Falcon Hill Enhanced Use Lease agreement announced

  • Published
HILL AIR FORCE BASE, Utah (AFPN) --  "Falcon Hill has finally gone from a dream to a reality!" Maj. Gen. Kathleen Close, commander of the Hill AFB Ogden Air Logistics Center, proudly stated at the Aug. 13 signing of the Master Lease and Master Development Agreement between the Air Force and Sunset Ridge Development Partners, LLC.

The Falcon Hill National Aerospace Research Park is part of the Enhanced Use Lease program, an Air Force initiative that supplements the Department of Defense by leasing underutilized land to private sector aerospace contractors.

"The Air Force, Sunset Ridge, the state of Utah and the communities surrounding Hill Air Force Base have been working together for mutual benefit from this project," said Kathleen Ferguson, Deputy Assistant Secretary of the Air Force for Installations. "This is a great project that demonstrates what an Enhanced-Use Lease can do."

The plans that have made the lease signing event a reality have been long and arduous.

"Today is the culmination of five years of work," said Sen. Orrin Hatch (R-Utah) at the lease signing ceremony Wednesday. "As late as two weeks ago, we faced an obstacle that could have dramatically reduced the amount of office space provided to Hill. However, with Hill's team arguing the merits with the services negotiators of Utah and us doing the same with the Pentagon in Washington, we were able to reach a solution agreeable to all parties. Now, this has truly been a joint effort and there are a lot of people who deserve credit."

"Sunset Ridge Partners are very honored to be the ones chosen to develop this project," added Jeff Woodbury, managing partner for the selected developer, Sunset Ridge Development Partners, LLC. "It will be an important chapter in the joint economic life of Hill Air Force Base and the adjacent cities and counties."

Falcon Hill will be located on approximately 550 acres on the west side of Hill AFB adjacent to Interstate 15. The commercial development will consist of office and research space, supporting retail establishments, restaurants and two hotels and is intended to bring in thousands of aerospace industry jobs to the local area.

"This project will provide significant new growth to the area," said state Rep. Brad Dee (R-Ogden). "The new jobs and businesses that will be attracted to this project will increase the quality of life for all Utah. The adjacent cities and counties as well as the state should be congratulated on their collective efforts to help the Air Force and Sunset Ridge make this project a reality."

The Air Force land is being made available using a program known as Enhanced Use Leasing. It takes underutilized land and leases it to private developers for commercial uses. While the Air Force still owns the land, the developer will own the facilities it builds. In return, the Air Force receives either cash payments or payments in-kind. At Hill AFB, the payments will be in-kind, in the form of new and modern office space for Hill AFB employees.

General Close said, "These are exciting times for Hill, Sunset Ridge and our community. Many have worked hard and long to arrive at this significant milestone and we are eager to break ground this fall."

In August 2007, Sunset Ridge Development Partners was awarded the right to enter into exclusive negotiations for the EUL development. Sunset Ridge Development Partners consist of Woodbury Corporation of Utah and Hunt Development Group of Texas.

Construction will begin on the first 180 acres of the project in the late fall of 2008 and will be concentrated near Hill's West Gate. The first build-out also includes new facilities in the Roy Gate area but construction there will begin at a later date. Initial plans in the Roy and West Gate areas include commercial office space, government office space, retail and restaurant space and a hotel. Upon completion, this development will be the largest EUL to date in the Department of Defense.

Concerning this important milestone, Utah Gov. Jon Huntsman said, "The Hill project is a tremendous example of what public-private partnerships can accomplish for our communities, the state and the military. This project will promote our vision of the future for Northern Utah as a growth center for the aerospace industry. We are happy to be working with the Air Force and Sunset Ridge on this important development."

Recognizing the opportunity to energize the local economy, the state of Utah has been very supportive of this effort, through state grants toward infrastructure and highway improvements. They are also working toward issuing bonds for construction of Air Force buildings and highway improvements to improve traffic flow in this area. These funds will be managed by the Military Installation Development Authority which was created by the Utah legislature in 2007. A Memorandum of Understanding was also signed between MIDA, the Air Force and Sunset Ridge Development Partners to work on this project jointly.

"Enhanced Use Leases are a win-win situation," said Jeffrey Domm, acting director of the Air Force Real Property Agency, the organization responsible for developing Air Force EUL projects. "It provides an opportunity for the Air Force to capitalize on underutilized assets, including real property, by leasing the land to private entities, and to address Air Force infrastructure requirements such as construction, repair, maintenance and improvements of facilities."

While Falcon Hill will be a great benefit to the Air Force, it will also prove to be a significant boon to local communities. Air Force officials project that more than 15,000 jobs could come to the area as a result of the development. In addition, the construction of the first 180 acres alone will infuse another half-billion dollars into the Utah economy.

"One of the unique things about this project is the worldwide and nationwide recruitment effort by the developer. The developer is not trying to take existing tenants from nearby communities, but is hoping to attract new high-tech companies from many diverse areas across the country," said Bruce Evans, EUL program manager for Hill AFB.

Now that final negotiations of the development are concluded, an official EUL ground breaking ceremony will take place later this fall. Political leaders and dignitaries will be invited to attend.

(Hilltop Times writer Lee Anne Hensley contributed material to this article)


Comment on this story (comments may be published on Air Force Link)

View the comments/letters page