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tips FOR A SMOOTH BASE CONVERSION
Jonelle Kearney. Journal of Property Management. Chicago: Mar/Apr 2004. Vol. 69, Iss. 2; pg. 54, 1 pgs

Abstract (Summary)

Glen Town Center developer Dene Oliver, CEO of OliverMcMillan, encourages other communities to view these future base closings as an economic opportunity rather than a threat. Oliver offers a few suggestions for retail developers considering a base conversion project: 1. Evaluate the municipality in charge. 2. Factor in environmental issues. 3. If appropriate, help justify a no-cost transfer. 4. Consider integrating base history in the design. 5. Design for the right market. 6. Respect other developers.

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Copyright Institute of Real Estate Management Mar/Apr 2004

The Department of Defense plans to make public a list of recommendations for the next round of military base closures in May 2005. Glen Town Center developer Dene Oliver, CEO of OliverMcMillan, encourages other communities to view these future base closures as an economic opportunity rather than a threat. "There will be plenty of these projects to go around in the near future," he said. "The time is ripe for a prosperous conversion, given some key objectives." Oliver offers a few suggestions for retail developers considering a base conversion project.

Evaluate the municipality in charge. Glenview Naval Air Station was annexed in 1971, making the Village of Glenview the sole redevelopment community involved in overseeing the base's re-use plan. This bypassed much of the difficulty that a multi jurisdictional authority experiences when several communities contend over an unincorporated base. However, even a single authority has to listen to many voices. A school district, for example, may want the community to support a higher tax base brought in by commercial districts, whereas residents will want more open scenic areas that don't bring the city much income. "A good authority will weed through all these core values and reach a strong consensus before a developer even gets involved," said Oliver said.

Factor in environmental issues. Glenview was a small naval reserve base that had not stored any nuclear or biological weapons. There were no industrial complexes, just hangars, a fuel farm and barracks. It cost the Navy only about $25 million for environmental remediation, which took less than five years to complete. In contrast, many major bases have hundreds of millions of dollars in cleanup costs for projects that can span 10 to 20 years. Oliver recommends that whateverthe environmental scenario, scope it out in advance, and if the cleanup finishes before the developer is on board, as in his case, still consider getting insured indemnification from the governing municipality.

If appropriate, help justify a no-cost transfer. The Village of Glenview had the experts to negotiate effectively with the Navy for the land acquisition. In fact, Glenview won a no-cost transfer by justifying it with a comprehensive business plan, which influenced the Pentagon's view of how to handle all future base closures. Developers can serve as advisors in connection with obtaining such a transfer, due to their experience in blending land issues with business interests.

Consider integrating base history in the design. While many communities have to search out or invent an identity for marketing purposes, the Village of Glenview had one readymade with a base that had been part of the community for 58 years-a history that included Navy pilot training for just about every conflict since World War Il and a host of famous flyers who were stationed there, including film star Robert Taylor, former Presidents George H. Bush and Gerald Ford and astronaut Neil Armstrong. In its last years, the base was home to every branch of the service except the Air Force, including a Coast Guard search-andrescue team.

Design for the right market. Glenview's proximity to Chicago was a key component of its base closure success. Located 20 miles from Chicago's Loop on the prestigious North Shore, the demographics and potential for embellishing them were "eye-popping." The Glen Town Center not only serves the current profile of $100,000+ average household incomes, but also secures that market for the future. The upscale urban design incorporates both history and modern convenience.

Respect other developers. Sometimes a base conversion involves more than one development company. In the case of The Glen, OliverMcMillan worked with a residential developer to design and construct the townhouse portion of the project. "It was a win-win situation," Oliver said. "They had experience we could count on in residential, while we tackled the retail/ lifestyle part of the project."

[Author Affiliation]
Jonelle Kearney (jonelle@dodier.com) is a writer with Dodier & Company, Inc., a marketing and creative service for shopping centers.

Indexing (document details)

Subjects:Military base closures,  Redevelopment,  Guidelines
Classification Codes8360 Real estate,  1200 Social policy,  9190 United States,  9150 Guidelines
Locations:United States,  US
Author(s):Jonelle Kearney
Author Affiliation:Jonelle Kearney (jonelle@dodier.com) is a writer with Dodier & Company, Inc., a marketing and creative service for shopping centers.
Document types:General Information
Publication title:Journal of Property Management. Chicago: Mar/Apr 2004. Vol. 69, Iss. 2;  pg. 54, 1 pgs
Source type:Periodical
ISSN:00223905
ProQuest document ID:603531701
Text Word Count651
Document URL:

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