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Family housing on Fort Huachuca going private

Company to take over construction, upkeep efforts

By Bill Hess
Herald/Review
Published/Last Modified on Friday, Oct 24, 2008 - 05:19:43 am MST

FORT HUACHUCA — New family neighborhoods will be sprouting up on this Southern Arizona Army post.

The post is one of the last Army installations to have its family housing program privatized. For the next half century, Michaels Military Housing will have the lease on 600 acres of fort land.

“The ground lease made us responsible for family housing,” said Ron Hansen, senior vice president of the New Jersey-based company.

It’s not just a matter of maintaining the facilities. It is developing new neighborhoods that will eventually consist solely of single-family structures, Hansen said. There will be no more duplexes.


This graphic shows where housing projects will be built on Fort Huachuca. (Courtesy of Fort Huachuca and Michaels Military Housing)


And even though the construction industry is currently going through financial hard times, Michaels Military Housing will be partnering with two local builders, Castle & Cooke and R.L. Workman Homes, to build new houses based on their own existing designs, he said.

“This also is good news for subcontractors in the area,” Hansen added.

More than a year ago a presentation was made to Army officials highlighting the benefits of Michaels Military Housing proposal, including the partnership with local construction companies, said Rick Coffman, vice president and general manager for Castle & Cooke Arizona.

“We believed that offering the same plans soldiers are buying (off post) is a vote for wanting the same type of houses they will want to rent on the post,” he said of what was said during the presentation.

Knowing the area is helpful and having available subcontractors is another plus for the program, Coffman said.

“By doing it locally it will be helping the local economy,” he said.

Another plus is that the fort and off-post communities have an excellent relationship, which will be strengthened, the Castle & Cooke official said.

Although the local housing economy is hurting, the trouble is not as deep as elsewhere in the nation, he said.

The advantage of having a steady, known project to work on is a plus for Castle & Cooke and R.L. Workman Homes and both companies’ subcontractors, Coffman noted.

In the next five years, it is expected about $85 million of work will be done, to include constructing new streets, putting all utilities underground, building a community center and walking trails and sports fields. The funds for the privatization program for demolishing, constructing and maintaining family housing units will come from investors and no longer be provided by the government through congressional appropriations.

Of the five-year plan, Castle & Cooke will be constructing 61 homes and the community center, Coffman said. The work also includes some of the neighborhood infrastructure.

“We expect to start in the latter part of the first quarter of next (calendar) year,” he said. “This will be a great (economic) shot in the arm.”

For R.L. Workman Homes, the Michaels Military Housing plan indicates the local company will construct 140 housing units.

Bob Workman, who along with his wife, Karen, owns R.L. Workman, once lived in one of the family housing units on the fort. He said the briefing before Army officials in Baltimore last Dec. 7 involved a lot of hard work.

While in Maryland, he said he talked about the homes the company could build, and his wife spoke about what military families want in on-post quarters.

Like Castle & Cooke, R.L. Workman Homes has constructed a number of developments in the Sierra Vista area, as well as in Hereford and Benson.

Not only will the exteriors of the new post homes be exciting, the interiors will include quality upgrades like “granite slab countertops,” Workman said.

The object is to give a military family something they would purchase themselves if they lived off the fort, he said.

Most of the infrastructure for the new neighborhoods will be put in by another local company, KE&G, Workman added.

What this means for the local work force are guaranteed jobs “during this time of economic uncertainty,” he emphasized.

Hansen said that while the construction cost is about $85 million, the overall estimate of money to be put into the initial part of the program is $130 million.

During the 50-year lease given to Michaels Military Housing, there will be interior upgrades for such things as kitchens in the historic homes, as well as making the newer homes better as the years progress, he said.

Workman said he is grateful to Michaels Military Housing for giving “my small company a chance to participate.” Most of the funds staying in the local community is another benefit to the area’s economy, he added.

While all the new homes will be single-family units, the only exception to replacing duplexes comes in the fort’s historic area, where some duplex family quarters go back to the late 1800s and early 1900s.

That means areas where new housing was built a few years ago, some of which include duplexes, will be torn down and replaced by single-family homes, Hansen said.

Sylvia Pete, the post’s housing division chief and manager of the residential communities initiative, the latter the privatization program, said some of the “six-plexes” that were on the post are gone, meaning no longer will junior enlisted soldiers have to live in cramped, two-bedroom quarters “where the walls are so thin they can hear what their neighbors are saying and they can smell what is being cooked for dinner next door.”

The residential communities initiative is the privatization program.

Under the program, the number of family housing units will decrease, but the quality will increase, Pete said.

There are now 1,365 family housing units — 299 duplexes, 20 six-plexes and 647 single homes on the post. As part of the privatization program, 500 units will be demolished and replaced by 201 units, which means some areas where housing now exists will become vacant and returned to the fort for other uses or left fallow, Pete said.

There will no longer be two-bedroom quarters, because the smallest size unit will be three-bedroom with a one-car garage, Pete said.

The smallest housing unit on the fort currently is 1,143 square feet, and the largest is 5,696 square feet. The newer single units will range from 1,696-square-foot, three-bedroom homes, with one-car garages to 2,774-square-foot standards, four-bedroom units with three-car garages. The homes will be assigned based on rank, and the neighborhoods will be rank-based, according to documents provided by Hansen.

When it comes to the largest housing unit on the fort, Pershing Quarters, or as the military calls it “Quarters 1,” it is assigned to the senior commander on the post and currently is occupied by Maj. Gen. John Custer, commander of the Intelligence Center and Fort Huachuca, as well as his wife and daughter.

The historical homes will be maintained, and any renovations will have to keep their historic concept, said Hansen, who maintains an office on the fort. He has an office staff of two: Joe Gandara, the project director, and Stacey Loucks, administrative assistant.

Another area constructed 50 years ago is considered historic and will be maintained as built, he said.

In that area is a two-story stone duplex built in 1939 for warrant officers, but it is now where the fort’s housing division and Michaels have offices. Hansen said it ultimately will be converted into a neighborhood center.

The new housing will have a Southwestern feel.

Hansen said having local partners makes sense because they know the style of homes that people like, whereas a national contractor is not always that knowledgeable about issues such as Southwest architecture.

Additionally, each builder has been asked to use the same kind of appliances in the homes they will build, so Michaels Military Housing will have the same items in stock to replace units that may go bad, Hansen said.

Pete said the home styles aren’t all that will change. So will how the military sponsors living in them pay for that privilege.

Members of all branches of the military assigned to the fort, which include Army, Navy, Air Force and Marines, do not get their housing allowances in their paychecks. But they will now receive their housing allowances and will have to pay that amount in rent to Michaels, she said.

All of the family quarters will soon be metered to determine how much utilities — electricity, natural gas and water — are used. Once a baseline is established for each type of house, the military sponsor will get that amount in pay to reimburse Michaels, she said.

Any costs above the baseline determination “will come out of the soldier’s pocket,” Pete said.

No military personnel or their family members living in military housing currently do not pay for utilities, as that cost is absorbed by the fact they are not being paid their housing allowance.

Housing allowance rates this year range from about $900 to more than $1,800 a month, based on a person’s rank.

As part of the new neighborhood concept, the Bonnie Blink area, which currently is set aside for senior noncommissioned officers, those in pay grades E7 to E9 will become housing units for families of second lieutenants to captains, according to the plans.

A whole new neighborhood area for senior NCOs will be constructed, documents indicate.

Pete said that because the fort has been the recipient of funds to construct military housing units, many of the areas are new, and with Michaels now taking over the maintaining and building of  new units for families the post will even be better.

“The Army’s legacy funds have helped us manage and maintain decent housing,” she said, noting privatizing the program was off the post’s “radar screen for a long, long time.”

Hansen said Michaels Military Housing also obtained the lease for the Army’s Yuma Proving Ground, and it has a number of other military installations as part of its program, which includes Fort Leavenworth, Kan.; Andrews Air Force Base, Md.; and MacDill Air Force Base, Fla.

Family members living on post also will no longer have to maintain the common areas in front of each family quarters, he said. But families will be responsible for their backyards, which is normally where their children play and where they keep pets.

The company will be hiring about two dozen employees to do maintenance and other work, he said.

Pete noted the post work force will go down slightly because Michaels will take over some of the work.

Both agreed the end result will probably be a wash, with the reduction in post workers balanced by the company’s employment of people.

Emphasizing that safety and security is part of Michael’s neighborhood plan, Hansen said no major roads carrying work traffic will go through them.

He, Gandara, Loucks and Pete all have lived in military family quarters, either while serving on active duty or as a family member.

Herald/Review senior reporter Bill Hess can be reached at 515-4615 or by e-mail at bill.hess@svherald.com.



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    Winston Smith wrote on Nov 7, 2008 7:34 PM:

    " Retired AF, You can blame the rising prices at the PX, Clothing Sales and other concessionaires on the Political Decision to put exchanges in the Navy, Marines and coast guard under AAFES. Another sweetheart deal. I won't shop at WALMART but I know Target beats the AAFES on most items "

    life is not fair wrote on Nov 6, 2008 6:56 AM:

    " True there will be no QC or QA when C&C, R.L. Workman, and KE&G build these subdivisions. Unfortunatly that is the way it will be. The workers do what their bosses tell them right or wrong. It is about meking a profit these companies are desperate they have laid off many employees over the last 12 months. Sorry that FH will get a shoddy subdivision as well. "

    Retired A.F. wrote on Nov 5, 2008 12:27 PM:

    " Other benefit erosions have occurred over time, such as health care, not to mention increasing prices at the PX, Commissary, and gas stations. Now days, you can buy items at Wal Mart cheaper than the PX, and many times gas is cheaper downtown as well. There used to be real savings there to help out the military folks who were getting, on average, 20% to 30% less than their civilian counterparts. Want to try living on $20,000 a year these days? Is it any wonder todays youth don't want anything to do with military service? "

    Retired A.F. wrote on Nov 5, 2008 12:21 PM:

    " Yet another way to screw over the military members who serve our country. For those who have never served and therefore have no clue, base housing used to be a benefit offered to military members. It was convenient and cheaper than renting/buying a house on the local economy. It also afforded the unit commanders quicker response time in the event of "personnel recalls" such as 9/11. Turning it over for privatization is one more way of eroding the benefits once taken for granted by our military members. "

    Too True wrote on Nov 4, 2008 1:28 PM:

    " I agree with Elite. When I lived on the installation, it was a better dump then I could afford off-post. My concern is the out-of-pocket expenses that the families will have to absorb. When a solider is deployed, he can't be there to fix the leaky sink or the power socket that went bad. It's expensive to pay someone else to do it. What happened to taking care of the families? Contractors don't work for free and if the installation is picking up the bill, how expensive will it be in 10 years? I now own stucco, it's high maintenance. "

    Elite wrote on Nov 3, 2008 2:08 PM:

    " I love to eat popcorn and read these post. Then I go laughing at these remarks. Does anyone know any real truths but their own. Everyone has experience's good or bad and they should all be taken into consideration. Some post say good thing about C&C and some are bad. We won't know anything until they've finish building and either do or don't stand the test of time. Personally I lived on Derum St. at Ft. Huachuca, it was a dump but it was a better dump than I could afford living off post. "

    What is your problem wrote on Oct 27, 2008 9:33 PM:

    " House is shabby no more, it is fixed. Do some research, you are seriously lacking in the smarts department. Under state law, the builders are only liable for two years after construction. I DID try many avenues, there is no recourse. You have no reason to be going after me other than having no life and coming here to pot stir. Get a life, will ya? "

    Libelist wrote on Oct 27, 2008 7:51 PM:

    " So you are spouting off about the shabby house you live in, insinuating that is was built by one of the two contractors mentioned in this article, and feel that you have no other recourse but to post here as an anon poster? There are many avenues to take to get you problem solved, if it is legit, which I seriously doubt. You could just be a disgrunted employee that got fired, for good reason. "

    To Geeze. wrote on Oct 27, 2008 6:14 AM:

    " I said a contractor and a plumber--one for the different problems I had. Do you not understand what you read? I was very clear in my post. You are just trying to be argumentative. You are not worth the time. My original point, crap houses which I stand by because I live in one, and you have no right telling me I don't because you have no way of knowing--your claim is nonsense. I would not risk libel printing this in a paper if it were NOT true. "

    Taxpayer wrote on Oct 26, 2008 11:18 PM:

    " "...new housing was built a few years ago ... will be torn down ...???" Is someone at the Fort trying for a Golden Fleece award? This is an outrageous waste of Defense funding. Unbelievable. "

    Geeze wrote on Oct 26, 2008 7:32 PM:

    " I don't work for any contractor in this area. I have been in the trades for years, and never knew that tape was supposed to be screwed down in the corners. If you problem was legit, the HOW would have taken care of it. And you hired a plumber to fix a sheet rock problem> "

    To Geeze.. wrote on Oct 26, 2008 9:50 AM:

    " It doesn't take someone in the business to realize that corners falling off in a house that is five years old is wrong. This happened thoughout. The advice I got was from registered contractors and plumbers who had to fix it. Geeze, obvious you work for these companies you are trying to defend shoddy work. You don't know what we had to go through, how can you say I don't have a clue? You have never seen my house. Your bias and ingnorance astounds me. You blindly defend these companies. "

    Geeze wrote on Oct 25, 2008 6:54 PM:

    " To the one that wrote concerning my comment. Where do you buy cheap copper? And what do you really know about the construction trade? If you bought a house, that is if, they are warranted for years for defects in materials and workmanship, but not for complainers that haven't a clue. "

    To Geeze.. wrote on Oct 25, 2008 1:38 PM:

    " Don't call me a liar my friend, come to my house and look. Corners falling off because they were spackled on instead of being screwed in. We had windows in backwards :(, we have bad pipes and were told cheap copper was used...the list goes on. I know what I am talking about...I am not just bad mouthing I have proof of the short cuts that were taken. When I say they are bad, they are bad. None of the problems I have had would have happened in a properly constructed house. "

    don wrote on Oct 25, 2008 9:02 AM:

    " I sure hope they insulate the homes.they used to0 like to build with just wood. gets cold when someone sneezes out sided. "

    Retiree wrote on Oct 25, 2008 9:02 AM:

    " The only benefit to living on post is not having to go through the backed-up gates in the morning, or to go through random checks of your vehicle, and for leaders to have better control over their subordinates. Children can walk to the PX area (although there is not much else for kids on post to do unless they have parents who drive them off post). Having one's own home with your own rules is always the better way to go in the long term...but most military people don't live anywhere for long. "

    Soldier wrote on Oct 25, 2008 5:55 AM:

    " Let me get this straight, new houses are being build to reflect the local, over priced market? Heathcare is being downsized, the hospital is a clinic, my child's medical needs are not covered, the commissary hikes their prices up on payday and then I am being charged for utilities while making a good 40% less, with 15 years experience, compared to the civilian job market. Yup, the military sure takes [no longer care of] from it's own! It's a good thing that I can retire in 4 years, 287 day and start working for real money! "

    Kev wrote on Oct 25, 2008 12:01 AM:

    " I lived at Bonnie Blink mid 90's. Old but adequate housing, nice views, quiet unless the locals came down to visit (cemetary), but they always had good stories and didn't drink much. Rules? Yes, but that's military life! The new quarters were more than we (Senior NCO's) deserved, so I am not surprised they are going to the officers. I bought a C&C development house, Canyon De Flores and sold as fast as possible. Crap house, but it allowed a profit to enable me to pay all my debts and TOTALLY retire at 50. BEWARE FT HUACHUCA. "

    Geeze wrote on Oct 24, 2008 8:13 PM:

    " There sure are a lot of stupid comments being posted. Like they are tearing down home that were built lately? Workman and Castle and Cooke homes are built just as good as by any other builder, but because they are more successful builders, lets get on them. Kind of like Walmat is bad too, but Target is good, with the same wages, and bennies. "

    Great... wrote on Oct 24, 2008 8:11 PM:

    " now the soldiers have to deal with the crap houses we were sold. They last under ten years before they need renovations because they throw them up so cheaply. Shame on these contractors. Thank god for the granite countertops, they will be the only thing left in ten years! I would really be interested if they took a poll on how many people have problems with these contractors' houses. Most people I know who own one have. "

    SV Booster wrote on Oct 24, 2008 7:58 PM:

    " It's a total rip off for Military Personnel and the local community will lose as well. Michael's Military Housing Corporate will be draining funds away. Amazing at a time when all are proclaiming to want to "take care our brave soldiers and their families". Then here comes this plan to have them pay for utilities for on Post housing..and moving the Senior NCOs out of Bonnie Blink and putting officers in. Guess it was good enough for em when it was the most run down housing on Post but too good for em now that it's renovated "

    Hmmmmmm wrote on Oct 24, 2008 6:39 PM:

    " The reason the Army ever got into the family housing business at Ft. H. was because there was insufficient housing off post. When that changed in the early 1960's, they kicked all the civilians off post who had been living there. And times keep changing - why does the Army still supply housing at all? Why does the Army still have the PX and Commissary? Are they less expensive than Walmart? Seems as though some things just never change, even though maybe they should. "

    really concerned wrote on Oct 24, 2008 6:14 PM:

    " It seems to me that Castle and Cooke, and Workman homes both still use our infamous drywall and stucco company that hires illegals. Does this mean that we'll be paying illegal aliens to work on post now? Isn't that a security risk? "

    Housing problems wrote on Oct 24, 2008 5:22 PM:

    " Granite counter tops and up-graded appliances don't make a comfortable house, space and good storage does. Most of us regular folks do not have granite either however, you sure can charge the government more then an arm and a leg for it. Mc Dill AFB is prime land in Florida, right on the water, Ft. Huachuca is a pretty nice spot too, up on the hill, this all seems pretty fishy to me! DOD civilian who are currently living in former military housing are none too happy. 100 words would not be enough to list all my problems! "

    Langer wrote on Oct 24, 2008 3:29 PM:

    " I hope there's someone on site every day checking to make sure every single worker is legally entitled to work in this country. And it sounds like some independent inspectors need to be on the site daily as well. "

    No to Castle and Cooke wrote on Oct 24, 2008 2:38 PM:

    " I can guarantee you one thing: whenever Castle and Cooke is involved, YOU lose. Does anyone remember 2000 when we tried to keep them at bay? Now they are back with a vengeance. God help the soldier. "

    Daryl wrote on Oct 24, 2008 10:28 AM:

    " "That means areas where new housing was built a few years ago will be torn down and replaced by single-family homes, Hansen said." Are you kidding me? Tear down recently built homes? Who made that decision? Military Intelligence? "

    Concened Citizen wrote on Oct 24, 2008 9:35 AM:

    " To Arthur Dent: Why would the builders worry about this? Worst case for them WILL be that the taxpayers will have to bail them out. The loose nothing! "

    Just a Thought wrote on Oct 24, 2008 8:43 AM:

    " Instead of tearing down the homes that were just recently built offer the homes to be rented to DA Civilians that work on post. It just doesn't make since to waste all of that money. There are alot of people who can afford a new home and would love the advantage to a reasonable price home to rent that is close to work as well. "

    Yeah yeah yeah... wrote on Oct 24, 2008 8:23 AM:

    " I rent an RL Workman house off post now and let me tell you it's a piece of crap. If they have anything to do with the building on post, watch out! You will have endless repairs and the construction leave little to be desired for. On another note, if you're going to make the military families pay for rent and utilities, it's only going to worsten the economy. A lot of these families can't afford that and live a comfortable life at the same time. Sounds like it will be cheaper to live off post. "

    Arthur Dent wrote on Oct 24, 2008 7:19 AM:

    " I thought that this "privatization "scheme was falling apart all over the country as developers went belly up leaving the taxpayer stuck. Our local builders would be well served to think twice about stepping in this one. "

    will wrote on Oct 24, 2008 7:13 AM:

    " I'm retired Navy, have seen this type of the Military/Privite contractor venture in the past, and the military member will be getting the short end of the deal. Take for instance the utilities, the base line will be so low that if the military member tries to mantain a comfort level in the home he will be paying extra fees. Repairs will be charged to the member, because the contractor will determine that it was the member who caused the damage. Remember, the contractor isn't in business to work a loss, but to make a profit. "

    Beware of hidden costs wrote on Oct 24, 2008 6:09 AM:

    " Ever since Ft. Ord closed,housing is rented to civil serive employees, granted it is in California but the houses are a dump and $1800 for 1600sq feet, plus utilities is a lot. They have a flat rate water bill, regardless of how much water you actually use, so two people, without a washer, will pay as much as a 6 person household, who does laundry everyday. And your bill pays for watering the green on the golf course. Aside from that, what a waste to remove houses that have another 30 years left in them! "

    Wheres the Advantage wrote on Oct 24, 2008 6:08 AM:

    " Unless the rent charged for these units is considerably lower than a mortgage payment (or the soldier does not qualify to buy), there is no advantage to living there - especially if soldiers will now being paying utility bills. Renting is always "giving money away." At least with a home purchase, it's yours, and there is always a chance to make some money on it. Then there are the "rules" to living on post, which do not appeal to everyone. Will be interesting to see how this experiment turns out... "

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