Naval Air Station Oceana Future Base Design: Making the Most of Options and Opportunities Recommendations by the CRE Consulting Corps Contract Number: N62470-17-D-5008 Task Order: N4008520F5274 OCTOBER 2020 NAVAL AIR STATION OCEANA FUTURE BASE DESIGN: MAKING THE MOST OF OPTIONS AND OPPORTUNITIES RECOMMENDATIONS BY THE CRE® CONSULTING CORPS | NAS OCEANA Contents Executive Summary .................................................................................................................................................... 4 Project Overview ......................................................................................................................................................... 5 Findings ........................................................................................................................................................................ 7 Participants and Contributors ............................................................................................................................... 7 Navy Participants ............................................................................................................................................... 7 City of Virginia Beach Participants .................................................................................................................. 7 State and Federal Representative Participants ............................................................................................... 8 Real Estate and End User Participants ............................................................................................................ 9 Other Community Stakeholder Participants ................................................................................................ 10 Observations ...................................................................................................................................................... 10 Conclusions ....................................................................................................................................................... 13 Economic and Demographic Data Analysis ..................................................................................................... 14 Conclusion ......................................................................................................................................................... 15 Market Analysis .................................................................................................................................................... 15 Overview of the Virginia Beach Commercial Real Estate Market ............................................................. 15 Office Real Estate Market ................................................................................................................................ 17 Retail Real Estate Market ................................................................................................................................. 17 Multi-family Housing Real Estate Market .................................................................................................... 18 Industrial Real Estate Market ......................................................................................................................... 18 Conclusions ....................................................................................................................................................... 19 Non-Core Function Data Analysis ..................................................................................................................... 19 Navy Gateway Inn & Suites ............................................................................................................................ 20 The List of Non-Core Functions ..................................................................................................................... 20 MWR Activity Analysis by Required Function Status .................................................................................... 22 Key takeaways: ................................................................................................................................................. 23 Analysis Relative to the Number of Patrons ................................................................................................ 24 MWR Activity by UFM Category ................................................................................................................... 25 1 NAVAL AIR STATION OCEANA FUTURE BASE DESIGN: MAKING THE MOST OF OPTIONS AND OPPORTUNITIES RECOMMENDATIONS BY THE CRE® CONSULTING CORPS | NAS OCEANA Summary and Conclusions ............................................................................................................................. 25 Non-Core Facility Functional Assessment ........................................................................................................ 26 Non-Core Functional Assessment Conclusions ........................................................................................... 28 Base Housing Assessment ................................................................................................................................... 29 Replacement/Renovation Needs .................................................................................................................... 30 Base Housing Conclusions .............................................................................................................................. 32 Goals and Recommendations ......................................................................................................................... 33 MWR Alternatives Analysis ................................................................................................................................ 35 MWR Outsourcing Strategies ......................................................................................................................... 35 Strategies for Future Development .................................................................................................................... 36 EUL Parcels ........................................................................................................................................................ 36 City-Base/Efficient Facilities Initiative Type Transaction ........................................................................... 41 Conclusions ....................................................................................................................................................... 44 Options for Public Private Partnership: What Public-Private Partnership Options are Available to Oceana? ....................................................................................................................................................................... 45 First Steps ............................................................................................................................................................... 45 Oceana Future Base Design Taskforce Attributes ....................................................................................... 45 Status Quo Analysis .............................................................................................................................................. 47 Shared Services Agreement Analysis ................................................................................................................. 47 Critical Elements for Success .......................................................................................................................... 48 Enhanced Use Lease Analysis ............................................................................................................................. 49 In-kind Compensation for EULs .................................................................................................................... 50 Possible EUL Partners ...................................................................................................................................... 51 Successful EUL Examples ................................................................................................................................ 52 Proposed Master EUL for NAS Oceana ........................................................................................................ 52 Critical Elements for Success .......................................................................................................................... 55 City-Base/EFI Analysis ......................................................................................................................................... 55 Roles, Relationships and Responsibilities ..................................................................................................... 56 Cost Baseline Example ..................................................................................................................................... 57 2 NAVAL AIR STATION OCEANA FUTURE BASE DESIGN: MAKING THE MOST OF OPTIONS AND OPPORTUNITIES RECOMMENDATIONS BY THE CRE® CONSULTING CORPS | NAS OCEANA Common Questions and Concerns ................................................................................................................ 59 City-Base Transaction Critical Path ..............................................................................................................