brownfield redevelopment - amazon s3evraz steel mill –claymont, de –1 msf –425 acres asarco...
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BROWNFIELD REDEVELOPMENT
Stephen R. Collins, EVPCommercial Development Company, Inc.
MEDFA Annual ConferenceKansas City, MO -- October 8, 2015
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Presentation Overview
CDC approach to Public–Private Partnerships
Create Vison based on highest and best use Fully consider market realities Do not request public funds
ELT approach achieve Regulatory Closure
Fund Remedial Trust or Buy Insurance at closing Enter Voluntary Clean-up Program
Difference between Horizontal & Vertical Development:
Evraz Steel Mill – Claymont, DE – 1 MSF – 425 Acres
ASARCO Smelting – Perth Amboy, NJ – 250,000 SF – 70 Acres
General Motors – West Mifflin, PA – 1,000,000 SF – 72 Acres
Manchester / 270 -- Former Quarry – Des Peres, MO – 28 Acres
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CDC / ELT Value Proposition
“Begin with the end in mind” – Steven Covey
Highest & Best Use Analysis: Location, Location, Location
Identify Development Constraints: demolish buildings, remediate environmental, grade rough topo, rezone, build roads and utilities
Market to Users: Engage local brokers
Redevelop: Transform Brownfields into productive re-use
Outcomes: Revitalization, Job Growth, & Taxable Properties
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CDC Offer = (FMV) – (IC+EL+I+CC+X+R+P) where:
Offer CDC Price
FMV Fair Market Value of AssetsIC Investigative CostsEL Assumed Environmental Liabilities I InsuranceCC Carry CostsX ContingencyR Repositioning CostsP Profit
Pricing Methodology: Rasher-Colangelo Formula
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Evraz Steel – Claymont, Delaware
Bought 1,000,000 SF on 425 Acres in Oct. 2014
Prepared: Concept Plan and video showing Highest & Best Uses
Uses: Office, Retail, Transit Center, Industrial, & Rail-Truck Logistics Center
Process: Presentations to elected officials & public
Marketing: Brokers & businesses community
Voluntary Clean-up Program (VCP): DE-DNREC
Status: Three buyers and many prospects
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Concept Plan for First State Crossing
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ASARCO: 70 Acres in Perth Amboy, NJ
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ASARCO: 70 Acres in Perth Amboy, NJ
Bought 250,000 SF on 70 Acres in 2009
Conditions: 20 tenants & Many Environmental Issues
Voluntary Clean-up Program (VCP): thru NJ-DEP LRSP Program
Tenant Relocation & Demolition: Underway
Plan: Build 1,000,000 SF Industrial with a vertical development partner
Process: Present Plan to Perth Amboy Redevelopment Agency
Status: Selected as ‘Designated Developer’ by PARA in July 2015
Construction: April 2017
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ePort I & II Plan -- 2,350,000 SF -- 6 Buildings
2014
2017
“Today is a new day in Perth Amboy. This sustainable project will carry our city into a successful future.”
-- Wilda Diaz, Mayor of Perth Amboy
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General Motors: 1 Million SF Brownfield in PA
Bought 1,000,000 SF on 72 Acres in 2009
Environmental: Hydrocarbons, Solvents, & PCBs from 60+ years of heavy manufacturing.
PA-DEP Voluntary Clean-up Program (VCP): ACT 2
Remedial Activities Included: Demolish structures Recycle scrap steel Abate environmental hazardous Backfill with clean fill
Reuse: Sold to Pull-A-Part
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General Motors: 1 Million SF Brownfield in PA
“We are extremely gratified Pull-A-Part chose a Brownfield to redevelop and return to commercial use by making a multi-million dollar investment and creating good jobs in our community.”
-- Chris Kelly, Mayor of West Mifflin
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Des Peres Quarry
Remedial Activity:
» 180 foot deep rock quarry
» CDC imported 6,250,000 cubic yards of Clean Fill
» Rezoned by St. Louis County for Mixed-Use development
1994 2014
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Des Peres Quarry
2016 New Construction Underway:
» Luxury Apartment Complex (254 units)
» Assisted Living Complex (60 units)
» Hotel Development (210 unit)
» Class-A Retail / Office
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Advantages of CDC Approrach
Buy Brownfields -- without Public Funding
Fully Fund Remedial Trust -- to Guarantee Clean-up
Return Brownfields to Tax Rolls – using Private Funds
Highest & Best Use – based on Market Realities
Engage Brokers and Business Community
Limit Public Agencies to Zoning and Infrastructure Improvements
Quicker Results with Less Public Funding
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CDC Group of Companies
Cash Buyer Quick Close Oversee Redevelopment
Assume Environmental Liabilities Guarantee Regulatory Closure Unique Financing Strategies
Manage Environmental Remediation In-House “Boots on the Ground” Environmental Consulting
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Questions?
Stephen R. Collins CCIMExecutive Vice President
Phone: 314-835-2835 Cell: 314-504-4001
Email: [email protected]