Beale AFB Enhanced Use Leasing

1. The following is a description of an amendment to RFQ Section 1.2.1.1 Existing Improvements: Replace: "At the closing of the transaction, the Government will lease certain land or improvements, described in Section 1.2.1.1 and 1.2.1.2, including approximately seven miles of sewer line and three existing facilities located at the Wastewater Treatment Plant as further described in Section 2.0, Existing Conditions. Restrictions specific to individual facilities will be identified in Section 2.0 and 3.0. The WWTP is the only area of the three parcels that has improvements. Table 1 below provides a list of the facilities to be leased to the Lessee." With: "At the closing of the transaction, the Government will lease certain land and will lease or convey certain improvements, described in Section 1.2.1.1 and 1.2.1.2, including approximately seven miles of sewer line and three existing facilities located at the Wastewater Treatment Plant as further described in Section 2.0, Existing Conditions. Restrictions specific to individual facilities will be identified in Section 2.0 and 3.0. The WWTP is the only area of the three parcels that has improvements. Table 1 below provides a list of the facilities to be leased or conveyed to the Lessee." 2. The following is a description of Clarifications on Waste Water Treatment Plant (WWTP) Opportunity: The Air Force consciously decided to build maximum flexibility into its RFQ. It seeks the most innovative proposal that industry can prepare and submit. There is a range of acceptable proposals, but you are reminded that this is a competition. The Air Force will select the most qualified offeror that has a proposal that maximizes the Air Force's consideration, while minimizing its environmental responsibility and liability. The details of the transaction are left to the Phase III discussions and negotiations. The Central Valley Regional Water Quality Control Board ("State regulator") is California's regulating agency for waste water discharges at Beale Air Force Base ("AFB"). Currently, the Beale AFB Environmental Flight is responsible for all activities regarding waste water compliance program. The Air Force's strong preference is for the WWTP portion of any EUL proposal to be structured as follows- 1. The offeror will accept ownership of the WWTP facilities by quitclaim deed, but lease all lands required for its successful operation. This may include leasing the water canon field(s), waste water effluent storage ponds, stream discharge point(s), etc. 2. The offeror will be solely responsible and liable for the operations of the WWTP. The offeror will obtain its own NPDES permit with the State regulator. If the offeror decides to continue and/or expand land-based discharge, the offeror will have to negotiate the specific waste discharge requirements with the State regulator. 3. The offeror is free to propose and fund any necessary upgrades to, or expansion of, the facilities, which it will own. The Air Force expects the offeror to obtain all necessary approvals for such upgrades or expansions. See attached map for potential additional land areas to be leased. Alternatively, the offeror is free to propose a different structure. The offeror may propose to operate the WWTP, but not own it. The facilities and land areas would be leased to the offeror. This is less preferable to the Air Force. Under such an alternative scenario, the State regulator might still hold Beale AFB liable for noncompliance issues regarding the WWTP because the Air Force remains the owner. Therefore, the Air Force would retain oversight for all correspondence and negotiations regarding the program, which would still be the responsibility of the Air Force. Under this scenario, the Air Force would prefer that an offeror provide a qualified waste water engineer to act as a liaison between the offeror and the Air Force in the oversight of the environmental compliance of the waste water program. 1. The offeror would be responsible for the following routine activities: - Sampling required by the waste discharge requirement for land-basing (and NPDES permit, if applicable); - Preparation of reports required by the waste discharge requirement for land-basing (and NPDES permit, if applicable) for submittal to the government representative; - Ensuring that all activities at the plant meet the requirements set forth in the waste discharge requirement for land-basing (and NPDES permit, if applicable); - Provide all above information to the government-designated waste water manager by the required timelines, so that reports can be submitted to the regulatory agency in compliance with the waste discharge requirement for land-basing (and NPDES permit, if applicable); - Repairs to equipment that are required to maintain compliance with the waste discharge requirement for land-basing (and NPDES permit, if applicable). 2. If the offeror plans to upgrade or expand the use of the WWTP in any way, the offeror would be responsible for the following: - Provide a qualified waste water engineer to assist the Air Force Waste Water Manager at regulatory negotiation meetings; - Prepare any updated studies (e.g., water balance) required to submit new waste water permit requests to the regulatory agencies; - Prepare the design and environmental documents associated with any expansion plans; - Work closely with the Air Force Environmental Impact Analysis manager and other Air Force environmental managers to ensure environmental requirements on upgrade projects are met; - Prepare any required documents in order to request that the State regulator modify current waste discharge requirements, or to request a NPDES permit; - Fund and perform construction and environmental compensation associated with the expansion. 3. If the offeror chooses to propose additional land areas as part of the EUL (e.g., water canon fields, waste water effluent storage ponds, etc.) in order to carry out the lease, this would be acceptable to the Air Force. See attached map for potential additional land areas to be leased. To the degree that the above responses are inconsistent or differ from what was previously stated in writing, orally, or even implied, this response supersedes. The Department of Air Force is seeking qualified entities for a long term ground lease opportunity Beale Air Force Base. The objective of this project is to develop three parcels totaling approximately 334 acres of underutilized land at Beale AFB, Calif. These parcels include a 218-acre rail-accessible development opportunity, a 97-acre light industrial site, and a 19-acre wastewater treatment plant site with support facilities, totaling 2,907 square feet. The project shall maximize the value of the Enhanced Use Lease assets within the constraints and restrictions identified by the Air Force, while developing a successful, long-term, and mutually beneficial business relationship with the Air Force. For additional details please visit: http://www.amafpress.com/projects/beale/docs.php Point of Contact Brian Kish, Alvarez & Marsal Real Estate Advisory Services Phone, 202-729-2115, Email: bkish@alvarezandmarsal.com Judith Tepperman, Government Project Manager, Phone 210-925-2074, Fax 210-536-9004, Email judith.tepperman@us.af.mil