1. Reimagining the City Base Model

2. Agenda 1:00 PM – Welcome and Introductions 1:10 PM – The Brooks City Base Concept Pat McCullough Mark Frye Craig Zgabay 1:30 PM – The Brooks Success Story Leo Gomez, President and CEO, Brooks Development Authority 1:35 PM – City Base 2.0 Steve Bonner Craig Zgabay Mark Frye 2:00 PM – Exercise: Turning Theory into Reality 3:00 PM – Group Reports and Summary

3. Introductions Moderator: –Pat McCullough Presenters: –Steve Bonner –Craig Zgabay –Mark Frye –Leo Gomez (by message) Participants…

4. Ground Rules Be heard!! Ask questions, make comments and fill out question cards! Nothing is off the table Don’t be hobbled or constrained by the past There are no bad questions or wrong answers!

5. Community Partnering Continuum

6. Services Examples

7. The Brooks City Base Concept What is the City Base concept and why is it relevant? How could it fit into Base of the Future and/or BRAC planning?

8. Why Brooks? What were the drivers and factors that led to this innovative project? What were the goals of each party (Community, Military) and were they achieved? What was the process (players, legislative authority, time frame, critical path, obstacles)? The Brooks City Base Concept

9. Employ capital asset and property management best practices Attract complementary public and private entities Improve facilities at Brooks Link and support regional initiatives and resources Form mission enhancing partnerships by leveraging physical and intellectual assets Build a thriving center for technology and business

10. The Brooks City Base Deal Structure The Air Force conveyed ownership of all 1309 acres to the Brooks Development Authority (BDA) for Fair Market Value as identified in a joint appraisal The BDA provided base operating support services; the City of San Antonio provided municipal services, including fire, police and emergency services Utility Systems were transferred to the municipal utility providers under separate transactions The parties agreed to operate under a joint development plan The Air Force leased back (under a multiple 20-year leaseback arrangement) most of the facilities and personal property for mission use; land was released for economic development purposes Military family housing was turned over to the BDA for operation as “privatized” housing Benefits The Air Force saved between $8-10 M/year without impact to mission effectiveness The BDA and the City benefitted from significant economic development because the property was de-federalized The City Base is the location for multiple public-public and public-private partnerships When BRAC 2005 relocated Air Force missions from Brooks, the redevelopment of Brooks was already well underway

11. Benefits to the City Brooks AFB - 1995Brooks City Base—2015 4 1 2 Home Depot Target 3 Single Family Residential 5 Walmart Mission Trail Baptist Hospital 6 Office / R&D Summary of Economic Impact Jobs: Since initial development/redevelopment, 26 new businesses accounting for 3,000 new jobs at an average salary of $50,000. Local Tax Collections: Approximately $7 million in 2014 1 2 3 4 5 6

12. Benefits to the Air Force

13. Cost Savings—The Air Force began saving $8-10M per year in Manpower, BOS and SRM immediately after the deal was completed. This represented a reduction of approximately 20% of their annual operating budget Mission Focus—The transition relieved installation leadership of the requirement to manage infrastructure operations and maintenance, letting them focus more on their research and medical training missions Mission Enhancement—Many mission partners and supporters from academia and the private sector were able to relocate to Brooks, improving overall mission effectiveness Career Opportunities—Many Brooks government employees were able to complete highly successful career transitions because new jobs were created in a timely manner

14. Examples of Mission Support Benefits HVAC Manpower Augmentation: HVAC is a mission-critical function for laboratories and research facilities. The Brooks’ HVAC team faced a situation where they would have only 4 of 12 manpower positions filled. They used a cooperative agreement to augment the Brooks’ HVAC team with the City’s HVAC maintenance provider and found that only 8 FTEs were needed due to more efficient use of technical capabilities. This saved both the mission and 4 manpower positions. The remaining 4 government workers transitioned to the City’s team within a few months. Monkey Futures: Brooks maintained a large number of animals, including monkeys and pigs, to conduct research. The City Base transition allowed the Air Force to trade the ownership of the monkeys to Southwest Research Institute in exchange for use of monkeys when needed. This save considerable facility and manpower costs, while also maintaining the required mission support.

15. Strong support from top leadership in the Community, State, Air Force and Congress is essential Select the right people to work directly on the project Complete a joint appraisal of property value Get legal support from attorneys who have the right kind of expertise and instruct them to help find ways to say “yes” Develop metrics that support success and reduce interference from hidden agendas Security is not equal to jurisdiction Brooks City Base: Lessons Learned

17. City Base 2.0 - A Flexible Option For The Base of the Future How could the City Base be applied at existing installations? –AF2023 –What skills are really important for expeditionary efforts What are location-specific factors, including ongoing P4 initiatives, to be considered? –Mission –Markets –Development –Local transportation, utilities, and development planning –Community Services –Base infrastructure –State involvement –Political support –Tax base –Community Financial Strength –Geography and current land use

18. Exercise Instructions –Divide into 3 groups –Common Fact Set and the Variables –Maps of Base X/Camp Swampy –Parameters for each group –Take 50 minutes to discuss Capture ideas both on your map and verbally Strive to achieve your group focus –Take 10 minutes to prepare your outbrief –Choose a speaker to debrief the group’s conclusions

19. Fact Set Common to Each Group Community civic and political leadership provided strong support to working with the base There are no environmental concerns with the base real estate preventing a lease and/or transfer 5,000 military/civilians/contractors work on the base A protocol has been established for base security if the fence is moved There are 2.2 million square feet of buildings (80% utilized/20% vacant) and 500 acres of vacant land Jobs are growing, sales taxes are increasing, property assessed values have increased 3-5% for each of the last 3 years Military sustainment, restoration, and maintenance (SRM) and MILCON budgets continue to shrink

20. The Variables for Each Group Consider the possibility of: –Military vacating buildings (low occupancy or high value) and consolidating into other buildings –Moving the fence –Using excess capacity of base utilities as assets –Using public-public and public-private (P4) partnerships for public services such as waste removal, streets, libraries, child care, etc. –Recapitalizing dormitories and lodging through the private sector –Transferring functions to local government or the private sector

21. The Groups Group 1: Community Owns all Real Estate and Provides all Support Services Group 2: Military Owns Most Real Estate and Cooperates with Community and Private Sector to Provide Services Group 3: Military Owns all Real Estate and Community/Private Sector Provide Limited Support

22. Group 1 Instructions Congress has provided carte blanche to the community and the military Create a base of the future assuming no legal restrictions and the ability to move missions and all functions within base boundaries Focus: Optimize redevelopment opportunities to strengthen mission support

23. Group 2 Instructions Congress is willing to expand the community partnering authority within 10 USC 2679 Optimize use of non-BRAC authorities Do not move mission facilities and assets inside base perimeter Focus – maintain mission function and provide increased opportunities for local economic development

24. Group 3 Instructions Do not move mission or mission support facilities/assets Free to move military/dependent services functions as required Focus: Enhance mission function and transfer SRM costs to local support

25. Exercise – Report Out What is the ideal base configuration? –Why is it good for the base? –Why is it good for the community? What are the major obstacles to reaching that configuration? How can communities and the military help each other to achieve the “base of the future?” –Partnership? –Advocacy? –Legislation?

26. Summary and Discussions Legislative changes might be considered to enhance the federal authority Would implementing it at a particular location increase/decrease the risk of the installation’s closure as part of a future BRAC? –It depends What would be the next steps for interested installations and/or communities? –Communication, communication, communication –Organize for success –Pay close attention to past successes and failures