Watch for ripple effect of new housing on post | Editorials

In partnership with Lendlease, an international real estate development, construction and management group headquartered in Sydney, Australia, the U.S. Army announced investment of $1.1 billion in privately obtained lender capital to improve housing at six military facilities across multiple states. A combination of much needed renovations to existing properties and construction of new homes is welcome news for families living in military housing at the posts involved.

In addition to Fort Knox, other posts to benefit from various housing projects as part of the announced investment will include Fort Campbell, Fort Drum, New York, Fort Hood, Texas, Fort Wainwright, Alaska, and Wheeler Army Airfield in Hawaii. According to Lendlease, major exterior and interior renovations including replacement of outdated HVAC units will be made to more than 12,000 existing homes at the six military housing communities it manages.

Also, another 1,200 new homes also will be constructed in the expansive project.

Phillip Carpenter, chief operating officer for Leadlease, said his company actively is working on approximately $20 million worth of housing projects at Knox Hills on post at Fort Knox approved by the Army last year.

The new capital “will provide probably an additional $80 million in work at Fort Knox to include several hundred renovations, as well as 62 new homes there,” Carpenter said. Upgrades will focus on homes in seven neighborhoods on post while the majority of the new homes will be built in the Oak Park subdivision, he added.

Once final details are approved by the Army, renovation to existing structures and new construction could begin later this spring.

All this has direct benefit for active duty soldiers and their families. Having access to quality homes with modern comfort and convenience amenities, located in well-managed neighborhoods on post is a critical part of ensuring quality of life for our war fighters and their families.

It’s also a key component of military readiness. The large investments and projects involved will help improve both these aspects of military life and readiness at Fort Knox and the other five posts involved.

At the same time, there will be a ripple effect that isn’t as welcome off post.

Like it or not, on-post housing managed by out-of-market development companies competes with single-family homes and rentals available from the private sector outside the installation’s gates.

Additional home construction on post, while great for those choosing to reside within the confines of the gates, isn’t so good for those banking their livelihood on development and sale of property within driving distance to the post. More available housing in the market, both on and off post, also drives down rent – again, good for renters, but not ideal for rental property owners and managers

Carpenter wasn’t able to clearly point to the number of construction jobs these projects will bring to our local and area craft and trades market.

“We always try to build with local teams,” he said. “I would expect it to bring several hundred jobs to the area with all the work we’ll be doing.”

Here’s hoping local carpenters, plumbers, electricians, HVAC technicians and other trade subcontractors receive a fair opportunity in line with out-of-market contracting interests involved.

This editorial reflects a consensus of The News-Enterprise editorial board.