1. 1 Department of Veterans Affairs Enhanced-Use Lease Public Hearing May 29, 2007 Veteran Affairs Medical Center St Albans, New York Moderator: Stephen Gonzenbach

2. 2 Public Hearing Panel Stephen Gonzenbach Moderator, St Albans VA Medical Center Karen Williams and Jay Halpern Office of Asset Enterprise Management VA Central Office, Washington, DC Tom Rosenfeld The Pruitt Group, Real Estate Advisors to VA

3. 3 Agenda Highlights  Welcome and Introductions  Pledge of Allegiance  Public Hearing  CARES  Enhanced-Use Leasing Program  EUL Background and Benefits  EUL Process  St. Albans EUL Project  Q & A / Comments / Information

4. 4 Public Hearing Forum  Obtain views and input from interested parties regarding the proposed EUL Project  Recognize all who have questions or wish to make statements for the record  In order to provide opportunities for all concerned, five (5) minutes will be allocated to each respondent

5. 5 Public Hearing Objectives  Notify key stakeholders and interested parties of VA’s intent to utilize the Enhanced Use Lease (EUL) process for consideration at the St Albans VA Medical Center  Describe the EUL Project  Describe the nature of the proposed EUL Project  Obtain public comment concerning the proposed EUL

6. 6 CARES  CARES studied the healthcare needs at VA campus to configure an appropriately sized medical facility through renovation or new construction  CARES resulted in identifying anticipated capital requirements and potential reuse of existing buildings or underutilized land 2007  CARES process concluded with the fourth and final LAP on January 22, 2007

7. 7 EUL Goals EUL Program goals look to ensure that reuse plans:  Enhance the Department’s mission  Are compatible with the fabric of existing neighborhoods;  Maintain the historical, aesthetic and cultural values of the site; and  Preserve existing buildings and other site features, wherever feasible

8. 8 Enhanced-Use Leasing Background  EUL Program, also called Reuse, is a law and program that is unique to VA  Refers to legislative authority under Enhanced-Use Leases of Real Property, Title 38 U.S.C., Sections 8161 – 8169  Legislation was originally authorized in 1991, now in effect through 2011  Allows VA to lease its underutilized land and buildings to private or other public entities for up to 75 years

9. 9 Enhanced-Use Leasing Background  VA can receive consideration in whole or in part through cash, goods or in-kind services that support or benefit veterans  Funds received, in excess of expenses, deposited into the Medical Care Collections Fund for the benefit of St. Albans medical campus  48 EUL projects awarded; over 100 initiatives being studied; 50 projects “active”

10. 10 Veterans Benefits  Revenues from leasing St. Albans property faster delivery of enhanced health care services for veterans  In-Kind consideration enhances value of VA land & buildings because of improvements made to the medical campus  Exchange with developer may provide space for activities contributing to VA’s mission  Allows VA to better manage capital assets and “leverage” value to support local needs

11. 11 VA Benefits  Enhances VA’s property and mission through private investments and compatible non-VA uses  Enhances VA’s ability to realign land & buildings to meet changing missions without giving up VA oversight or control of property  Strives to foster “win/win” strategy with veterans and local community  Capitalizes on private sector expertise and skills

12. 12 Local Community Benefits  Revitalizes and redevelops underutilized property and vacant buildings  Provides needed goods and services to community  Generates healthy economic activity in neighborhood  Encourages new job development

13. 13 EUL Process

14. 14 St. Albans VA Medical Center, NY

15. 15 St. Albans CARES Market Study  To understand the reuse potential, an extensive real estate market assessment was done on the St. Albans campus that included three reports:  Real Property and Environmental Baseline  Reuse Initial Feasibility Assessment  Detailed Reuse Analysis

16. 16 EUL Project  St. Albans campus approximately 55 acres of land; new medical and service facilities will occupy approximately 30 acres  Uses for the site may include senior housing in a retirement care community  Proposed EUL project will be built on land that is not needed for new medical/service facilities

17. 17 EUL Project  Continuing Care Retirement Community and Residential project may include:  Active senior living apartments, independent living, assisted living, Alzheimer's, skilled nursing units and hospice  Apartments may give veteran preference and/or discounted rents  Retail/restaurants

18. 18 EUL Project  In any housing, veterans will have preferred placement  Lessee will be required to finance, develop, operate, and maintain the property in accordance with VA and local requirements  Structures and property revert to VA control at end of lease

19. 19 EUL Milestones Public HearingMay 29, 2007 RFP SolicitationJuly 2007 Lease NegotiationsWinter 2008 Congressional NotificationSpring 2008 EUL ExecutionSpring 2008

20. 20 Additional Comments  Public Hearing presentation and additional information on the St. Albans EUL project may be obtained by visiting the website: www.pgeul.com  Additional comments to be placed in the record through June 14, 2007 by mail should be sent to: Raymond Aalbue Public Affairs Officer VA NY Harbor Healthcare System 800 Poly Place Brooklyn, NY 11209

21. 21 Closing Thank you for your input! Public input will improve VA’s ability to continue to provide benefits and services to veterans and their families