TOP STORY >> LRAFB hosts town hall

By Staff Sgt. Juan Torres
314th Airlift Wing Public Affairs

The status of the housing privatization project and housing maintenance issues were among the topics of discussion between base leaders and housing residents during a town hall meeting held at the Little Rock AFB Conference Center Monday.
During the town hall meeting, Brig. Gen. Rowayne A. Schatz, Jr., 314th Airlift Wing commander, discussing housing privatization project background, key events and talked about the current status of sales negotiations.

General Schatz also discussed the impact and background of a bond sweep that occurred during the project. On September 18, construction funding was accelerated as result of poor cost and schedule control by American Eagle. The event caused the project to default because American Eagle could not complete development. Per lockbox agreement, remaining funds were swept to pay off bonds and funds continue to be directed to bond holders to satisfy legal obligations. The main impacts of the event were that bond holders were only required to fund operations budget and insurance premiums per contract which then limited capital improvement funds.

General Schatz also discussed the status of sales negotiations with potential new owner, Hunt/Pinnacle.

The partnership already owns and operates over 22,000 units at 20 military installations. Little Rock AFB will be grouped as a package with Patrick, Moody and Hanscom AFB. Purchase and sales agreement are expected to be signed within two months, with a possible financial closing expected mid to late fall this year. Renovations and construction are expected to begin shortly after closing the sale.

General Schatz ended the briefing by discussing the way ahead for base leadership and housing residents. Current plans include using 2008 budget and new project owner funds to complete maintenance and repair of deferred items jointly identified and prioritized by American Eagle and 314th Civil Engineer Squadron that have been coordinated and approved by Air Force Center for Engineering and Environment.

Base leadership is also committed to ensuring there is adequate maintenance during the sale process, while simultaneously negotiating the scope of new construction, renovations and number of units with the future project owner.

The general emphasized there is hope to have new home construction possible start by the beginning of 2009.