application for 2009 clean ohio revitalization funds - city of

Application for 2009 Clean Ohio Revitalization Funds – Round 7 City of Grandview Heights – Grandview Yard/Former Big Bear Warehouse Redevelopment

Goal of the Brownfield Project For nearly six decades, the City of Grandview Heights, Ohio was home to the nation’s largest refrigerated warehouse, providing hundreds of local jobs and critical tax revenue to Grandview Heights and the State of Ohio. In 2004, the bankruptcy of Penn Traffic Corporation – the parent company of the former Big Bear grocery store chain in Central Ohio – resulted in significant and swift job losses in the City of Grandview Heights, and left behind several dozen acres of abandoned and underutilized properties in its wake. The loss of Penn Traffic and the subsequent closure of several other prominent businesses in the area since 2005 have resulted in the City losing its first, fifth and seventh largest revenue-producing employers, equating to more than $800,000 in lost tax revenue annually and the loss of more than 1,000 jobs – or between 14 and 18 percent of the community’s available workforce. These losses have resulted in more than 80 acres of abandoned or deteriorating former industrial and manufacturing properties between Third Avenue and Goodale Boulevard in Grandview Heights.

Located at 851 W. Third Ave. in Grandview Heights, the 17.654-acre Grandview Yard/Former Big Bear Warehouse Redevelopment project described in this Clean Ohio Revitalization Fund (CORF) application is the second major development area within an overall economy-altering redevelopment project for the City of Grandview Heights. Working with Nationwide Realty Investors, Ltd. (Nationwide), a private mixed-use developer, the City of Grandview Heights is seeking $2,000,000 in CORF funding to support the demolition

of a 534,734-square-foot former Big Bear warehouse and environmental remediation of contaminated soils that will result in the future development of commercial and residential space within the 17.654-acre CORF project area. In conjunction with the City of Grandview Heights, Nationwide designed an overall master plan for this urban redevelopment project, known as Grandview Yard. Nationwide is committed to developing this overall plan, which calls for the investment of more than $500 million in private capital and $119 million in infrastructure improvements and upgrades on an 80+-acre footprint. The final development is expected to create approximately 1.5 to 2 million square feet of commercial and office space, more than 5,000 full-time jobs, and more than $5 million in additional tax revenue for Grandview Heights. Due to the unusually large size of this urban brownfield, this redevelopment holds the promise of allowing the City and Nationwide to achieve the following goals: 1. Secure the future expansion needs of a landlocked urban community. As the boundaries

of Grandview Heights are fixed and cannot be expanded to accommodate new development, the overall redevelopment of this blighted area will provide the City with opportunities to create new residential, retail, commercial and office space on the location of former industrial manufacturing properties while attracting new businesses, developing approximately 600-800 new residential units, and adding new community amenities such as retail stores, restaurants, and green space;

2. Remediate approximately 17.654 acres of contaminated brownfield property in a

distressed area of the community, which will provide the clean real estate critical for future

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additional residential, retail, commercial and office space in an area uniquely located minutes from The Ohio State University and the State capital; and,

3. Transform a blighted and currently disjointed urban corridor through a fully integrated

master plan that will connect Third Avenue and Goodale Boulevard through this development, while creating a new eastern gateway for the City of Grandview Heights.

Economic Benefit Current Infrastructure The Grandview Yard/Former Big Bear Warehouse Redevelopment project is directly serviced by all major utilities and infrastructure, including access to major roads (West Third Avenue); public water, sewer and storm sewers; electric (AEP); natural gas (Columbia Gas); telecommunications services (AT&T); and a commercial rail spur. In addition, Nationwide will provide the capital necessary to begin construction of project’s internal roadways required to accommodate future commercial and residential redevelopment of the site once the demolition and environmental remedial activities are complete. Proximity to Sources of Commerce The property is located within 0.5 miles of at least two major sources of commerce as defined in the CORF guidance. Located 1,040 feet from State Route 315, the site is easily accessible from a major thoroughfare. In addition, the property is located 253 feet from a commercial rail line and spur owned by C&O Railroad, and approximately 1,250 feet from the Olentangy River. New Employment/Quality of Life Once the demolition and remedial activities are completed, the City and Nationwide will have a shovel-ready site to market as part of the overall Grandview Yard development project. The estimated increase in property value for this site post-cleanup has the potential to make an immediate impact on the local economy and once developed, this project will generate substantial local tax benefits. Total development within the specific 17.654-acre CORF footprint could generate an estimated $1 million in annual tax revenue for Grandview Heights based on a projected future commercial build-out. This figure is conservative and does not include the substantial benefits generated from construction-related employment associated with the project. The overall 80+-acre Grandview Yard development is anticipated to generate more than $5 million in additional tax revenue for the economy of Grandview Heights and the impact on the quality of life for its residents will be immeasurable. Community Benefit As strategic partners in this development, the City of Grandview Heights and Nationwide have worked together diligently over the past three years to make the City’s vision of renewing its blighted industrial core a reality. Incorporating the Grandview Commerce District Plan (which directly identifies the project area) and the Grandview Heights Economic Development Strategy Plan, Nationwide’s master plan for Grandview Yard exceeds the City’s vision for a densely developed, mixed-use project and creates tremendous economic development opportunities for Grandview Heights and the State of Ohio. The site’s convenient access to SR315, I-670, I-70 and I-71, strategic position along the 315 Research and Technology Corridor and central location near Battelle, The Ohio State University, Ohio Health and

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downtown businesses, make it a highly viable, marketable and appealing location for a variety of uses. The proposed project also directly ties in with the “315 Research + Technology Corridor Master Plan and Business Plan,” the broad-based economic development plan and strategy created for the western portion of Franklin County. The need for development of the area known as Grandview Yard is explicitly identified throughout the document, in which it states the “Goodale Boulevard and Olentangy River Road/Former Big Bear Warehouse Area” should be developed into a mixed-use urban center.

In addition to the project’s ability to help the City sustain a reliable workforce and generate additional tax revenue in the Grandview Heights community, the long-range positive economic impacts as a result of the development of Grandview Yard will go well beyond the boundaries of Grandview Heights and will extend into neighboring municipalities, including Columbus, Upper Arlington and Marble Cliff. Employment opportunities – which range from initial construction and land preparation, to retail, entertainment, professional and

research and technology-focused jobs that are anticipated to be created across the full development of the site – will be within minutes of these communities and will cater to a variety of income levels. In addition, this development will create a new eastern entryway into the City of Grandview Heights by opening up a north-south corridor between Third Avenue and Goodale Boulevard, establishing east-west connecting streets through the project property, and creating a new synergy with the surrounding neighborhoods and businesses. Match and Other Funding Sources The property addressed in this application represents a significant partnership between the City of Grandview Heights and Nationwide that will leverage millions of dollars in private and public funding already invested in and committed to this project. The total project cost for the Grandview Yard Development CORF project is $2,666,718. Grant funds totaling $2,000,000 will be applied toward necessary demolition of structures and environmental remediation on-site consistent with Nationwide’s development plan for the site. Nationwide is committed to providing $666,718 in eligible demolition, cleanup and infrastructure costs for improvements on-site as matching funds to this project. This includes $23,986 for environmental assessment costs; $393,106 for demolition activities; $49,000 for infrastructure improvements on-site; and $200,626 for remediation costs for the project as described and documented in this application. And while not directly eligible as match to this project, Nationwide paid $11.1 million in July 2006 to acquire the property identified in this CORF application. Further, Nationwide’s overall investment of nearly $40 million to acquire and consolidate surrounding properties within the overall Grandview Yard development project footprint demonstrates the company’s substantial commitment to the success of this CORF project. History of the Project Property Historically, the property area south of Third Avenue and immediately north of Burrell Avenue housed former warehouse and refrigerated storage facilities for Penn Traffic Corporation and Big Bear Stores Co. Following a bankruptcy action in 2004 that closed down the former Penn

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Traffic and Big Bear operations, the buildings on the 17.654-acre CORF project footprint were left vacant or underutilized. Currently, the parcel is vacant. While smaller businesses could potentially sublease portions of the former administrative building, they would not be able to sustain the long-term viability of the City’s major industrial area while adjacent buildings and parcels lay fallow and underutilized. Decreasing property and income tax revenues and a large vacancy rate in the area have posed substantial economic investment obstacles to the City since 2004. Furthermore, the age and obsolete design of the facility within the CORF footprint and the environmental contamination on-site have left the property with little ability to attract reinvestment in the real estate marketplace without significant assistance. Environmental Improvements and Benefits The property will be remediated to meet Ohio EPA’s Voluntary Action Program (VAP) commercial land use standards and standards for modified residential land use by Nationwide. Approximately 16,667 cubic yards of impacted soil will be excavated and disposed of according to state program requirements. The primary chemicals of concern are Total Petroleum Hydrocarbons (TPH C10-C20). The remediation will meet modified residential direct contact standards to a depth of approximately five feet, commercial land use standards to a minimum depth of two feet and excavation/construction work standards. Additionally, it is estimated that a product recovery system will be installed and operated for an anticipated period of six months the recover free product resulting from an historic release from a heating oil storage tank. The environmental remedy will be supported by appropriate institutional controls. Most importantly, Nationwide’s use of the VAP will help to eliminate the environmental stigma associated with the former industrial site that comprises the CORF project footprint. Project’s Readiness to Proceed The Grandview Yard Development project will be ready to proceed immediately upon successful grant award. The City of Grandview Heights and Nationwide are committed to making this project a reality, as demonstrated in the aggressive 26-month redevelopment schedule included in this application. Nationwide is committed to investing nearly $667,000 to complete this CORF project, not including the $11.1 spent previously to acquire the property located within the CORF project footprint. To date, Nationwide has spent nearly $40 million to acquire and consolidate surrounding properties within the overall Grandview Yard development. Further, as owner and developer, Grandview Yard is currently being actively marketed by Nationwide with staff dedicated to the management and maintenance of the development project and future facilities. With the strategic location of the property, the leadership of local elected officials and the commitment from Nationwide to moving forward with developing this project, Grandview Yard will be an economy-altering redevelopment that will reestablish a positive economic base for the City of Grandview Heights while providing jobs and local tax revenues for years to come.

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NOTICE OF PUBLIC MEETING AND INFORMATION REPOSITORY FOR

NOTICE OF PUBLIC MEETING AND INFORMATION REPOSITORY FOR CLEAN OHIO REVITALIZATION FUNDGRANT REQUEST The City of Grandview Heights is applying for up to $2,000,000 in Clean Ohio RevitalizationFund grant money from the State of Ohio to help fund the Grandview Yard/Former Big Bear Warehouse Redevelopment Project located at 851 W. Third Ave., Grandview Heights. The City of Grandview Heights and its project partner, Nationwide Realty Investors, Ltd., will hold a public meeting on Tuesday, September 8, 2009, at 6:00 p.m. to provide information and receive comments on the grant application. The meeting will be held in Council Chambers at Grandview Heights City Hall, 1016 Grandview Ave., Grandview Heights. The application is available for review beginning July 24, 2009, at the Grandview Heights Public Library, 1685 West First Ave., Grandview Heights. Application information is also available online at www.grandviewheights.org. Contact Patrik Bowman, Director of Administration, at (614) 481-6215 for moreinformation.

Appeared in: The Columbus Dispatch on Monday, 07/20/2009

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application for 2009 clean ohio revitalization funds - city of

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