02.20.04

Cantwell Looks to Create Community Partnership for McChord Housing Privatization

Cantwell Looks to Create Community Partnership for McChord Housing Privatization

WASHINGTON, D.C . - U.S. Senator Maria Cantwell (D-WA) proposed today to create a community development authority that would provide an opportunity for McChord Air Force to work closely with local, county, and industry leaders to ensure that military families and surrounding communities are protected during the Department of Defense's (DoD) efforts to privatize military housing.

Base housing must decrease by more than 600 units, down to 380, because of a 1996 law. To ensure this transition goes smoothly, the base must work with local partners to provide military personnel and their families with quality, affordable, off base housing.

"It is essential to the continued stability of our armed forces that military personnel are provided comfortable, safe, and affordable housing," Cantwell said. "Through a community development authority, I hope we can fulfill a public need with private sector assistance, spurring the local economy while finding the best deal for taxpayers. This isn't going to be an easy transition, but by working together we can make it easier."

In a letter (text included below) Cantwell presented to City of Lakewood Mayor Doug Richardson and Pierce County Executive John Ladenberg today, she wrote, "The outcome of this effort would be to enhance the impact of this privatization effort—an outcome that will benefit the goals of the military, its members, and the larger community while creating safer and stronger neighborhoods."

The military sees sub par living arrangements or long commutes for personnel living off base as a detriment to retaining and recruiting personnel. A community development authority could coordinate efforts to ensure sustained quality and affordability of housing, encroachment issues, transportation infrastructure, quality of life, and funding for schools.

Ladenberg said, "By w orking with Senator Cantwell and Colonel Allardice on this program, we can improve the safety, education and quality of life of our troops and their families."

Richardson added, "We were pleased that Senator Cantwell asked the City of Lakewood to be a stakeholder in developing a process and the necessary relationships to best leverage the military housing privatization effort taking place at McChord AFB."

As McChord's closest neighbor and a true "gateway community," Lakewood's economy could benefit from funding through the Military Housing Privatization Initiative (MHPI). City officials believe MHPI has the potential to bring a great deal of capital infrastructure and resources through Department (DoD) to Lakewood through new construction, subcontractor work, and management services.

Lakewood City Manager Scott Rohlfs views Cantwell's efforts to help Lakewood make the best of MHPI as a continuation of her support for the community.

Rohlfs said, "We are happy to work with McChord, and learn how their program will seek to ensure the interests of military members, their families, and the surrounding communities are addressed. Senator Cantwell's leadership has been and remains extremely important to Lakewood."

The 1996 Defense Authorization Act created the MHPI. The program was established to provide a more cost efficient and timely improvement of military housing by using private sector financing and expertise.

The text of Cantwell's letter to Ladenberg and Richardson follows below:

Executive John Ladenberg Pierce County Executive 930 Tacoma Ave. South, Ste. 737 Tacoma , WA 98402-2100

Mayor Doug Richardson City of Lakewood City Hall 6000 Main Street SW Lakewood, WA 98499-5027

Dear Executive Ladenberg and Mayor Richardson:

As you are aware, the U.S. Department of Defense's (DoD's) Military Housing Privatization Initiative ("MHPI") was enacted as part of the 1996 Defense Authorization Act and subsequently extended by Congress. The MHPI uses a variety of legislative authorities to leverage limited military housing budgets with private sector resources and expertise to improve and expand the stock of military family housing. The MHPI process currently underway at McChord Air Force Base may provide the base and the surrounding gateway communities a tremendous opportunity to address several issues simultaneously.

So long as we remain committed to our active service members and their families, the MHPI has the potential to bring a great deal of capital infrastructure and resources through DoD to our local economies through new construction, subcontractor work, and management services. These resources could be leveraged with local and regional resources to address perennial challenges faced by gateway communities such as quality of housing, affordability of housing, encroachment issues, physical security, transportation infrastructure, quality of life, and funding for schools.

Given this potential, I would like to work with the two of you, McChord AFB, and other stakeholders to explore the concept of establishing a Community Development Authority. The goal would not be to supplant existing organizational roles. Rather, we will look toward developing a mechanism for stakeholders to work together to make the most of the opportunities that this privatization effort will bring to our region. The outcome of this effort would be to enhance the impact of this privatization effort—an outcome that will benefit the goals of the military, its members, and the larger community while creating safer and stronger neighborhoods.

The Housing Requirement Market Analysis (HRMA) requires McChord AFB to decrease base housing from 981 units to 380 units. McChord AFB will have a draft of a Request For Proposal (RFP) prepared in 2004, with a final proposal is expected in 18-24 months. This schedule would mean the privatization contract would likely be awarded in early 2006. The selected company will then begin a three to four year demolition and construction process for 290 new homes on base between 2006-2010.

The "McChord Community 2010 Program," created by McChord AFB with the participation of the City of Lakewood and Pierce County, has already helped to create a dynamic forum for addressing concerns from military members and surrounding communities related to the MHPI process. I am encouraged by this collaboration and believe it provides the foundation for a Community Development Authority.

We have a wonderful opportunity before us to partner together with our bases and to invest and address issues we as a region have long sought to solve. I appreciate the work we have done together, to date, and look forward to the work we will continue to do in the future.

Sincerely,

Maria Cantwell

United States Senator

cc. Senator Patty Murray Representative Adam Smith Representative Norm Dicks Tacoma-Pierce County Chamber of Commerce Lakewood Chamber of Commerce Master Builders Association Association of General Contractors