Agenda Item Name:
Title
Fairgrounds Redevelopment Area Offer Letter to US Army
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Presenter:
Sean McLendon, Strategic Initiatives Manager 352 548 3765
Description:
As part of the on-going due diligence of the US Army, this is a request for an offer letter on donating the Fairgrounds Redevelopment Area with conditions. This is not a contract or final agreement between parties.
Recommended Action:
Recommended Action
Authorize the Chair to sign the letter of intent to donate the Fairgrounds Redevelopment Area to the US Army Reserve.
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Prior Board Motions:
At the February 25, 2020 Board Meeting Commissioner Cornell moved the substitute motion to postpone this item to the first meeting in April of 2020 and direct staff to reach out to the Airport Authority for their written input regarding their outparcels and responding to the Board with opportunities to combine those or how having the Army facility would affect those outparcels. Direct staff to contact Weyerhaeuser regarding interest in the land swap proposal. If the deadline will close out the Army facility opportunity then the Board will schedule a meeting to address the matter within in the necessary time frame. Staff to follow the timeline presented to the Board.
The motion carried 5-0.
At the December 2, 2019 Joint Board Meeting Commissioner Cornell moved the following:
1. Direct county staff to present the Board with comparable data to share with the community from other locations where the Army Reserves has located these type of equipment concentration sites.
2. Staff to ask the Army Reserve to help identify the necessary job skills and workforce training efforts to help our community prepare for this.
3. Staff to ask the Army Reserve to review the preliminary site plan and determine if one to three acres on the corner of Waldo and 39th could be carved out.
The motion carried 5-0.
At the May 28, 2019 Regular Meeting the Board Authorized the Chair to sign the Temporary Right of Entry Agreement between Alachua County and The Department of the Army for due diligence related to the Army's potential use of the Fairgrounds Redevelopment Area, once the final terms have been negotiated by parties and approved by the County Manager and the County Attorney
Fiscal Consideration:
Fiscal Consideration
A US Army Reserve Equipment Concentration Site is estimated to bring over $330 million in economic benefit over the next 30 years in the local economy. In addition, the facility will support approximately 62 livable wage jobs with Federal benefits. The Fairgrounds property is valued at $1,640,000.00.
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Background:
Staff is requesting that the Board sign an enabling resolution per State Statute and US Army requested Chair Letter expressing an intent to transfer the property.
The letter is a mechanism to express the intent of the County and keeps the process moving forward. For timing purposes, it is critical that a decision is made by the Board at this meeting.
All final terms and conditions for donating the property are estimated to come back to the Board for consideration on or before the Board’s first regular meeting in July 2020.
The requested Chair Letter is a formality to stay in compliance with Federal Requirements AR1-100 and AR140-483, which provides the Army Reserves the authority to accept the proposed lands that meet the current need.
The letter notes the County’s desire to take back the property if the US Army Reserve does not construct an Equipment Concentration Site. And if the US Army Reserves does build but at a future point ceases operations at the site, that it also revert back to County ownership. This reversion model has precedence in our community. The US Army Reserves gave back the City of Gainesville’s property of NE 8th Avenue at the termination of its use.
Due diligence is on-going by the US Army Reserves and County Staff regarding the donation of the Fairgrounds Redevelopment Area.
History
Since the February 2020 Board discussion, has met multiple times with the Airport Authority on opportunities. They are interested and would like to explore grants and consortium efforts for surrounding parcels for related economic development efforts. Those discussions were fruitful, ongoing, and have expanded to include the Waldo Road Corridor from the Eco-Industrial Park to 8th Avenue. The City of Gainesville, Chamber of Commerce, and GRU are engaged on this effort. Gainesville Commissioner Gigi Simmons is acting as an convener.
Weyerhaeuser is not interested in a land swap proposal.
As of May 2020, Alachua County has hosted two virtual community meetings. At these conversations, representatives from US Army Reserve and UF IFAS Economic Impact Analysis Program answered the community questions regarding the benefits and opportunities of hosting an Equipment Concentration Site (ECS).
In 2018, the US Army Reserve contacted the County regarding availability of the old Fairgrounds site on 39th Avenue to house an ECS by 2021. ECS facilities support the public works-type and disaster preparedness roles of the US Army Reserve. Alachua County has acquired an alternative site in Newberry, Florida to host Fair and agricultural events.
Alachua County has attempted to market the property directly and indirectly through the adjacent airport authority for private sector redevelopment. To date, those efforts have met with no success. The commercial viability of the site is hindered by the surrounding institutional uses: homeless camp, jail, work release and other governmental institutions surround the Fairgrounds property.
An ECS represents not only a best redevelopment option because of its general compatibility with the surrounding land uses and specifically because of the significant economic opportunities for East Gainesville, right now. Over the next 30 years, the US Army Reserve will bring through ongoing operations, a total economic impact in industry output of approximately $330,000,000 and 93 direct, indirect, and induced jobs to the community. See Tables 3 and 4, page 7 of the UF IMPLAN Report.
Construction Phase Impacts
Direct economic impacts
• Construction of manufacturing facilities
o $36 million in construction expenditures
o 292.4 jobs
Total economic impacts
• $63.4 million in industry output
• $36.2 million in total value added
• $24.0 million in labor income
• 469 jobs
Ongoing Operations Impact
Direct Economic Impacts
• 62 jobs
• $2.9 million annual payroll.
• $7.5 million in total industry output
Total Economic Impacts
• $13.4 million in industry output
• $8.5 million in total value added
• $6.3 million in labor income
• 109.7 jobs
ECS Indirect Economic Impacts:
- Supply purchases (safety equipment, office supplies, and standard automotive parts)
- Transportation purchases: Parts deliveries, equipment pick-ups and deliveries.
- Employees will live in the community, go to our schools, pay taxes, and increase demand for goods and services.
Job Descriptions
The Army Reserve ECS estimated to employ around 60 people. Many of them will be equipment mechanics, but there will also be some supply and administrative positions. These are civilian positions, and will be filled using the federal hiring process and subject to the applicable conditions of employment. They will be skilled positions that make around $21-$22 per hour, plus full federal benefits.
Facilities like this provide local and regional benefit, providing stable, well-paying vocational jobs with benefits; local contracting and material purchasing opportunities; as well as indirect and induced economic benefits to the surrounding community because of the local pass through of visiting personnel.
An ECS provides for the storage and maintenance of generators, trucks, and other public works-type and non-combat vehicles. Maintenance facilities are typically state of the art and offer opportunities for vocational and trade-school jobs.
Disaster Preparedness
An ECS makes Alachua County and Gainesville better prepared to respond in event of natural disasters. Equipment and personnel supplement the local and regional community’s ability to bounce back after a storm as well as making East Gainesville a logistics hub for help in the State of Florida.
• Assistance with State and Local Emergencies
• Generators, trucks and other materials as needed at the request of local government
• Center of resilience operations to help our coastal neighbors and the Florida National Guard in hurricane response and other natural disasters
Ready-To-Go Partnership
The US Army Reserve is ready to develop the project in the near term with possible construction beginning as soon as January - February 2021. The site is strategically important to their mission and to the security of the United States.
The US Army Reserve has already proved itself to be a good neighbor and contributor to East Gainesville. The site now occupied by Phalanx Defense Systems off NE 8th Avenue was formerly an Army Reserve site in the late 1940s. That property reverted back to the City of Gainesville and was recently adapted to a better use as commercial defense manufacturer. Alachua County will follow the City’s precedence and requests that the Fairgrounds site, upon termination of use by the US Army Reserve, revert back to County ownership for adaptive reuse.
Major Points
• Stable, long-term employer paying good benefits, retirement and salary. Military and Federal jobs are a path to the middle class for many.
• Vocational and job training opportunities with an Equipment Concentration Site (vehicle mechanics)
• Ready to invest now (2021), and land use is good fit for the area’s surrounding institutions.
• Economic Benefits over 30 years, $330 million from ongoing operations total economic impact industry output ($11.1 million/year)
• $36M for local and regional site improvements and construction
• Ongoing direct, indirect and induced benefits related to site operations including purchases of fuel, machine parts and other fleet maintenance purchases.
• Direct employment is calculated at 62 jobs paying on average $60k/year with Federal Benefits. Recruitment will be local via USAJOBS portal and applications will be similar to applying for US Postal Service. Applicants do NOT have to enlist in the US Army Reserves to get a job. However, if they do, the employee will accrue additional benefits on top of their other Federal benefits.
• In addition to the 62 positions, contract labor will also be utilized on site.
• Employees will live in the community, go to our schools, pay taxes, and increase demand for goods and services.
• Defense spending in Florida is a major source of employment, sales revenue and tax revenue for local government:
• In 2011, $31.3B in wages; $73.4B of FL’s gross state product; total employment of 758,000 direct and indirect jobs; State and local tax revenue $5.4B
• Procurement: Federal military procurement of goods and services generate 200,000 jobs across the state (engineering and manufacturing in particular)
• For North Central Florida the military supports approximately 18,000 jobs; $1.5B in Total Sales; and $1.4B in Gross Regional Product (Total Sales represents the total value of all goods and services sold as a result of military activities. This includes direct spending, wages, transfer payments plus spending associated with multiplier effects as initial receipts are re-spent. It incorporates the value of goods and services produced and sold in the region, imports into the region, and exports from the region. Gross Regional Product is the sum of consumption, investment, government revenues, and ex-ports less imports. It represents the total dollar value added of all goods and services produced as a result of defense spending.)