JOINT BASE SANANTONIO-LACKLAND, Texas — The Air Force and Blue & Silver Development Partners, LLC, signed a lease Nov. 5, 2019 for mixed-use development on the northeastern corner of the U. S. Air Force Academy in Colorado Springs, Colo.
Enhanced Use Leases, or EULs, are long-term agreements between the Air Force and public or private entities to lease non-excess Air Force property in exchange for cash and/or in-kind consideration. These leases are managed through the Air Force Civil Engineer Center in San Antonio, Texas.
The EUL with the Air Force enables Blue & Silver to develop and manage a mixed-use development on approximately 52 acres of underutilized, non-excess property on the perimeter of the Academy outside the North Gate and on the north and south sides of North Gate Boulevard.
Once constructed, the complex will be comprised of a 4-star hotel, office space, retail/commercial space and an entertainment venue. This is a complex deal and is contingent upon Blue & Silver delivering required documents and obtaining adequate financing within a certain timeframe.
In exchange for this long-term lease, the base will receive as in-kind consideration a modern visitor center positioned for increased visibility from I-25.
“EULs are an effective way for installations to optimize the value of underutilized property,” said Lisa Schmidt, AFCEC’s EUL Branch Chief.
The AFCEC Installations Directorate acquires, manages and disposes of Air Force-controlled real property worldwide. As of the second quarter of 2019, the Air Force has received $103.7 million in rent consideration from value-based transactions executed and managed by the Installations Directorate. Based on net present value, the Air Force estimates these deals will garner nearly $200 million throughout the life of the projects.