BASE REUSE PLANNING

Table 2: On-site Inventory

Undeveloped Land Areas: Transportation Systems(VehicularlPedestrian):

* Location* Present use 0 Location* Physical development suitability 0 Dimensions* Archeological resources . Road classifications* Critical wildlife habitats 0 Existing access* Environmental constraints; e.g., 0 Planned upgrades/improvements

floodplains, slope, soils, etc. 0 Surface parking lot capacities0 Structured parking lot capacities

Facilities: * Paved pedestrian sidewalks* Unpaved pedestrian paths

" Location * Bicycle paths" Physical condition/age* Structural design Airfield:* Electrical, telephone service• HVAC system 0 Layout and dimensions* Architectural style 9 Clear zones/safety restrictions/approach* Historic status (if applicable) surfaces* Presence/condition of asbestos used in o Navigational Aids (NAVAIDS)

construction (if applicable) 0 Aircraft parking areas* Fuel storage/distribution systems

Utility Systems (Water Supply, Sewerage, o LightingGas, Central Heating, Electrical,Telephone):

* Location" Physical condition/age* Capacity* Recent upgrades" Planned upgrades

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BASE REUSE PLANNING

this information and will usually assist in the inventory Military personnel on-base are anprocess. invaluable resource for

Documentation of adjacent land uses and facilities off- information on facilities andsite is typically available from the communities' own infrastructure relevant to base

planning documents, as well as regional or sometimes, reuse.even state-level planning resources. Adjacent land uses,zoning, and recent development proposals in the vicinityof the base are the critical data to obtain as they mayaffect land use compatibility of on-site development.

2.2 IMPLEMENTATION OF PLANNINGTHROUGH ZONING

The reuse strategy for any military base necessarily mustcomply with appropriate local government zoningregulations. While zoning requirements usually are notapplied to active military installations, the transfer ofownership from the military to civilian uses will requireappropriate zoning designations as determined by thelocal community. Zoning, in fact, is the primary toolavailable to communities to control the type, density andlocation of development at a former military site.

Several common zoning categories are applicable tomilitary reuse activities. Overall, zoning regulations are Zoning is the preferred toolapplied to identify allowable uses for a particular area communities should use to control(or zone) and to control the location, height, bulk and the type, density and location ofdensity of permitted uses. Brief descriptions of development at a former militaryappropriate zoning categories for surplus military sites base.are provided below.

Industrial zones are generally drawn to separateindustry from other uses, particularly to protectneighboring areas from industrial nuisances. Inthe past, little attempt was made to identify thetypes of industrial uses that would create asuccessful industrial area. For large tracts, othermore flexible zoning designations are generallyapplied, particularly to accommodate "clean"industries within a mix of related office andcommercial uses.

* Business Park and Research Park zoning arederived from earlier industrial categories andrequire the approval of an overall plan forcoordinated development. These zoningcategories may include a listing of permitted orprohibited uses, in addition to performancestandards, and site design and architecturalguidelines.

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BASE REUSE PLANNING

" The Mixed Use, Planned Unit Development (PUD)or Coordinated Development District (CDD)integrates industrial uses with other compatibleuses such as retail services, hotels and sometimesresidential uses to create a cohesive employmentcenter and more stimulating environment foremployees. The purpose of these flexible zoningcategories is to reduce travel time to work, toprovide usable open space, and to achievesynergistic and harmonious relationships amongdifferent land uses. Detailed site guidelines andan overall development plan are required to avoidclose proximity of incompatible uses.

* Special zoning districts may be created fordevelopment of existing tracts of land or specialpurposes such as the "enterprise" zone intendedto encourage new employment-generatingbusiness and industry development ineconomically depressed areas. As anotherexample, a public interest zone may be created toconserve environmental resources, to preservehistoric structures, or to stimulate public interestactivities of a cultural nature. Special zoningdistricts represent the most flexible regulatoryforms available to the community and aredesigned to be site specific, while addressing issuessuch as land uses, design, transportation andarchitectural guideline provisions found in othertypes of zoning.

The most flexible form of regulation, developmentagreements, does not replace traditional zoning or otherforms of land use regulation but moreover extends theseregulations in a more flexible form. Developmentagreements are crafted between government agenciesand the developer to meet the specific circumstances of aproposed development. Despite the lengthy andcomplex negotiations required, development agreementsare particularly suited to large-scale projects. Thecommunity benefits by participating in the "customdesign" of a site to meet needs identified by thecommunity. For the developer, a well-crafteddevelopment agreement will be flexible enough to permitdiscretion and choice in some issues while still complyingwith guidelines that protect community interests. Theagreement becomes legally binding throughout the life ofthe project and can be used to add a measure of

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BASE REUSE PLANNING

certainty to the community for future activities specifiedin a development plan phased over many years. In suchcases, future improvements or fees to cover futureimpacts may be required to meet planned demands.

As mentioned above, zoning is the primary landdevelopment control used to direct development at aformer military site. The intent of proper zoningdesignations is to control and successfully integrate aformer military base into the surrounding existing landuse.

In a healthy market, a community can establishappropriate zoning designations (based on public inputand review) and allow the Federal disposal agent toproceed with sale of the land area to private developers.The zoning designations applied will then serve to directthe type and density of uses desired by the communityduring long-term redevelopment of the site.

In a weak market, more flexible zoning designations maybe appropriate, with oversite by a redevelopmentauthority or public agency, to allow for multiple uses of agiven site. These uses will subsequently be evaluated ona case-by-case basis to ensure compatibility with thereuse plan and with on- and off-base land uses.

2.3 COVENANTS, CONDITIONS ANDRESTRICTIONS

Protective covenants, also known as Covenants,Conditions and Restrictions (CC&Rs), are a form oflegally enforceable development controls established byproperty owners as a means to ensure proper and CC&Rs are pan of the propertydesirable development. These are written standards deed which accompanieswhich apply to private land which is leased or sold to property transfers.subsequent owners. They are filed either with the plat orwith each deed for the individual properties that will betransferred to new ownership.

CC&Rs are often used to supplement traditional landuse controls, such as subdivision, site plan, and zoningordinances, where a certain quality standard ofdevelopment is desired. Through their use, overallquality of development can be increased and mostimportantly, the controls established by CC&Rs canserve to protect the interests of both the community aswell as that of the developers and investors in the basefacility.

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BASE REUSE PLANNING

Public ordinances, such as zening and site plan controls,are usually intended for general application in the city orcounty in which they are in force. For this reason, publicordinances seldom protect features such as visualappearance, maintenance standards, signage, or otherobjectives that might be unique to a particular site.

To implement such concerns, a base reuse strategy mightinclude limitations on certain types of occupancy, airfieldcriteria, restrictions on outdoor storage or other uses,and guidelines for landscaping and signage controls.These objectives would not typically be regulated bylocal ordinances, but could be established and enforcedby CC&Rs. During the base planning process, it isimportant, therefore, to identify planning anddevelopment control objectives, and determine whetherCC&Rs are necessary to preserve or enhance a desireddevelopment environment on the former base.

In order to be effective, covenants must be properlydrawn and put into place. They must reflect design anddevelopment standards which can be supported by themarketplace, and most importantly, must be enforceable.In order to ensure enforceability, covenants must imposethe same restrictions and give the same benefits to all ofthe property within the development to which they apply.CC&Rs can be more restrictive than zoning applied tothe property but not less restrictive.

2.3.1 Preparation and Contents of Covenants

Typically, technical aspects and standards of protectivecovenants are prepared by a planner, developer,engineering consultant, and architect. An attorneyshould be responsible for preparing the final documentin proper legal form. Covenants typically will include thefollowing elements:

(1) Declaration of Intent and Statement of Purpose -This introductory statement identifies the ownerby legal name and should clearly indicate what theestablishment of covenants is intended toaccomplish. This section also states the legalrequirement for adherence by all tenants andspecifies the authority for enforcement.

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BASE REUSE PLANNING

(2) Legal Description - The property to which thecovenants will apply should be accuratelydescribed. If so desired, additional properties maybe added over time through the process ofsupplemental declaration. A map showingproperty boundaries and adjacent features may be.... luded.

(3) Definitions - Most CC&Rs provide a list ofdefinitions of important words to clarify theirintended meanings.

(4) Management Association - If building sites within Covenants and Restrictionsthe project will be sold, a management association Checklistshould be formed to supervise overall operations.The formation, representation and management of U Setback requirements forthe association should be specified along with the buildingsprocedures for maintenance assessments and (type and size)enforcement mechanisms. * Storage requirements

(5) Maintenance Assessments - The mechanism for (exterior and interior)assessment of maintenance and operational costs U Parking (location and space)should be specified whether or not a management U Regulations for odor and

association is formed. smoke emissions and noiseE Landscaping and maintenance

(6) Permitted and/or Prohibited Land Uses - While requirementsland uses within a project are generally governed * Safety requirementsby zoning regulations, many CC&Rs exactly E Expansion rightsspecify the permitted and prohibited land uses. N Operational requirementsThese uses may be segregated by area or by phase and zoningin order to advance the intended image and N Definition of businesscharacter of the development, to be conducted

* Reference to any local,(7) Nuisance Restrictions - The nuisances usually state or federal regulations

covered by covenants are generally addressed in Source: Midwest Researchoverriding zoning requirements. However, instituteCC&Rs may adopt more stringent requirements orspecify performance standards. Typical nuisancerestrictions included in CC&Rs are: hazards,noise, vibration, dust, smoke, odor, gases, glareand heat, ionizing radiation, non-ionizingradiation, waste and animals/livestock.

(8) Development Standards - The covenants mayincorporate standards for development and designwhich serve to create a pleasing environment.These standards and procedures include review ofarea and bulk standards, such as setbacks, parkingand loading, site coverage, and building heights;

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protection of natural features; and designelements such as building design and materials, Design standards typicallylandscape requirements, lighting and signage. In address the following items:many instances, development standards containillustrations and are prepared as a separate • architectural design anddocument from the covenants. building materials

- site grading and contouring(9) General Provisions - The final section generally • fencing

includes other matters of a legal and • storage areasadministrative nature, such as the process for • loading and service areasmodifying covenants, the enforcement of - vehicular circulation andcovenants and provisions for renewal; and parkingprocedures for amending the covenants. • site utilities

2.3.2 Enforcement Considerations l ighting- signage* tree protection and landscaping

Two aspects of covenant enforcement require particular - maintenance

attention: the development review process, and long-

term monitoring and compliance considerations. Toimplement CC&Rs, typically a design review committeeis set up to evaluate each aspect of development as it isproposed, such as a new building or facility, as well asmodifications to existing facilities. The reviewcommittee generally consists of members of thedevelopment team as well as outside experts, such asarchitects or planners. It is important that the covenantsestablish a specific requirement for submittals to thedesign review committee in order to ensure that theinformation received is sufficient to properly review thedevelopment proposal.

Equally important is the long-term monitoring of thedevelopment for compliance with the covenants. Thecovenant documents must be prepared with a long-termview, ensuring that proper measures are incorporated forenforcement after development has proceeded and withthe flexibility to react to future conditions.

2.4 LONG-TERM PLANNING ANDREDEVELOPMENT

The reuse of a former military installation for alternativeuses requires a long-term horizon for full execution ofplanning and redevelopment strategies. The degree ofpublic and private investment may warrant adevelopment timeframe of 20-30 years during which timephysical infrastructure improvements or changes ineconomic conditions must be accommodated.

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2.41 Orderly Long-Term Redevelopment Strategies

To adapt to anticipated and unanticipated conditions orfuture conditions, the reuse strategy may containrecommendations for activities phased over a period oftime. Phased development allows for levels ofdevelopment or locations for development to occurduring a specified time period. Phasing is often used tostagger the costs and potential impacts of development.Determinants of phasing may include:

* market response,* innovations in technology,* ancillary support activities created by the

development,• infrastructure capacity,* availability of infrastructure funding

sources, and/or* conditions of the financial capital markets.

Sequencing refers to the order in which developmentoccurs so that subsequent stages build upon the supportor infrastructure improvements occurring previously.Sequencing can be used to build a logical and pragmaticdevelopment program for redevelopment while retainingsome degree of flexibility to respond to unanticipatedevents. Sequencing also affords the opportunity toincorporate lessons learned from earlier redevelopmentactivities.

The long-term market response will affectredevelopment activities. Projections of market supplyand demand are based on information known at the timeof the study. Alterations to these assumptions or thespecific experience of the project may warrant aredirection of the redevelopment or marketing andpromotion strategy. Similarly, community response maynecessitate adjustments to the redevelopment strategyover the long-term. The potential for job creation,public amenities and community services at closedmilitary installations may be redirected at any time in theredevelopment period in order to respond to changingpriorities.

Periodic evaluation and revision is one mechanism toensure the continued responsiveness of theredevelopment strategy. These periodic revisions may berequired as part of the updating process for local master

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BASE REUSE PLANNING

plans or small area plans and are therefore subject tocommunity input. The community Task Force, BaseReuse Committee, Planning Commission or other public Community representatives needgroup overseeing the reuse process should be involved in to be involved in the long-termthis evaluation and revision process to represent the implementation of the plan tocommunity at-large. Long-term capital facilities ensure community goals andplanning, including infrastructure programming, should objectives are fulfilled.be coordinated with revisions to the community reuseplan.

2.4.2 Infrastructure Improvements

The major infrastructure improvements affecting militaryinstallation redevelopment arc:

" access and transportation systems- roadway- public transit- rail- air- water

* utilities- water- wastewater treatment- electricity- central heating- gas- stormwater management

These infrastructure systems arc designed for long-termservice and require long-term planning andprogramming. In many cases, community or regionalsystems provide the infrastructure and services so thatthe military base redevelopment strategy must becoordinated with local demand projections and capitalimprovements programming.

As the future infrastructure requirements are identified,redevelopment officials should be certain that futureeasements needed for roadway, rail and utilityimprovements are included in deed restrictions of anyproperty transference (both private sale and publicconveyance). This ensures that adequate rights-of-wayare reserved for future needs.

In addition to coordination with capital improvementsprogramming at the community level, internalinfrastructure planning must comply with the phasingand sequencing program outlined in the redevelopment

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BASE REUSE PLANNING

strategy. This coordination ensures adequate facilitiesare available to service thc new development in thelocation and time it occurs. Further, phasing andsequencing can be used to balance or mitigate potentialimpacts from redevelopment.

2.5 PARTIES INVOLVED IN PLANNING

The planning process for redevelopment of militaryinstallations involves a number of participants. Community ReuseCommunity groups, neighborhood organizations, and Planning Organization (example)individual citizens are usually involved in theredevelopment process with the goal of reaching acompromise solution that satisfies competing interests. Mayor

Typically, a community Task Force or Reuse Committee,which contains local private-sector leadership, is Economicdesignated in the initial stages of the conversion process Developmentto represent the community at-large. This Task Force Coordinatorwill report to the community at key decision-making Communitypoints throughout the process to receive input. Commitees:Preferably, a similar group stays involved throughout the Executiveimplementation of the reuse plan to ensure community Reuse Industry/input and evaluation in development decisions, leasing Committee Commercialarrangements, property sales and infrastructureimprovements. Education

Representatives of local government typically involved in Aviationbase redevelopment include the city or county council,Mayor or Executive Officer and staff from the Arts & CulturalTransportation, Public Works, Recreation, EconomicDevelopment and Environment (or Natural Resources) Transportationdepartments. The reuse plan usually will require reviewand approval from both the Planning Commission and Parks &elected city or county council. Recreation

Additionally, external agencies may be involved Fianceincluding:

* Office of Economic Adjustment (Department of Real Estate

Defense)* State or Local Historic Preservation Officer* Environmental agencies at the state and federal

level, such as EPA" Natural resources agencies protection at the state

and federal level, such as the Fish and WildlifeService

* State and federal transportation agencies* State and local education officials

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BASE REUSE PLANNING

Representatives of the military are involved in the initialstages of the conversion process including the reuseplanning phase and property transfer. In some cases, themilitary agency involved will serve as its own disposalagent, or the property transfer will be handled by theGeneral Services Administration (GSA). In either case,it is important to have representatives of the disposalagent accessible to the community to provide specificinformation about the property transfer as the reuseplans are prepared.

It should be emphasized that the military agency in Representatives of the militarycharge of base operations prior to base closure is an are available throughout theextremely important resource and contact when reuse planning effort to provideevaluating base facilities for reuse, existing data on facilities, infrastructureinfrastructure, unique physical characteristics and other and other aspects of sitefactors affecting the redevelopment strategy. redevelopment.

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*O PROPERTY MANAGEMENT

3.1 MANAGEMENT RESPONSIBILITY

One of the biggest challenges facing communities in theredevelopment of military facilities to civilian use is themanagement and marketing of the property to achieve itsfull development potential. This requires specializedskills in the areas of property management, propertydevelopment, marketing, and leasing.

There are a number of ways in which the management ofthe facility can be structured. In many cases, this will bedetermined by the structure of the organization whichowns and/or manages the facility. For example,ownership and administration may occur through apublic agency, such as an existing or specially-createdauthority or a government department.

Alternatively, if the redevelopment of the base facility isto occur through private sector ownership andmanagement, then the community should rely on itszoning ordinance (and the market) to guide future reuseof the base. In this latter situation, the private companyacquiring base facilities from the Federal Governmentwill assume the long-term responsibility for developingand maintaining this property.

Irrespective of the form of ownership and management,it is important to the long term success of the facility thatthe proper emphasis be placed upon the propertymanagement function.

3.1.1 Establishing a Real Estate Management Function

All real estate activities associated with theredevelopment of the former base can be coordinated bya real estate organization dedicated to the successfulimplementation of the base reuse plan. These activitiesrequire specialized skills, and it is recommended thatcommunities secure specialized expertise in thesematters.

A prope-ly structured organization will need to providefor the following functions:

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PROPERTY MANAGEMENT

* Sales, Leasing and Development - Responsibilitiesinclude all aspects of property marketing, such asnegotiations with purchasers or prospectivetenants, drafting of leases and closing deals; andmaintaining regular contact with tenants once theyare in place and established. Developmentresponsibilities include initiation, negotiation, andmanagement of new projects from the feasibilitystages through construction and marketing tosubsequent tenants and owners.

Maintenance Plan Checklist* Property Management - The property

management function includes all of the servicesneeded to ensure that the property under lease Landscaping; prune, replaceserves tenant needs, retains value and maintains dead plants and treesthe image necessary to ensure continued m Regular mowingmarketing success. Responsibilities include m Street repairbuilding and grounds maintenance, rent E Rail spur maintenancecollection, and ongoing contact with tenants. In Curb and sidewalkthe current cost sensitive environment, many m Adequate lightingdevelopers are finding that it is cost-effective to 0 Adeqae litingsubcontract out many aspects of maintenance to u Signage maintained andkeep overhead costs lower. This includes janitorial updated periodicallyservices, landscape maintenance, repairs, or any with all tenantsother requirements and needs which can be wion o pansproperly controlled through subcontracting on an U Inspection of parking andas-needed basis. storage areas perodically

E Monitoring of odor and3.2 SALE AND LEASE OF PROPERTY smoke emissions

0 Regular trash removal andSeveral options may be considered for the marketing debris controland/or ownership of former base facilities, both for 0 Undeveloped tractsexisting or redeveloped structures as well as ground to graded/mowedbe released for new development. Aside from fee-simple Source: Midwest Researchsale of structures or development sites, existing facilities Institutecan be leased or long-term ground leases can bestructured for new development.

In determining the marketing approach to be taken,consideration must be given to the goals of thecommunity. This includes the goals of the community at-large; i.e., jobs, tax base growth, attracting new industry,as well as those of the investors, developers and users ofthe facility.

3.2.1 Establishing a Leasing Program

One of the more common reuse management options isa leasing program, particularly for larger bases with

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PROPERTY MANAGEMENT

diverse facilities and large land holdings. A leasingprogram offers distinct advantages and disadvantages tothe administering entity, as well as to potential users.These are summarized as follows:

Advantages:

• Continuing source of income through leasepayments;

" Opportunity to capitalize on future value increasesof the property;

* An effective way to quickly attract users to existingbuildings;

* Control over uses of the property;* Continued ownership of the property at the end of

the lease period; and* Maximizing business investment for businesses

and tenants by minimizing real estate investment.

Disadvantages:

* A longer term series of smaller payments ratherthan larger, up-front purchase. payments;

* Greater financial risks in the size and security ofincome flows;

* Greater administrative efforts and costs;* Tenant resistance to government controls on

property use; and* Potential criticism if a public agency is competing

with developers.

As a leasing program is established, it is important thatthe project's overall goals and objectives are identifiedand incorporated into the program leasing procedures.Standard leases and lease clauses will also need to bedeveloped to fit a wide variety of possible situationslikely to be encountered in the course of the leasingprogram.

3.2.2 Types of Leases

Two broad categories of leases are ground leases andbuilding leases. The role of the public agency as alandlord in each category is quite different. In ground For ground leases, theleasing, the agency will be dealing primarily with development agency will dealdevelopers who will be interested in obtaining the use of primarily with developers

a parcel of land for a sufficiently long period to justify interested in long-termthe development of the parcel. A thorough knowledge development of the parcel.of the development process will be needed, and on-going

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PROPERTY MANAGEMENT

property management activities will not be as intensiveas with building leases.

Typically, ground leases have terms of 25 to 60 years.The lease needs to be structured to allow the rentpayments to be periodically adjusted for inflation andincreases in land value over the long lease term. Theleases also need to provide for methods of controllingthe type and quality of development, and the quality ofmaintenance and management of the development. Inmany cases, the agency will have little direct contact withthe users of the development who will be sub-tenants ofthe developer. However, some ground leases will bestructured directly with users who will develop facilitiesfor their sole occupancy.

In the leasing of buildings, the managing entity generallywill deal directly with the users and occupants of leasedspace, and on-going property management activities will For building leases, thebe more intensive. In building management, the development agency will dealmanager needs to achieve a reputation as a competent primarmen with will ofand fair owner who acts in a manner similar to a private leased space.owner leasing similar space. Again, careful attentionneeds to be given to keeping rents in line with the localmarket through frequent adjustments.

A master lease of a group of buildings to a developerfalls somewhere between the typical characteristics ofground and building leases. Such a lease would allow adeveloper to upgrade a group of buildings and have asufficient time period to amortize his investment, whilerelieving the agency of the burden of direct managementof a multi-tenant complex.

In both ground and building leases, percentage rentprovisions with some form of adjustable minimum rentshould be used where practical. Percentage rents tied tothe level of business activity on the property are moresophisticated than fixed rents and require auditing, butcan be an excellent device for sharing in the success of abusiness while keeping rent levels in line with the marketand with the potential of the property.

The length of ground leases should be related to the timeneeded to finance the development and to amortize theimprovements yet should be no longer than necessary forthese purposes. The lease should not be subordinated toany loan which could result in the loss of the property to

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PROPERTY MANAGEMENT

a lender through foreclosure because of the failure of thedeveloper to make loan payments. The initial rent in aground lease is often set as a specified percentage returnon the estimated value of the land. For example, a 10percent return on land valued at $2.00 per square footwould require an annual rent of $.20 per square foot.Ground lease rents typically should be adjusted at fiveyear intervals based on changes in the consumer priceindex or on reappraisals of the land.

Building leases are generally set for relatively short termsof from one to ten years unless extensive specialimprovements are being provided for or by the tenant.Initial rents should be based on market comparisonsconsidering such factors as location, site conditions, andother characteristics. Building rents should be adjustedat one to two and one-half year intervals, either based onchanges in the consumer price index or in accordancewith a preset fixed schedule.

3.2.3 Avoiding Leasing Pitfalls

As summarized above, a leasing program can offersignificant opportunities in the redevelopment of militaryfacilities to civilian use. However, there are potentialproblems if leases are not properly administered. Basedupon prior experience in communities which haveundergone base closures, the following should beconsidered:

" In the early stages of base reuse, caution should betaken to avoid tying up central or key parcels Caution:without complete and careful consideration as tolong-term effects. Early activities can establish the • Chose tenants for key parcelsquality and character of overall redevelopment for carefullymany years to come, and the long-term physicaland economic implications must be considered. • Avoid special concessions for

local businesses" Special incentive or concession deals for local

businesses should be approached with caution. - Monitor long-term leases onThe long-term economic viability of the an on-going basis to anticipatedevelopment should not be compromised on (and avoid) problems withbehalf of short-term benefits. Companies from tenantsoutside of the region may be turned away by whatmight be viewed as special treatment, or may lookfor a similar con.ideration, further eroding theredevelopment's long-term viability.

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PROPERTY MANAGEMENT

The status and "economic health" of long-termtenants must be monitored on an on-going basis toanticipate changes which may affect theredevelopment's revenue stream. Long-termleases which are due to expire should be attendedto far in advance. While tenant loss cannot alwaysbe anticipated, careful monitoring can helpanticipate problems and changes before theybecome problematic.

" Preferably leases should be "net" with the tenantassuming responsibility for all maintenance withthe subject property.

3.3 MANAGING TENANTS

In order to get (and keep) good tenants, it is of vitalimportance to orient facility management to tenantsatisfaction. Satisfaction hinges on the anticipation oftenants' needs and the initiation of maintenance andimprovement programs in accordance with facilitybudgeting requirements. Tenants who abide by leaseagreements and do not cause problems should beserviced so that they will extend their leases and maintaina successful operation as a visual reference forsubsequent tenants.

Facility managers must be aware of tenants needs andinterests. A plan for constant communication betweenthe manger and the tenant should include the followingelements:

* A monthly report on each tenant; including dataon space leased, lease expiration date, kind ofactivity, rents, etc.

* A visitation schedule with each tenant on a regularbasis (monthly or quarterly). The meetings can beused to identify current and future space needs, toestablish good communications between the ownerand tenant, and to discuss lease obligations andcovenant or guideline violations.

3.3.1 Tenant Improvements

For experienced developers, the ability to provide tenantimprovements, including the ability to finance theseimprovements through the property lease, is a provencompetitive advantage. It is important to consider the

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PROPERTY MANAGEMENT

various aspects of a tenant improvement program at theoutset of the base redevelopment. In order to providefor its use as a marketing and development tool, thefollowing aspects should be considered:

Underwriting Procedures: The management teammust develop a good understanding of how torecover the costs of providing improvements in thelease rate. Proper amortization of improvementscan be difficult to negotiate and represents somerisk to the developer. However, if effectivelyadministered, a tenant improvement program canadd value to the buildings and can serve as anadditional source of revenue.

" Pre-qualification of Architects and Contractors:In order to respond to tenant needs in a timelymanner, it may be helpful to have access to pre-qualified architects and contractors. In particularfor public agencies, pre-qualification can eliminatethe necessity of public bidding for eachimprovement through an annual pre-qualificationprocedure.

* Reuse of Tenant Improvements: It is importantthat considerations be given to the physicalcondition of leased space upon the completion ofthe lease term. If highly specialized improvementsare to be made, provisions should be included inthe lease to return the property to its originalcondition so that the space can be re-leased.Wherever possible, tenant improvements shouldbe oriented towards conventional finishes tofacilitate reuse, particularly for smaller tenants.

3.3.2 Tenant Services

A more recent trend is the provision of centralizedservices to tenants. Examples might include tele-communications, office automation, reception/secretarialservices, and security. If managed properly, these can beparticularly successful in attracting smaller or start-upusers who are often not able to afford such services ontheir own.

34 MARKETING STRATEGY

A critical aspect of the property management function ismarketing the real estate assets available at the site. Pre-

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PROPERTY MANAGEMENT

leasing of initial tenants and advertising the facilitiesavailable for lease often begins with low-key, informalcontacts with types of firms suitable for the base, asidentified in the market demand analysis prepared in theinitial planning stage of base reuse. The initial tenantcan often se, the tone for the entire development, attractadditional tenants, and create an image for the site that • Chamber of commercedistinguishes the facility from competing developments. • Port Authority

• State officesMarketing efforts should be coordinated with those - Seices

groups already available to the developing agent, such as * aer, lays

the local Chamber of Commerce, local and regional . Bankers, lawyers, accountants

economic development authorities, state development * Collegesuniversitiesagencies, and local businesses or organizations and • Utility companiesservice groups. The initial marketing effort will also • Foreign clientstypically include working with realtors as well asdeveloping information on the assets of the site which Source: ULIcan be provided to potential tenants. Aspects of theselatter two marketing approaches, as well as othermarketing techniques used to attract tenants to a formermilitary site, are described below.

3.4.1 Realtor Strategy

Realtors are an important source of potential deals inthe local market place and can be a useful source ofinformation about what kinds of facilities and servicestenants are seeking. They also will be aware of whatcompetitive facilities are offering, and can help in theproper positioning of the facilities as they come on to themarket.

A successful strategy for realtors should consider thefollowing:

Listing Policy - An open, rather then exclusive,listing policy will encourage realtors to participatein the leasing and/or sale of the facilities.

Payment of Commissions - Commissions shouldbe paid to realtors who close deals, at prevailingmarket rates. Commission agreements willtypically be required.

Communicition - Regular meetings with properlyqualified realtors should be organized tocommunicate to them the facilities which areavailable. These meetings should occur on a

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PROPERTY MANAGEMENT

regular basis, and should be supplemented by anongoing distribution of printed materials to keepthe realtor community actively involved in themarketing of the facility.

3.4.2. Marketing Materials

Effective marketing requires materials that are useful tothe brokerage community, to the local Chamber ofCommerce or other business organizations supportingthe development of the base, and to the potential tenant.Initially, these materials should be inexpensive so theycan be handed out easily and/or left with potential users.They should include, at a minimum, the followinginformation:

* Base overview or fact sheet;

* Location map showing relationship of the base tothe community and the road network, airports andrail lines which provide access to the base;

Utility system information, location, and expectedservice costs;

Sample floor plans for types of facilities availableat the base and/or building data, such as interiorheight, width, depth, floor load bearing, door sizes,etc.;

* Photographs;

* Development plan identifying existing buildings,road networks, parcel configuration, parcel size,existing tenants, and significant site amenities suchas recreation facilities, retail services, parks andopen space, day care facilities (if available),restaurant facilities, etc., and

* Lease costs per square foot for available faciiities.

Video tapes can also be made to promote the property'sassets and allow potential tenant viewing in lieu of sitevisits. These tapes typically should be prepared with theoutside help of a public relations or advertising agencyso that they appear professional and are effective aspromotional tools in today's competitive real estatemarket.

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Development prospectus(s) can also be prepared forthose facilities which are readily reusable and are criticalto the redevelopment process; e.g., training facilities,medical facilities, airfield and air industrial parkfacilities, etc. A prospectus need not be elaborate (xeroxcopies are perfectly acceptable) and typically can beassembled from materials developed from the initialreuse planning effort. It usually includes:

* Project summary information;

* Description of the site including its regionallocation, site amenities, transportation access,available utilities, etc.;

* Market potential;

* Description of development goals for the specificuse as defined by the community;

* Available facilities for the specific use, includinglocations, floor plans and photographs; and

• A range of leasing and/or sales costs for availablefacilities.

Packaging this material will assist realtors and/or themanaging organization or individual in pursuing targetdevelopers or tenants appropriate for that use. Thoseassets which are more readily convertible to private-sector uses and have the greatest economic return for thecommunity should have priority in the overall marketingeffort. A specific development prospectus for that usecan provide a helpful tool by highlighting specificamenities or features of facilities planned for that useand the overall role it will play in the baseredevelopment plan.

3.4.3 Other Marketing Techniques*

Other marketing techniques available to the managingorganization include advertisement, direct mail, andconventions/meetings. These techniques are briefly

* This section was excerpted in part from IndustrialParks: A Step by Step Guide prepared for theEconomic Development Administration byMidwest Research Institute.

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PROPERTY MANAGEMENT

described below. Table 3 lists the range of marketingmethods available and targeted audiences for which theyare most suitable.

Advertisement, Advertising in trade journals, realestate journals, and other publications forindustries is an effective way to promote industrialfacilities and/or property available at the basefacility. The ad should be professionally preparedand include the name, address, and phone numberof the person to be contacted who can provideimmediate information on the site. Advertisingalso should reflect the state or local economicdevelopment theme already used for industrialdevelopment in the region.

* Direct Mail: After a brochure or sales price hasbeen developed, the community can use a directmail campaign to distribute the material. A directmailing has two key components: (1) a mailing listand (2) the printed material to be distributed. Amailing list should be limited to those businesseswhich seem most likely to be interested in the siteand to the people in the businesses responsible formaking location decisions. A list can be compiledfrom contacts the community has or from arecognized industrial location research or advisoryservice.

The printed material to be mailed normallyincludes a brochure or pamphlet on thedevelopment site. This piece can be as simple oras elaborate as funding allows. The brochureshould include the site information described inthe preceding section, as well as information onthe quality of life and community services availableto new residents to the area. Examples ofbrochures developed for other developmentprojects are readily available from regionaleconomic development agencies.

Conventions/meetings: Exhibiting at trade showsand other conventions or meetings is anotherpopular marketing method. Information booths atthese shows typically provide as many displaymaterials as possible, including brochures, posters,graphics, and photographs. The booth should be

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Table 3: Matching Marketing Techniques with the Targeted Audience

TargetedMarketing Technique Audience Comment

Interviews Local businesses Particularly relevant whenmore backgroundinformation is needed.

Publication Advertising Non-local businesses Useful in specific(regional or national) publications for

specific markets.

Videos Non-local businesses Helpful to illustrate(particularly companies unique characteristicstoo far away to arrange of the site ora site visit) community. Important

to be professionallyproduced.

Direct Mail Local and non-local Particularly relevantbusinesses to companies whose

location decisions areimminent. Best followed-up with personalcommunication.

Conventions/Meetings Non-local businesses Provides opportunity forcollecting data on potentialbusinesses for furthermarketing.

On-site Events Local businesses Inexpensive; involves thegeneral public as well.

Source: Industrial Parks: A Step by Step Guide, 1988, Midwest Research Institute.

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staffed by a marketing or economic developmentrepresentative who is thoroughly knowledgeable ofthe facilities available at the site.

Events: Seasonal or annual events which arealready held at a community are another way toadvertise the assets of a former military facility.These events can be held on-base with areabusinesses invited to see the facilities first-hand.Small business management seminars also can begiven in conjunction with a local communitycollege, extension service, or economicdevelopment authority. The general public shouldparticipate as well so they can see theopportunities for business in the area andindirectly contribute to the marketing effort.

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4.0 REFERENCES

1. General Services Administration. Disposal of Surplus Real Property. Washington, D.C.

2. Kenney, Robert T. "Redesigning Industrial Plants for New Uses," in John E. Lynch, ed.,Plant Closure and Community Recovery. Washington, D.C. 1990.

3. Midwest Research Institute. Industrial Parks: A Step by Step Guide. Washington, D.C.1988.

4. National Association for Industrial and Office Perks. Creating, Understanding andEnforcing Industrial and Office Park Covenants. Washington, D.C. 1985.

5. National Association of Industrial and Office Parks. Marketing Office and IndustrialParks, Washington, D.C. 1983.

6. National Association of Industrial and Office Parks. Mixed Use Business Parks.Washington, D.C. 1988.

7. National Association of Industrial and Office Parks. Multi-Tenant Lease (SampleLease). Publication #P109.

8. Office of Economic Adjustment. Acquiring Former Military Bases. Washington, D.C.

1978.

9. Office of Economic Adjustment. Communities in Transition. Washington, D.C. 1978.

10. Office of Economic Adjustment. Planning Civilian Reuse of Former Military Bases.Washington, D.C. 1978. (Republished in 1989).

11. Office of Economic Adjustment. 25 Years of Civilian Reuse: Summary of CompletedMilitary Base Economic Adjustment Projects. Washington, D.C. 1986.

12. Urban Land Institute. Brookley Complex, Mobile, Alabama: A Panel Advisory ServiceReport. Washington, D.C. 1988.

13. Urban Land Institute. Business and Industrial Park Development Handbook Washington,D.C. 1987. (This handbook also includes in-depth analyses of the three former militaryfacilities: Raritan Center, Boston Design Center, and the Chippewa County AirIndustrial Center).

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