Land Development Today - July/August 2007 - (Page 27)

LAND USE Public-Private Partnerships Opens Opportunities Military bases now able to lease property and maximize land use options. By Steve Gaze The development and partnership agreement for the U.S. Army’s Picatinny Arsenal, Morris County, New Jersey, is a great example of enhancing land use by branches of the U.S. Department of Defense. It allows military bases to maximize the use and value of their excess real estate. The lease agreements between the Army and InSitech, Inc., and in turn between InSitech and Advance Realty Group, through its Forge Technology, LLC affiliate, set the stage for initial work that could see some 1.1 million square feet of developed space, said the U.S. Army’s Picatinny Arsenal/ Armament Research, Development, Engineering Center (ARDEC) Chief of the Asset and Technology Capitalization Office, David Banashefski. The deal is a 50-year ground lease for a $200 million development of the Picatinny Applied Research Campus (PARC) When completed, it will be a model for other bases throughout the country on how to lower operating costs by leasing existing and new space to companies that can benefit from resources already present with the military facility. InSitech, Inc., a non-profit corporation, is a partnership intermediary representing the business interests of Picatinny by assisting the Armaments Research, Development, and Engineering Center in developing technologies that have military and commercial application, said President and Chief Executive Officer of InSitech, Timothy Teen. He said that InSitech is focused on speeding the development of dual-use technology that will support the warfighter and provide a beneficial economic impact to society. Banashefski explained that InSitech is the main lease holder for the PARC and that under the agreement Forge Technologies will develop the land. The PARC will be located on 120 acres of estate environment specifically designed to meet the unique needs of high technology tenants,” stated Gregory N. Senkevitch, COO of Advance Realty Group, a leading Northeast U.S. owner and developer of Class A office properties. “We expect demand to come both Picatinny land that is along the Parker Road corridor, near the main gate of Picatinny. The Enhanced Use Lease is the first of its type on this large a scale to be signed within the Army, said Banashefski, who serves as the site director for the project. Demand is expected from government contractors at Picatinny, as well as research universities, communications, electronics, nanotech and emerging technology companies worldwide. Tenants will have access to Picatinny’s $1.5 billion of high technology equipment, over 64 laboratories, and intellectual assets, some of which only exist at Picatinny Arsenal. Named the Picatinny Applied Research Campus (PARC), ground was broken on Phase I of its research campus in earlier this year. Phase I is the development of 100,000 square feet of office/lab space within the boundaries of the base’s high security enclosure. “We believe that this is an exceptional opportunity to provide technology transfer among varied enterprises in a real from firms that already have a presence at Picatinny, as well as national and international companies and research organizations that want to take advantage of both the technology transfer opportunities and one-of-a-kind technology infrastructure that Picatinny offers.” To help ensure Picatinny keeps 100 percent of the rental value, payment will come in the form of in-kind services, rather than cash dollars, explained Banashefski. Otherwise, if the funds came in a cash form, they would first go to the Army and less would filter back to Picatinny. The in-kind services will be used to cover base operations, maintenance and repairs, which will take some of the burden off the installation and the taxpayers, Banashefski said. As part of the initial lease signing for buildings 352 and 353, Forge Technologies deposited $1.7 million into an escrow account at the Picatinny Federal Credit Union for the Army’s use as in-kind services, said Banashefski. www.LandDevelopmentToday.com 27 http://www.LandDevelopmentToday.com

Table of Contents Feed for the Digital Edition of Land Development Today - July/August 2007

Cover Contents Our Voice: Industry Advocates Your Voice: Reader Response Cover Story: Preparing Your Tax Strategy The Rules of the Game Historical Redevelopment Project Profile: Seattle’s High Point Retention: From Ravine to Road Land Use: Picatinny Arsenal Mixed Use: Florida Offices Industry News Products/Services Showcase Classifieds Recommended Reading Advertiser Index Editorial Board The Last Word: What? Me Plan… Urban Development

Land Development Today - July/August 2007

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