Milestone: Brownfield Redevelopment
Redeveloping Brownfields, Revitalizing Neighborhoods
While Cincinnati’s high-profile riverfront development attracts most of the public spotlight, the Port of Greater Cincinnati Development Authority has also been entrusted with the cleanup and reuse of contaminated sites known as brownfields.
According to the U.S. Environmental Protection Agency, a brownfield is a property that is environmentally contaminated – or perceived to be contaminated – and now vacant, abandoned, idle or underutilized due to the real or perceived contamination.
The redevelopment of brownfield property presents unique redevelopment challenges including:
• potential legal liability frequently resulting from contamination which predates the current ownership,
• laws and regulations from multiple state and federal agencies which make the remediation process confusing, as well as the development and permitting processes slow, and
• costs associated with the clean-up may be expensive and difficult to estimate accurately and control.
In spite of these challenges, there is a national trend toward the redevelopment of brownfield properties because these properties offer distinct advantages such as being in or near densely populated areas that are supported by existing public infrastructure and mass transit, as well as frequently existing in neighborhoods rich in architectural and cultural heritage.
In carrying out our brownfield mission, we collaborate with Cincinnati/Hamilton County communities to assist in the revitalization of their neighborhoods.
The Port Authority’s involvement may include:
• Property ownership
• Development finance
• Acquisition and coordination of public funds
• Pre-development project management
• Facilitation of regulatory approvals
• Coordination of stakeholder/community involvement
• Environmental assessment
• Environmental clean-up
Creating the Strategic Vision
The development of a systematic approach to our brownfield efforts was seen as vital to our success. To arrive at such an approach, we engaged our Brownfield Community Advisory Committee, a citizens group representing many sectors of our community. We then conducted a series of forums to gather input from various groups including real estate professionals and corporate real estate specialists, banking, insurance and legal professionals, civic and environmental organizations, City and County government representatives, economic development representatives and community and neighborhood representatives. Together we launched a two-step strategic planning process. The first step, which has been completed, was to create a strategic vision that would guide planning efforts for brownfield redevelopment and further define our role. The second step, still in process, will involve the development of a detailed implementation plan.
From Education to Action
We believe that one of our most important goals is to educate the development, banking, insurance, legal and neighborhood communities about the potential of remediated brownfield sites.
To that end, we provided educational programs on brownfield redevelopment:
• Port Authority staff made presentations at the 2001 and 2002 Annual Environmental Law Committee Seminar of the Cincinnati Bar Association to educate the participants about the local brownfield redevelopment environment, specific projects and the Port Authority’s role.
• In November 2002, we hosted a seminar entitled, “Turning Liabilities into Assets,” assembling locally and nationally known brownfield experts to highlight the latest innovative development tools for overcoming the challenges associated with brownfield reuse. The seminar was well received and attended by over 150 participants representing the local development, real estate, financial banking, and local communities.
Projects Net Success
While all brownfield redevelopment projects are market-driven, these properties are by far the most complex development projects because of the layers of environmental, regulatory and property issues that affect redevelopment efforts. The Port Authority’s job is to move these complicated projects through the necessary processes and see them to conclusion in spite of extended predevelopment timetables. Frequently, the Port Authority’s intervention has resulted in significantly streamlining multi-governmental regulatory and permitting approvals. In two years of operation, we have facilitated the following seven brownfield redevelopment projects that have the potential to create up to 1,400 new jobs and leverage private investments in excess of $190 million:
Kemper Road Project
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A nine-acre site that housed numerous industrial concerns since 1930, had been the site of a U.S. Environmental Protection Agency (EPA) emergency action to remove 350,000 gallons of hazardous waste. The Port Authority was instrumental in having in excess of $7 million in liens on the property forgiven and in securing $60,000 in US EPA funding for the environmental assessments, as well as $1.5 million in Clean Ohio Funds to perform remediation activities. The Port Authority will administer the grants and has negotiated a development agreement with a private developer for the redevelopment of the property.
It is projected that the site will generate 300 jobs, 80,000 square feet of office/flex space, more than $5 million in private investment and leave the site environmentally remediated.
Center Hill Landfill Project
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In late 2001, the City of Cincinnati selected a developer for a 60-acre former landfill under its ownership. However, environmental remediation would have to be completed before the development could take place. At the City’s request, we worked with the developer to apply for a Clean Ohio Fund grant to conduct environmental assessments. Since Clean Ohio Fund regulations stipulate that the party responsible for the contamination (the City, as owner) may not apply for the funds, the City asked the Port Authority to act as the “volunteer” for the site assessment and remediation activities. We were able to secure $60,000 from the U.S. EPA for the Phase I environmental assessment, which was completed in June 2002. We also applied for $350,000 from the Clean Ohio Fund for the Phase II environmental assessment.
The successful completion of this project may generate up to 600 new jobs, deliver a new 500,000-square-foot office, manufacturing and warehouse space to the marketplace, leverage private investment of up to $40 million and place a vacant, underutilized property back into productive use.
CDO Tech/Value Pac Project
Since the end of 2002, the Port Authority and the Cincinnati Empowerment Zone have been assisting Value Pac, a subsidiary of the minority-owned CDO Technologies, develop a 40,000-square-foot manufacturing plant on an eight-acre tract that had formerly been a brownfield site. The Port Authority Board adopted a Declaration of Intent to issue $9 million in tax-exempt revenue bonds, which will allow Value Pac to buy the land, build the facility and purchase equipment. In addition, the company will receive $1.1 million from the Empowerment Zone to train and employ 200 residents from Zone neighborhoods.
This project creates a win-win situation for all involved since it will create up to 200 new jobs, place a vacant, underutilized property back into productive use and leverage private investment.
Mill Creek Restoration Project
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We entered into a partnership with the Mill Creek Restoration Project, a private nonprofit with the mission of spearheading the reclamation and restoration of the Mill Creek watershed. The Mill Creek, designated in 1997 by American Rivers as “the most endangered urban river in North America,” flows through the geographic heart of Cincinnati and along economically depressed neighborhoods. This partnership will allow us to assist the Mill Creek Restoration Project by providing administrative services such as engaging environmental professionals and facilitating project funding for Phase I and II environmental assessments for the City of Cincinnati’s Mill Creek Greenway Program. More than 100 Phase I environmental assessments have been completed along the Mill Creek in the Caldwell-Seymour, Queen City Center-Salway, and South Mill Creek areas. Phase II assessments are underway in the Calwell-Seymour area of the Mill Creek.
River Road Maritime Project
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The River Road Maritime facility, consisting of some 60 acres at the former Penn Central Railroad Riverside rail yards, may be redeveloped as a state-of-the-art maritime industrial campus that will include surrounding properties. A significant asset, the inter-modal infrastructure, is already in place. The Port Authority has been working with the City of Cincinnati and the developer, and may play several roles in the process, including property ownership of the public dock, providing financing assistance through revenue bonds, gaining all necessary site and public approvals, as well as acquiring funding for the construction of the public infrastructure components.
When completed, this project will have a major impact through the potential creation of more than 300 jobs, the leveraging of more than $100 million in private investment, the improvement of transportation facilities for Cincinnati businesses, the construction of more than 500,000 square feet of office, warehouse and manufacturing space and the development of a traditional port facility.
River Road Fuel Depot Project
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For 45 years, the U.S. Department of Defense and the U.S. Air Force operated a fuel storage and distribution terminal at a 67-acre site located along the north and south sides of River Road. The Air Force closed the depot in 1996, and after that, it sat idle. In 2002, we became aware that the federal government intended to declare the property “surplus” and return it to the community for reuse. The Port Authority sent a letter to the federal government indicating its interest in redeveloping the property. In response, we released a Request for Proposals to private entities that had expressed an interest in redeveloping the depot property and began review of the submitted proposals. In addition to selecting the private developer for the site, we will facilitate the various local and federal processes involved in the transfer of Air Force property. When completed, the project will place a vacant, underutilized facility back into productive reuse, maximize private investment in the site and result in the cleanup of a contaminated property.
Lincoln Heights Project
In 2002, the Port Authority helped the Village of Lincoln Heights to procure environmental professionals to assess the environmental conditions of potential brownfield sites in preparation for future economic development activities. We crafted the request for qualifications and will work closely with the Village throughout the environmental consultant selection process.
The opportunities represented by brownfield redevelopment in Cincinnati and Hamilton County are abundant. Our efforts to maximize these opportunities not only enriches our community with new jobs and facilities today, but also defines the environmental legacy we will leave for our children and generations to come.
The Banks
Brownfield Redevelopment
Strategic Partnerships
Legislation
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