BestBest Defense:Defense: MakingMaking thethe MostMost ofof MilitaryMilitary BaseBase ClosuresClosures Jennifer S. Evans Research Associate and Matt L. Cypher Graduate Research Assistant Texas A&M University April 2000 © 2000, Real Estate Center. All rights reserved. BestBest Defense:Defense: MakingMaking thethe MostMost ofof MilitaryMilitary BaseBase ClosuresClosures Contents 1 Introduction 2 Kelly Air Force Base, San Antonio 6 Bergstrom Air Force Base, Austin 9 Carswell Air Force Base, Fort Worth 11 Naval Air Station, Dallas 13 Red River Army Depot, Texarkana 15 Reese Air Force Base, Lubbock 17 Chase Field Naval Air Station, Beeville 19 Conclusion BestBest Defense:Defense: MakingMaking thethe MostMost ofof MilitaryMilitary BaseBase ClosuresClosures Jennifer S. Evans Research Associate and Matt L. Cypher Graduate Research Assistant Introduction recommended which installations Beeville, Grand Prairie and Fort Worth should be closed, subject to the ap- all have experienced economic fallout The breakup of the Soviet Union sig- proval of Congress and the President. from conversions. naled an end to the Cold War, prompt- Before the first round of BRAC clo- While some of these communities ing the federal government to reduce sures, Texas was home to 21 major have successfully converted military and realign U.S. military resources. military bases. After four rounds of bases into public or private use devel- Downsizing in facilities and personnel closure and realignment, 15 installa- opments, others are struggling with the began with 1988 legislation and con- tions remain open, including three intracacies of transferring property tinued with the Defense Base Closure that were realigned, meaning that the from the government to redevelop- and Realignment Act of 1990 (BRAC), military presence remains, but parts ment authorities and the challenges which mandated full or partial clo- of the bases were closed. Six bases of finding suitable tenants for spe- sure of selected military bases across were closed entirely. San Antonio, cialized facilities. the nation. A bipartisan committee Texarkana, Lubbock, Austin, Status of Texas Military Bases Open Closed Realigned Abilene: Dyess AFB Austin: Bergstrom AFB Corpus Christi: Corpus Christi NAS Del Rio: Laughlin AFB Beeville: Chase Field NAS Fort Worth: Carswell AFB El Paso: Fort Bliss Dallas: Dallas NAS Texarkana: Red River Army Depot Ingleside: Ingleside NS Galveston: Galveston NAS Killeen: Fort Hood Lubbock: Reese AFB Kingsville: Kingsville NAS San Antonio: Kelly AFB San Angelo: Goodfellow AFB San Antonio: Brooks AFB San Antonio: Fort Sam Houston San Antonio: Lackland AFB San Antonio: Randolph AFB Wichita Falls: Sheppard AFB Source: Real Estate Center at Texas A&M University 1 Kelly Air Force Base, San Antonio Installation name Kelly Air Force Base Region South central Texas Locale San Antonio Redevelopment authority Greater Kelly Development Authority Base size 4,757 acres, 600 buildings totalling 16 million square feet Redevelopment size 2,000 acres Leaseable space 11 million square feet Opened 1917 Closed or will close April 2001 Current tenants, owners or occupants Boeing, Pratt & Whitney, MQS Inspection, Inc., EG&G, General Electric, Lockheed Martin, AESYS, Chromalloy, Standard Aero, Ryder Integrated Logistics, Rail Car America 2 Available Facilities Aircraft industrial maintenance area 2.5 million+ square feet Multimodal logistics and distribution center 4 million square feet warehouse 66 million cubic feet covered storage 75 acres of outdoor storage Office complex 77,866 square feet East Kelly light industrial area 350 acres Transportation On Base Commercial Carriers Distance from Base Rail Yes Union Pacific On site Port No Corpus Christi 145 miles Airfield Yes Joint airfield with Lackland AFB On site Nearest major highway I-35, I-10 Less than 1 mile Airfield Specifications Number of runways 1 Runway length 11,500 feet Kelly Air Force Base Kelly AFB has played a significant The Greater Kelly role in every major war, beginning Kelly Air Force Base is a prime ex- with World War I, when the majority Development Authority ample of how military base conver- of American pilots were trained In nearly all cases in which bases sions can benefit all parties involved. there. During World War II, Kelly’s close and land is transferred to a public The Greater Kelly Development Au- mission changed to maintenance and entity, a redevelopment authority is thority (GKDA) has been able to suc- supply. Kelly personnel overhauled, created to manage the transfer and cessfully recruit businesses to occupy repaired and modified aircraft en- marketing of the property. The Greater available space and create jobs. To gines and related equipment. Kelly Kelly Development Authority (GKDA) date, the majority of the space the workers played vital roles in the Ko- was created on January 18, 1996, by GKDA owns is leased. Ultimately, rean and Vietnam Wars as well as the the San Antonio City Council and con- more than 20,000 jobs are expected to Panama conflict and Operation sists of an 11-member board of direc- be created as a result of redevelopment. Desert Storm. tors elected by the Council. GKDA has History Kelly AFB and Kelly Air Logistics employed two outside firms to facili- Center appeared on the 1995 round of tate conversion, marketing and leasing Kelly AFB in San Antonio has been BRAC closures. The 4,757- acre base is operations. EG&G Management Ser- in operation for more than 70 years, slated to be the 162nd major base to be vices of San Antonio focuses on con- making it the oldest continuously used either closed or realigned, with final verting existing facilities to include the U.S. Air Force base. The base is named closure scheduled for July 2001. amenities necessary to draw tenants to after Lieutenant George E.M. Kelly, the Forty-seven percent of the base will the development, and Trammell Crow first military pilot to die flying a mili- be transferred to the City of San Anto- Company serves as marketing and tary aircraft. After learning to fly at nio, while the remaining portion will leasing agent. North Island in San Diego, California, be realigned with Lackland Air Force From the beginning, GKDA’s Kelly was stationed at Fort Sam Hous- Base. overarching goal has been to create ton, Texas, working under the com- Kelly AFB is currently home to the 21,000 jobs by the year 2006. To mand of First Lieutenant Benjamin San Antonio Air Logistics Center, the achieve this goal, the authority is Foulois, who, at the time, was flying Air Force News Agency, Air Intelli- transforming the portion of Kelly AFB the Army’s only airplane. On May 10, gence Agency, Defense Commissary it controls into a world-class indus- 1911, Kelly died while trying to land Agency–Midwest Region, the 433rd trial and commercial park. One ele- his aircraft. To commemorate the trag- Airlift Wing of the U.S. Air Force Re- ment of GKDA’s “new identity” cam- edy, the Army named a new airfield af- serve and the 149th Fighter Wing of the paign for the base is a new name, ter Kelly on June 11, 1917. Texas Air National Guard. KellyUSA, intended to emphasize the 3 non-military focus of the converted Interstate 10 and U.S. Highway 90. Air Express MD-10s to function as cargo base. transportation is enhanced by the aircraft. Shortly after the company lo- Because former base employees 11,500-foot runway able to accommo- cated at Kelly, it received Air Force possess skill sets related to aircraft date the largest of airfreight planes. contracts for the KC-135 and the KC-10. maintenance and repair, logistics and Kelly’s location also is ideal for taking Lockheed Martin has taken advan- distribution, office and back office ser- advantage of Corpus Christi and Hous- tage of Kelly’s skilled workforce and vices, communications, electronics ton seaports. advanced facilities. The company has and advanced manufacturing industry The GKDA is establishing Kelly as a Air Force contracts to maintain and sectors, the redevelopment authority gateway from Mexico to the United modify TF-39 engines used in C-5A has been seeking appropriate indus- States. The authority anticipates goods Galaxy cargo planes, T-56 prop-jet trial, manufacturing and management flowing from Mexico City, propulsion systems used in C-130 service companies to occupy con- Guadalajara and Monterrey through cargo transports, P-3 Navy patrol verted space at Kelly. San Antonio and on to the rest of North bombers and E-2C Hawkeyes, which The GKDA is marketing Kelly as an America. are carrier-based surveillance aircraft. international distribution center strate- gically located at the intersection of KellyUSA Tenants Economic Incentives air, rail and highway routes. The base To date, the GKDA has acquired Incentive programs at the local, state is close to Union Pacific’s South San about 50 percent of the 11 million and federal levels were established to Antonio Inter-modal railyard, which square feet that eventually will be promote business relocation to Kelly. has three mainlines, 30 yard tracks and transferred to the authority. Of this 50 Specific incentive programs offered at cross-docking facilities. These rail percent, 97 percent is currently leased. Kelly follow. More information can be lines travel from Mexico to San Anto- Boeing Aerospace Support signed a found at www.kellybusiness.com. nio and on to various nodes across the 20-year lease in 1998 and occupies Defense Economic Readjustment country. 1.4 million square feet of space. Zone (DERZ). KellyUSA has been des- North-south highway transportation Boeing has contracts from the Air ignated as a Defense Economic Read- is facilitated by Interstate Highways 35 Force to maintain and modify the C-17 justment Zone. Any company relocat- and 37, while east-west traffic uses aircraft as well as retrofitting Federal ing in such a zone as an enterprise Current Tenants Operations Leased Employment Boeing Airframe maintenance 1.4 million square feet 1,000; 2,000 and modification projected Lockheed Martin Aircraft engine 1.5 million square feet 1,400 projected maintenance EG&G Mgt.