Private Sector Real Estate Opportunities
on Unique Army Land
Started in 2001, the Army Enhanced Use Lease Program has progressed from an ambitious concept to a successful realty. The Enhanced Use Leasing (EUL) Program, is managed by the U.S. Army Corps of Engineers, Baltimore District which was designated as the “Center of Expertise” in 2008. The Enhanced Use Lease Program engages through a competitive process, private sector entities to acquire and leverage value from non-excess real estate assets on Army and select Department of Defense (DoD) Installations. Mirroring a private sector transaction, the EUL’s value proposition is competitive on cost and speed of execution.
The EUL program to date has helped private development execute projects of tremendous range such as 2009 National Council for Public Private Partnerships Innovation Award for the General Motors Hot Weather Test Track in Yuma, Arizona, projects of scope such as our 2008 Infrastructure Project of the Year award for the National Inter-Agency Bio-defense Project at Fort Detrick, MD - Central Utilities Plant in Frederick, Maryland or traditional use such as our office and residential projects throughout the United States.
With the expanded authority of Title 10, USC § 2667, each of DoD Military Departments have the authority and incentive to obtain a broad range of financial and in-kind considerations for leasing opportunities. The changes to Section 2667 expand the purpose for which lease proceeds may be used, and augment the types of in-kind consideration which may be accepted for leases. These changes maximize the utility and value of installation real property and provide additional tools for managing the installation’s assets to achieve business efficiencies.
Specifically, installations can, among other things:
1. Enter into long-term leases, providing greater flexibility for facility use and reuse.
2. Receive cash or in-kind consideration for income on leased property, which can be used for:
• Alteration, repair, improvement of property or facilities.
• Construction or acquisition of new facilities.
• Payment of utility services.
• Real Property Maintenance Services.
Enhanced Use Leasing offers Installation Commanders and the DOD numerous benefits:
• Enhances mission performance through cooperative efforts with private developers.
• Improves utilization of property.
• Reduces base operating costs through improved business practices.
• Stimulates the local job market.
• Fosters cooperation between the military services and the private sector.
• Introduces valuable federal property into the local market.
The Deputy Assistant Secretary of the Army for Installations and Housing (DASA (I&H)) by a delegation from the Secretary of the Army must approve leases for any real or personal property for more than five years. The property must not be considered “excess” property to qualify. Leases may be entered into if the DASA (I&H) considers it advantageous to the Army and the United States, and upon such terms as he considers will promote the national defense or be in the public interest.
Potential uses for Enhanced Use Leasing include:
- Restoration of Historic Buildings
- Energy Production
- Bio-Mass
- Wind
- Solar
- Geothermal
- Coal Gasification
- Waste to Energy
- Cogeneration
- Central Utility Plants
- Vehicle Test Tracks
- Inter-Modal Terminal
- Offices, Labs, Industrial
- Laundries
- Training Center
- Wetlands
Contacts for EUL are:
Baltimore District:
James Turkel
(410) 962-3000
Email: James.S.Turkel@usace.army.mil
Department of the Army:
Robert K. Uhrich
(202) 761-1177
Email: Robert.K.Uhrich@us.army.mil
ACSIM:
Installations, Energy and Environment
Energy Initiative Task Force:
Erich Kurre
(703) 602-5745
Email: Erich.Kurre@hqda.us.army.mil