COLTS NECK — Legislation that would require a cost benefit analysis and security report to be conducted on the pending conversion of military housing to civilian housing at Naval Weapons Station Earle has been moved out of its state Assembly committee.

The legislation is sponsored by Assembly members Declan O'Scanlon and Caroline Casagrande (both R-Monmouth and Mercer). The Assembly Military and Veterans' Affairs Committee unanimously approved the bill on Nov. 30.

A Senate version of the bill, sponsored by Sen. Jennifer Beck (R-Monmouth and Mercer), is awaiting action by the Senate Community and Urban Affairs Committee.

NWS Earle, a munitions base, is partially located in Colts Neck.

The issue at hand stems from a 1988 lease agreement between the Navy and Laurelwood Inc., of Seattle, Wash., to construct, own and operate 300 multi-family homes. The homes — which are on the naval base — were initially to be used exclusively as military family housing.

The lease was divided into two parts — an in-lease portion and an out-lease portion.

The first phase was the in-lease portion, which runs from 1988 to 2010, during which time the Navy guarantees rent payments to the developer (Laurelwood Inc.) for the occupancy of the units. During that time only military personnel and their dependents are allowed to occupy the housing units, according to the agreement.

Although it was thought that the Laurelwood housing would be fully occupied by military families, occupancy rates have been very low, currently at no more than 5 percent. While occupancy is low, due to the lease agreement the Navy pays as if all 300 units were occupied, according to the legislators.

During the out-lease phase, due to start in 2010 and run until 2040, the Navy will no longer rent the homes. Instead, Laurelwood Inc. will be able to rent the homes to the general public once the Navy arranges for unimpeded access to the units.

An access road is planned from Route 34 to the Laurelwood homes.

The developer will pay rent to the Navy for the lease of the underlying land, which is owned by the Navy. The Navy will no longer be obligated for any rental payments except for any units that may be rented by military personnel.

The bill now under consideration in the Legislature would require the state treasurer to prepare a report detailing the regional impacts caused by the conversion of military housing.

The report would examine the economic impact of the military to civilian housing conversion on the local, county, municipal and school district taxpayers, with a cost benefit analysis of the additional housing units related to any increased school district and municipal services costs; the security impact on surrounding municipalities of housing civilians on a military base; and the increased school district and municipal costs that will be required to adequately address any anticipated increased infrastructure requirements, according to a copy of the bill.

"This legislation is the first step in providing a thorough analysis of this ill-conceived concept of converting military housing for civilian use. There are many issues to be considered, including the economic impact on surrounding school districts and taxpayers, as well as security concerns centered around housing civilians on a weapons base," O'Scanlon, who sits on the Military and Veterans' Affairs Committee, said in a press release.

Casagrande noted in a release that the bill is cost neutral.

"Our legislation specifically calls for the study to be conducted in-house in an effort to keep it cost neutral. … While you cannot put a price tag on safety, we are confident in the abilities of our state agencies to conduct the necessary economic and security analyses without incurring additional costs," Casagrande said.

Beck said she hopes the Senate committee will follow suit and support the bill.

The bill will have to be voted on and approved by the Assembly and Senate before it can be signed into law by the governor, according to the legislators.