Brownfields 101 briefing by NJIT TAB for Baltimore Urban Waters Partnership

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 TAB@NJIT.EDU

What are NJIT TAB Services?

3Technical Assistance for Brownfields TAB@NJIT.EDU

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 TAB@NJIT.EDU

Who Can Receive NJIT TAB Assistance?

5Technical Assistance for Brownfields TAB@NJIT.EDU

Communities, regional entities and nonprofits interested in brownfields

What are NJIT TAB Services?

6Technical Assistance for Brownfields TAB@NJIT.EDU

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 tab@njit.edu

http://www.njit.edu/tab/

Colette Santasieri Santasieri@njit.edu Elizabeth Limbrick Limbrick@njit.eduSean Vroom SVroom@njit.edu

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 limbrick@njit.edu

TAB Hotline: (973-642-4165); tab@njit.edu