Pleasanton Economic Outlook

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Fort Monroe Economic Advisory Services Bay Area
Economics
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About BAE

• Award-winning urban economists and development
  advisors
• 25 person firm, founded in 1986
• Offices in San Francisco Bay Area, Washington,
  DC, New York City Sacramento
• Core Services
• Redevelopment/Revitalization
• Development Feasibility
• Public/Private Transactions
• Fiscal Impacts Analysis
• Economic Development
• Affordable Housing
• Military Base Reuse

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Military Base Reuse Experience

• More than 25 bases and host communities
• Advance Planning
• Economic Development Strategies
• Housing Assessments
• Market Studies
• Financial Analysis and Feasibility for Reuse
• Infrastructure Financing
• Conveyance Processes
• Negotiations with Military Services
• Developer Solicitations
• Transaction Support
• Short- and Long-Term Lease Transactions
• Business Planning and Strategic Advisory Services

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The Presidio of San Francisco

• Major historic and natural resource
• Transferred to the National Park Service with a
  requirement to become financially self-sufficient
• Operating and maintenance budget
• Service District Charge for municipal services
  provided by NPS
• Detailed financial modeling
• Developer solicitations
• Lease negotiations
• Governance options
• Park business operations support

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Key Areas of Responsibility Fiscal Impacts

• Evaluating reuse/development alternatives
• New services required of the City of Hampton
• New revenues and costs generated by building
  reuse and new development
• Annual phasing of costs and revenues

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Operating and Maintenance Costs

• Dissect the Armys current 15 million annual OM
  cost
• Pare it down to essential activities
• Build a bottom-up budget based on
  private-sector and municipal cost structures
• Allocate between services provided by the City,
  services provided by the tenants/owners and
  services provided by the governance entity
• Adjust for buildings leased or sold and no longer
  maintained by FMFADA
• Adjust for vacant buildings

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Sale vs. Lease of Sites and Buildings

• Short-term patch and paint leasing
• Draw upon prior market analysis
• Revenue potential
• Impacts on financing
• Balance between up-front revenue vs. long-term
  revenue to maintain historic and public use
  resources

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Financial Model

• Detailed financial cash flow modeling on an
  annual basis for a 20-year planning period
• Flow of revenues and costs
• Infrastructure and code compliance costs
• Multiple alternatives
• Model available for FMFADA operations going
  forward
• Assess overall financial sustainability

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Governance Alternatives

• Many options
• Governmental entity
• Public/private entity
• Non-profit developer
• Private developer
• Pros and cons
• Issue of National Park Service role