Falcon Hill National Aerospace Research Park generates strong contractor interest
There are no comments for this page [ Add Comment ]Wednesday, April 9, 2008
By Mary Lou Gorny
Hilltop TImes Interim Editor
When contacted about the response contractors had for the Hill AFB West Side Development generated at a recent contractor-focused requirements symposium, Bruce Evans, enhanced-use lease program manager, responds with enthusiasm.
Not only is the project the largest enhanced-use leasing program in Department of Defense history, but current plans include a new freeway interchange at 1800 North in Sunset to access Hill Air Force Base, and he forecasts the project may bring as many as 15,000 new high-paying jobs to the area. He also points to the potential for two UTA light-rail stations in conjunction with the project.
"Phase I alone could attract 10,000 to 15,000 jobs to that development space," said Evans, Plans and Programs Directorate, Ogden Air Logistics Center.
He reports no significant challenges to the project during the stall in national economic conditions. "Financing is still available, interest in the project is still high," Evans said, although there may be some minor impacts.
The two-pronged development with access at both the Roy gate and the west gate provides the best access to the base and will be built simultaneously with an expectation of "two branded, major hotels -- one will likely be a long-term stay (hotel) and the other a short-term stay (hotel)."
When asked how the contractors responded to presentations at the Hill Requirements Symposium, Evans reported, "The response was very positive. Twelve to 15 contractors approached the developer to discuss space and the project."
What the enhanced-use leasing director is quick to emphasize is that the main effort is to attract national businesses to the West Side Development area.
"One of the unique things about our project is it is a worldwide and nationwide recruitment effort by our developer," Evans said.
Efforts are not focused on relocating tenants from communities nearby such as Layton, Kaysville or Roy.
"We are trying to bring them from Washington, Georgia and Alabama, from out of state, in other words, wherever possible," Evans added.
Sunset Ridge Development Partners LLC, are the selected commercial developers of the project now called Falcon Hill National Aerospace Research Park.
Barring unforeseen obstacles, he expects the parties will sign the master agreement to lease May 29. "There are some things that could go wrong to interfere with that date, but we are quite confident we will get there," Evans said. "As soon as we've signed, the developer will firm up plans and set financing in place so that they can break ground on Air Force and commercial buildings this fall."
Evans is quick to praise support from the governor, the county commissions of Weber and Davis counties, the Military Installation Development Authority (MIDA), and the mayors and city councils of the surrounding areas.
He expressed his appreciation, calling their efforts "tremendous and critical."
"We can say of the negotiations and the effort we've been in since last August, they have been tremendously supportive and cooperative," Evans said.
As payment for the land lease, the Air Force will receive up to 600,000 square feet of paid-for office space (inside the gate) for Phase I alone. The military construction value of that space is approximately $180 million.
"We believe this is a win-win for the developer, for the Air Force, and for the state and for the local communities. Among other things it allows the military to use some of its precious military construction resources elsewhere," Evans said.
Essentially, the project is self-funding a large part of the military construction need through the success of the commercial development in the public areas outside the two gates.
"The state of Utah is supporting (the project) through a combination of tax-increment financing or bonding and a $5 million grant this session that has been passed unanimously in both houses" (at the legislative level), he said. "There is a potential for state grant funding totaling $25 million dollars over five years. What this really means is that Utah continues to be one of the most supportive states in the nation for its local military installations."
Evans and the developer previously met with Gov. Jon Huntsman to fill him in on interest in the development.
"I can report that this project has full support from the governor," he said.
"Falcon Hill supports the governor's economic development cluster initiative as an aerospace and composite cluster. This northern tier including Utah State and Hill Air Force Base is part of the cluster," Evans said.
This project, "by far one of the Defense Department's most successful and largest enhanced-use leasing projects" is strong motivation for the program director.
"It's a chance to change this part of the world, to make a lasting positive impact for good for the Air Force, for the community and for the state," he said about what excites him the most in working with the project. In general terms, the commercial side of the project in both areas will expand and push the gates back into the interior of the base as development occurs. But there will be some commercial space behind the fence for contractors who require it in addition to the office spaces generated by the project on base.
The project, which has taken some five years from its inception, is now focused on the concerted plan and approach of from 18 months to two years for this part of Phase I. Phase I encompasses about 180 acres and could encompass six to nine years to complete, depending on market conditions. "The project could progress more quickly if the response is there," said Evans.
Construction costs of Phase I are expected to exceed $500 million dollars, another huge boost to the local economy. The developer plans to bid construction services locally.
"Big players in this project," Evans said, will be the four local communities providing emergency services. "They will also be entitled to property tax on the improvements (on the commercially developed areas) and sales tax on retail sales in those commercial parts of the development."
"It's really thrilling to be involved in this project and the support -- Hill Air Force Base is the first installation to establish a project management office to exercise significant local control over the negotiations and plans, and so wereally appreciate the Air Force Real Property Agency and Air Force Materiel Command in their willingness to allow our team the flexibility and authority we receive," Evans said.
He also praised those whose input helped generate the development. "MIDA support has been critical to the success of this project. It would not have been possible without the support and vision of people like (Sen.) Sheldon Killpack, (R-Syracuse) and others."
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