The Air Force announced Tuesday that it has terminated negotiations with a private commercial developer to build a waste-water treatment facility at Beale AFB, Calif., under the Defense Department’s enhanced use lease initiative. “Business developments and market conditions” occurring after Beale Community Partners, LLC, was selected in March for this leasing opportunity “caused steep reductions in the returns the Air Force was to realize from the project,” the service said in a release. Those reductions, it noted, coupled with “other aspects” of the proposed development, drove the decision. Air Force spokesman Gary Strasbourg told the Daily Report Tuesday that “at this point, there are no known plans for any future development,” when asked if the service would seek another potential leasing partner. The Air Force began the talks with BCP in June. The treatment facility would have serviced the communities surrounding Beale.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.