Air Force officials are negotiating a final lease agreement for a 30-acre parcel at Joint Base Charleston, S.C., with Charleston Area 2000 LLC, the Air Force Civil Engineer Center (AFCEC) announced this week.
The property would be leased through the enhanced use lease (EUL) program. An opportunity assessment performed by AFCEC in January 2014 identified aviation-related, light-industrial development as the property’s highest potential value and use, according to Dave Funk, EUL program chief.
“We’ve got a valuable piece of property that is currently underutilized,” Funk said. “We’ve determined that there’s no mission impact in allowing a developer to come in and put the parcel of land to commercial use; it’s a good opportunity for industry and it generates value for the installation,” he said.
The final lease document will be signed once lease term negotiations and environmental requirements are complete, according to AFCEC.
EULs are long-term agreements with public entities or developers to lease non-excess property in exchange for cash or in-kind consideration. EULs cover a broad range of projects, such as renewable and conventional energy development, and commercial real estate projects. To date, AFCEC has closed over $302 million in value-based leases.