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Amid the decline in defense spending following the end of the Cold War, military base closures have prompted some of the most vocal public concerns. Public expectations of the impact often verge on the apocalyptic, and economic forecasts of the local effects seem to bolster such fears. While many studies have been done on the closure and revitalization process, little new work has been done on the immediate economic impacts of base closures since the wave of closures after the Vietnam War. This study examined the experience of the communities surrounding three of the largest bases closed in California since 1988. The bases were selected due to their large presence in the local community and to the fact that the communities were sufficiently isolated geographically that the effects could be expected to be both severe and measurable. The study used a case-study approach to examine the impact on nearby communities of three base closures: George Air Force Base (AFB), located in San Bernardino County, which closed in December 1992; Fort Ord, located in Monterey County, which closed in September 1994; Castle Air Force Base, located in Merced County, which was slated for closure in 1995 and from which 65 percent of its uniformed personnel had been vacated by October 1994. To assess the impact of base closures on local communities, the study used nine measures-two centering on changes in population, four on changes in employment, and three on changes in the housing market. The study investigated how the closures impacted the size of the total population in nearby communities and the size of those communities' school enrollments. It looked at the size of neighboring communities' labor forces, their unemployment rates, their taxable retail sales, and their municipal revenues.
An analysis of the economic and social effects of defense downsizing.
This testimony reviews the progress of the Department of Defense's (DOD) base realignments and closures (BRAC) in 1988, 1991, 1993, and 1995 and the implementation of the BRAC Commissions' recommendations. Although some communities surrounding closed base areas are faring better than others, most are recovering from the initial economic impact of base closures. The short-term impact can be very traumatic for BRAC-affected communities, but the long-term economic recovery of communities depends on several factors, including the strength of the national and regional economies and successful redevelopment of base property. Key economic indicators show that the majority of communities surrounding closed bases are faring well economically in relation to U.S. unemployment rates and show some improvement since the time closures began in 1988. Implementation of BRAC recommendations is essentially completed, but title to only 41 percent of unneeded base property has been transferred. As of August 20, 2001, DOD reported that it has essentially implemented all of the BRAC Commission's 451 recommendations. Although DOD has made progress and established numerous initiatives to expedite cleanup, many cleanup activities remain. Cleaning up environmental contamination on BRAC-affected installations has proven to be costly and challenging for DOD and can delay the transfer of the title of property to other users. DOD expects to continue its environmental efforts well beyond fiscal year 2001, the final year of the base closure implementation authority.
The dissertation explores the financial ramifications of US military base closure on local community real estate property values. The dissertation examines an area that has not received sufficient research. Previous works on military base closure by Bradshaw, Kroll, Corley, Kirshenbaum and Harlan (1995); Dardia, McCarty, Malkin, and Vernez, (1996); Hooker and Knetter (2001) and Krizan (1998) examine more generalized economic factors such as employment and macroeconomic activity. More recent published dissertation work by authors Hall (1998) and Poppert (2002) have provided interesting explanatory hypotheses to assist municipal and state leaders in crafting working plans to assist communities where base closure occurs. This dissertation intends to look into the effects on real estate property values in the wake of military base closures. The dissertation expands the study of base closure effects into a relatively new area on the fluctuation of real estate property values. An enhanced understanding of how military base closures affect real estate values will have implications for real estate investors, developers, city and county government planners, and budget directors from local school districts to state government.
Reports included in this complete guide to military base closures and BRAC:1. Community Guide to Base Reuse - One: Roles in Base Reuse - Assuming Responsibility * Two: Reuse Overview - Understanding the Process * Three: Local Redevelopment Authorities - Organizing for Success * Four: The Base Redevelopment Plan - Charting a Course for Economic Recovery * Five: Implementation - Working for a Sustainable Reuse2. Changes at Military Bases - A Community Planning Challenge3. Marketing Strategies for Base Reuse4. Guidebook on Military Base Reuse and Homeless Assistance - Section 1: Introduction, Section 2: Overview of the Base Redevelopment Process, Section 3: The Consolidated Plan and the Continuum of Care, Section 4: The Redevelopment Plan and the Homeless Assistance Submission, Section 5: HUD's Review, Section 6: Model Base Reuse Plans5. Converting Military Airfields to Civil Airports - The Military Airfield Conversion Opportunity, Guidelines to Airfield Conversion, Acquiring a Former Military Airfield, Seeking Federal Funding Availability6. Base Redevelopment Planning for BRAC Sites - Section 1 - Overview of Base Redevelopment Planning, Section 2 - Base Redevelopment Planning Process, Section 3 - Surplus Property Determination, Section 4 - Preparation of Base Redevelopment Plan, Section 5 - Outreach to State and Local Government, Non-profits, and Homeless Assistance Providers, Section 6 - Refinement of Base Redevelopment Plan, Section 7 - Beyond Base Redevelopment PlanningThe Department of Defense (DoD) has been closing military bases and assisting Defense-impacted communities through its Defense Economic Adjustment Program for more than 35 years. Over this period of time, experience has shown that the primary responses to a closure must be community-based. This describes the roles of community leaders, State leaders, Federal officials, and other resources. The role of community leaders-where economic adjustment efforts begin and end-is described in terms of the three components of economic adjustment: the community, local businesses, and workers. The roles of State and Federal officials are briefly summarized. A detailed listing of the various resources available to your community can be found in the Appendix. The economic and social fabric of a community is tested when a closure action is announced. What does this decision mean? How will jobs be impacted? Is there any way to avoid the closure? The closure and reuse process is disruptive, but the experience of most communities is that the net result is economically beneficial in the long run.The base reuse process consists of a series of activities involving both the Local Redevelopment Authority (LRA) and the Military Department. These activities are required by both laws and regulations. An LRA must be aware of this general process to effectively respond to the closure and to move the community toward economic recovery. The overall reuse and disposal process ("reuse process") consists of three phases: base-wide reuse planning; disposal and reuse decision making; and decision implementation. This Section provides a brief overview of the reuse process, including information on transitional impacts to the community as the base is converted from military to civilian use.
This testimony reviews the progress of the Department of Defense's (DOD) base realignments and closures (BRAC) in 1988, 1991, 1993, and 1995 and the implementation of the BRAC Commissions' recommendations. Although some communities surrounding closed base areas are faring better than others, most are recovering from the initial economic impact of base closures. The short-term impact can be very traumatic for BRAC-affected communities, but the long-term economic recovery of communities depends on several factors, including the strength of the national and regional economies and successful redevelopment of base property. Key economic indicators show that the majority of communities surrounding closed bases are faring well economically in relation to U.S. unemployment rates and show some improvement since the time closures began in 1988. Implementation of BRAC recommendations is essentially completed, but title to only 41 percent of unneeded base property has been transferred. As of August 20, 2001, DOD reported that it has essentially implemented all of the BRAC Commission's 451 recommendations. Although DOD has made progress and established numerous initiatives to expedite cleanup, many cleanup activities remain. Cleaning up environmental contamination on BRAC-affected installations has proven to be costly and challenging for DOD and can delay the transfer of the title of property to other users. DOD expects to continue its environmental efforts well beyond fiscal year 2001, the final year of the base closure implementation authority.
Focuses on lessons learned from four rounds of base realignments and closures (BRACs) held in 1988, 1991, 1993, and 1995. Addresses the applicability of these lessons to future BRACs as related to savings, costs, and economic impact; legislative actions needed to authorize future BRAC rounds; and what improvements would be needed in the Department of Defense's process for identifying bases for realignment and closure. Charts and tables.