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An Independent Evaluation of the Engineer Proving Ground.

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Final rept.,

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The Army Program Manager for Total Development in the National Capital Region has proposed a public-private venture to develop the 805-acre Engineering Proving Ground EPG site near Fort Belvoir in Fairfax, VA. The EPG joint venture concept is that the Army will provide the land, and the developer will build office space for the Army, construct the necessary infrastructure, and build other space for private use. Revenues generated by the sale or lease of the private-sector space that the developer builds would be expected to pay for the cost of constructing the required infrastructure and the Army space. That arrangement would allow the Army to obtain rent free space in which it could consolidate operations now located in leased space throughout the National Capital Region, thus reducing its long-term occupancy costs. The EPG development plan as conceived in 1990 was rational and feasible given what were, at that time, several reasonable assumptions the slowdown in the office building boom in Falrfax County was seen as a short-term condition residual rent payments were contemplated as the mechanism to ensure that developers could afford to provide the Army space at below-market rates and it was expected that the Army could guarantee a large Department of Defense anchor tenant in Phase 1. However, since 1990, market and other conditions have changed considerably. As a final check, the Army Corps of Engineers asked the Logistics Management Institute to assess the econoinic feasibility of the plan given current market conditions.

Subject Categories:

  • Civil Engineering
  • Structural Engineering and Building Technology

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