Title 10, USC § 2667, provides the Military Departments of the Department of Defense the authority to lease available, non-excess real property to non-federal parties. These leases can be prudent asset management, but must be of direct benefit to the United States, promote the national defense and/or be in the public interest, and must be compatible with current and anticipated future military activities at the installation. Generally, the Army must use competitive procedures to select a lessee for any lease. The leases provide the exclusive right to possess and use specified real property for a specified period of time in exchange for fair market value consideration.
The Army has used this authority effectively since 2001. The following leases are representative of the public/private partnership opportunities presented by the Army’s Enhanced Use Lease Program:
General Motors Hot Weather Test Track, Yuma Proving Grounds, AZ – Land lease to General Motors Corporation (GM) for a hot weather test track for GM vehicles in development. Consideration was paid to Army by having GM construct a separate hot weather test track for Army vehicles. This transaction received the 2009 National Council for Public Private Partnerships Innovation Award.
Central Utility Plant, Fort Detrick, MD – Land lease to Chevron Corp. in partnership with Keenan Development Co., for a central utility plant providing steam and electricity to tenants on the installation. This project won the 2008 Infrastructure Project of the Year Award from
Gate Project, Aberdeen Proving Grounds, MD – Land lease to St. John Properties for the development of a corporate office park. This project is satisfying the space needs of many private sector defense contractors who support missions conducted at this installation.
The Enhanced Use Leasing (EUL) Program within the U.S. Army Corps of Engineers, North Atlantic Division is managed by the Baltimore District.
Enhanced Use Leasing offers Installations various benefits:
• Improves utilization of non-excess but underused property
•Creates opportunities for synergistic private sector uses that benefit the installation
• Reduces base operating costs
•Generates a land rent return in cash or in-kind services
• Stimulates the local economy
• Fosters cooperation between the military services, the private sector and the local government.
The Deputy Assistant Secretary of the Army for Installations, Housing and Partnerships (DASA (IH&P)) must approve leases for any real property for more than five years. The property must not be considered “excess” property to qualify. Leases may be entered into if the DASA (IH&P) considers it advantageous to the Army and the United States, and upon such terms as he considers will promote the national defense or be in the public interest.
Potential uses for Enhanced Use Leasing include:
· Restoration of Historic Buildings
· Vehicle Test Tracks
· Inter-Modal Terminal
· Offices, Labs, Industrial
Please contact email@example.com for any inquiries or questions.
· Training Center
Contacts for EUL are: