It is with great pleasure that the Algiers Development District and NOFA announce breaking ground for Federal City! The Federal City Groundbreaking Ceremony will be held at the Naval Support Activity, New Orleans, West Bank on Tuesday, 30 September at 11:00 AM.
Federal City will be "a critical investment that will help retain an estimated 1,660 jobs in the New Orleans area and add roughly 300 positions for a total of 1,960 jobs, in addition to spurring indirect economic development opportunities and investments throughout the region."
- Governor Jindal, August 14, 2008
"This is a great day for Louisiana and especially New Orleans as this is the largest economic development project in the entire state."
- ADD Chairman and Algiers State Representative Jeff Arnold
New Orleans Federal Alliance announced October 17, 2007 that HRI/ECC, LLC has been selected as the Master Developer for the Federal City project. HRI/ECC merges the capabilities and experience of a premier New Orleans’ developer, HRI, and ECC’s local reputation for Hurricane Katrina recovery work and international Federal program management experience. This partnership creates a unique synergy, which when teamed with NOFA’s goals and vision will ensure a successful development effort.
Together, NOFA and HRI/ECC will create a distinguished mixed-use development for federal, non-federal and commercial tenants. Additionally, the vision for Federal City strongly incorporates a vibrant community atmosphere through intelligent development planning, new business, commercial investment and sustainable job creation for the Algiers area.
Federal City offers an approach that could make it a National Model for the future configuration and operation of small to mid-sized DOD installations. The state of Louisiana has expressed a strong commitment to provide some of the capital funding required to construct new facilities at Federal City, and the Gulf Opportunity Zone Act of 2005 provides tax incentives for developments in the region. It is anticipated that DOD and civilian federal agencies, as well as contractors and suppliers who support them, will be housed at Federal City and all will share Federal City’s amenities and will gain advantage of the force protection features that will be provided. Federal City is intended to be a more cost-effective and sustainable facility that offers tenants outstanding quality of life and provides vital economic development and job creation opportunities for the New Orleans community. Federal City will create energizing synergies with additional anticipated private sector development while incorporating the latest in sustainable design, great visual aesthetics, energy efficiency, and design for enhanced hurricane and flood protection. Federal City also provides a means for community recovery and progress in New Orleans and throughout the Gulf Coast.
Federal City is envisioned to be a type of public – private venture that develops and operates a new kind of federal installation that is more effective and efficient than current models for small to mid-size bases. Federal City’s goal is to create state-of-the-art facilities that will attract thousands of federal and private sector workers during the next ten years. New construction of facilities will allow Federal City to offer its tenants both energy and maintenance efficient facilities and the latest hurricane and flood protection factors and standards. Under this concept the state of Louisiana has committed to contribute to the capital costs of this installation in return for the economic and social benefits of retaining and growing the workers in the DOD, Federal, and “spin off” civilian organizations that would occupy the Federal City.
The installation would provide different levels of security inside its boundaries so that both high-level military and lower-level federal or civilian tenant requirements for protection and customer access can be accommodated. With more than just DOD tenants on the base, the costs to provide common services and maintenance and security can be shared by numerous tenants, reducing DOD’s costs for providing quality services. The operator of Federal City would also take over providing most of the support functions on the installation that are most often provided or managed by DOD assets. We believe that this would allow an upgrade to the support provided and offer another avenue for the operator of Federal City to create revenue. Examples of these kinds of support functions include provision of single person housing, child care centers, food services, athletic and recreational facilities, security, etc. The concept also envisions establishing an aesthetically attractive, campus type environment on the installation that makes it a very desirable place to work. The location of the base offers spectacular views of the Mississippi River that should be exploited.
The 2005 BRAC law requires that the Marine Corps units now located at NSA New Orleans (East Bank) and the people at the Marine Corps Support Activity, Kansas City, Missouri relocate to Federal City at NSA New Orleans (West Bank). The law requires that financing be in place and construction begin (ground breaking) on Federal City by no later than September 30th, 2008. When this occurs, DON will relocate these Marine Corps activities to Federal City, as soon as possible, but no later than September 15th 2011. It is currently NOFA’s goal to complete construction of the Marine Corps’ facilities early in the calendar year 2010.
The New Orleans Federal Alliance (NOFA) anticipates that the realigning Marine Corps units will be the “anchor tenants” for the initial phase of Federal City. The identified Marine Corps’ organizations include approximately 1963 members and require about 306,000 sq. ft. of administrative space and 132,000 sq. ft. of special purpose space. As portrayed by the State and the City of New Orleans to the BRAC Commission, other tenants could include elements of the Army Reserve, the Army Corps of Engineers, other Federal agencies, and Federal contractors or suppliers. NOFA is currently involved in soliciting as many of these potential tenants as possible and seeks support from a private-sector developer to determine the best tenant recruiting strategy for Federal City. NOFA is also dedicated to offering the most cost-effective support services possible to its tenants.
NOFA and the DON have conferred on approaches that could be used to implement the development of Federal City. The DON has a variety of enabling real property use and reuse statutory authorities that include, but are not limited to enhanced use leasing (EUL), conveyance of land for construction exchange, and the Economic Development Conveyance. Under these authorities, the DON would execute a long-term lease or convey fee title to property at NSA and receive the future Marine Corps’ facilities as some or all of its fair market value consideration.
NOFA will work closely with HRI/ECC to consider a development scenario and land uses that achieves the desired outcomes of a sustainable military/federal installation together with other private development that creates jobs and promotes local economic development. To achieve this vision, NOFA’s development partner, HRI/ECC, will have the unique opportunity to shape not only the terms of the transaction between NOFA and DON, but the property interest to be conveyed as well as the final scope of the development. The entire 165.09 acre project site was formally part of DON’s land ownership on the West Bank, acquired in 1849. A 9.3 acre site was conveyed by the Navy for school purposes but is currently vacant. NOFA is currently in discussions to acquire this property.
The available acreage at NSA provides a tremendous development opportunity in a highly-favorable location. The recovery of New Orleans is accelerating and is beginning to achieve beneficial results. In addition to the full support of the State and the City of New Orleans, Federal City enjoys the bipartisan sponsorship and expressed support of the Louisiana congressional delegation. As mentioned, NOFA has been energetically engaged in identifying potential Federal City tenants in addition to the Marine Corps units directed to Federal City by the BRAC law and prospects for additional tenants are very promising. NOFA and HRI/ECC will continue these efforts.
Originally, the Federal City concept was planned as a new joint facility, distinguished by its form, function, and fiscal viability. It would consolidate the two bases of the Naval Support Activity, currently located on both sides of the Mississippi River, and provide joint facilities and services for the Army, Navy, Marines, Department of Homeland Security and the Coast Guard.
One of the original master-planned concepts for Federal City took full advantage of its desirable location. Located at the West Bank of the Naval Support Activity, the Army, Navy and Marines shared a protected, integrated site, providing secure communication. The Department of Defense force structure deems the Reservists “first responders” in national defense, positioning Federal City as an ideal regional headquarters for Homeland Security. The Eighth District Coast Guard Command, which protects the inland waters of 26 states, was suggested to be located at the port entrance to the country’s largest waterway. The idea was that the consolidation of these support commands would facilitate collaboration and create a training environment that replicates conditions for emergency or war deployment.
With sensitive analysis of needs and stringent and smart “zone based” master planning, the original Federal City plan provided a highly desirable place to live, work and train, enhancing the quality of life for our military personnel and civilian employees.
(H.R. 4440 passed by Congress on Dec. 16, 2005, and signed by President Bush on Dec. 21, 2005)
