Base housing privatization creates mountain of opportunity for Pikes

The Pikes Peak region stands to benefit from more than just getting $254 million in new military housing construction and nearly $350 million in ongoing investment at Peterson Air Force Base and Schriever Air Force Base during the next 50 years.

The windfall comes as a result of a Congressionally-approved military housing privatization agreement between Actus Lend Lease and the Air Force. The partnership has established Tierra Vista Communities, a regional project company, to handle all aspects of construction and property management for new and existing base housing.

The historic agreement comes at a good time.

Local business owners, weary of waiting for the promised swell of 5,000 to 10,000 new troops are eager for fuel to support the area's economic engine.

The majority of work on at Peterson and Schriever will be supervised by two subcontractors: the Winn Management Co., which specializes in military community property management, and general contractor Actus Design/Build.

Work at Schriever will begin in next spring and is expected to last until 2010. Greenfield construction at Peterson could begin before yearend, with demolition on the base's first round of older homes scheduled for spring. The entire project is expected to be finished by 2013.

The Tierra Vista Communities program will deliver 620 single- family and duplex residences at Peterson Air Force Base and 242 new homes on Schriever Air Force Base. The company also will provide property management services to residents renting existing homes.

Jim Mullen, former Colorado Springs city manager and the partnership's project director, said there's plenty of room for local companies to earn a piece of the privatization pie.

Much like running a small city, the housing project will require hundreds of skilled tradesmen and service providers.

In addition to construction-related companies, dozens of small service providers will be needed to handle property management issues, said Vicki Sharp, director of property management for Tierra Vista Communities.

"We'll need everything you typically need for multifamily property management," she said. "That means carpet installers, carpet cleaning, window and door suppliers, blinds companies, landscapers, appliance repair companies, electricians and plumbers. And we'll need two to three companies in each category for back up."

But before that happens, some education might be necessary.

Brian Binn, president of the Military Affairs Council at the Colorado Springs Chamber of Commerce said that many small companies don't realize that the Peterson and Schriever projects do not require registration as a certified government contractor.

"This is really a great opportunity for local business, because unlike traditional military contracts, Actus has set up a business- to-business model in Tierra Vista," he said. "Local business owners will deal directly with them rather than with the government. As a result, the whole process is more vendor-friendly."

Some already on the job

Embassy Lawn and Landscaping was working at Peterson prior to the kick-off of privatization in September, attending to lawns and common areas.

Jason Sheldon, contract manager for the landscaper, said his company had to reapply as a subcontractor when the privatization contract was announced.

"We'd done work for the military at Peterson since 1996," he said. "The new agreement with Tierra Vista actually calls for more work than what we'd been hired to do for the military. We've added lawn and landscaping for all 493 homes instead of just the general officers quarters. And we've added snow removal for all hard surfaces, not just the GOQ sidewalks and driveways."

The company's work force is now 25 percent larger year-round.

Murphy Constructors of Colorado Springs has been hired to remodel a former Base Exchange building, which will become a welcome center and headquarters for the TVC leasing and property management office.

"It's not a big job for us, but we haven't done a lot of military work in the past," said Kevin Murphy. "Hopefully it's a good way to get our foot in the door."

Copyright 2007 Dolan Media Newswires
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