Fort McPherson Operations and Infrastructure Analysis
Atlanta-based Fort McPherson was designated for closure under the Base Realignment and Closure (BRAC) Act of 2005. Matrix provided a detailed market analysis, pro forma, and business plan for the redevelopment of the 488-acre Fort McPherson facility as set out in their Outreach and Land Use Plan prepared in 2007. This effort entailed four broad areas of activity:
Cash Flow Model: The cash flow model is a critical planning tool integrating market analysis findings, infrastructure cost and phasing projections, building conditions analysis, and property holding cost projections. A key decision-making tool, it is designed to arrive at an optimal strategy that accomplishes the goals of the reuse plan at an acceptable level of cost and risk.
Financial Feasibility Analysis: The purpose of a financial feasibility analysis is to examine alternatives to minimize negative cash flows, mitigate public sector risk, and identify sources of public financing to make redevelopment economically feasible. The commercial and industrial nature of the majority of the Fort McPherson site suggested opportunities for a broader range of potential financing mechanisms.
Alternatives Testing/Sensitivity Analysis: The development of a financially feasible business plan is far more likely to emerge following the completion of multiple iterations of alternatives analysis and testing. To that end, the additional efforts put forth by the Matrix team in constructing the financial models returned improved capability in the investigation of alternatives designed to enhance the development economics of the project. These efforts also aided in assessing the financial sensitivity and associated public sector risk of the business plan in relation to changing market conditions and development costs.
Preferred Business Plan Model: The resulting outcome of the various cost studies, model development, and alternatives testing was the adoption of a preferred business plan balancing community goals and economic/market constraints with acceptable levels of public investment and risk. The preferred business plan will provide the basis for valuation and negotiation of the property’s transfer from the U.S. Army.