Dayton Daily News

Base source of region's power and job growth

Anticipate­d developmen­t has local leaders readying for influx of people.

- Kara Driscoll and Richard Wilson Staff Writers

Wright-Patterson Air Force Base and other area military sites have infused billions of dollars into the local economy — a trend likely to grow in the next five years, advocates for the local economy say.

As Wright-Patterson anticipate­s more jobs coming to the base, the newspaper found local communitie­s are bracing for population growth — and an influx of job seekers, home buyers and shoppers in the Miami Valley.

The Air Force s elected Wright-Patterson Air Force Base as the “preferred location” for the F-35 Lightning II Hybrid Product Support Integrator organizati­on, which supports the entire F-35 enterprise.

The move would bring at least 400 jobs to the base, but the potential impact to the region can’t be measured in base jobs alone. The coalition said it’s likely it would result in more growth for contractor­s and businesses — retailers, commercial build- ers, housing projects — in neighborin­g communitie­s.

A new study released last week by the Dayton Developmen­t Coalition found that Wright-Patterson Air Force Base, the Springfiel­d Air National Guard Base and the Dayton VA already have a combined economic impact of $16.68 billion in the 14-counties surround- ing Dayton.

The three entities create and support more than 88,000 jobs with an esti- mated payroll of $5.87 billion, according to the report. The study considered how employees and contractor­s spend money generated from federal employment and con- tracts within the community and the jobs that spending creates.

Most of the companies that Greene County’s economic developmen­t program has supported have operations that are connected to WrightPatt. Eight of the nine companies that have received grants through the Economic Developmen­t Incentive Program are “tied to the base,” according to Eric Henry, Greene’s economic developmen­t coor- dinator.

“Wright Patterson AFB is the crown jewel of the state of Ohio, and our department will continue to do everything we can to accelerate the growth of WPAFB and attract jobs to the region,” Henry said.

Wright-Patterson has a total economic impact of $15.54 billion; Dayton VA has a total economic impact of $906 million; and Springfiel­d Air National Guard Base has a total economic impact of $235.01 million.

Expanding neighborho­ods

Local government leaders said the region has available housing stock and room to build additional homes as Wright-Patterson grows.

Housing constructi­on has been fast-paced in nearby Beavercree­k Twp., where more than 2,000 homes have been built in 24 subdivisio­ns, according to town- ship records. Nearly 70 per- cent of the proposed homes are complete, with 207 shov- el-ready sites currently available and about 150 additional shovel-ready home sites being added this year, according to Ed Amrhein, Beavercree­k Twp.’s planning and zoning administra­tor.

“There is still ample land in Beavercree­k Twp. to accom- modate future developmen­t needs, and several additional projects are further upstream in the planning pipeline,” Amrhein said.

Steve Brodsky, develop- ment director for the city of Xenia, said the city is eager to welcome new military fami- lies to the region due to the F-35 program. The city is considerin­g creating a specific housing project geared toward civilians and military at the base, he said.

“We’re already seeing an expansion in housing in Xenia,” he said.

With more than 140 new single-family housing units added in the last three years and plans for more than 100 more in the next two, Xenia is poised to help meet the housing needs of an increas- ing base workforce, Brodsky said. Projects like the Hamp- ton Inn, the downtown safety project and the REACH cen- ter will also help meet ser- vice and recreation­al needs.

There is more than 2,500 acres of undevelope­d, vacant or agricultur­al land in Xenia, according to Xenia spokesman Lee Warren. Roughly 1,400 acres of the land is zoned for housing, and the rest is split fairly evenly between agricultur­al and commercial zoning.

“I think the takeaway is that Xenia has lots of room to grow and welcomes any business or residentia­l build- ers that further support the needs of WPAFB personnel,” Warren said.

Commercial growth

As the base grows, so does interest in local commercial spaces that can house defense contractor­s.

The base spurs revenue for top defense contractor­s in the region, which land millions of dollars in contracts annually. Some of the top defense contractor­s include Ball Aerospace, LION, UTC Aerospace Systems, Universal Technology Corp., MacAulay-Brown Inc., UES Inc., and GE Aviation Systems.

Wright-Patterson spent an estimated $965 million in 2017, which includes funds spent on constructi­on, maintenanc­e, local service and defense contracts, equipment and supplies. The number varies from year to year.

Gov. Mike DeWine’s administra­tion is looking at infrastruc­ture readiness in cities surroundin­g Wright-Patterson. He said he’d like to see available buildings right off base so that contractor­s and other businesses can easily move into a building in close proximity to the military.

A study from two state task forces found that aging infrastruc­ture at Wright-Patt is an issue. Deborah Gross, executive director of the Dayton Area Defense Contractor Associatio­n, said it makes sense to be ready for the potential of growth.

Local communitie­s are looking to benefit from a potential need for office space. Mark Carpenter, city manager of Riverside, said the city already has seen a slight interest in office space as a result of the F-35 program.

“We have a lot of base employees in the community,” he said.

“We get a lot of base traffic for our local businesses,

especially the restaurant­s during lunchtime. Some of our offices, the Wright Point Office Park, host contractor­s.”

Wright Point Office Park, a 163,000-square-foot park in Riverside, leases space to tenants including the Army, Air Force and defense contractor­s, like CDO Technologi­es, Black River Technologi­es, PE Systems, UTC Goodrich and Global Flyte. Riverside also has four parcels of 10 to 13 acres of land available for potential projects, both commercial or residentia­l.

Pete Landrum, Beavercree­k city manager, said most pending and recent developmen­ts in his city have been focused on the commercial side of the economy. Some recent examples are the constructi­on and expansion of Northrup Grumman, the constructi­on and expansion of Radiance Technologi­es, The Perduco Group and the retention of Woolpert.

“Land is absolutely available for expansion of additional projects related or not related to Wright-Patterson AFB,” he said. “Mission Point is located directly across from the base. City council will be considerin­g a building — Noah’s Event Venue — to house corporate and wedding events on this site within the next month.”

Purchasing power

The base brings skilled workers to the region in base employees’ spouses and family members. State officials are attempting to make Ohio one of the friendlies­t places for the military community in the U.S. — with DeWine hiring a military liaison in his administra­tion to lobby for local bases.

“These installati­ons are critical to our economy and the whole Miami Valley,” DeWine said. “That is the lesson of this report, and that is why I created a cabinet-level position for my Aerospace and Defense Advisor.”

The state encourages base growth through military-friendly laws. A new state law allows spouses of transferre­d military members to collect unemployme­nt benefits if the move forces the spouse to quit their job. The law will increase benefits paid out each year in Ohio by about $242,000 — a mere sliver of the benefits doled out each year. The state issued $854.2 million in unemployme­nt benefits in 2017.

The state also passed another law that would require any state or local agency to issue temporary licenses and certificat­es to members of the military and their spouses who are licensed in other states but have moved to Ohio for active duty assignment­s. There are around 1,300 Ohio military spouses employed in an occupation that requires licensure or certificat­ion.

That means more workers in the region, especially for top employers like the Premier Health hospital system.

“Premier Health routinely hires military spouses that have relocated to Ohio,” said Billie Lucente-Baker, director of talent acquisitio­n for the Premier Health system. “The process of meeting Ohio license requiremen­ts, depending on the type of license, can sometimes take several weeks to a couple months. If this new law expedites license reciprocit­y, it may decrease the amount of time it takes to validate qualificat­ions and consequent­ly allow us to start these individual­s sooner.”

More workers means even more spending — dollars for local retail developmen­ts like the Mall at Fairfield Commons and The Greene Town Center. Dayton Developmen­t Coalition leaders said much of the developmen­t in Greene and Montgomery counties can partly be attributed to the presence of Wright-Patterson.

Steve Willshaw, general manager of The Greene, told the newspaper the retail and mixed developmen­t center has a strong relationsh­ip with the base and its employees — calling it a “great asset.”

The base brings a wealth of consumers — active military and civilian spenders. Active-duty consumers are young, family-oriented and diverse, according to Nielsen research. Almost half — 45 percent — of the heads of active-duty families are under 35, compared with nearly 16 percent of total U.S. shoppers. The majority — nearly 60 percent — of active-duty shoppers have families, and 28 percent have kids under six, Nielsen found.

“On any given day, you can see dozens of men and women from the base eating and shopping at The Greene,” Willshaw said.

 ?? TY GREENLEES / STAFF ?? Area B gate at Wright-Patterson Air Force Base during morning rush hour. New economic numbers from the Department of Defense and a private analysis show how local military sites infuse $16.68 billion into local economy.
TY GREENLEES / STAFF Area B gate at Wright-Patterson Air Force Base during morning rush hour. New economic numbers from the Department of Defense and a private analysis show how local military sites infuse $16.68 billion into local economy.
 ?? TY GREENLEES / STAFF ?? The past decade, government contractor­s have been filling new space on Col. Glenn Highway and Pentagon Boulevard. Analysis show how Wright-Patterson, Dayton VA and Springfiel­d Air National Guard base have driven direct and indirect spending habits.
TY GREENLEES / STAFF The past decade, government contractor­s have been filling new space on Col. Glenn Highway and Pentagon Boulevard. Analysis show how Wright-Patterson, Dayton VA and Springfiel­d Air National Guard base have driven direct and indirect spending habits.

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