A "golden" partnership.

The Community of Radcliff and its neighboring militaryy installation, Fort Knox, have become partners and are benefiting from the combination of their assets.

Partnerships can provide opportunities to achieve greater potential than what we can achieve alone. This is especially true when communities pull together to host events and attract visitors.

Partnerships are often as unusual as they are effective. Born out of necessity or mutual interest (or both), diverse factions can come together in a symbiosis that is beneficial to them and their community. One such example is occurring now in central Kentucky. The community of Radcliff and its neighboring military installation, Fort Knox, have become partners and are benefiting from the combination of their assets.

As we will see, a number of elements work in concert to make the partnership successful. Timing, economics, social evolution and a great amount of forethought brought these partners together.

Due to government cut backs, some of Fort Knox's facilities were given the ultimatum of becoming self-supporting or being forced to close. At the same time, the community of Radcliff needed a convention and meeting facility, but lacked the finances to build and maintain such a facility. By combining assets, Radcliff can now market and promote the convention facilities located on the military installation. And by opening their doors to civilian groups, Fort Knox will have greater revenue from increased usage of the facilities.

Changes in MWR 

As government spending continues to be closely scrutinized, traditional funding patterns have become less reliable. Like many other public recreation agencies, Morale, Welfare and Recreation (MWR) programs throughout the military have been affected by funding cuts. Because of troop downsizing and changing military priorities, MWR departments need to look at alternatives to the traditional military customer base. Journalist J. S. Newton stated the dilemma clearly by noting, "When the Cold War thawed, so too did many military mindsets realizing the need to become a viable partner with the civilian population outside its gates."

In this post-Cold War era, the armed services leisure system is viewed in two, diametrically opposed ways. In a 1994 article, Pat Harden, head of the Quality of Life Department at Indian Head (MD) Naval Surface Warfare Center, described the first viewpoint as the "traditional `quality of life' approach which sees Morale Welfare and Recreation services as amenities without significant mission impact." The converse view sees the mission of military leisure systems as a "`business like' marketing approach, which dominates our professional management thinking and....urges that all recreation services programs be viewed largely as a commodity to be merchandised."

The idea of military activities becoming self-supporting has been around for some time; yet, it has taken time--and drastic economic change--to gain support. This time of change stimulated a meeting between military leisure service philosophy and practicality.

History of Military Pay for Play

Nationwide, MWR providers have been faced with financial challenges for the simple reason that downsizing has created a smaller customer base. Julie Dvorak, director of Community and Family Activities at Fort Knox, notes that her installation is no exception. She explains that the present situation affecting the club systems began, "...about seven years ago when Congress directed the Armed Forces to end taxpayer support to the military club system."

Mike Mooney, director of Marketing and Commercial Sponsorship at Fort Knox, goes on the explain that, "Right-sizing, loss of units, decline in alcoholic beverage consumption throughout the Army, and price increases for goods and labor have all combined to make it more and more difficult to generate sufficient income to break even."

An additional factor in the economic pinch is a recent Department of the Army mandate that all clubs--especially those that are rank-specific--be financially independent. In the past, the post commander had the option to finance (through other programs) activities that were not profitable on their own. This option is no longer available to MWR. Changing times have produced a change in military attitude; increased cooperation with the civilian community under these circumstances seems very likely.

Meet the Partners: Radcliff, KY and Fort Knox, Military Installation

Radcliff, Kentucky is centrally located in Hardin County, between Louisville (45 miles) and the Mammoth Cave National Park (60 miles). The city's population is estimated at 22,000 which makes it the largest city in a county with a population of 92,000. Radcliff's entertainment opportunities include movie theaters, golf courses, a skating rink, a youth center, a community center, and seasonal swimming facilities. The city also has a full-time Convention and Tourism Commission whose purpose is to market the area. One thing that Radcliff lacks, however, is large meeting space and convention facilities.

Radcliff's local economy would be greatly boosted by an increased tourism base, spurred on by convention and meeting facilities. The city administration recognized this and entertained the idea of constructing a new convention center. While this convention center concept has merit, it also has some serious flaws.

As previously noted, Fort Knox has been faced with the challenge of generating funds for maintaining its existing MWR operations, including the military clubs. The clubs--previously supported in part through MWR appropriated funding--are now expected to be self supporting. A declining customer base (reduced post personnel) has made it difficult to support the budgetary needs of the clubs. In order to remain open, the Fort Knox clubs must increase their customer base and generate enough funds to cover their expenses, at the very least.

Solution

Enter Western Kentucky University's Institute for Economic Development. In 1995, a study was conducted by Debby Spencer, a tourism consultant with the Institute, to explore the feasibility of building a convention center in Radcliff. The findings from the study determined that, although the construction of a convention center in Radcliff, "...would be a wonderful asset to the community and would draw large meetings and conventions to the area, it was not recommended at this time due to the financial burden associated with its construction and maintenance cost." She proposed a partnership between Radcliff and Fort Knox as an alternative to the convention center construction.

Spencer took her findings and proposal to the community of Radcliff. She explained that cooperating with Fort Knox to generate funds for the area through the use of existing facilities was a simple and timely solution that provided a golden opportunity that would benefit each entity.

As an established community, Radcliff brings a couple of very important ingredients to the partnership--motel rooms and the ability to market the area--that were previously unavailable to Fort Knox. Because of its formal mission to serve authorized personnel, Fort Knox cannot market to the outside community. The base also has limited lodging options. Conversely, the community of Radcliff can market regional attractions both on and off the military installation. Examples of marketable attractions include, the Patton Museum, the Armor Unit Memorial Park, the United States Bullion Depository, the "Gold Vault," Lincoln's Birthplace Cabin, the Coca Cola Museum, and My Old Kentucky Home.

In her analysis, Spencer also pointed out that, "Fort Knox was limited financially and legally on how much they can promote outside the boundaries of the military." Army regulations read, "Routine MWR (Morale, Welfare and Recreation) patronage (programs, facilities, or services) by private organization members is not permitted unless they qualify as authorized patrons." Because there was no precedent for military installations to attract customers to military post facilities, the door was left open for the RadcliffTourism Commission to provide marketing expertise for the partnership. Because many of the needed convention services already exist on the base, monies that would be put into development and construction of a new facility could be put into marketing efforts.

Three other facility features supported Fort Knox as a convention provider. Room rates are comparable with other conference facilities throughout Kentucky. Fort Knox has a centralized catering service, which is experienced in booking large and small events. And the clubs retain the option to sell alcohol, an attractive aspect for convention groups that would otherwise be coming to a dry city and county.

Spencer also noted that, "Military facilities must become self-supporting or be threatened with closure. Making the facilities available to outside groups increases the number of potential clients and revenue." With the downsizing of troops and military families choosing to reside in the surrounding communities rather than on the post, the military clientele has decreased.

By marketing to the community, reunion groups and subgroups of larger conventions, revenues will increase for Fort Knox. Radcliff's economic gain will be evident through hotel occupancy, restaurant sales and related tourism expenditures.

Partnership Marketing

Currently, the Radcliff Tourism Commission is advertising on the Internet by promoting Radcliff through City Facts Sheet, a tourist attractions discovery section, and military reunion/veterans groups information pages. Information will also be available at an interstate visitor rest area near the Radcliff-Fort Knox exit. As an additional partnership, the RadcliffTourism Commission joined the Louisville Convention Visitors Bureau and the National Tourism Association.

Military Regulations

When entering into a partnership with military installations civilian groups must take into consideration the regulations that may affect the partnership. Current regulations state:

Category C-revenue generating activities. These activities have less impact on readiness. They offer desirable social and recreational opportunities. Activities in this group have the capability of generating enough income to cover most of their expenses, but they lack the ability to sustain themselves based purely on their business activity; consequently, they receive limited APF support.

The MWR military clubs have the following mission:

* sustain soldier morale and well-being which contributes to a constructive social alternative;

* support the Army goal of readiness and retention by providing an installation focal point for social activities and military events that fosters unit camaraderie, esprit de corps, and cohesiveness;

* satisfy market demands of the total Army family by providing services such as food and beverage, entertainment and recreational activities, check cashing and currency conversion,

* where applicable and supported; provide alternative feeding facilities to supplement troop dining facilities; meet installation mobilization, emergency, protocol, and hosting requirements; and

* meet the need for command-sponsored events and social function requirements of an installation and its personnel.

The regulations also address non-military members by stating that as private organizations, they are authorized to operate on an installation and may participate in that installation's special events and activities, yet they must follow provisions of Army Regulations.

Documenting the Agreement

This partnership provides a precedent which could be applied to other military installations and their neighboring communities throughout the country. Accepting changing needs and alternative solutions was vital to the success of this partnership. It was a win-win situation for both sides but still required agreement among all parties to be successful. The over-riding justification for the partnership: Radcliff will be able to meet the need of having a convention center without the cost of construction and Fort Knox will be able to gain a larger customer base.

As part of the partnership process, both parties are required to agree on the conditions of the partnership. Julie Dvorak, director of Community and Family Activities, and Daniel Brown, president of Radcliff/Fort Knox Convention and Tourism, signed a Memorandum of Agreement formalized on October 16, 1995. The Radcliff/Vine Grove Chamber of Commerce added its signature less than a month later.

The Memorandum of Agreement read:

* We support and endorse the concept of partnership between the community and Fort Knox;

* We wholeheartedly support the concept of utilizing Fort Knox Club Facilities in support of tourism, conventions, seminars, workshops, reunions, and other activities too large for Radcliff businesses to support with space and/or services;

* We agree that use of Fort Knox club facilities and services for the above purposes does not constitute "unfair competition" with civilian enterprises;

* We have no objection to the expanded use and marketing of Fort Knox club facilities and services in support of Radcliff efforts to attract new industries, tourists or other groups to the area;

* We agree this partnership meets the recommendations of the study conducted by the Institute for Economic Development, which was commissioned by the Tourism Commission and the city of Radcliff;

* We feel that this Memorandum of Agreement is equally beneficial to future economic development in Radcliff and Fort Knox.

Partnership Progress

Since the beginning of the partnership, the Radcliff/Fort Knox Convention Tourism Commission has been fairly successful. Through marketing and careful cultivation, the Commission has already booked several political and industrial meetings, as well as number of military reunion groups.

Conclusion

The partnership between Fort Knox and Radcliff has allowed the sharing of resources to benefit the entire community. The use of existing facilities generates funds directly for the military installation and indirectly for the community's tourism industry. It is a win-win situation, meeting the needs of both the community and the military installation.

The partnership process required the support of community leaders, chamber of commerce, tourism commissioners, and military installation leaders. Coordination and communication were key to the success of this partnership.

This example is a step toward meeting the needs of communities through partnerships and provides an example for other communities and MWR programs around the country.