Recovering from Military-Base Closings

Recovering from Base Closings On the Road to Recovery: Military Bases get a Facelift Photographs of Devens, Massachusetts, by Fabienne Anselme Madsen by Antoniya Owens • Federal Reserve Bank of Boston When Loring Air Force Base in Limestone, Maine, closed in 1994, the future looked bleak. More than 1,300 civilian jobs were lost, and 2,875 military positions were transferred. In all, more than 8,000 people—one-tenth of the population of Aroostook County— left. But today, despite Limestone’s remote location near the Canadian bor- der, Loring has been transformed into the largest business, industrial, and aviation park in the state of Maine. By 2005 more than 20 new businesses had relocated there, and nearly 1,500 new jobs had been created. Fort Devens in Massachusetts and Pease Air Force Base in New Hampshire have similar stories of successful post- military redevelopment. Meanwhile, Stratford, Connecticut, is still recovering from the 1997 closure of the ernment officials, civic leaders, and Stratford. There are still no clear and Stratford Army Engine Plant. businesses leaders. Such an authority consistent plans to act upon once the Environmental cleanup of the heavily becomes the only body officially recog- military completes the property trans- polluted site has stalled, hindering the nized to negotiate with the military and fer. Recently, there have been some dis- successful transfer of property and the to receive property transfer and other agreements between the Town implementation of redevelopment federal assistance. Council—the plant’s official redevelop- plans. No new positions have been cre- ment authority—and the site develop- ated to replace the 1,400 jobs lost. Partnering with Local ers on whether the site should be rede- Some challenges facing communities Stakeholders veloped for residential properties affected by base closures are unique to The ultimate success of redevelop- (which would require more extensive each situation. Overall, however, suc- ment depends on partnerships with the and costly cleanup) or for previously cessful redevelopment strategies share communities—having a reuse plan that agreed-on industrial and commercial three critical features: partnerships; cre- correctly identifies local needs and purposes. ativity and flexibility; and persistence. reflects local visions. The redevelopment authority should maintain a con- Partnering with Government Working Together stant dialogue with the involved com- Partnerships with state government The redevelopment of a closed munities, local officials, and advocacy also are important. When a base covers base often involves strong disagree- groups, and should include their input several jurisdictions with different land- ments—especially if the base spans sev- in transparent, realistic proposals. The use regulations and building permit- eral communities. Thus, an important redevelopment team at Loring, for ting, communities can ease administra- first step is for the communities to form example, kept stakeholders informed tive difficulties by coordinating among a local redevelopment authority (LRA) through multiple public hearings, a themselves and working with states to with strong and determined leaders and process that resulted in a solid redevel- streamline procedures. representatives of all affected stakehold- opment plan. For example, the redevelopment of ers—local residents and workers, gov- But consider the situation at Fort Devens, which spans four towns, Communities &Banking 29 economies more severely, and it is hard- er to attract new industries. The harsh winters at Loring certainly did not look like an asset. According to Brian Hamel, former chair of the Loring Development Authority, initial prospects for redevelopment were uncertain, and a creative approach was needed. Using funding from the Office of Economic Adjustment, the LDA hired outside consultants to assist them with a Target Industry Market Study and an Aviation Task Force Study. The studies identified industries suitable to the region’s condi- was aided by state legislation creating a transfer to the town, as state and local tions, infrastructure, and workforce. single permitting and approval agency, authorities are not willing to accept lia- Industries deemed worth pursuing the Devens Enterprise Commission. bility for the cleanup in case the Army included light manufacturing, agricul- The approval process now guarantees does not provide enough funding. ture, food processing, and transporta- answers to applications within 75 days In contrast, Loring’s development tion distribution—all of which could and has already helped attract 78 new authority early on established a partner- benefit from the area’s large open companies offering more than 4,000 ship with the U.S. Environmental spaces, more than 300 buildings, and new jobs. Protection Agency, Maine’s Depart- well-developed infrastructure. A word of warning: The closing of ment of Environmental Protection, and The Loring Commerce Centre, a base often creates hostility in the com- the Air Force. Although Loring was which now encompasses the former munity toward the military and the fed- heavily contaminated like Stratford, the military installation and is managed by eral government, which may hurt the collaborative spirit there helped in the Loring Development Authority, community’s ability to get assistance. A determining cleanup priorities, dura- leveraged the former airbase to create an strong alliance with the federal govern- tion, and the effect on redevelopment. aviation complex with runways, avia- ment, however, can ease recovery by The cleanup, which exceeded $150 mil- tion operating systems, aircraft mainte- securing technical and financial assis- lion, proceeded alongside base redevel- nance facilities, air cargo operations, tance. The Loring Development opment and was never a major obstacle. and private aircraft operations. Authority, for example, received nearly Cooperation among all stakeholders In addition, because good telecom- $9 million in grants from the Economic avoided gridlock. munications infrastructure and an Development Administration and the abundant, educated, and relatively Defense Department’s Office of Creativity and cheap labor force were available, the Economic Adjustment to repurpose the Customization redevelopment authority decided to tar- base’s infrastructure, facilities, and func- No single formula for success fits get information-based businesses. Sitel tions. every base-redevelopment project. Corporation, which provides out- The most significant blocks to base Location, remoteness, climate condi- sourced telephone-based customer serv- redevelopment are stalled environmen- tions, available infrastructure, and the ice, expanded its call center in Loring to tal cleanup and delayed property trans- health and diversification of the local employ nearly 300 people and is con- fer. In Connecticut, the cleanup process economy are bound to vary. A recovery’s sidering increasing that number to 500. of the Stratford Army Engine Plant site success depends on the ability of the Loring even managed to turn its is approaching 10 years. The plant’s redevelopers to customize strategies, harsh winters into an asset. The Maine manufacture of commercial and mili- taking into account the starting condi- Winter Sports Center, a newly formed tary engines left the soil and buildings tions, the needs of the local communi- nonprofit corporation, has established polluted with solvents and heavy met- ty, and the base’s comparative advan- facilities and programs to stimulate the als. Without a comprehensive cleanup tages. development of biathlons and cross- process, the site cannot even be used for Rural and remote bases are general- country and Alpine skiing. Its facilities industrial purposes. Progress has been ly considered difficult to redevelop in Presque Isle recently hosted the 2006 hindered by a lack of coordination. The because they have less-diversified Biathlon Junior World Championships, extent and cost of the cleanup are still economies and less-developed infra- attracting more than 250 young athletes unclear. This has delayed property structure. A base closing affects their from 29 countries and more than 30 Spring 2006 This article was first published in the Federal Reserve Bank of Boston's Communities & Banking magazine.The views expressed are not necessarily those of the Federal Reserve Bank of Boston or the Federal Reserve System. Information about organizations and upcoming events does not constitute an endorsement. To subscribe, e-mail [email protected]. 20,000 spectators. Such events not that businesses won’t readily come to and can take years, even decades, to only enhance the region’s reputation, you—you need to go to them,” says complete. Nevertheless, most commu- but also mean more business for local Hamel. “Develop strategies for nities around former military bases hotels, restaurants, and shops. approaching them. Travel to them, have succeeded in revitalizing and engage them, have them come and visit diversifying their economies. Be Proactive and your community. The results from such According to the Government Persistent an approach can be very different from Accountability Office, almost 85 per- Attracting businesses to a new site simply phoning or e-mailing them.” cent of civilian jobs lost as a result of is always difficult, but when the site is a Developers in charge of attracting base closure or realignment have been former military base in a remote loca- industry

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