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N.Va. braces for economic impact of defense changes
Gainesville Times ^ | 05/10/2005 | Beverly Crawford

Posted on 05/11/2005 3:31:26 AM PDT by chambley1

A “perfect storm” created by federal security guidelines and proposed military base closings could have a devastating effect on the office space the government rents in Northern Virginia and the region's economy, U.S. Rep. James Moran (D-8th) told defense contractors and commercial realtors Monday at a hastily convened meeting in Crystal City.

Of 140 buildings in Northern Virginia that house federal defense employees, not one meets the new guidelines, he said.

“We anticipate DOD [the Department of Defense] is going to urge a relocation of virtually all the office space in this immediate area,” Moran said.

He called the meeting to urge defense contractors and commercial realtors to begin lobbying their contacts now, even before a list of proposed base closings is announced Friday morning—coincidentally, an unlucky Friday the 13th.

“The defense contracting community is not fully engaged on this as yet. There is no reason to, until it becomes real. It could become real later this week,” Moran said.

He said the pending Base Realignment and Closings list could affect thousands of local employees.

“We all know a lot of people in defense," he said. "We need to let them know it is counterproductive—you've got a good thing going” in Northern Virginia, where “the smartest people” are concentrated to create “synergy” among defense contractors, military leaders and the intelligence and technology industries.

The new security guidelines would require office buildings housing 25 or more defense employees to be “set back” from the nearest road by 148 feet.

“We can't afford 150-foot setbacks,” Moran said at Monday's meeting at a Crystal City office building that does not meet the guidelines.

In addition, any office where 11 or more defense employees meet regularly on security issues would have to comply. That would include half the commercial space in Arlington, Moran said.

He suggested it would be wiser to invest the money to increase security and structural integrity of buildings currently being leased.

The requirements would also dampen any eagerness to build new office space on speculation, Moran said, by adding as much as 20 percent to the price of a building, money that would be passed down through higher rents that nongovernment entities would not be willing to pay.

Calling the security guidelines “Draconian,” Moran said they could combine with the anticipated closings for military bases to create “as threatening a situation” as Northern Virginia faced in the real estate market decline of the early 1990s.

At the time, Crystal City was classified as a military installation under BRAC and saw a dramatic decline in the presence of Navy personnel, draining Arlington County’s economy.

“If you're on the BRAC list, say goodbye to whomever's sitting next to you, because you won't be here soon,” said Scott Sterling of the Greater Washington Board of Trade, referring to the potential effect of any changes.

“I'm very nervous. I don't know what you do if you wind up on a BRAC list,” said Barbara Favola (D), chairman of the Arlington County Board of Supervisors.

Steve Bartow of UBS Financial Services and a former chairman of the Arlington County Chamber of Commerce, said, aside from giving up the office space, the Defense Department would also give up all the secure infrastructure—phones, computer networks, etc.--that it has already invested in those offices.

Moran said one could argue that "security would be compromised" by giving up the "synergy" already in place.

“It is a death list. This is not like the federal government. It is almost impossible to reverse it,” Moran said. “And the decisions are made in virtual secrecy.”

Even more alarming for Fairfax County officials, perhaps, is the possible effect the additional layer of security would have on plans to extend Metrorail to Dulles International Airport.

“We are trying to put Metro to Tysons. SAIC would be a direct beneficiary [of rail to Tysons]. And now they say, that's not what they want?” Moran said.

DOD's new safety guidelines go into effect for leases signed after October 2009. But the list of base closings would have an impact immediately.

The Base Realignment and Closing Act requires Congress to approve the list in its entirety, with none of the political maneuvering for “pork” that accompanies most government spending plans.


TOPICS: Business/Economy; Constitution/Conservatism; Foreign Affairs; Government; News/Current Events; Politics/Elections; US: Virginia; War on Terror
KEYWORDS: arlingtonco; arlingtonva; brac; defensespending; fairfaxcounty; jimmoran

1 posted on 05/11/2005 3:31:27 AM PDT by chambley1
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To: chambley1

These fat leases are political patronage which at the very least require political clearance.

Moran's rat squealing is music to my ears.


2 posted on 05/11/2005 3:39:19 AM PDT by TUX (Domino effect)
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To: chambley1

U.S. Rep. James Moran is a pathetic, drooling, waste of sperm.


.


3 posted on 05/11/2005 3:42:08 AM PDT by kb2614 ("Speaking Truth to Power" - What idiots say when they want to sound profound!!)
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To: kb2614

Amazing, considering how they accuse the GOP of pandering to business interests. Oh, I forgot, national security doesn't matter.


4 posted on 05/11/2005 5:10:00 AM PDT by Stashiu (RVN, 1969-70)
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To: chambley1

MANASSAS!!!!

We just got the first spoils of the war, an FBI facility housing 300 people. We had enough space to meet all the requirements of securing a building against terrorist attacks.

Moran seems more interested in keeping his government employees in his district than he is in the security of those employees.

In this day of teleconferencing, proximity is an outmoded concept.

This will also make a small dent in the horrible traffic situation in the region, since eventually these 50,000 employees won't all be commuting to the same place.


5 posted on 05/11/2005 6:18:01 AM PDT by CharlesWayneCT (http://spaces.msn.com/members/criticallythinking)
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To: chambley1
One likely winner will be the District of Columbia. The large former site of the Navy Gun Factory in SE will move to the front for relocation sites for navy functions in Crystal City. GSA which now controls about 80% of the site has been trying for years to get momentum going for rehabbing the very large derelict industrial structures there and turning them into office buildings. Few organizations have wanted to pay for the costly upgrading in order to move to a run down industrial site in a low income area of the city. With the new baseball stadium coming nearby this area is set to take off and become (in 10 years or so) one of the more desirable areas of the city for offices and entertainment. South of the ball park site are acres of mostly unoccupied land sprinkled with some marginal industrial activities (other than a large power plant at the river). It is the last large tract of unused land near to the center of DC and for that reason the stadium complex will set off a wave of development.It's an ill wind that blows no one some good and today DC Mayor Tony Williams must be quietly enjoying Rep. Moran's dismay.
6 posted on 05/11/2005 6:50:44 AM PDT by robowombat
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To: chambley1

Some of us leased-space-workers in NVA are in exile due to the Pentagon renovation that started in 1998. If they hurry up and finish it, we can move back in (supposedly).


7 posted on 05/11/2005 8:03:52 AM PDT by meowmeow (Gardeners for Global Warming)
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To: TUX

I agree! Moron...er...Moran is so crooked that when he dies, he won't be buried, they will just take a giant screwdriver and screw him into the ground!


8 posted on 05/11/2005 8:09:22 AM PDT by Redleg Duke (Don't let Terri's death be in vain!)
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To: chambley1

That sound you will soon be hearing, is the POP of the housing market there soon to follow.


9 posted on 05/11/2005 8:13:19 AM PDT by HamiltonJay
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To: kb2614

But keep in mind that if this comes to pass, your Alexandria house and my Alexandria house won't be worth the marine clay they sit on.


10 posted on 05/11/2005 8:16:49 AM PDT by meowmeow (Gardeners for Global Warming)
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