Business Approach may be Useful in Budget Battle

August 5, 2012

As agencies across government look for solutions to the challenges posed by budget reductions, "business as usual" is not an option. But a business mindset may offer the best tools to overcome budget headwinds and improve operational efficiency. The Air Force's Enhanced Use Lease (EUL) program is a shining example of a federal effort with a business approach.

Through the EUL program, the Air Force Real Property Agency has formed collaborative relationships with industry to develop commercial real estate and renewable energy projects on Air Force property. In essence, the Air Force leases land to developers in return for lease or "in-kind" payments.

For example, when the city of North Las Vegas agreed to lease land from Nellis Air Force Base, Nev., to build a wastewater treatment plant, the lease payment included funding construction of a $25 million fitness center at the installation. That's $25 million that did not come from taxpayer dollars. Since 2007, the Air Force has completed nine EUL projects worth about $231 million. 

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