Hines Tapped for EUL

By Jay Friess
Editor

The Navy announced Wednesday that it has entered exclusive negotiations with Hines Interests, a private Houston real estate firm, to build office buildings at Naval Air Station Patuxent River.

Naval Facilities Engineering Command Washington selected Hines to be its partner in developing the Pax River Enhanced Use Lease program, a plan to lease 42 acres on seven sites at Pax River to a private developer.

NAVFAC would like to move 2,100 base employees out of temporary or substandard offices into the new development. The project was delayed for more than a year after local developers raised concerns about the development competing with private projects outside the base gate.

However, after the project received support from the county commissioners and the Navy contracting community, Congress allowed the project to proceed in June 2011.

“Personally, I’m still not in favor of this thing, but the Navy has a process they need to go through,” said Commissioner Todd Morgan (R), whose district includes Lexington Park, Maryland. Morgan said he does not know if Hines’ proposal includes using local building contractors or if local contractors bid on the project. “They didn’t tell us how many bidders there are.”

According to the Navy, Hines is partnering with a development team that includes AECOM, The Whiting-Turner Contracting Company of Baltimore and The PMC Group, L.L.C.

“Hines is proposing to develop a state-of-the-art office and office-related facilities on one or more sites selected by the Navy within the base perimeter,” the Navy’s announcement stated. “The Navy will ensure the necessary National Environmental Policy Act documentation is completed prior to the execution of a lease allowing site development.”

According to the Hines’ literature, the company has developed 251 million square feet at 785 properties across the globe and has 23 offices worldwide.

According to the Navy, the development of the project will involve a long-term government lease of the land and improvements, and Hines will plan, design, finance, construct and operate the new facilities. In addition, this project will provide the Navy with fair market consideration for the leasehold for the benefit of Pax River.

NAVFAC and Hines will spend the next several months crafting a lease agreement and construction plan for the Pax River EUL.

“It’s taken them quite a while to get to this point in time,” Morgan said.

For more information on the history of the EUL process, visit the Leader’s EUL Timeline.