EUL Opportunities Beale Air Force Base

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EUL OpportunitiesBeale Air Force Base

• 9 April 2008

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EUL Opportunities

• Competitively select single developer to
  lease/reuse three sites totaling approximately
  334 acres on Beale Air Force Base
• The sites include
• 5M-gallon Waste Water Treatment Plant opportunity
  on approximately 19 acres
• Rail-Accessible Industrial opportunity of
  approximately 218 acres
• Light Industrial and Renewable Energy opportunity
  of approximately 97 acres
• Initial lease term will not exceed 50 years
• Air Force may enter into succeeding lease
  depending on lessees satisfactory performance
  under initial lease

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Development Objectives

• Develop a successful, long-term, mutually
  beneficial business relationship with the Air
  Force
• Maximize the value of the real property within
  the constraints and restrictions identified by
  the Air Force
• Design and develop the real estate in a manner
  that is compatible with adjacent Air Force uses
• Execute, operate, and manage the development
  consistent with best commercial practices
• Maintain positive relations with local government
  authorities and the adjacent communities

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Beale Air Force Base

• Beale AFB is located in northern California
  approximately 40 miles north of Sacramento
• Beale AFB is the home for the U-2, Global Hawk
  reconnaissance aircraft, the T-38 jet trainer,
  and the KC-135 tanker
• The host organization at Beale is the 9th
  Reconnaissance Wing, an Air Combat Command
  organization reporting to the 8th Air Force
• Altogether, the base supports approximately 3,300
  active duty military, 2,400 civilian and contract
  employees, and 4,300 dependents

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EUL Opportunities
Beale AFB Map of EUL Opportunities

• Wastewater Treatment Plant and Sewer Line
• Rail Accessible Development Opportunity
• Light Industrial Site
• Sites are open to other development
  possibilities, including renewable energy

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EUL Opportunities
Wastewater Treatment Plant

• Total design capacity of 5 million gallons per
  day
• Currently operating at less than 20 capacity
• Approximately 19 acres of land
• Approximately seven miles of sewer line
• Upgrades necessary to obtain NPDES permit

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EUL Opportunities
Wastewater Treatment Plant - Improvements
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EUL Opportunities
Wastewater Treatment Plant - Photos
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EUL Opportunities
Wastewater Treatment Plant - Photos
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EUL Opportunities
Utilities Near Wastewater Treatment Plant
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EUL Opportunities
Rail Accessible Development Opportunity

• Approximately 218 acres
• Includes access to rail spur
• Flat open field
• Located near southwestern portion of base
• Portion of site is adjacent to base perimeter
  along Ostrom Road

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EUL Opportunities
Rail Access

• Approximately 5,000 linear-foot long railroad
  spur
• Spur provides access to the Union Pacific
  Railroad Line

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EUL Opportunities
Rail Accessible Development Opportunity - Photos
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EUL Opportunities
Utilities Near Rail Accessible Development
Opportunity
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EUL Opportunities
Light Industrial Site

• Approximately 97 acres
• Located near southern perimeter of base
• Flat open field
• Located near Wheatland, which is poised for
  significant growth in the next 10 to 20 years

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Zoning
Zoning

• Much of the land outside of Beale AFB near the
  EUL opportunities is zoned Exclusive Agricultural
  (AE)

Source Yuba County
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Security Considerations

• The base controls access onto the installation
  through five gates, including the Doolittle,
  Main, Wheatland, Grass Valley, and Vassar Lake
  Gates
• Unrestricted access to the EUL property without
  clearance at one of the two gates will not be
  allowed
• It may be possible to adjust the fenceline for
  sites near the perimeter

Beale AFB Gates
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Environmental Considerations

• Kirsten Christopherson, Chief, Environmental
  Flight, Beale Air Force Base

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Environmental Considerations - Overview

• Major issues
• Environmental Restoration Program (ERP) sites
• Contaminated soil and groundwater
• Munitions Response Areas (MRA)
• Live ordnance was used in the past
• Wetlands/Threatened Endangered Species
• Widespread throughout the base
• Regulatory consultation required when working in
  and near vernal pools
• Other issues to consider
• Floodplains, underground storage tanks,
  aboveground storage tanks, lead-based paint, and
  asbestos containing material

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Environmental Considerations Environmental Laws
for Major Issues

• National Environmental Policy Act (NEPA)
• Environmental Assessment/Environmental Impact
  Statement
• Air Force Decision Documents
• Finding of No Significant Impact (FONSI)
• Record of Decision (ROD)
• Finding of No Practicable Alternative (FONPA)
  wetlands/floodplains
• Endangered Species Act (ESA)
• Formal Consultation with the U.S. Fish
  Wildlife Service
• Clean Water Act (CWA)
• Permit Applications
• Dredge/Fill Permit U.S. Army Corps of
  Engineers
• Water Quality Certification California Regional
  Water Quality Control Board
• Notice of Intent / Stormwater Pollution
  Prevention Plan - State Water Resources Control
  Board

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Environmental Baseline Survey (EBS)

• Documents the environmental condition of real
  property resulting from storage, release, and
  disposal of hazardous substances and petroleum
  products
• EUL EBS also includes munitions and natural
  resources information

Categories 1-4 Minor or no issues 5-7 Need
additional sampling to determine if sites can be
used
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Environmental Considerations- Vernal Pools

• Seasonal wetlands
• Protected by the Clean Water Act Endangered
  Species Act
• Two ESA federally-listed species

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Environmental Considerations- Proposal Responses

• All proposals should include
• Measures to avoid and minimize environmental
  impacts
• A plan for compensation for any impacts that
  cannot be avoided
• A plan for sampling, studies, and environmental
  documents required to meet applicable
  environmental regulations

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Infrastructure Considerations

• All costs to install new utility services or to
  relocate existing utility services shall be
  responsibility of Lessee
• Electrical transmission and natural gas services
  provided by Pacific Gas and Electric (PGE)
• Water treatment services provided by Beale AFB
• Lessee may elect to purchase water from Beale AFB
  or procure water from another source
• Governments intent is to provide
• Police, fire protection first responder
  services to EUL site
• Selected developer responsible for paying
  Government for such services at rates to be
  established by Beale AFB

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Market Data

• An overview of market trends

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General Real Estate Market

• Land values have soared in recent years but have
  stabilized
• Region has experienced strong population and
  steady job growth in the last few decades
• According to Economy.com, regions job growth is
  expected to outpace the national average through
  2009
• Higher construction costs have not yet translated
  into higher rents
• Housing sales have been stagnant
• Reversal of residential activity has led to
  opportunities for other commercial uses

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Market Segment Industrial

• Vacancy rate is approximately 8, down from 8.4
  in 2006
• Sales of buildings under 10,000 square feet
  remain slow compared to previous five years
• Demand continues to be steady for mid-size users
  from 20,000 to 60,000 square feet
• Large distribution users continue to locate in
  Californias Central Valley (including
  Yuba-Sutter area) and Reno due to competitively
  priced land and fees
• Construction has slowed over the past year
• Lease rates have increased as vacancy rates have
  declined

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Market Segment Industrial

• EUL opportunities on Beale AFB could be
  attractive for larger industrial facilities that
  are difficult to locate in areas close to
  Sacramento
• Light industrial supply near Beale AFB is mostly
  located near the Yuba County Airport
• Light industrial properties near Yuba County
  Airport have performed well, but the land that is
  available is not large enough for distribution
  centers and larger industrial product

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Market Segment WWTP

• Yuba-Sutter area presents multiple possible
  future development opportunities
• New WWTPs will be needed to support new
  development

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Market Segment WWTP

• Most WWTPs in area are operating near capacity
• Beale AFB WWTP is operating at 20 capacity
• Several WWTPs in area require upgrades for NPDES
  permit compliance
• Beale AFB WWTP will also require upgrades for
  NPDES permit compliance in an EUL

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Market Segment Renewable Energy

• Possible renewable energy developments include
  biomass and solar
• Biomass renewable energy development could
  incorporate digester gas from WWTP and possibly
  landfill gas from the Ostrom Road Landfill
• Typical premium paid for renewable energy is
  0.02 per kWh
• Residential electricity rates in the Sacramento
  Municipal Utility District were 0.11 per kWh in
  2007

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Expected Timeline

• Proposal Solicitation April May 2008
• Selection Summer 2008
• Lease Negotiation Fall 2008 Winter 2009
• Signing Winter - Spring 2009

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Recess

• Lunch
• Site Tour to follow