Reports - Mississippi Renewal

120 | DEFENSE AND GOVERNMENT CONTRACTINGhowever, over 600,000 square feet thatrequires $30.2 million in work, andNASA would have to meet the financialburden of this transfer without affectingobligations to its other missions. 4If NASA acquires the facility, itshould use its established proceduresand contractors to operate the facilityconsistently with the operations ofStennis. NASA should realize efficienciesin most of its operations, furtherenhancing the competitive positionof the region. Stennis’ impact on theregions is underscored by the state ofLouisiana’s reliance on the facility. Approximately25 percent of Stennis’ employeesare from Louisiana, and the statepassed legislation that allows it to spendits own economic development fundsin Mississippi and at Stennis. 5 Congressrecently appropriated $349.8 million torepair and harden NASA facilities thatsustained hurricane damage.The same uncertainty that plaguedplanning for MSAAP following its inclusionon the BRAC list also has complicatedlife for workers and officials atNaval Station Pascagoula. This uncertaintyof future use could adversely affectjob-creation, and, like the MSAAP,the NSP land has significant potentialfor serving the recovery of South Mississippi’sbusiness base. The Commission,therefore, recommends an expeditioustransfer of Department of Defense assetsof the United States Navy and personnelfrom Naval Station Pascagoulaon Singing River Island, and from theLakeside Naval Support Facility (also inPascagoula), so as to allow for the immediate,public/private redevelopmentof the island site and associated realproperty and facilities.The Commission further recommendsthe immediate reversion of bothNaval Station facilities and associatedproperties to the state of Mississippi.The reversion should be executed withthe federal government waiving compensationso as to lighten revenue expendituresof the state during its recoveryfrom Hurricane Katrina.If this transfer/reversion occurs inthe manner prescribed, the City of Pas-cagoula, Jackson County, and the stateof Mississippi should immediately beginworking with the Department ofHomeland Security (DHS), the UnitedStates Coast Guard, and other federal/state agencies to develop a suitable reuseof Singing River Island. The reuseshould serve both national securitymissions and appropriate private-sectordevelopment. The federal governmentalso should consider transferring theVeteran’s Hospital property in Gulfportto the city for better public utilizationof the property.Securing Our Opportunitiesto CompeteConsidering the intense, competi-tive national and international businessenvironment, local, county and stategovernment entities should aggressivelysupport the defense and governmentcontracting industry. The Commissionhighlights the necessity of preservingand implementing incentives that allowthis sector of the state economy to grow.Despite Katrina’s severe blow to the taxbase of the communities, all levels ofgovernment should be sensitive to thepotential negative consequences of increasingthe tax burden of defense andgovernment contractors. Congress approved$1.69 billion to ensure continuationof Naval shipbuilding activities onthe Gulf Coast.