NAR: Government Affairs: Military Base Realignment and Closures
TO: State Association Executives/Government Affairs Directors
FROM: David Lereah, Senior Vice President, Chief Economist
RE: 2005 Round of Base Realignment and Closure
DATE: July 14, 2005
NAR urges State Association Executives and Government Affairs Directors to monitor base realignment and closure activity (BRAC) and to begin planning your involvement in the economic planning process once the BRAC selections are finalized in the fall.
Overview:
On May 13th, the Department of Defense released its list of recommended base closures and realignments, triggering efforts by states and localities to lobby the BRAC commission to prevent base closures. The full BRAC list can be found at the BRAC website: http://www.defenselink.mil/brac/. The BRAC Commission has been holding regional meetings to obtain feedback from local communities. The commission will then provide the President with their recommendations in September.
Discussion:
The 2005 BRAC round may have a profound real estate impact on the communities surrounding the affected base. While some bases will be down sized or closed thereby depressing real estate markets, others will expand, thus putting supply pressure on the market.
Affected states will create re-development authorities to guide the land use planning and property disposition process. The Office of Economic Adjustment (OEA), within DOD, has been tasked to work with the redevelopment authorities on the land use and disposition process. In the case where a base is either downsized or closed, the OEA will work with the redevelopment authorities on disposing properties. Generally speaking, before property can be offered for private use, it must first be offered for public or non-profit use.
Timeline of the BRAC Process:
| May 2005 | States begin the land use planning process by establishing local redevelopment authorities, even though the state BRAC review commissions may be challenging DOD’s recommendations. |
| May 13, 2005 | DOD releases BRAC recommendations. |
| May 13 – September 8, 2005 | BRAC Commission evaluates DOD recommendations and will hold public meetings. The state BRAC review commissions will lobby the commission during this time. |
| September 8 | BRAC Commission submits recommendations to the President. |
| September 23 | President must transmit to the Congress and the Commission approval or disapproval of recommendations. |
| October 20 | If the President disapproves, the BRAC Commission must submit revised recommendations by this date. |
| November 7 | President must approve or disapprove the revised recommendations. If disapproved, the process ends. |
| November 2005- January 2006 | OEA will begin working local redevelopment authorities on the land planning and disposition process. |
| April 15, 2006 | BRAC Commission disbands. |
For more information on the BRAC process you may visit the BRAC website at http://www.defenselink.mil/brac/, for more information on OEA, you may visit their website at: http://www.oea.gov or contact Tom Heinemann at theinemann@realtors.org, or (202) 383-1090.
