1. Overseas Base Closures February 28, 2012; Miami, Florida

2. 2012 ADC WINTER FORUM | PAGE 2 CONVERSION PROCESS IN GERMANY William Karl Wilburn, Esq.

3. 2012 ADC WINTER FORUM | PAGE 3 I. BACKGROUND AND CONTEXT A. Relevant History  1991: Reunification adds GDR’s installations  2001:MoD Deployment Concept: 18% Manpower Reduction; bases cut from 575 to 388 18% Manpower Reduction; bases cut from 575 to 388  2003: Defense Policy Guidelines: Shifts from Cold War to international expeditionary force  July 2011: Conscription ends; all-volunteer begins.  1945: End of WW2: US assumes many former German installations (e.g. Grafenwöhr/Bavaria, Campbell Barracks HQ/Heidelberg)  1991 - 2000: Break up of the Soviet Union leads to major reductions and base closures, and force posture change  June 2010: USAREUR outlines Transformation between FY10 – 15; ceases presence in Heidelberg, Mannheim  February 2012: USAREUR announces withdrawal of 2 BCTs; closes Schweinfurt, Bamberg US Forces in Germany Bundeswehr

4. 2012 ADC WINTER FORUM | PAGE 4 I. BACKGROUND AND CONTEXT B. Current Conversion Volume  Bundeswehrreform 2011:  31 Closures  33 “Almost Closures”; significant reductions to <15 personnel  57 “Significant Reductions”; personnel reductions <50% or 500 personnel  Result: Conversion assets in more than 120 communities Bundeswehr US Forces in Germany  USAREUR Transformation and Budget Cuts from NDAA FY12:  Significant Reductions in the areas around Heidelberg and Mannheim:  Consolidation primarily in Bavaria, Rheinland-Pfalz and Hessen (Wiesbaden)

5. 2012 ADC WINTER FORUM | PAGE 5 II. PROCEDURE A. Summary Overview Phase I: U.S. Transfer of Asset to GermanyU.S. Transfer of Asset to Germany German coordinating agency (“BImA”) supervises conversion processGerman coordinating agency (“BImA”) supervises conversion process Ad hoc “Working Group” formedAd hoc “Working Group” formed Use issues vettedUse issues vetted Phase II: Design, construction, valuation determinedDesign, construction, valuation determined Negotiations with Buyer or RFP or bothNegotiations with Buyer or RFP or both Goal: Sales ContractGoal: Sales Contract

6. 2012 ADC WINTER FORUM | PAGE 6 MINISTRY of DEFENSE MINISTRY of FINANCE Coordinating Agency for Conversion Questions (KStK) est. 2004 Federal Agency for Real Property Issues Real Property Issues (BImA) est. 2005 (BImA) est. 2005 II. PROCEDURE B. RELEVANT CONVERSION AGENGIES AND AGREEMENTS NATO Status of Forces Agreement US Forces Return Real Property to Host Nation Germany Federal Agency for Real Property Issues [Bundesanstalt für Immobilienaufgaben] (BImA) est. 2005

7. 2012 ADC WINTER FORUM | PAGE 7 II. PROCEDURE C. Phase I: 1 - 2 Years 1.MoD and US Forces Internal Decision Property Evaluation Alternative Uses 2.MoD Contacts Local Authorities; US EUCOM Notifies German Federal Authorities 3.Federal Republic of Germany Assumes Ownership of Assets 4.“Working Group” Comprised; public involvement begins 5.Preliminary Land Use Issues Vetted Zoning Environmental Commercial Potential Contaminants 6.Interim Use?

8. 2012 ADC WINTER FORUM | PAGE 8 MoD + BImA State State County (Kreis) County (Kreis) City City Private Interest Groups Private Interest Groups Ad hoc “Working Group” calibrated to specific real property II. PROCEDURE C. PHASE I (con’d) “WORKING GROUP” Comprised Federal State, Local, Private

9. 2012 ADC WINTER FORUM | PAGE 9 II. PROCEDURE D. PHASE I Stakeholders and Interests Local Community Land Use / Infrastructure Zoning / Regulatory Tax Income BImA Mandate to achieve highest possible sales value for Federal Gov. Private Sector Re-use Opportunities PPP Redevelopment Value Creation

10. 2012 ADC WINTER FORUM | PAGE 10 1.Determination of Use Alternatives Public Input Sifting through Preliminary Concepts 2.Design, Construction, Value 3.Finalize Possible Uses Land Use Environmental Economic, Infrastructure Impacts 4.Negotiations with specific buyers 5.Request for Proposals 6.Goal: Sales Contract II. PROCEDURE E. Phase II:2 - 4 years

11. 2012 ADC WINTER FORUM | PAGE 11 II. PROCEDURE PROCESS F. Timeline Summary Site Review and Assessment Facility Condition Assessments, if applicable Environmental Site Assessment Location and Infrastructure Planning Public Interest Potential Re-use Concepts Land Use and Master Planning Zoning Marketing and Transfer Site Redevelopment Concept and Marketing Disposal through BImA Site Returned from Military Use Valuation through BImA Sales Comparison Approach Income Approach Cost Approach Civilian Re-use Starts Approx. 1 – 4 years

12. 2012 ADC WINTER FORUM | PAGE 12 III. Closing Remarks MoD makes closure decisions with military, administrative, budgetary factors; less so community economic impact factors.MoD makes closure decisions with military, administrative, budgetary factors; less so community economic impact factors. Process is less political than in U.S. normally takes four years.Process is less political than in U.S. normally takes four years. BImA is main coordinating agency.BImA is main coordinating agency. Ad hoc “Working Group” intends to promote transparency, consensus.Ad hoc “Working Group” intends to promote transparency, consensus. Military property in 120 German locations will be disposed of in next five years.Military property in 120 German locations will be disposed of in next five years. BImA representatives in each state (Land) are contact points for expressions of interest.BImA representatives in each state (Land) are contact points for expressions of interest.

13. 2012 ADC WINTER FORUM | PAGE 13 SOURCES (1)www.bundeswehr.de (2)www.bundesimmobilien.de (BImA) (Federal Agency for Real Property Issues) (3)www.konversions-konferenz.de (February 2012 conference on German base closings)

14. 2012 ADC WINTER FORUM | PAGE 14 William Karl Wilburn, Esq. WKWilburn P.C. Attorneys at Law 7910 Woodmont Avenue Bethesda, MD 20814 Phone: (301) 652 – 9700 Fax: (301) 652 – 9701 Mobile: (301) 461 – 3057 wkw@wkwilburn.comwww.wkwilburn.com