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Elizabeth Limbrick
Sean Vroom June 9, 2015
New Jersey Institute of Technology (NJIT)Technical Assistance to Brownfields Communities (TAB)
What is TAB?
2
TAB is a technical assistance program, funded by the USEPA, which is intended to serve as an independent resource to communities and nonprofits attempting to cleanup and reclaim brownfields.
1
NJIT’s TAB program covers communities in
EPA Regions 1 and 3.
Technical Assistance for Brownfields [email protected]
What are NJIT TAB Services?
3Technical Assistance for Brownfields [email protected]
NJIT TAB can provide free assistance throughout the brownfield process
from getting started to staying on track to getting the job done.
All services must be aimed at achieving Brownfields clean up and development and be consistent with Region 1 and 3 programs.
Who is the NJIT TAB Team?
4
A multi-disciplinary team consisting of personnel with academic research, government, industry and consulting experience.
NJIT has been providing brownfields services to communities for 20 years.
Technical Assistance for Brownfields [email protected]
Who Can Receive NJIT TAB Assistance?
5Technical Assistance for Brownfields [email protected]
Communities, regional entities and nonprofits interested in brownfields
What are NJIT TAB Services?
6Technical Assistance for Brownfields [email protected]
NJIT TAB can provide free assistance throughout the brownfield process
from getting started to staying on track to getting the job done.
All services must be aimed at achieving Brownfields clean up and development and be consistent with Region 1 and 3 programs.
Examples of NJIT TAB Services
7
Great website – www.njit.edu/tab FAQs, Guidance on Managing BF projects,
download materials from previous workshops One-on-One Technical Assistance Review , Analysis, and Interpretation of
Technical Reports Brownfields Workshops Webinars
Archives available at njit.edu/tab
Technical Assistance for Brownfields www.njit.edu/tab 7
8
NJIT TAB CONTACT INFORMATION
Informal Process for assistance – just call or email us – there is no contact to sign. All assistance is free to eligible entities.
NJIT TAB Hotline 973-642-4165 [email protected]
http://www.njit.edu/tab/
Colette Santasieri [email protected] Elizabeth Limbrick [email protected] Vroom [email protected]
Technical Assistance for Brownfields www.njit.edu/tab 8
9
Brownfields Overview
Topics for Discussion Definition – What is a Brownfield History of Brownfields Benefits of Brownfield Redevelopment Brownfield Redevelopment Process Brownfield Successes
10
Definition
What is a Brownfield Site? A property whose full use is hindered by fears of
environmental contamination Liability / Funding to cover remediation costs
“Real Property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” EPA
(Real or perceived contamination)
11
Where are Brownfields?
Brownfields are: Everywhere Concentrated in areas of former industrial use
12
What Are the Fears?
Sites are dirty, trashed, clearly used “Real” Contamination:
In the buildings In the soil In the water
Liability Lack of Funds to cover remediation costs Displace Residents (eminent domain)
13
Brownfield Redevelopment
YOU ARE NOT ALONE.
A 2010 Survey of 75 cities by the US Conference of Mayors showed that for just these 75 cities:
Brownfield sites = 29,624 representing 45,437 acres
Baltimore 2010 study 2,500 acres of BF in the City
14
How Did We Get Here:History of Brownfields
Baltimore HarborSource: Maryland Historical Society
Sparrows Point – Turning Basin, 1953Source: Mark Reutter Collection
Holland Tack Factory, 1300 Bank St., Baltimore, MDSource: bmore media
15
History of Brownfields
FORMER GAS STATIONSource: EnviroSure Inc, RIW South Waterfront Service Station, September 2009.
FORMER FACTORYSource: Limbrick 2010
FORMER JUNKYARDSource: Limbrick 2008
16
Do I Have a Brownfield in My Community?
Do I have a brownfield in my Community? Ask yourself:
Do I know of a site that is vacant or less productive than it should be?
Are there concerns about environmental contamination?
17
Why is this site a Brownfield?
Manufacturing Soil, groundwater contamination Heating Oil Tank Leak
Currently Unused Deteriorated Underutilized
Source: The Register Citizen, August 11, 2014. Esteban L. Hernandez
18
Why is a RR a Brownfield?
Railroads may contain several sources of contamination: Railroad ties (wood
treating chemicals Pesticides Slag used as railroad
bed fill Brake Fluid / Hydraulic
Fluid Fuel
Fossil Fuel Combustion products
PCBs in railroad transformers (used to power locomotives)
Solvents for cleaning Spilled or leaked
chemicals
Note: Railyards / Maintenance areas may include additional issues
19
Why is Brownfield Redevelopment Important?
Environmental, Societal and Economic Benefits Cleans up the Environment Improves Community Appearance – Decreases Blight
– Eliminates Eyesores Increases Property Value Liability for doing nothing: Potential fines for
environmental enforcement actions Can bring jobs & new investment to community
20
Brownfield Redevelopment Fiscal Benefits
S. B. Friedman & Company (SBFCo.), Fiscal Analysis of Brownfield Redevelopment, March 10, 2009.
21
Brownfield Redevelopment Fiscal Benefits
S. B. Friedman & Company (SBFCo.), Fiscal Analysis of Brownfield Redevelopment, March 10, 2009.
EAV = Equalized Assessed ValuesCAGR = Compound Annual Growth Rate
22
Tax Benefits of Brownfield Redevelopment
CASE STUDY #1 Gateway Center / Metra Station
Former dry cleaner, EPA Brownfields Grant of $60,000. 7-acres, in downtown
Projects created centralized parking; added new, transit-oriented commercial and retail space to the downtown; and provided a new, better-situated Metra station.
The 1,244-space public parking garage Commuter parking facility Engineering Control
Gateway Center, a 102,000-square-foot office building. The east end contains several small retailers and a restaurant.
2001 = $88,000 property taxes
2008 = Project completed and is generating $927,000 in property
taxes
23
Tax Benefits of Brownfield Redevelopment
CASE STUDY #2 Calumet, IL 18 blocks of vacant industrial properties EPA Assessment grant of $200,000 State grant of $88,305 to cleanup of the contamination
approximately 30 USTs removed 1994 City purchased the properties $13 million in proceeds from TIF-backed
bonds City attracted two fast-food restaurants (totaling 6,800 SF) and four new
industrial businesses (totaling 94,000 SF) in addition to aiding in the expansion of an existing construction business.
City sold its parcels for $1.00 after the each project plan was approved by the City Council.
Since 2005, the area has added a massage therapy school and a 13,000-square-foot retail building, and an existing plumbing business has expanded. The City has more than doubled its property taxes within the project area, from $362,000 in 1999 (adjusted to 2008 dollars) to $777,000 in 2008.
24
Redevelopment Options
Industrial Residential Commercial Mixed Use Parks / Greenspace (trails, public water
access / boat ramps, golf course, etc.) Government Urban Agriculture / Food Distribution
25
Reuse Examples: Park / Greenspace
NYC Highline Source: PSFK psfk.com
Lardner’s Park Point / East Coast Greenway, Northeast Philadelphia, PASource: NJIT TAB
New Broadway East Community Park – “Parks and People”Source: Alliance for Community Trees
26
Reuse Example: Went Field Park, Bridgeport, CT
27
Reuse Example: Community Garden
Boone Street Farm, 2100 Boone St., Baltimore MD
Neighborhood Hub:
“became a space for children to play, neighbors to garden, fellow gardeners to cultivate, local artists to create art, neighbors to gather, and more”
28
Reuse Example: Community Garden - Northern Liberties, Philadelphia
BEFORE
29
Reuse Example: Albert Steel Drum – FedEx Facility Newark NJ
BEFORE
AFTERSource: NJIT
30
Reuse Examples: Industrial / Green Energy / School / Ballpark
Fairless Hills, PASource: KIPC and Langan Engineering http://www.eswp.com/brownfields/Costello.pdf
Camden ECDC School Source: Limbrick
Minor League BallparkCampbell’s Field / Camden Riversharks,
Camden, NJ Source: NJDEP
Solar Farm Source: PSEG.com
31
Reuse Examples: Commercial/ Retail / Office Park/ Mixed Use
Trenton Office ParkSource: Langan Engineering
Bronx Terminal MarketSources: NYDEC and Plaza Construction
Mixed Use Development with Affordable Housing
Courtland Corners, Melrose Commons South Bronx, NY
Source: Bob Wieda and Phipps House / NYDEC http://www.dec.ny.gov/chemical/50491.html Residential : Apartments - LEED
Source: Trammel Crow Residential
32
Steps in Brownfields Redevelopment
Yes – I have brownfield site…
Now What?
33
What is Typically Involved with Redeveloping a Brownfield?
34
What is Typically Involved with Redeveloping a Brownfield?
Site Identification• Inventory• Single Site• Common Types of Sites• Area-wide Approach to Sites
Community Involvement • Analyze community needs and preference to prioritize
development strategies • Can be a critical piece of redevelopment• Often ignored by developers
35
What is Typically Involved with Redeveloping a Brownfield?
Planning
• Evaluating existing environmental conditions, local market potential, and area infrastructure improvements needed;
• Developing strategies for brownfields site cleanup/reuse; • Identifying resources or leveraging opportunities to implement their plans.
36
What is Typically Involved with Redeveloping a Brownfield?
Purchase or sale agreement Involuntary acquisition methods
tax foreclosure eminent domain
Site Access Agreement with option to purchase
Acquisition / Site Control
37
What is Typically Involved with Redeveloping a Brownfield?
Environmental InvestigationEnvironmental Investigation
38
What is Typically Involved with Redeveloping a Brownfield?
Clean Up (Remediation)
39
What is Typically Involved with Redeveloping a Brownfield?
Clean up (Remediation)
40
What is Typically Involved with Redeveloping a Brownfield?
Site Preparation
41
What is Typically Involved with Redeveloping a Brownfield?
Redevelopment
42
Liability
What are the potential liabilities / uncertainties? Environmental Costs
Some lenders may also be wary Uncertainty on costs for Investigation / Remediation Additional costs for Consultants & attorneys
Time Uncertainty on timeframe for cleanup Grant process takes time
More players involved Depending on selected remediation, may limit
reuse options
43
Liability Relief
Federal – CERCLA Innocent Purchaser Involuntary Acquisition 3rd Party Defense
TIP1) Always do your Due Diligence aka “All Appropriate Inquiry” / Phase I before purchasing a property2) Do not exacerbate the contamination
44
Responsibilities
Due Diligence Once you own it, you must:
Not exacerbate the contamination Remove and properly dispose of any hazardous
substances that are leaking (or likely to leak) Report discharges Take action to reduce substantial threats
Restrict access in order to minimize damage that may result from unauthorized access to the property
45
Timeframes
How long will the cleanup take?It depends on the level, type, amount, and extent of contamination, cleanup standards, and funding.
More Detail Timeframes
46
Timeframes
There is no “average site” so there is no “average timeframe”. However, timeframes for redevelopment vary from 6 months to 10 years and beyond.
Best scenario: property is owned minimal contamination permits are in place funding has been secured redevelopment plans have been approved
47
Example Timeframes Brownfield Redevelopment
Phase I secure funds
(variable) RFP (variable) hire consultant
(variable) Conduct Phase I
(See above plus 2 months)
Phase II
secure funds (variable)
RFP (variable)
hire consultant (variable)
Conduct Phase II
(see above plus 2-4 months)
Phase III
secure funds (variable)
RFP (variable)
hire consultant (variable)
ConductPhase III
(see above plus 2 month to 5
years+)
Environmental Remediation
secure funds (variable)
RFP (variable)
hire consultant (variable)Conduct
Remediation (see above plus
variable (1 month to 2
years+ for easy site))
48
How much will this Cost?
How much will it cost to investigate and remediate the site? It depends on the level, type, amount, and extent of
contamination, and cleanup standards. Phase I $5,000 Phase II $5,000 to well over $100,000 Phase III??? $5,000 - $300,000+ Remediation $20,000 - $1Million+ Note – to enter MD VCP – Phase I and Phase II plus $6K application
fee
How long will the cleanup take?It depends on the level, type, amount, and extent of contamination, cleanup standards, and funding.
49
Financing Brownfield Redevelopment
Technical Assistance Tax Incentives Local Financing Tools Low Interest Loans Loan Guarantees Federal Grants
50
MD Funding Programs
Brownfields Revitalization Incentive Program Brownfields Assessments / State Superfund
Division MD Water Quality Revolving Loan Fund (RLF)
Baltimore Brownfield Property Tax Credit Brownfield Site Assessments
51
What’s Been Linked Together for Redevelopment Projects?
Grants US EPA assessment and cleanup grants HUD’s Community Development Block Grants (for
projects locally determined) EDA public works and economic adjustments DOT (various system construction, preservation,
rehabilitation programs) Army Corps of Engineers (cost-shared services) USDA community facility, business and industry
grants
Content from Charlie Bartsch, USEPA Senior Program Advisor
Other Federal Funding Programs
52
What’s Been Linked Together for Redevelopment Projects?
Federal Investment Incentive Program EB5 Investments
Equity capital & loan guarantees SBA Small Business Investment Cos. SBA Section 7(a) guarantees DOE energy facility guarantees
Tax incentives and tax-exempt financing Targeted expensing of cleanup costs Historic rehabilitation tax credits Low-income housing tax credits New Markets Tax Credits (2015?) Industrial development bonds Energy efficiency construction credits
Content from Charlie Bartsch, USEPA Senior Program Advisor
Other Federal Funding Programs
53
What’s Been Linked Together for Redevelopment Projects?
Loans EDA capital for local revolving loan funds HUD funds for locally determined CDBG loans and
“floats” EPA capitalized revolving loan funds SBA’s microloans SBA’s Section 504 development company debentures EPA capitalized clean water revolving loan funds
(priorities set/ programs run by each state) HUD’s Section 108 loans/guarantees SBA’s Section 7(a) and Low-Doc programs USDA business, intermediary, development loans
Content from Charlie Bartsch, USEPA Senior Program Advisor
Other Federal Funding Programs
54
Allied / Honeywell Chrome Site
Honeywell Manufacturing
55
During / After: Harbor Point
Honeywell Manufacturing Harbor Point LEED Gold Apartments Retail Office Space 9.5 acres of
waterfront parks and
a promenade
56
BEFORE: Riverside Drive, East Hartford, CT
1926 – 1980s Petroleum storage and distribution due to their location along the Connecticut River (Subsequently, buildings used for offices / warehouses)
Soil and groundwater contamination
Petroleum seeped into the Connecticut River causing a visible layer of oily water.
57
DURING: Goodwin College East Hartford, CT
11 acres 2005 Goodwin College
purchased properties and removed 30 above-ground petroleum storage tanks
2006 – 2007 Environmental Investigation / Remediation Excavation / In-situ
remediation (microbes)
• USEPA Assessment Grant $122K• USEPA Brownfields Cleanup $600K• 3 Million Dollar PILOT remediation - CT Brownfields Redevelopment Authority • 2.25 million in state bond funds Dept. of Economic and Community Dev.• Goodwin College – 52 Million (includes private / bank financing)• Approx. 55-58 Million Total project cost
58
AFTER: Goodwin College East Hartford, CT
Dec. 2008, opened the 109,000 SF flagship academic center Approx. 500 employees Approx. 3,000 students.
2009-2010 added Environmental Degree Program and CT River Academy.
Now a cultural and educational hub for the region. 10,000+ people on campus
Brought $150 in economic development to the area (three times the initial investment).
59
BEFORE: Main & Pavilion St., Hartford, CT
• 2.46-acre site at the corner of Main and Pavilion Streets,
• Previous uses included: dye works, gas station, a state arsenal, auto repair, and other uses
• 1994 Developer began investigating site• 1998 Phase I conducted• 2000 Phase II – found petroleum contamination
in the soil and water.• 2005: Connecticut Department of Economic and
Community Development loaned $160,000 (from their EPA RLF grant) to the nonprofit for remediation
• 2003 – 2004: 8 USTs removed, 2000 tons of contaminated soil excavated and removed.
• Remediation completed in 2005.
60
AFTER: Main & Pavilion St., Hartford, CT
• Fall 2005 Metro Center Shopping Center Opens• Jan. 2006 – Sav-A-Lot Grand Opening
61
FUNDING Main & Pavilion St.Hartford, CT
$5.2 Million
EPA$160,000 Revolving Loan Fund
City of Hartford$100,000 CDBGDonation of land
Community Economic Dev. Fund$5,000 Technical Assistance Grant$100,000 Bridge Loan Financing
HUD$1,500,000 Section 108 Loan$300,000 Brownfield Economic Development Grant$300,000 Urban Development Action Grant
Private$2,200,000 Construction$500,000 Loan Guarantee
Copper Star Coffee, Phoenix, AZ
Former 1930s gas station, repurposed as popular coffee house.
Took 1.5 years to complete adaptive use.
2006 – Coffee house opened
Challenges: Zoning, Parking. Modifications to electric and accessibility to meet current codes.
2006 – Coffee house opened
BEFORE: US Patent OfficeAlexandria, VA
Landfill During Excavation
Past UsesRR Switching Yard (150 years +)Scrap yard Historic municipal landfill closed in the 1970s
15.66 acre Site – desirable location inside DC BeltwayExtensive soil contaminationGroundwater contaminationMetals, VOCs, SVOCs, Petroleum, PCBs
Source: Bariatos and Brebbia. Prevention, Assessment, Rehabilitation and Development of Brownfield Sites. Brownfields IV. Billiceria, MA. 2008.
Timeline: US Patent Office
1996: Proposal for Development (Congress approved leasing of 2 Million SQF of office space).2000: Contract awarded to LCOR. Environmental Investigation began. Site was divided into 7 parcels for development.2000 – 2005: Remediation
• 450,000 CY of material disposed • Institutional controls prohibiting residential use and prohibiting use of
groundwater.• Engineering controls:
• hardscape capping or 2’ of clean fill • the construction of a gas collection system
• vapor barriers, • gas collection piping, and blowers under the buildings to prevent
the potential buildup of methane, other landfill gases, or VOCs.
2005: VDEQ VRP issues “Certificate of Completion”. Employees move to new office.
AFTER: US PATENT OFFICE
US Patent and Trademark Office - $1,000,000,000 Site
Costs: US Patent Office
Land Purchase $92 Million
Environmental Engineering $2 Million
Environmental Remediation $24 Million
Campus Design $31 Million
Construction Costs $518 Million
Finance $191 Million
Reserves $16 Million
Misc. $38 Million
TOTAL $912 Million
Economic Benefits: US Patent Office
ECONOMIC BENEFITS:9,000 employees – $795 Million estimated total wages paid per year.
2001 2009
Land Value per acre
$5.6 Million $9.8 Million
Total Assessed Value
$87 Million $1.077 Billion
Tax Revenue $0.9 Million $9.8 Million
Adjacent siteTax Revenue
$52K $119K
Development continues the frenetic growth of the seen since U.S. Patent and Trademark Office moved there in 2005. Luxury Apartment buildings, 20-story Condo buildings, shopping district and restaurants have opened and more development is planned. NSF, with 2,100 workers, is planning to move here in 2017.
69
What Makes a Brownfield Redevelopment Successful?
1. YOU!
2. Partnerships
3. Community Involvement / Champion Remember: Whose Project is it? The Community’s
4. Agreement among stakeholdersCommunity members
Government entities
Property owner
Developer
Lender
70
What Makes a Brownfield Redevelopment Successful?
5. Evaluating and Mitigating Environmental Risks
How “clean” does it need to be?
6. Is the Project Viable? Evaluate finances and funding sources.
Do the numbers work? Can this area support the future use?
71
What Makes a Brownfield Success?
7. Financing / Funding Obtain the funds / financing
8. Timing
72
Conclusion
QUESTIONS?
Learning More http://www.njit.edu/tab/ http://epa.gov/brownfields/
THANK YOU
CONTACT INFORMATION:
Elizabeth Limbrick –973-596-5519 [email protected]
TAB Hotline: (973-642-4165); [email protected]