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utlook
2013 issue 6
Army Force Structure Realignment: Understanding the impact to local business community From Greater El Paso Chamber of Commerce, edited by Ray Adauto On June 25th General Ray Odierno, Chief of Staff of the Army, announced the results of the Army’s 2020 Force Structure Realignment, which will reduce the Army’s Active Component end-strength from the 570,000 soldiers currently serving to 490,000 by 2017. In January of this year, the El Paso community was made aware of the Army’s Programmatic Environmental Assessment (PEA) which was considering possible cuts and realignments among 23 of the Army’s bases, including Fort Bliss. Since then, the Chamber (led by our strong volunteer leadership), has relentlessly advocated on behalf of Fort Bliss and the regional military community. Through visits to the Pentagon and elected leadership on Capitol Hill, the Chamber has touted the exceptional qualities that make Fort Bliss the premier installation in the Department of Defense. The Chamber was also given the opportunity to host a Listening Session in April, which was attended by Army officials who were charged with assessing each of the 23 installations and their neighboring communities. The Chamber utilized the Listening Session to highlight the billions of dollars of investments made by the community in transportation, education, healthcare, housing, and quality of life to support the growth of Fort Bliss. Thus, after months of waiting General Odierno announced that Fort Bliss was one of ten Army bases in the United States which will have a brigade combat team deactivated by 2019. The Chamber is proud to say that although Fort Bliss will be losing a Brigade Combat Team (3-1 AD) and a net loss of 750 soldiers, it will remain an essential power projection platform for the Army and will be minimally impacted by the overall Force Structure Realignment. In his announcement, General Odierno also warned that the Army’s Force Structure Realignment may only be the first of additional cuts the Army must make in order to meet budget requirements, if sequestration continues into the next fiscal year. Under such fiscally challenging circumstances, it is important for the business community to not only understand how the local economy will be impacted by these changes, but also that our troops need community support now more than ever. Through these challenging times, the Chamber remains committed to Fort Bliss and will continue to support our regional military installations through proactive advocacy and outreach efforts. On June 27 the United States Air Force chose Fort Bliss as a major training center location for security forces that will be deployed around the world. In the announcement USAF will bring between 8,000 to 10,000 airmen through the training that ranges from 10 days to 60 days in duration. At the end of each session graduation will bring in visiting family members as well. The move to Fort Bliss
This image was originally posted to Flickr by DVIDSHUB
was anticipated but other communities, like San Antonio, lost out. Fort Bliss is the premier DOD facility in the world with over $7 billion invested over the last five years.
Fort Bliss housing: good or bad for local builders/developers? A recent meeting with the US Army Garrison Command left questions for the private sector on whether the future of single family and multifamily construction will be positively or negatively impacted. Most of the members in attendance felt that it will be negative given the statistics presented and the need for the Army’s principal contractor, Balfour Beatty, continue to build inside the wire. Joined at the meeting held at the Greater El Paso Chamber of Commerce by the El Paso Apartment Association, commercial real estate companies and Chamber members, attendees listened to Garrison Commander Dayley report on what to expect at Bliss over the next few years. “We continue to look at upgrading the housing for family and single soldiers by constructing housing inside the post,”
Dayley told the audience. “We are particularly interested in west Bliss and modernizing housing along US 54 near the golf course and building new single soldier barracks (apartments) for them near our Freedom Crossing,” he continued. The apartment builders and associates were concerned that statistics being presented on the occupancy rates were old and not accurate. “What we think is that the Army needs to be giving correct numbers, otherwise it looks to outside interests like we are short on apartments, while that is not reality,” said Ray Baca local apartment management member. The presentation says that there is a 93% occupancy rate while the apartment managers present said 88-89% is the reality. “We were told to build for the incoming troops back five years ago, and private sector did that anticipating a return on investment,” Baca continued. “What we are seeing is an oversupply now as troops are transitioning in and out quicker. Now the Army is going to compete with us for the market share and that’s troubling,” he continued. Single family housing also has not taken off with the military as anticipated. In the past the makeup of the troops was different
when the Air Defense School was at Bliss. The troops now coming in are much younger and single, mostly not ready or able to purchase a home while stationed at Fort Bliss. “We are seeing much more sales of rims and big screens than we are of houses,” said Edmundo Dena, President of the association. “The reality is that these younger troops need to partner up in an apartment so they can deploy and return without the cost of a home purchase,” he continued. Even transitional housing for Senior Soldier Unaccompanied Housing (SUH) for E-6 and above will see a new complex with 260 units at market rate rents. This housing is targeting students assigned to SNCO and officers coming to Bliss unaccompanied. In other words apartments for non-family moves to Bliss for training, education (SSgt Major School) or assignment. This will directly impact area apartment rentals, especially those in North East and west of the post. The post plans to add about 800 homes to their current 3600 inventory by end of 2016. They are also planning to sell off 1635 acres of land near Montana Avenue and Loop 375, plus an additional 94 acres near the old Beaumont.