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| 5/12/2010 5:27:00 PM | Email this article • Print this article | Consultants caution care with proposed Air Force transfer
By Debra Rawlings
Rantoul Press reporter
The proposed transfer of more than 600 acres on the former Chanute Air Force Base from the Air Force to the village of Rantoul has been characterized as a "very upside down deal" for the village.
"Remember, free is not always free," said Craig Seymour, president of RKG Associates Inc. of Dover, N.H.
When the base closed 17 years ago, the airport was to be redeveloped as an aviation maintenance hub for a commercial airline. When that plan fell through, the village fell back on marketing the base as a second industrial park. Millions of dollars have been invested in maintenance of buildings, roads and utilities with little to show for it in the way of revenue.
RKG's update of a business plan and property analysis of the proposed transfer concludes that it is likely to be more of the same and paints a bleak outlook on the future.
Seymour noted there is already a surplus of industrial and commercial property in the region, much of it newer and of better quality than base properties. Base properties come in second to the village's own industrial park because they are not as accessible to major roads and the infrastructure is old.
"Chanute buildings are only marginally competitive within the region," Seymour said.
The property to be transferred includes what Seymour called a hodgepodge of 42 parcels, 69 buildings and the electric, water, storm sewer and sanitary sewer utilities.
"Very few (of the buildings) are worth keeping in our minds, and the remainder need to be removed," Seymour said.
That won't be cheap. Preliminary cost estimates for razing the 64,000-square-foot steam plant, including $900,000 for asbestos abatement, total $1.5 million. Demolition of the 224,000 square foot engine test cells would total $1.6 million, including $150,000 for asbestos abatement.
The Air Force is not a likely source of funding, as personnel have indicated often that cleanup is limited to environmental issues.
The utilities are considered to have reached or to be beyond the end of useful life. The village is already responsible for their operation and maintenance to the tune of $5 million annually, or 31 percent of its budget, so the transfer would not have much impact on that line item.
Capital improvements and replacement are another story. Total depreciation replacement cost has been estimated at more than $13 million.
"I think that's a conservative figure," Seymour said, "but you don't know when it will have to be spent."
There are other costs associated with the transfer, including legal documentation of each parcel and monitoring of land use controls connected to the extent of environmental cleanup. Some parcels are due to be transferred to third parties, but Seymour pointed out that playing the role of the middle man could backfire if the subsequent transfer falls through.
The village board must decide how much more liability the village is willing to assume. There are options, Seymour said.
The village could request financial assistance from the government to help offset the costs, but Seymour said the Air Force has indicated it has no money and other government sources are uncertain.
The village could reject the transfer and let the Air Force deal with the property and operate the utilities.
"I'm not sure how realistic that is in terms of ramifications. They could put a fence around it if they want," Seymour said.
Or, the village could accept the transfer as is and hope for the best. The result would be a continued drain on taxpayers and more blight, he added.
The Air Force is under congressional pressure to complete the transfer in the next year, a point that was not lost on Jeff Donohoe, who contributed to the business plan and analysis.
"They want (the village) to take their problem," he said. "They want to get out as soon as they can. Remember, the seller only wants to sell the property. He isn't concerned about anything else but meeting the mandate to transfer the property."
drawling@rantoulpress.com
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Reader Comments
Posted: Tuesday, May 18, 2010
Article comment by:
Jay Carroll
It does sound like the city is getting the short end of the stick on this deal. If Air Force wants to transfer it to the city so badly, why doesn't the city negotiate to receive payment to cover some of the costs it will undoubtedly incur? It sounds like the city is in a good position for negotiation.
Posted: Thursday, May 13, 2010
Article comment by:
Lawrence Rix
The village should reject the fransfer. I am sorry but those old buildings are not worth keeping and we do not have the money to remove them.
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