Army Agrees To $420 Million Housing Deal For Local Posts

Team Infidel

Forum Spin Doctor
Fairbanks Daily News-Miner
January 5, 2008 By Chris Eshleman, Staff Writer
The Army reported Friday that it has chosen a company for exclusive negotiations in a plan to privatize construction, maintenance and operation of housing on its Fort Wainwright and Fort Greely posts.
If approved, the deal would hand primary responsibility for approximately 1,800 homes and apartments to Nashville-based Actus Lend Lease LLC for the next five decades. The Army currently maintains and services family housing on the posts.
The proposal is part of the Army’s Residential Communities Initiative privatization program, which is slowly handing primary ownership of military housing over to private partners across the country.
The development plan proposed by the company carries a potential price tag of $420 million. The Army could contribute one third of that cost.
Congress and the Department of Defense will review the proposal, which is slated to take effect in July.
Actus Lend Lease already operates 10 similar projects across the country worth approximately $5.6 billion in development value, according to its parent company, Lend Lease Corp. The subsidiary works “extensively” with the military on long-term privatization programs, it said in a Friday news release.
The two Army posts in Interior Alaska have already seen a sizable addition of new well-built homes, said Katie Alger, a development manager with Actus Lend Lease. “We see this project as an opportunity to enhance the wonderful work they’ve already done,” she said.
The Army’s announcement comes eight months after it issued a request for proposals for privatization projects on the two posts. A review team evaluated the qualifications of companies that replied before evaluating the individual proposals, according to the Army.
The offer from Actus Lend Lease includes plans to add hundreds of new homes and apartments on the posts over the next six years. It would also build two new community centers with fitness rooms, ice-skating rinks and neighborhood parks, the Army stated. “The (program) is a critical part of the Army’s plan to alleviate housing shortages, rapidly improve the condition of our existing housing and sustain quality communities over the 50-year life of these projects,” a separate release from the military explains of the nationwide privatization initiative.
Similar programs are in place for other branches of the military. The 2,022 homes on Elmendorf Air Force Base in Anchorage have been privatized, Air Force spokeswoman Tech. Sgt. Francesca Popp said.
The larger Lend Lease Corp. has been involved with major projects including a restoration of the Statue of Liberty and a renovation of New York City’s Grand Central Terminal, according to the company.
 
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