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Enhanced Use Leasing Portsmouth Naval Shipyard Kittery, Maine

Enhanced Use Lease Program. 3. What is Enhanced Use Leasing?. Enhanced Use Leasing is a tool (Title 10, S. 2667) that the US Military uses to leverage Government-owned real estate assets (land and buildings) that are underutilized and available, but not excess to the Military's needsThe Military is

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Enhanced Use Leasing Portsmouth Naval Shipyard Kittery, Maine

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    1. Enhanced Use Leasing Portsmouth Naval Shipyard Kittery, Maine Informational Briefing February 12, 2008

    2. Enhanced Use Lease Program

    3. 3 What is Enhanced Use Leasing? Enhanced Use Leasing is a tool (Title 10, S. 2667) that the US Military uses to leverage Government-owned real estate assets (land and buildings) that are underutilized and available, but not excess to the Military’s needs The Military is not disposing of assets but is leasing them to non-federal entities The Military receives no-less-than the fair market value of the assets to fund other Military needs Although the operation of the assets is the responsibility of the lessee, the Military retains ownership of the Government-owned assets it leases to the successful developer This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.

    4. 4 Why Does Military Lease? Off-set limited or declining Operation & Maintenance budgets Attract users who are compatible with the continued presence of the Military Avoid cost of maintaining or razing old buildings Stabilize deteriorating assets Increase value of idle or under-valued assets Preserve assets for later Military re-use This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.

    5. 5 How Does Military Lease? Competitive Process – open and fair Two-stage Source Selection Process – select most qualified party based on the proposal that provides the demonstrated experience and approach to reusing the asset that offers “best value” to the Navy Negotiation Process – final terms are determined based on mutual agreement This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.This is a Notes Page in Power Point. Whenever you do a presentation, it is recommended that you do a Notes Page with each slide. This allows a presentor other than the preparer to know facts and speaking points to present.

    6. 6 What are Benefits to Community?

    7. Enhanced Use Lease Opportunity

    8. 8 EUL Opportunity Competitively select a single developer to lease and reuse Building 93, the former Portsmouth Naval Prison. The site contains approximately 265,000 square feet of space, and approximately 11.61 acres of related land at the Portsmouth Naval Shipyard. The initial lease term will not exceed 50 years. However, the Navy may enter into a succeeding lease depending on the lessee’s satisfactory performance under the initial lease.

    9. 9 Development Objectives Develop a successful, long-term, mutually beneficial business relationship with the Navy Maximize the value of the real property within the constraints and restrictions identified by the Navy Design and develop the real estate in a manner that is compatible with adjacent Navy uses Execute, operate, and manage the development consistent with best commercial practices Maintain positive relations with local government authorities and the adjacent communities

    10. 10 Portsmouth Naval Shipyard Portsmouth Naval Shipyard is a US Navy shipyard located in Kittery on the southern boundary of Maine. The Shipyard is used for building, remodeling and repairing Navy submarines and surface ships. The Shipyard is situated opposite Portsmouth, New Hampshire, on a cluster of conjoined islands called Seavey’s Island in the Piscataqua River.

    11. 11 EUL Site

    12. 12 Possible Development Compatible uses could include but are not limited to: Office Prison/correctional facility Flex, R&D and other light industrial

    13. 13 Prohibited Uses Any use that requires unrestricted access to the site. Note: Any use of the site will require some degree of restriction as the site is located within a United States Naval facility. Further, the restrictions will vary depending on the individual users, the proposed use(s) and the needs of the United States Government. Any use by non United States Citizens. Casinos or any other type of establishment which facilitates gambling. Public entertainment, including, but not limited to, movie theaters, live theater, live shows, dancing, concerts, aquarium, museum and other similar enterprises. Places of commercial transient public accommodation, including, but not limited to, hotels, motels, and bed & breakfasts.

    14. 14 Prohibited Uses (continued) Sightseeing, guided tours and tourist type operations or destinations. Commercial retail uses of all types, including but not being limited to, stores, bars, restaurants and pubs. Any use that generates a noise profile that is unacceptable to the Commanding Officer of the Portsmouth Naval Shipyard. Facilities where continuous quantities of a product are manufactured, where a large quantity of waste material is generated, or where significant concern exists about the use of hazardous materials and petroleum products.

    15. 15 Historic Considerations The facility is eligible to be listed on the National Register of Historic Places. The selected developer will be required to conduct renovation/re-use efforts in compliance with the Secretary of the Interior’s Standards for Rehabilitation for Historic Preservation. The selected developer may be eligible for a twenty percent (20%) rehabilitation tax credit provided that rehabilitation meets the above standards.

    16. 16 Security Considerations Concurrent legislative jurisdiction applies to the Portsmouth Naval Shipyard, including the EUL property. The Shipyard controls access onto the installation through two gates, one at Walker Street and one at Wyman Avenue. Unrestricted access to the EUL property without clearance at one of the two gates will not be allowed.

    17. 17 Environmental Considerations The selected developer must comply with federal, state and local environmental regulations, including all NEPA requirements. An Environmental Assessment (EA) was completed on the EUL property in 1999. The selected developer will be required to prepare an updated EA, conforming with federal NEPA requirements, based on the developer’s specific proposed reuse of the facility. An updated Environmental Condition of Property (ECOP) report will be made available prior to the Industry Forum. The selected developer’s plan must include removal of hazardous materials (“Hazmat”) from the facility, including but not limited to any necessary asbestos abatement and lead paint mitigation.

    18. 18 Infrastructure Considerations The Government’s intent is to provide utility services, to include electric power, steam, natural gas, water, sewage disposal and treatment, to the EUL site. Such services shall be metered and the selected developer will be responsible for paying the Government for such services at rates to be established by the Shipyard. The Government’s intent is to provide police, fire protection and first responder services to the EUL site. The selected developer will be responsible for paying the Government for such services at rates to be established by the Shipyard.

    19. 19 Expected Timeline Proposal Solicitation: April – May 2008 Selection: Summer 2008 Lease Negotiation: Fall 2008 – Winter 2009 Signing: Spring 2009

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