Senate Bill 696 Can Help Make
Fort Monroe Reuse Transition Easier
February 17, 2006
With the impending closure of Fort Monroe it is in the best interests of both the Commonwealth and the City of Hampton to transition this historic area to reuse as quickly as possible.
Senate Bill 696 is designed to help in that process to the benefit of both the Commonwealth and the City of Hampton. The bill was passed unanimously in the State Senate but a similar House bill was defeated. As such, SB 696 will now be brought before the House of Delegates for further consideration.
No property can be used for development until it is adequately cleaned of environmental contamination to the satisfaction of state or federal environmental regulators.
In the case of Fort Monroe, this issue creates some very difficult challenges and potentially expensive consequences for the Commonwealth and the City of Hampton. The Army estimates that it costs $15 million annually to maintain the historic structures at the Fort. It is the Hampton´s goal and current direction to work with the Commonwealth and the United States Congress to develop a strategy where the property can be selfsustaining. That way, the history at Fort Monroe can be preserved for future generations of Americans, without requiring the Commonwealth to fund the $15 million cost of maintaining the Fort.
Hampton, working closely with the Commonwealth´s administration, is trying to position Fort Monroe for an expedited transition to reuse. The ultimate goal (which is very aggressive) is to begin the clean up and reuse of Fort Monroe prior to the Army vacating the post. Beginning the reuse of Fort Monroe as early as possible will help the City generate revenue streams to cover the costs of maintaining the historic structures on the Fort thus mitigating as much as possible the potential impact to the Commonwealth in having to fund the maintenance of those structures.
SB696 will provide the tools that the Commonwealth and the City need to best position ourselves for an expedited redevelopment of Fort Monroe. One of the recent innovations to emerged in the transition of closed bases to reuse is the privatization of the Army´s cleanup responsibility (known as privatized cleanup).
Privatized cleanup of unexploded ordnance (the major contaminant at Fort Monroe) has only been done at Fort McClellen Alabama. Hampton has hired the lawyer and environmental firm that completed that agreement with the Army.
Here´s a quick summary of why the City feels SB696 is important:
Giving the Governor the power to transfer the Commonwealth´s reversionary interest in the Fort Monroe property prior to the Army vacating the property will allow for the state to act consistently with the privatized cleanup process essentially modernizing state law to reflect current best practices in the base transition process.
In essence when Hampton enters into the agreement with the Army to do an early transfer and cleanup of a property, the Governor can simultaneously enter into a separate agreement with Hampton to transfer the reversionary rights on that property to the City. Hampton has always anticipated that any agreement it would enter into with the Governor, prior to his transferring the Commonwealth´s reversionary interest, would protect the Commonwealth´s financial interests in the Fort Monroe property.
Here are some answers to common questions:
What will happen to any revenue generated from the sale or lease of Fort Monroe to a developer?
SB696 only gives the Governor Authority to transfer the Commonwealth´s interest in the property to Hampton. It does not compel him to do so.
It has always been Hampton´s expectation that before the Governor would do so, he would enter into an agreement with Hampton regarding what would happen with the revenue generated from the sale or lease of Fort Monroe property.
Hampton´s goal is to ensure that the historic resources at Fort Monroe are protected. The City also wants Fort Monroe to be a financial and economic benefit to the City and the Commonwealth and not a drain on resources. As such, Hampton has no desire for the revenue from the sale or lease of Fort Monroe to come to the City´s General Fund.
Hampton´s desire is that any revenue from the sale or lease of the Fort Monroe property be used for the following:
- To clean environmental contamination at the property
- To maintain the historic resources at Fort Monroe and its sister facility, Fort Wool
- To promote the economic redevelopment of Fort Monroe
- To reimburse the City for documented expenses associated with transitioning Fort Monroe to reuse (primarily attorney fees, etc.)
- To enhance, as necessary, Fort Monroe´s gateway communities (the Phoebus and Buckroe sections of the City)
- To the Commonwealth´s General Fund
Would Hampton accept limiting the legislation so it does not apply statewide?
Yes, so long as such a limitation would increase the likelihood of the bill passing.
Would the early transfer and cleanup be as safe as if the Army cleaned it themselves?
Yes. Under current law, the Virginia Department of Environmental Quality (DEQ) would have to sign off on the cleanup before any redevelopment could commence on the property.
The Army would also maintain its liability for any additional cleanup on the property to the standard as noted in the agreement between them, Hampton and DEQ.
Insurance for cost overruns and additional liability will also be purchased with federal funds to protect Hampton´s financial interests.
If the Commonwealth transfers its reversionary interest in the property to the City, the Commonwealth would be taken out of the chain of title. That means the Commonwealth would have no liability for the environmental contamination on the property.
If you feel that SB 696 should be adopted by the General Assembly, let your representatives know by calling 18008892009. If you´d like to know who your representatives are and how to contact them directly at http://conview.state.va.us/whosmy.nsf/main?openform.