Delivering on the Promise of Falcon Hill

Building 1573: One Example of Delivering on the Promise of Falcon Hill

Nearly two decades ago, the Falcon Hill Enhanced Use Lease (EUL) was created with a clear purpose: leverage underutilized federal property to generate private investment, create new economic opportunities, and ultimately reinvest those proceeds back into Hill Air Force Base. The Military Installation Development Authority (MIDA), a state-created public entity overseeing the EUL, was established to make that vision possible, bridging the needs of military readiness with private development partnerships.

Today, that vision is becoming reality.

After 17 years of private development within Falcon Hill, the project area has generated enough Payment in Kind (PIK) value, funds generated through private development and reinvested into base infrastructure, to fund the first major replacement facility for Hill Air Force Base's aging 1200 Series buildings. These World War II-era administrative facilities have served the mission for decades, but they're increasingly costly to maintain and no longer meet the operational, security, or workforce needs of today's mission.

The construction of Building 1573 represents the first step in a long-term modernization strategy. This new 100,000-square-foot, four-story administrative facility is being funded entirely through approximately $49 million in PIK investment generated by the Falcon Hill EUL. Construction is underway and will continue through 2026, with occupancy anticipated in 2027.

Once complete, Building 1573 will support up to 770 employees currently located in the 1200-Series buildings. It marks the beginning of a larger consolidation effort that will ultimately impact more than 5,000 personnel.

This milestone also begins the next chapter of the Falcon Hill redevelopment cycle. As employees relocate into new PIK-funded facilities, the aging 1200-Series buildings they leave behind can be demolished, opening additional land for commercial development, which generates additional PIK value to reinvest into future replacement facilities and infrastructure improvements. In total, up to 17 buildings comprising approximately 445,620 square feet are included in the 1200-Series demolition plan over the next decade, with five anticipated to come down by the end of 2026, opening the door to new mission growth, private investment, and economic development.

Building 1573 is more than a new facility. It's proof of concept for the Falcon Hill model: private investment strengthening military readiness, creating jobs, and ensuring Hill Air Force Base remains positioned for the missions of the future.

IMAGE Source – MIDA Board Meeting – Falcon Hill development Update 06.26.2026