Officials from Fort Meade and real estate giant Trammell Crow are close to a deal that would pave the way for the construction of 1.7 million square feet of office space and a new golf course on base.

After years of delay, the two parties said they will this summer finalize an “enhanced use lease” (EUL) agreement that would allow for 10 new buildings to house contractors from expanding agencies on base. Revenue from rent of the properties would then be used to design and build a new golf course for military members, veterans and their families.

Col. Daniel Thomas, the installation commander at Fort Meade, said Tuesday that he is hopeful the EUL agreement will be signed by August.

"We're dotting the 'i's' and crossing the 't's,'" he said. 

He said the base would then move swiftly to secure a loan for the design of the new golf course, backed by expected revenue from the first of Trammell Crow’s buildings. Future funds for golf course construction would come as rent money grows.

“As that rent builds up, that’s how we’re going to build that golf course,” Thomas said.

The installation commander made his remarks at a town hall meeting with members of the existing golf course, The Courses at Fort Meade.

New buildings for the Defense Information Systems Agency and Defense Media Activity have reduced the existing course from 36 to 27 holes. Additional planned development from the National Security Agency (NSA) and U.S. Cyber Command will eliminate the current course entirely.

Golf is still being played on the existing course through March 2012, but its future beyond then is uncertain. Thomas said Army officials are awaiting word on the timeline for when NSA and U.S. Cyber Command’s new construction is funded, and hope to have further clarity this winter.

All money from golf at Fort Meade is used to enhance family, morale, welfare and recreation (FMWR) efforts on base. While the course once ran a sizable surplus, it has in recent years operated with an annual deficit; last year it lost more than $280,000. As holes have been taken away, membership has dropped from 735 in 2007 to 352 this year.

The new course is planned for the southeast corner of the base near the intersection of Route 32 and Route 175. Officials said they will build a driving range and 18 holes first, then add an additional 18 holes as more revenue from EUL development comes in. Costs for the project have ranged from $20 million to more than $40 million.

The goal, Thomas said, is to open the new course around the time when the existing golf course closes, but that timeline could prove challenging. New agency construction could force the closure of the current golf course as soon as next spring, while a new golf course would take at least three years to design and build.

“I’m hoping, in a best-case scenario, we have a new course before we have zero [holes],” Thomas said.

The complex arrangement to fund the golf course construction comes in part due to a lack of dedicated funding from the government. The current effort by Congress to slash spending to reduce the federal budget deficit makes a dedicated appropriation unlikely, Thomas said. 

"There is absolutely no appetite for spending 20 or 40 million to get appropriation for a golf course," Thomas said. "The chance of that happening is slim to none."

Plans for the EUL were first introduced in 2006, after the announcement of base realignment and closure (BRAC) activities, which called for Fort Meade to eventually accomodate thousands of new federal workers.

More than 5,000 new workers are expected to be employed at Fort Meade by the end of this year as a result of BRAC.

Previous EUL negotiations called for Trammell Crow to design and build the golf course, but this latest arrangement will allow Fort Meade to build and operate it.

For Trammell Crow, completion of the EUL means it can finally move forward on development nearly five years after being selected to build on the 170-acre property, which is bounded by Reece Road and Route 175 on the northeast portion of Fort Meade.

“We’re at a point now where we’ve done our due diligence and we have our ducks aligned,” said Greg Crum, a principal with Trammell Crow.

Crum said the company hopes to start construction on the first building early next year and does not expect to have trouble leasing the space to contractors looking for close proximity to federal agencies.

“The closer you are, the better off you are,” he said. 

Financial specifics of the deal with Trammell Crow were not yet publicly available. Because the office buildings will be constructed on federal land and can't be taxed, past discussions called for the company to use a payment in lieu of taxes (PILOT) program with Anne Arundel County to assist with infrastructure upgrades in the area.