• The Department of the Army and the Office of Economic Adjustment are expediting required procedures to terminate an existing lease between Army and the City of Mineral

Wells for use of Downing Heliport and the transfer of related facilities to the city.

Federal, State and city officials have identified certain facilities at Fort Wolters which may be effectively utilized on short-term lease basis for community development and economic growth. Some areas of consideration are:

o Industrial Development. Location of light industry on Fort
Wolters property. Plan and develop an industrial park
(off base).

o Aviation.

Convert Downing Heliport facilities for commercial use and incorporate into the nearby Municipal Airport. Utilization of other heliport facilities for regional helicopter training programs.

o Recreation. Develop portions of base property for use as a State Park.

o Education. Temporary use of certain base facilities is anticipated for secondary and technical education, i. e., hospital which will permit establishment of a branch campus of Weatherford Community College on Fort Wolters facilities subject to the required termination clause in the lease.

o Military Requirements. The Adjutant General for the State of Texas has requested use of certain properties for range and tank trails (5, 500 acres). Adequate land is available to cover needs for land for military training and for a State Park.

Disposition of DoD Property

Civil use will be subject to lease negotiations, required approvals and Congressional notification as well as relatively short termination provisions.

This

The closure of Fort Wolters is estimated to have a serious economic impact on the cities of Mineral Wells and Weatherford. Some displaced personnel are seeking employment and residence out of the area in order to obtain wages equivalent to those earned at Ft. Wolters. poses a threat to the local economies of each city since their respective populations are only 12,000 each. Some jobs are available in the local industries but the higher skilled, displaced employees are unwilling to accept the substantial decrease in pay that would be involved. Recent data shows that service industries in Mineral Wells have been declining. This trend will continue if additional employees relocate out of the area.

Another major consideration is the anticipated elimination of jobs at General Dynamics in Ft. Worth. Weatherford is a "bedroom community" to Ft. Worth and further impacts will result from the cutbacks of this defense contractor.

The economic recovery of these two communities is essential for locating new industry in the Mineral Wells and Weatherford area. Potential employers should be able to provide job opportunities for highskilled laborers. This will prevent a further decrease in population and attract new members to the labor market. Civil use of base property will also help to offset this impact.

Current Status

The Economic Development Administration has issued a grant of $5,000 to the City of Mineral Wells for the planning of an industrial park. Base property will not be available for this park. The jointcounty steering committee is pursuing industrial prospects and possible use of base facilities for educational and recreational purposes.

A reconnaissance report is scheduled for completion on August 10, 1973. A full-team visit will be scheduled shortly thereafter.

Community Location

Ogden, a city of about 70,000 population, is a major military, transportation and trade center of the Intermountain West. Along with the contiguous Salt Lake City and Provo area, it constitutes the "heartland" of Utah. Here is concentrated important transportation routes, most of the State's economic activity and about 80 percent of its population.

DoD Impact

By June 1974, 35 military positions at Hill Air Force Base will be added and 542 civilian positions will be reduced, yet this change actually expands certain base functions. The 6514th Test Squadron at Hill Air Force Base will be relocated from Edwards Air Force Base, California. The aircraft assigned to the 1550th Wing will be decreased with eight Technology Repair Centers established at Hill.

Although the unemployment rate in the Ogden area is about six percent, the implending reduction in civilian employment is not considered likely to have a significant impact on the local economy as it represents a very small percentage of the total labor force. The major concern locally is the possibility of a continued reduction in DoD activity which presently provides almost three out of every ten jobs in the Ogden area.

EAC Involvement

Late in 1972, prior to the DoD base closure announcement of April 16, 1973, the Utah Congressional delegation contacted the Defense Department's Office of Economic Adjustment (OEA) and expressed concern over DoD's programming for the State. In particular, it was concerned with the future of the Hill Air Force Base where almost 20,000 persons work. At that time, a senior staff member of OEO visited Utah for a reconnaissance survey.

EAC Program

From its initial visit to Utah, the Office of Economic Adjustment made the following observations:

• Need for a more diversified economy. Utah's heavy depend-
ence on the Federal Government is an economic limitation
well recognized by leaders from both the public and private
sectors. In the short range, this may bring about economic
dislocations that are unpleasant, but they are not of disastrous
proportions. In the long run, however, the State's economic
problems are not easy to resolve.

The current State-directed efforts to diversify the economic base of Utah and local counterpart moves seem to be well organized and on the right track. Imaginative and innovative methods, however, will need to be constantly sought to keep the State focused on potential industrial development breakthroughs.

Recent growth has been substantial. Non-farm employment
was up 2.5% in 1970 from 1969 and increased another 2.8%
in 1971. (The comparable U.S. averages were 1.2% and 0.8%.)
State development officials reported in January 1973 that 1972
was "the greatest year in history" with 24,000 new non-

agricultural jobs coming to the State... of these jobs, 4,600
were in manufacturing.

Disposition of DoD Property

No property is to be excessed.

Assessment

A follow up of the earlier survey will be made in August 1973, at which time the need for greater Federal assistance will be discussed with community and State leaders.

To the Report of

THE IMPACT OF DEFENSE CUTBACKS

ON AMERICAN COMMUNITIES

July 1973

The ten appendices to the report "The Impact of Defense Cutbacks on
American Communities" received only limited distribution because of
their volume. Additionally, appendices 1, 4, 6, 7, 9, and 10 were
either widely distributed previously or believed to be of very limited
interest to most recipients of the report. The remaining appendices,
however, are considered to be of wider interest and have therefore
been reproduced for ready reference:

Appendix 2. OEA/DOD DIRECTIVE

Appendix 3. ADJUSTMENT ACTION PLAN

Appendix 5. ROLE OF THE PRESIDENT'S ECONOMIC ADJUSTMENT COMMITTEE - RESPONSIBILITIES AND FUNCTIONS

Copies of appendices 1, 4, 6, 7, 9, and 10 are available for review in the Office of Economic Adjustment, Room 3E787, Pentagon.