PORTSMOUTH — The Navy will offer its former fuel tank farms land for purchase as early as next month.

Navy representatives announced last week that much of the Navy property on Aquidneck Island, including all of the tank farms in Portsmouth, will be for sale at market rate. In April, the land will be offered first to other federal agencies. After that in June, everyone else gets a shot. The Navy also plans to give up ownership of Burma Road, which the Aquidneck Island Planning Commission envisions as a scenic drive along the island's west shore.

The Portsmouth Redevelopment Agency (PRA) has been working on a plan for recommended uses of the nearly 300 acres of tank farms land on the west side near the Melville marine trades businesses and Raytheon. The government will use the plan as a guide in determining which proposals would offer the best use of the land as it is sold. The town plan must be submitted for federal approval by next March.

"It's going to be a lot of work," said PRA Chairman Fred Faerber, who attended the private meeting of the Navy and island officials. "In Portsmouth, we think we have a reasonably good plan."

Mr. Faerber said the PRA has created a "micro plan" for the Navy land, based largely on the AIPC's vision for future development in the West Side Master Plan.

Some of the suggested development in the PRA plan includes marine-trade businesses; other light industry or commerce; expanding Melville Campground and trails; siting the public works department in an existing building; a wastewater treatment plant or desalinization plant powered by a wind turbine; research and development; and recreational areas. Only portions of the land are suitable for building; the plan recommends preserving most of the forested corridor that runs through the land.

Elderly and luxury housing are also being considered but would require more clening to be suitable for residences.

The Navy acquired the land in the 1940s and built 40 above-ground and underground one-million-gallon fuel tanks. Although it has spent over $20 million to steam-clean or demolish these tanks, the Navy says it will still cost millions more to finish the job (which the Navy says it can do by 2014). The land has been cleaned to industrial standards that preclude any residences or recreational development. The Navy said it would consider development proposals that include the developer finishing the cleanup.

Town Administrator Robert Driscoll said that Navy representatives told the town that it has to show it tried to accommodate low income housing before the land is used as something else.

"We have to reach out to housing applicants for interest in the property," Mr. Driscoll said.

State law requires that all towns and cities have ten percent of their property sold as affordable housing by 2025. Portsmouth has less than three percent affordable housing so far.

Mr. Faerber said the PRA is addressing this by proposing that any large residential development built on the former tank farms have ten percent of the units affordable within the project or built somewhere else in town.

The tank farms land will have to be rezoned from heavy industry. The town will hold public meetings to discuss the plan to garner a community consensus.

"We need a plan that is fully supported by residents of the town," Mr. Driscoll said.

Cost of land

The tax assessor values all 367 acres of the Navy's tanks farms land at $10,857,200. The land does not have any buildings to speak of, which might have increased its value. The Navy says it will sell this land at its fair market value. PRA Chairman Fred Faerber said the agency expects that the town will not be able to afford to buy any of the land. He said the plan will identify what kind of development the town wants, and then use it as a guide to work cooperatively with developers.

By Jill Rodrigues

jrodrigues@eastbaynewspapers.com