leasing for Reuse

* What is DoD’s philosophy and goal for BRAC leasing? Section 5.1

> what types of leases are available for reuse? Section 5.1

> DO the Mi/itafy Depaflments have a common leasing approach? Section 5.1

> What are the guidelines for interim /eases? Section 5.2

> who is e/igib/e to apply for an interim /ease? Section 5.2

- HOW is rental consideration type and amount determined? Section 5.2

> Are there specific guidelines for subleases? Section 5.2

> what is the Early Transfer Authority? Section 5.2

% How does an LRA apply for a lease ? Section 5.3

5.1 lNTR0Dut2T10N

5.1.1 Philosophy and goal

Early leasing of property at a BRAC installation can spur rapid economic

recovery and job creation and can reduce the Military Department’s caretaker

costs before the ultimate disposal of installation property. Therefore, leasing is

one of the most important tools available to the Military Department and LR4 f or

reaching common goals.

To help the LR4 realize the maximum benefit from leasing BRAC property, the

Military Departments are committed to working with the LRA by

●

●

●

●

●

Helping the LR4 identify early leasing opportunities.

Hosting pre-leasing conferences to explain leasing process details, including

what is required of both the Lessee and the Military Department.

Providing timely responses to leasing requests.

Processing lease applications within a reasonable time period.

Providing recommendations for a leasing strategy that will best suit the LRA’s

plans and needs.

What is DoD’s

philosophy and goal

for leasing BRAC

property?

What commitments

are the Militiry

Departments willing

to make?

December 1997 5-I
Leasing for Reuse

What information

can be found in this

Section of the

Manual? II

What is an ‘interim

lease?” II

5.1.2 Summary

This Chapter, along with the information found in Appendix D of this Manual,

consolidates Military Department policies and practices on leasing and is

intended to provide a summa~ of and guidance for the BRAC leasing process. It

is not intended to replace specific lease provisions, nor to create an enforceable

right in any party. Laws and regulations that govern leasing are summarized in

Appendix A (Laws and Regulations Affecting Base Reuse Implementation). Each

installation or base will have site-specific real estate, environmental, and natural

and cultural resources compliance requirements. The Military Department will

inform prospective Lessees of all requirements as early in the leasing process as

practicable.

5.1.3 Definition of lease types

INTERIM LEASE

●

●

●

●

●

●

●

Generally, an interim lease is a short-term lease that makes no commitment to

the Lessee for future use or conveyance of title to the property to the Lessee

upon its disposal. An interim iease is usuaIIy entered into before final

disposal decisions are made by the Secretary of the Military Department.

In the past, the term of an interim lease could only last for up to five years,

including options to renew. Recently, Section 2833 of the NDAA 96 granted

the Department the authority to enter into interim leases with terms that

extend beyond the expected completion date for the disposal Environmental

Lmpact Statement (EIS). This is true even if final property disposal is

consequently delayed because the Lessee’s use of the property differs from

that outlined in the NEPA Record of Decision (ROD). This authority,

however, is ordy available if the proposed lease can be supported by a

Categorical Exclusion (CATEX) or an EA/FONSI. Additional information

about the Department’s policies regarding Section 2833 can be found in

Appendix D.

At the completion of the NEPA process, the interim lease can convert into a

long-term lease or deed transfer. Separate NEPA analyses-as well as air

pollution, wetlands, floodplains, historic structures, and other natural and

cultural resources determinations and consultations-may be required prior

to a decision to lease.

h interim lease must be preceded by an EBS and by a FOSL. The restrictions

and lease conditions in the FOSL must be incorporated into the lease.

Interim leases will generally terminate at the time that final reuse and

disposal decisions are implemented.

Interim leases may be for consideration at or below the estimated fair market

rental value for the leasehold.

Capital improvements may be made by the Lessee except where, in the

judgment of the Military Dep~ent, they will trigger a requirement for an

EIS under NEPA.

S-2 December 1997
LEASE IN FURTHERANCE OF CONVEYANCE

● A lease entered into after the Secretary of the Military Department has

complied with NEPA and has issued a final disposal decision for the

property. A lease in furtherance of conveyance provides immediate

possession of the property to the entity identified in the disposal decision as

the recipient of the property.

● Leases in furtherance of conveyance are authorized by CERCLA. Section 2834

of the ND&4 96 amended CERCLA to clarify that the deed covenant

requirements do not appIy to leases at DoD installations regardless of whether

the Lessee has agreed to purchase the property or whether the duration of the

lease is longer than 55 years. See Appendix D for more information about

Section 2834.

. Such a lease maybe long-term and maybe for all or for a portion of the

property identified for conveyance to the Lessee in the disposal decision.

. If ongoing environmental remediation is the only reason property is not

being considered for deed transfer, use of the Early Transfer Authority

discussed in Section 5.2.3 should be considered.

● A lease in furtherance of conveyance must be preceded by an EBS and a

FOSL. The restrictions and lease conditions in the FOSL must be incorporated

into the lease.

● A lease in furtherance of conveyance will terminate when a deed lmnsfer can

be accomplished.

MASTER LEASE

● A master lease maybe either an interim lease or a lease in furtherance of

conveyance. It is a lease that serves as the principal lease instrument for the

entire base or for major portions of it.

. Individual parcels and properties maybe sublet under the terms of a master

lease. Environmental requirements contained in the master lease must be

carried through to subleases.

● Master leases and each subsequent sublease must comply with appropriate

EBS, FOSL, NEPA, and other applicable natural and cultural resources

determinations and consultation requirements.

5.1.4 General practice for leasing real property at BRAC installations

To facilitate timely review of lease applications and to ensure lease documents

are completed as quickly as possible, the Military Departments shall delegate

leasing authority from headquarters to the field level. Figure 5-1 shows the

general practice that the Military Departments follow for processing applications

and for entering into and closing out leases. Numerous factors influence how

long it will take to review and approve a lease including how far the installation

has progressed in the closure process and in the preparation of environmental

documentation required for closure. As a result, the time it takes to complete the

II What is a “lease in

futtherence of

conveyance?”

II What is a “master

lease?”

II Does each Military

Depaflment follow a

similar leasing

process?

December 1997 5-3
Leasina for Reuse

process will vary from situation to situation. The leasing process can be

summarized as follows:

PROCESS APPUCATION

● A party (generally the L&4) expresses an interest in leasing property. The

Military Department meets with the Lessee to explain the application process

and information requirements. Regulatory requirements, the timelines for

processing a lease, examples of allowable “ofisets~ and the cost of

government-furnished utilities should be part of the background provided at

pre-leasing conferences. The BRAC Cleanup Team and BTC should

participate in these meetings to ensure that environmental cleanup is closely

coordinated with leasing needs and plans.

● If the facility is potentially available, the prospective Lessee completes and

submits an application (see Appendix D for model application format).

● The Military Department reviews the application in a timely fashion (see

Appendix D for model review criteria).

● The Military Department either accepts the application for further processing,

rejects the application, or requests that it be revised.

PREPARE FOSL (AND NEPA/OTHER DOCUMENTATION)

● The Military Department consults with EPA and other regulatory Agencies

and determines whether environmental conditions on the property trigger

environmental notice requirements or present unacceptable risks to the

prospective Lessee, or whether leasing will impact ongoing environmental

cleanup efforts. This is accomplished by preparing, if necessary, and

reviewing an EBS and issuing a FOSL.

. The Military Department determines whether environmental impacts, or

impacts on any protected natural and cultural resources, will result from the

proposed leasing activity. This is accomplished by completing appropriate

NEPA analyses, and by making the other environmental determinations and

consultations necessary.

PREPARE LEASE

● The Military Department and Lessee negotiate the consideration for the lease

and draft lease terms and conditions, based upon standard model lease

provisions (see Appendix D for model lease provisions). This may occur

concurrently with the preparation of appropriate environmental and natural

and cultural resources documentation.

. The Military Department makes the decision on whether to approve the lease

and any reuse restrictions the lease will contain.

. The Military Department and Lessee agree on the environmental and physical

condition of the property prior to lease execution.

5-4 December 1997
DoD Base Reuse Implementation Manual

I

11-

1

Figure 5-1. General Practice for Leasing Real Property

at BRAC Instzdlations

December 1997 5-5
Leasinca for Reuse

What guidelines

apply to ail leases? II

Are there guidelines

for interim leases?

Who will the Military

Depatiment lease

to?

EXECUTE AND ADMINISTER LEASE

● The lease is signed and required notices are issued.

● The Lessee submits proposed subleases to the Military Department for their

review and approval if the terms and conditions of the proposed sublease do

not comply with or are not included in an approved master lease. In

accordance with 10 U.S.C. 2692, subleases that involve the use of hazardous

materials will require Military Department approval.

. The environmental and physical conditions of the leasehold are reevaluated at

lease termination.

5.2 L EASING G UIDANC E

Leasing from a Military Department is different from leasing in the private

sector, because Federal laws and regulations define leasing requirements that

must be met by the Military Department and the Lessee. Summaries of laws and

regulations affecting base reuse implementation can be found in Appendix A of

this Manual. This Chapter of the Manual describes processes designed to both

simplify leasing and to more closely follow private-sector practice, within the

framework of prescribed Federal laws and regulations.

5.2.1 General guidance

Following the approval of closure or realignment, property maybe made

available for leasing in the interest of speedy economic redevelopment or other

acceptable purposes, if it can be done

● Without interfering with environmental cleanup activities.

. In compliance with applicable real estate, homeless assistance, environmental

and other requirements.

● Without interfering with the remaining Military Departnumt mission,

including disposal-related activities.

5.2.2 Interim leasing guidance

The following guidance applies to interim leasing activities:

. The Military Department will generally lease property for interim use to the

LILA. If there is no LRA, or if it is not authorized to lease property, the

Military Department may lease the property to either

— The local government in whose jurisdiction the property is located, or

— An appropriate local or State redevelopment agency, as designated by the

Chief Executive Officer of the State in which the installation is located.

. Requests to lease property directly to other eligible entities will be approved

only in exceptional circumstances. Ongoing (e.g., pre-closure approval)

leasing programs, such as agricultural and grazing, youth programs,

community outreach, etc., may be continued.

5-6 December 1997
DoD Base Reuse Implementation Manual

● The Militarv Departments should use model lease Provisions that contain . . .

standard terms and conditions (see Table 5-1 and Appendix D). Many terms

and conditions of Federal leases are required by Federal law, and by general

landlord-tenant “common law” that has evolved over many years. These

provisions, including environmmtal provisions required by Federal law and

policy, are essentially non-negotiable. Additional terms and conditions may

be added to reflect other site-specific operational, environmental, and mtural

and cultural resources requirements.

Use of the premises Term of lease

Termination Consideration

Notice Authorized representatives

Supervision of the premises Applicable rules and regulations

Condition of the premises Transfers, assignments, subleasing

Utilities Protection of the property

Insurance Right to enter

Indemnity/hold harmless clause Restoration

Non-discrimination Subject to easements

Rmtal adjustment Waste

Disputes clause Environmental protection

Environmental baseline survey Taxes

Covenant against contingent fees Officials not to benefit

Accounts and records Modification/agreement

No commihnents for future use Other provisions, as appropriate

●

●

Table 5-1. List of Provisions Common to BRAC interim Leases

(See Appendix D for a detailed description of provisions)

Installation commanders will be consulted regarding the availability of the

site for the proposed use and regarding the compatibility of the proposed

leasing activity with the ongoing mission. Speaal lease provisions maybe

required to prevent interference with base operations or closure or with

environmental cleanup activities.

The following factors are among those that will be considered in determining

the lease term:

—

—

—

—

Date of operational closure.

Proposed use of the property.

Compatibility with the base operations before closure.

Compatibility with the LIU’S redevelopment plan.

II

II

What provisions can

be found in an

interim lease?

How k the term of

an interim lease

determined?

December 1997 5-7
Leasing for Reuse

— Date of anticipated final disposal deasions and actions by the Secretary of

the Military Department.

— Environmental condition of the property.

How are interim II . Historically, the Military Departments have included a termination-at-will

leases terminated? clause in lease documents to be used if the property was ever found to be

needed for military purposes. This practice is no longer required. Generally,

the Military Department should only reserve the right to terminate and

remove the tenant before the end of the stated term

— For non-compliance with the provisions of the lease;

— In the event of a national emergency as declared by the President or the

Congress of the United States.

. The Lessee will be provided with notice that termination is necessary and

reasonable time to vacate the premises, which normally will be no less than 30

days.

What is the rent for

an interim {ease?

Are there guidelines

for how it is

determined?

● Consideration for the lease maybe in cash or in kind. Services relating to the

protection and repair, improvement, restoration and maintenance of the

installation may constitute all or part of such consideration.

. Rent maybe for fair market value. Rent may also be for less than fair market

value when:

— A public interest will be served as a result of the lease; and

— The fair market value of the lease is unobtainable, or not compatible with such

public bem$t.

● Examples of criteria that will be used by the Military Department to

determine when a public interest will be served as a result of the lease areas

follows:

— The lease will provide public benefits consistent with those that would be

derived from the property’s transfer under a public benefit conveyance

(e.g., for historic monument, education, public health, public park or

recreation, non-Federal correctional facilities, port facility, or other

sponsored or approved purposes).

— Job creation or job retention potential of the lease, including the number

and quality of the jobs that will be created or retained.

— The lease will foster needed economic development in the community.

— The lease will provide economic benefit to the Federal Government (e.g.,

release from protection and maintenance costs).

— The lease will foster reuse and redevelopment of the property.

5-8 December 1997
DoD Base Reuse Implementation Manual

— The lease will protect the property from degradation or deterioration.

— The lease will help to maintain the integrity of the property

● Interim leasing promotes early reuse and helps local communities create jobs.

To this end, the Military Departments should strive to offer Lessees attractive

rental rates. If deemed appropriate and consistent with the goals of early

reuse and job creation, the rental rate may include a charge for the pro rata

costs of common support services provided by the Military Department that

benefit the Lessee.

● Jnterirn leases will contain provisions reinforcing that such leases do not

convey any right nor should they create any expectation on the part of the

interim user, tenants, or subtenants to acquire the leased property.

● The Lessee may make improvements to the leased property, so long as doing

so will not foreclose later consideration of any reasonable disposal &d reuse II alternative by the Military Department. Absent compelling circumstances,

the Military Department will not permit improvements that will significantly

affect the quality of the human environment (and therefore require

preparation of a separate EIS). Generally, all leases will include a clause that

may require any improvements made to the property by the Lessee to be

removed and the property restored at the end of the lease term, or, if the

Military Department decides to accept the improvements, they will become

the property of the United States without compensation to the Lessee.

Improvements made by the Lessee that the Military Deparhnent decides to

accept should not be included in any future appraisals of the property when

the property will be conveyed to the entity who made the improvements.

This would not apply, however, to tenant improvements made in lieu of

rental payments.

● The Military Departments may also allow some building modification,

demolition, and new construction under an interim lease, if such activities can

be supported by a CATEX or an EA/FONSI and do not preclude the selection

of any reasonable final disposal alternative.

● Existing provisions of Federal law prohibit discrimination on the basis of race,

color, national origin, handicap, or age. In addition, property used for public

accommodations must not discriminate on the basis of sex and religion.

● Non-exclusive use maybe granted without the use of a lease, in accordance

with standard Military Department procedures. Licenses, permits, or rightsof-entry mav be used as a substitute for a lease in these limited instances. If II

Can an interim lease

be used as a first

step toward propeHy

ownership?

Can a Lessee make

property

im~rovernents ?

Are leases required

for all temporary

uses of BRAC

the pr~per& is used for conferring non-possessory access for single, specified II ‘nsta’’ations?

p~oses; e~g., to conduct an open house or air show; non-intrusive surveys of

the premises; setting up potential Lessee equipment (but not beginning

beneficial operations) pending lease finalization, a formal lease may not be

needed.

December 1997 5-9
Leasing for Reuse

k installation has been identified for closure. The EIS/ROD will not be completed for

another 18 months. The EIS will consider alternatives for reuse based on heavy,

medium, and light industrial reuse scenarios. A base-wide EBS has been completed.

The Early Transfer Authority will not be used and it is antiapated that environmental

remediation activities will not be completed (so as to allow the CERCLA deed

covenant) three years following completion of the disposal ROD.

●

●

●

Agricultural and grazing leases have been issued over a portion of the installation

for many years. No remedial activity is identified for this area. This program may

be continued under an interim lease.

The installation has several warehouses. The LIL4 has two prospective Sublessees,

one requesting a 12-month sublease to store seasonal merchandise, the other

requesting a thre+year lease to fulfill a short-term order to assemble computers.

The only alterations required are the installation of a new lock, a fire sprinkler, and

an alarm system to meet a local building code and insurance requirements. The

merchandiser Sublessee will retool an internal box-delivery system to accommodate

his or her merchandise. The Sublessee also wishes to do some cosmetic repairs and

painting. The manufacturer plans on similar renovations, but will also install

removable assembly equipment. Neither proposal would commit the proper~ to

any future use, the alterations do not change the property in a significant way, the

upgrades are required to comply with local codes, retooling of any equipment is for

the Sublessee’s benefit, and painting and other cosmetic repairs have no significant

impact on the facility. Interim leases could be approved upon completion of the

EBS/FOSL processes.

The LRA requests a lease for the entire installation. The proposal is to construct

additional f&ilities, demolish several older buildings, dredg-e the harbor, construct

additional railroad spurs, and make renovations to existing facilities to

accommodate an industrial Sublessee. The LR4 requests a 25-year term, beginning

in one month. The Military Department can only agree to a term that does not

extend beyond the expected completion date of the disposal EIS because the

proposed actions could, as a practical matter, irreversibly commit the Military

Department to a particular disposal decision.

SUBLEASING GUIDANCE

What are the

II

● The Military Depa.rhnent will generally conduct all leasing-related activities

guidelines for with the Lessee, not the Sublessee(s).

subleases ?

. The rental value of subleases will be negotiated between the Lessee and

Sublessee. The sublease rental maybe for a different amount or expressed

differently thin that of the lease between the Military Department and the

Lessee (“prime lease”).

● Lessees are authorized to sublease property included in a master lease

without obtaining Military Department approval of the sublease, provided

the sublease inco@orates-the ~errns of the master lease (except for rental terms

which may be different in amount or expressed differently) and does not

include any provisions that are inconsistent with the master lease. A copy of

the sublease must be provided to the Military Department. In accordance

5-10 December 1997
DoD Base Reuse lm~lementation Manual

●

●

●

●

●

with 10 U.S.C. 2692, if the sublease involves the use of hazardous materials,

Military Department approval of the sublease is required.

Rents from subleases will be applied by the Lessee to the protection,

maintenance, repairs, improvements, and costs related to the installation

including LRA marketing and management costs (e.g., LRA staff salaries and

expenses).

The term of a sublease cannot be longer than that of the prime lease.

Subleases will contain provisions reinforcing that such leases do not convey

any right or expectation on the part of the interim user or subtenants to

acquire the leased property from the Military Department.

The provisions of a sublease must be consistent with the provisions of the

prime lease and must contain all environmental provisions included in the

prime lease.

In case of a conflict between the prime lease and any sublease, the prime lease

will control.

5.2.3 Guidance for leasing in furtherance of conveyance

The following guidance applies to leasing in furtherance of conveyance activities.

●

●

After the Secretary of the Military Department issues a final disposal decision,

applications for conveyance of the property from the LRA or other qualified

party and the terms of the conveyance can be negotiated and approved.

However, in the past, immediate conveyance of the property following

agreement on the terms was not possible, usually because environmental

remedial action obligations under CERCLA $ 120(h) had not been fulfilled

(see explanation below).

However, property can now be deeded before all remedial actions have been

fulfilled. Section 334 of the NDAA 97 amended CERCLA to allow

contaminated Federal property to be transferred to private parties before

remedial action has been taken. Commonly referred to as the “Early Transfer

Authority,” the deferral of the requirement to comply with CERCL4 ~ 120(h)

can be granted by the Administrator of EPA with the concurrence of the

Governor of the State (for National Priorities List (NPL) sites) or the Governor

of the State alone (non-NPL sites). In doing so, the Administrator of EPA or

the Governor must first determine that the property is suitable for transfer

and that the deed or other agreement proposing to govern the transfer

contains assurances that all necessary response actions will be undertaken.

Initial guidance on the authority issued by the Office of the Deputy Under

Secretary of Defense (Environmental Security) (ODUSD(ES)), states that it

may be used by the Military Deparbnents on a case-by-case basis after notice

to and consultation with the ODUSD(ES). Pending the issuance of detailed

guidance, it is anticipated that a process similar to the existing FOST process

will be used in determining suitability and obtaining the Governor’s or EPA’s

approval to defer the $ 120(h) requirements.

II Are there any

guidelines for “long

term” leases?

II What is the Early

Transfer Authority?

December 1997 5-11
Leasing for Reuse

CERCLA $120 establishes a framework for responding to hazardous substances,

pollutants, or contaminants, and identifies specific requirements relating to deed

transfers of any Federal property, which must be satisfied before a deed can be

executed.

●

●

●

On parcels of real property where hazardous substances, pollutants, or

contaminants were stored for one year or more, released or disposed of,

CERCLA ~ lo requires the Military Department to provide a

covenant in all deeds stating that all remedial action necessary to protect human

health and the environment with respect to any such &ardous] substances

remaining on the property has been taken.

The Military Department can satisfy the requirement that “all remedial action,” as

described in CERCLA ~ lo, “has been taken” prior to deed transfer if

“the construction and installation of an approved remedial design has been

completed, and the remedy has been demonstrated to the Administrator [of EPA] to

be operating properly and successfully. The carrying out of long-term pumping

and treating, or operation and maintenance, after the remedy has been

demonstrated to the .Adrninistrator to be operating properly and successfully does

not preclude the transfer of the property.” [42 U.S.C. $ 9620(h)(3)]

Altemativelv,

,.

 in circumstances where a remedy has been accomplished, but no

ongoing treatment or operation and maintenance is required; e.g., “clean closure” or

excavation of soil with off-site treatment, all remedial action means that all action

required to meet applicable State or Federal regulatory standards, including, as

required, State or Federal regulatory approval, has been taken.

●

●

●

●

●

Prior to the condition for a deed transfer being met (including an Early

Transfer), immediate possession of all or portions of the installation maybe

granted to the ultimate transferee through a lease. This lease will terminate as

soon as the deed conveying the property is accomplished. The reuse needs of

the LRA or other recipients will be considered in determining the term of the

lease.

This document is a lease and is not a conveyance of title. It is an agreement

that grants an exclusive possessor interest in real property for a period of

time for a specified consideration.

The lease must be preceded by an EBS and by a FOSL.

If the proposed use or activity is outside the scope of existing NEPA reviews

or the Military Department disposal decision, additional NEPA analysis may

be required.

The lease should contain provisions similar to the model interim lease

provisions (shown in Appendix D) and all of the DoD standard

environmental provisions (included in Appendix D in their entirety). The

lease must include a right of termination for the Government for breach of the

S-I 2 December 1997
DoD Base Reuse Imdementation Manual

●

●

●

material provisions of the lease and a right to terminate when the property is

ready to be conveyed. In all cases, the environmental clauses are considered

material provisions of the lease.

The lease should also contain express provisions or conditions restricting the

use of the property; e.g., the proposed use must be compatible with the

disposal decision; major construction will require Government approval; a

change in use must be approved by the Government. The Military

Department, as landlord, must oversee the Federal interest in the property.

Because of the unique circumstances of each proposed conveyance, a lease in

furtherance of conveyance will be tailored to the specific situation. Additional

terms may be added to reflect site-specific operational, environmental, natural

and cultural resources, and other requirements. Attention should be given to

impacts on wetlands and sensitive habitats.

A lease in furtherance of conveyance should specify

— The price, terms, and conditions applicable under a negotiated sale; or

— The terms and conditions of an EDC; if an EDC is anticipated, then the

lease should be tied to an application that has been reviewed and

approved according to the procedures in Chapter 7 of this Manual; or

— The terms and conditions for disposal under alternate authorities.

5.2.4 EnvironmentaUrelated guidance

The Military Departments are required to complete a series of surveys and

reports prior to leasing or disposing of property. These surveys and reports Are there

address environmental planning (i.e., NEPA), cleanup (i.e., CERCLA) and environmental

preservation (i.e., wetlands, floodplains, and historic resources). Generally, the requirements

schedule for completing this work is based on the projected property disposal associated with

date. However, because leasing requires that many of the same environmental leasing?

issues be addressed, the Milit@ D~partments are ‘encouraged to accelerate the

schedule for these activities to support the cormmm.ity’s efforts for economic

development through the use of leasing. Below is a summary of the types of

surveys and reports needed to support leasing:

●

●

●

NEPA requirements for environmental impact analysis, in accordance with

Council on Environmental Quality regulations, must be met for all leases (e.g.,

by categorical exclusion, EA/FONSI, or EIS/ROD).

Appropriate natural and cultural resources determinations and consultations

(e.g., Secretarial findings regarding wetlands [E.O. 11990] and floodplains

[E.O. 11988], Section 106 consultation under the National Historic

Preservation Act), and air quality conformity determinations under the Clean

Air Act will be completed when required. Appropriate use restrictions, to the

extent required, will be included in the lease.

Consistent with current DoD policy and procedures contained in the Deputy

Secretary of Defense memorandum entitled, “Fast Track Cleanup at Closing

December 1997 5-13
Leasing for Reuse

What is the

procedure for

applying for an

Interim Lease? II

Installations,” dated May 18,1996, or most recent version (see Appendix F),

an EBS and FOSL are required prior to executing a lease. Consistent with this

policy, environmental regulators will be notified at the inception of the EBS

and the FOSL, and provided witi copies of workable draft documents as they

are available and with the opportunity to review and comment. Regulatory

comments received during the development of these documents will be

reviewed and incorporated as appropriate. Any unresolved comments will

be included as attachments to the EBS report or the FOSL.

● Restrictions and conditions identified in the EBS or FOSL shall be

incorporated into leases.

. A report documenting the environmental conditions identified in the EBS will

be prepared and signed by both parties. This report wdl acknowledge all

leasehold conditions identified in the EBS report, as well as any other

environmental conditions that may not be specifically identified in the EBS.

● At the conclusion of the lease period, a similar report will be jointly prepared

and signed by the Lessee and the Military Department.

. The Military Department, as required by CERCIA ~ 120(h)(5), shall notify the

State prior to entering into any lease that will encumber the property beyond

the date of termination of DoD’s operations. Content of the notification is

specified in the Fast Track Cleanup Policy. For NPL sites, EPA is also to be

notified.

● If applicable, an envkonmental justice analysis will be performed to

determine whether the lease will disproportionately impact minority or lowincome populations in accordance with E.O. 12898.

5.3 APPLYING FOR AN INTERIM LEASE

This subsection describes the process for expressing interest and applying for an

interim lease. Prospective Lessees of BRAC installation real property should first

review the model information included in this Manual as Appendix D.

5.3.1 Expression of interest

h expression of interest in an interim lease should be in writing and provided to

the Military Department. This expression of interest maybe submitted to the

Military Department (installation commander and the Military Department’s real

estate division, or other designated Military Department representative involved

in closing the base) after the approval of closure or realignment.

Generally, the Military Departments will accept expressions of interest only from

the LR4. Any prospective Lessee should direct an expression of interest,

preferably in writing, to the LRA. The LRA will provide notice of such

expressions of interest to the Military Department. If an interest is expressed to

the Military Department, that interest shall be forwarded to the LRA.

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DoD Base Reuse Implementation Manual

5.3.2 Initial meetinglapplication package

When the Military Department (or installation) receives an expression of interest,

it will first seek the installation commander’s concurrence that the facility is

available and that the interim use will be compatible with ongoing missions.

The Military Department should also request a meeting with the prospective

Lessee, especially prior to the first lease at the BRAC installation. The BRAC

Cleanup Team and BTC should participate in these meetings to ensure that

environmental cleanup is closely coordinated with leasing needs and plans. The

purpose of this meetig is to:

●

●

●

Describe the leasing process to the prospective Lessee, including the

application procedure, application and processing timetables, and any other

pertinent information.

Discuss regulatory requirements, the timelines for processing a lease,

examples of allowable “offsets: and the cost of Government-furnished

utilities.

Informally examine the scope of the proposed interim use to determine which

environmental and realty issues must be addressed.

A model Interim Lease Application Package can be found in Appendix D of this

Manual. An accurate and complete application package must be submitted by

the prospective Lessee. The application package will be reviewed by the Military

Department, using the model internal review criteria also found in Appendix D

of this Manual. The internal review process may result in a request from the

Military Department to the prospective Lessee for additional or more accurate

information. The prospective Lessee will be notified that the application has

been accepted for further processing and of the anticipated schedule for lease

approval and execution.

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