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FAQ's

Question: Explain the role of OMB, Office of Management and Budget.
Answer: OMB is the Office of Management and Budget, responsible for determining budgetary activities of the federal government. This responsibility extends to evaluating government leases to determine whether they are capital leases (in which case the agency must obligate the entire lease obligation up front) or operating leases. All leases would have to go through the scoring process.
Question: Will the Navy or installation be involved in helping the developer select their financial or other partners for this project?
Answer: It is the responsibility of the developer to put together a financing package and to come in with what they believe is their strongest team.
Question: Are audited financial statements required from a privately held company in this process?
Answer: If audited financial statements have been prepared for your corporation or partnership, we do ask that you provide them in your proposal. However, if they are not available, we ask that you provide a complete and current personal financial statement for all the officers/partners of the significant parties (including contractors, architects and other partners, if applicable) of your development team.
Question: What taxing authority does the local government have with respect to land leases on military bases, the developments that are constructed on the installation, and the tenants which occupy the leased land?
Answer: Taxation is decided case by case. However, in general federally-owned military installations do not pay taxes; they make a payment in lieu of taxes (PILOT) to the local jurisdiction to provide help for infrastructure, schools, etc. that may be used by the service men and women living on the base. The Enhanced Use Lease sites are located on the installations and the Navy may provide municipal services to the site, such as police and fire protection among others that would otherwise be provided by the city or county. For these reasons, EUL sites may not be required to pay property taxes.
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