AF, North Dakota community celebrate landmark venture

  • Published
  • By Breanne Smith
  • AFCEC Public Affairs
JOINT BASE SAN ANTONIO-LACKLAND, Texas --  Military and community leaders gathered together at Grand Forks Air Force Base, North Dakota, Feb. 18 to launch the Grand Sky Business Park, a long-term business partnership that is expected to generate revenue for both the local Air Force base and the regional economy.

The business park is the result of an enhanced use lease, or EUL, agreement between the Air Force and Grand Forks County to develop 217 acres of non-excess property at the base for unmanned aerial system, or UAS, testing, training and research.

EULs are long-term agreements between the Air Force and public entities or private developers to lease non-excess Air Force property in exchange for cash or in-kind consideration. The EUL program is one of several value-based real estate transactions managed through the Air Force Civil Engineer Center. To date, AFCEC has closed 13 projects with considerations worth more than $300 million.

The Grand Sky EUL required diligent work on the part of members of the local and Air Force communities, said Kathleen Ferguson, principal deputy assistant secretary of the Air Force for Installations, Environment and Energy.

"The Grand Forks Enhanced Use Lease project exemplifies the ingenuity and creativity that's harnessed when we combine efforts with our community partners to find mutually beneficial solutions for common asset optimization challenges," Ferguson said.

For the base, the 50-year lease could earn more than $40 million as an alternate revenue stream. For the state, the business park is expected to create more than 3,000 local jobs and enable the county to increase economic diversity and broaden the tax base. The project also allows North Dakota's Department of Commerce to capitalize on its Federal Administration Agency selection as one of six approved applicants to operate UAS test sites. 

With more than $20 million invested in the state's UAS industry, North Dakota Governor Jack Dalrymple said the ceremony represents an important milestone for the state.

As part of the arrangement, Grand Forks County is subleasing the property to the Grand Sky Development Company for commercial development. In turn, the Air Force will use the additional revenue stream to update facilities, sustain restoration projects and improve the quality of life for Airmen on GFAFB.

Leveraging available assets into cash flow for projects is critical in the modern Air Force said Col. Paul Bauman, 319th Air Base Wing commander.

"Every dollar counts and every resource is valuable in today's fiscal environment," Bauman said. "Not only is this a tremendous win for the base, but it's a victory for the entire community. Grand Forks is more than just our neighbors -- they're our partners."

"We're honored to have such a positive relationship with our community; this EUL is a prime example of how well we're able to come together for a mutual benefit," Bauman said.