PIOGA / M2M

Presented By:

CEC and Sustainable Strategies DC

November 7, 2019

Brownfields as Future Manufacturing Sites - It's not the Hurdle You Might Think

Mary Guinee

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Brownfields as Future Manufacturing Sites...

Rob Dlugos Matt Ward

Mary Guinee, Civil & Environmental Consultants, Inc.

• What exactly is a Brownfield?• According to the USEPA:

• A brownfield is a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. It is estimated that there are more than 450,000 brownfields in the U.S.

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What exactly is a Brownfield?

• USEPA and New Manufacturing on Old Brownfields Redevelopment, 2015:

Successful development of brownfields can be enabled or accelerated when these stakeholders work together to assess and clean up a property and pursue a common redevelopment goal.

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What does the USEPA say about Brownfields Redevelopment?

• Brownfields are underutilized properties where the presence or potential presence of

hazardous substances, pollutants or contaminants complicates expansion,

redevelopment or reuse of the properties.

• Challenges in cleaning up and redeveloping brownfields include liability concerns for

developers and future property owners, technical concerns over cleanup measures and

land use objectives, time and financial concerns over cleanup activities required at the

site, and planning considerations with the community.

• Brownfield properties vary widely, from a single abandoned gas station located on a rural

road to large operating factory complexes covering many acres in an urban setting.

• The amount and need for DEP assistance depends on the property ownership (privately

or publicly owned) and the stage of the cleanup or development.

• And, because each project is unique. Not a one size-fits-all approach.

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What does the PADEP/PADCED say about Brownfields Redevelopment in 2018?

Appalachia is the convergence of:• Corridor between wet gas production hotspot and northern West

Virginia / southwestern PA gas processing plants

• Nexus of interstate gathering and transmission pipeline systems

Regional Context of Site Selection

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Local NGL Infrastructure Map

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NGL Storage Hub(s)

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Petrochemical Product Customers

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• The next real play for jobs and economic development?

• Downstream petrochemical manufacturing that can emerge from that energy infrastructure investment, hence the topic of this summit “Marcellus-to-Manufacturing”.

• Putting “new manufacturing on old brownfields”, and taking advantage of the typically less stringent cleanup requirements and costs that industrial reuse can allow, makes these brownfield sites the key places to consider if you are going to put midstream or downstream shale industrial development into this region.

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What is next?

• What makes a good brownfield site?

• One that is Underutilized and undervalued

• The same site advantages that led to the initial development of these sites are valuable today

• Proximity to Urban Core

• Excellent Rail, Road, and River Access

• Flat Land

• Traditional Industrial Areas with More Local Acceptance of Heavy Industrial Reuse

• Likely not mass marketed properties (low regional awareness of availability)

• Likely surplus real estate

• End Users drive the process – singularly or together (*co-locate)

• Utilize available municipal and State Funding to perform environmental assessments and infrastructure evaluations, and remediation

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The Next Gen of Brownfields

Rob Dlugos, Civil & Environmental Consultants

• Many have the robust infrastructure industrial and manufacturing facilities need

• History of industrial use followed by vacant “eyesore” status makes it much easier for the public and regulatory agencies to be in favor of these projects

• As Mary indicated, the cleanup requirements can be much less stringent for industrial reuse.

• As Matt will get into, there are grant and low interest loan funds available for these projects.

Why Brownfields?

Pittsburgh’s South Side –Former LTV Site Transformed

• Business Development Agencies, Redevelopment Authorities, Local, Counties, and at times State Governments are the grant administrators

• Funding and award of future funds depends on grant $’s leading to redevelopment and positive impacts to the community

• If you go to one of these agencies with a viable idea for successful redevelopment of a site in their community, they should be happy to work with you

• Lots invested on their end - real estate market analyses, reuse strategy/feasibility assessments, community stakeholder meetings, etc., so they welcome viable redevelopers and end-users committed to one of their sites

• Solicit the agency’s commitment in return – how will they support the project through redevelopment? – Matt will get into some additional funding ideas beyond assessment that can be leveraged for projects

Grant Funds – Local/Regional Agencies

• Be able to communicate a vision for the property and your planned reuse

• What type of facility?• Needs for existing infrastructure or improvements to infrastructure• Access needs – roadways, rail, river loading docks

• Preliminary assessment can be used to decide between two or more site options

• Authorities/agencies may at times purchase sites to redevelop them if a specific and viable reuse and end-user are identified

• Utilize assessment funds to clearly understand environmental issues and complete remedial planning that incorporates end-use and redevelopment options (i.e., parking areas, buildings over contaminated soil)

Leveraging Funds to Achieve Success

• Not sufficiently preparing before meeting with agencies/authorities

• Wasting time and funds on sites where you cannot achieve your objectives – inadequate infrastructure or access, environmental hurdles that are too difficult to overcome considering construction and reuse plans, etc.

• Not partnering with a firm who can guide you through the potential pitfalls and assist with go/no-go decision making before investing significant funds

• Not partnering with a firm who understands creative ways to marry redevelopment and remediation alternatives that can be achieved almost incidental to redevelopment

Avoiding Pitfalls

Marcellus-Related Manufacturing Brownfields Redevelopment Example

• Again, much has been invested by the Westmoreland Industrial Development Corporation (IDC) to realize redevelopment of brownfield sites.

• The IDC bought the former glass site for $305,000 and embarked on a $6 million redevelopment project which has been funded by state and local dollars.

• Brownfields assessment $’s used to do assessments.

Marcellus-Related Manufacturing Brownfields Redevelopment Example

Matt Ward, Sustainable Strategies DC

Opportunities to Leverage Resources for Downstream Manufacturing on Brownfields

PIOGA Marcellus-to-Manufacturing Conference 2019Matt Ward / Sustainable Strategies DC

Overview of Presentation –Opportunities

Public resources are in action now to prepare brownfields for downstream manufacturing

You can be a partner in leveraging resources for manufacturing on brownfields

Emerging examples of leveraging in action

• Sustainable Strategies DC is a strategic consulting, grant-writing & government affairs firm helping communities obtain resources for revitalization and economic growth

• Based in Washington, DC helping clients across America connect to and secure funding from public, philanthropic & private sector partners

• Marcellus-region clients include • Beaver County PA (brownfields)• Borough of Monaca PA (infrastructure upgrades)• Catalyst Connection (shale-manufacturing)• Greene County PA (shale hub investments / infrastructure)• City of Johnstown PA (manufacturing)• Manufacturing Alliance of Communities• City of Morgantown WV (Opportunity Zones / manufacturing)• Pennsylvania Industrial Resource Centers• TEAM Consortium at Beaver Community College (workforce)• Tri-State Shale Coalition• City of Weirton WV (industrial redevelopment)• City of Wheeling WV (white collar sector of shale)• West Virginia University (shale supply chain)• WV Land Stewardship Corporation (brownfields)

• $5+ billion leveraged in 25 years

• www.StrategiesDC.com

Sustainable Strategies DC

Public Resources Creating Opportunities Now

U.S. EPA Brownfield planning grants:

➢ Aliquippa PA➢ Beaver County PA➢ Greene County PA➢ Midland PA➢ Monaca PA➢ Weirton PA

PA DEP Industrial Sites Reuse Program & BIOS resources

PA DCED Playbooks

PennDOT & CFA Multimodal Transportation

ARC POWER Grants

U.S. EDA

WV Commerce / WV DOT industrial infrastructure

Major Ohio investments

Opportunity Zones

Need for Public-Private Collaboration

Regional, interstate & public-private collaboration

Shovel-ready sites

Infrastructure upgrades

Community infrastructure (housing, support services, workforce development, quality of life)

Key collaborations

➢ Ohio River Brownfields

➢ Tri-State Shale Coalition

➢ TEAM Consortium

➢ Greater Pittsburgh-WV IMCP

Key roles for the states & feds

Leveraging Resources for Brownfields & Infrastructure Development

1. Identify Assets, Sites & Promising Projects ➢ Inventory the assets & advantages in your community/region➢ Identify investment-ready sites➢ Align incentives➢ Create a compelling “pitchbook”, prospectus, or on-line package

2. Reduce Brownfield Barriers with “Front-Loaded Due Diligence”➢ Create a community-supported vision for reusing brownfields for shale-

manufacturing redevelopment ➢ Address environmental issues with assessment resources➢ Conduct market research➢ Align planning & zoning approvals➢ Make infrastructure plans & upgrades➢ Clean up contamination to industrial levels

3. Leverage Resources➢ EPA, PA DEP➢ EDA, ARC, PA DCED➢ Transportation & utility infrastructure agencies➢ Opportunity Zones➢ Resource Roadmaps & Roundtables

4. Private Sector connections to Public Sectors➢ Private owners, developers & investors should reach out➢ Public sector should host developer/investor forum

Resources in Action – Weirton WV

1,100-acres of Weirton Steel divested by ArcelorMittal to the Frontier Group of Companies in early 2017 / robust utilities, Ohio River barge, multiple freight rail, and highway access

Invested $76+million in acquisition and site preparation

Initial phase = 1.2 million sq. ft. industrial and commercial development

Leveraging U.S. EPA Brownfield Assessment & Cleanup Revolving Fund for environmental (lead firm CEC)

U.S. Department of Commerce EDA grant funded new “Weirton Area Reuse Plan” for industrial, commercial, infrastructure & workforce housing development

Major federal and state grant applications pending for infrastructure upgrades ($14.7M DOT BUILD)

Resources in Action – Monaca PA

The Borough of Monaca and its 6,000 citizens are in the center of opportunity

Must upgrade PA State Routes 18/51 to be prepared for massive truck, rail & worker vehicle increases

U.S. EPA Brownfield Area-Wide Planning Grant created “Ohio River Brownfield Plan” (Coraopolis, Aliquippa, Monaca, Midland, Moon Township); EPA Assessment supporting site prep

PA DOT, PA DCED CFA Multimodals, SW PA Commission funding leveraging transportation corridor & infrastructure upgrades

Pending U.S. DOT BUILD Grant for $13.7 million to complete corridor upgrade

Resources in Action – Greene County PA

Closed Robena Coal mine and other coal-contraction impacts to county and region – primed to deploy DCED Playbook for redevelopment strategies

Greene County Industrial Developments Authority leveraging $300k in EPA Brownfield Community-Wide Assessment grants to prepare sites for redevelopment

Launching “SOuthwestern Pennsylvania Hub Infrastructure Assessment” (SOPHIA) to identify infrastructure and site upgrade needs to prepare for major investments in shale sector / currently seeking federal and state funding support & expert assistance

Thank you!

Matt WardSustainable Strategies DC

Matt.Ward@StrategiesDC.com

www.StrategiesDC.com