Redevelopment of50 Tufts Street

Adaptive Reuse Strategies in Somerville

William Cone Bonnie Hobbs Ilana Liebert Jan Schultheiss Leonard Zwack

“How do you neutralize the fears of brownfields? with facts and transparency.” William Penn

“Set a very clear framework on the best, most grounded assumption you have.” Chris Reed

FlexibilityTransparency

LeadershipCollaboration

Time

“People’s perception of contamination is stronger than their understanding of science.”

Dr. Kurt Frantzen

The 50 Tufts Site

Site Timeline 1940 – Building is constructed

1950 – Laundry supply business opens

1987 – Building is sold to John Danais Co

2002 – John Danais Co files for bankruptcy

2002-3 – Prospective purchaser hires Sanborn Head & Co to conduct environmental review of the site

Contamination History 8 monitoring wells installed in 2002

Results indicated substantial levels of PCE

In soil: PCE concentrations ranged from 0.01 to 160 mg/kg

In groundwater: PCE concentrations ranged from 2 to 52 mg/L

Monitoring Well Locations and

PCE Concentrations in

Neighboring Homes

-

Health Effects of PCE PCE is widely used in the dry cleaning

industry

Probable carcinogen according to IARC and EPA

Can cause irritation, headache, dizziness, light-headedness, vomiting, nausea, unconsciousness, and kidney dysfunction

Remediation Strategy Based on conversations with an LSP,

bioremediation and phytoremediation not feasible

Pump and Treat is a more realistic option to remediate groundwater

Soil Vapor Extraction (SVE) can be used to remove the soil gases

Pump and Treat

Source: US EPA (http://www.epa.gov/swerust1/graphics/cadnapl.htm)

Air Stripping Column

Source: Envirotools (http://www.envirotools.org/factsheets/Remediation/airstripping.shtml)

Soil Vapor Extraction

Source: Remediation Technologies Screening Matrix and Reference Guide, Version 4 (http://www.frtr.gov/matrix2/section4/4-7.html)

Cost Considerations and Length of Treatment

Based on other dry cleaning sites utilizing Pump and Treat and SVE, annual remediation costs can approach $300,000

Length of treatment is very site-specific, but Sanborn has estimated that the site will still be undergoing remediation in 20 years

Environmental Conclusions Contamination is serious but can be

addressed

Long-term remediation presents a potential economic and social barrier

An opportunity to turn something that is currently a negative into a positive

Proposed Redevelopment Schemes

Multimodal Transit Hub

Benefits• Create an air rights “bridge” across rail lines to join neighborhoods and create new identity for Tufts Street• Develop infrastructure for new T Stop• Expand and reorganize mixed-uses• Include streetscape improvements, civic space and green space• Use grade relationships to advantage to connect pedestrian, bicycle, vehicular, rail

Barriers• Requires complete MBTA involvement• Represents significant expense• Design challenge to span RR and sensitively relate to abutting residential neighborhoods• Incomplete property acquisition will limit success

Greening a Brownfield

Benefits• Add much needed open space to the Somerville park inventory and this neighborhood• Create increased connectivity with Union Square and proposed Green Line T Stop• Increase ecological potential • Develop community gardens• Take advantage of potential for educational component• Provide sitting and walking areas

Barriers• Requires creative financial partnerships• Lack of faith in the realization of economic and environmental payoff• Uncertain future of remediation technologies over long-term• Mistrust between public and stakeholders

Tufts Street Arts CenterPhase I

Benefits• Mitigate groundwater contamination/ migration via pump-and-treat system• Reuse existing building after retrofitting concrete floor and ventilation system• Earn income by renting workshop space to industrially-oriented artists, tradespeople, and related vocational schools• Serve Somerville’s thriving artistic scene, including nearby Brickbottom• Establish create-work-learn community• Include public greenspace that can be used for sculpture display, demonstrations

Barriers• Assumes structural integrity of building• Requires initial investment for retrofitting, continued monitoring of indoor air quality• Stigma of contaminated building remains• Rental income will not balance expenses

Tufts Street Arts CenterPotential Funding Sources

City of Somerville (US EPA) - Brownfield Economic Development Program (BEDP) environmental testing services and remediation cost estimate cost overrun coverage based on this estimate

City of Somerville (US EPA) - Brownfield Cleanup Revolving Loan Fund (BCRLF) short-term loans to brownfield redevelopers for environmental remediation costs

MassDevelopment - Brownfields Site Assessment interest-free financing of up to $50,000 for environmental site assessment

MassDevelopment - Brownfields Remediation Loan financing of up to $500,000 for environmental clean-up as part of a redevelopment project

MA Business Development Corporation (MBDC) - MassBRAC Program Brownfields Redevelopment Access to Capital Program - high quality, low cost environmental insurance for

parties who wish to purchase, clean up, and/or develop brownfields sites MA Department of Revenue - Brownfields Tax Credit Program

tax credit for costs incurred to rehabilitate contaminated property owned or leased for business purposes and located within an economically distressed area

MA Community Development Finance Corporation (CDFC) - The Real Estate Fund flexible, short- to medium-term financing for CDFC-developed residential, commercial, and industrial real

estate projects MassDevelopment - Real Estate Loans

loans of up to $3 million for facility acquisition, renovation, construction, and permanent financing MassDevelopment - Taxable Bonds

access to capital markets for industrial and commercial real estate projects

Massachusetts educational development grants for voc-tech schools Massachusetts financial assistance for creating affordable housing

Tufts Street Arts CenterPhase II

•Remediation has time to work•Phase I provided political capital and neighborhood interest and activities•Building Typology: 4 story contextual mixed use•Live/work for artists, cafes, and retail with outdoor space•Green building technology

Barriers•2.5-6 million dollar estimated remediation•Zoning

Tufts Street Arts CenterPhase II

Set-Up "As of Right"  

   

DEVELOPMENT COSTS  

Hard Costs  

Building $6,000,000

Parking $525,000

Environmental Remediation $300,000

Contingency 10% $652,500

Total Hard Costs $7,477,500

   

Soft Costs @ 20% of Hard Hosts $1,495,500

Amount owed in back taxes for the land $1,100,000

TOTAL DEVELOPMENT COST $10,073,000

   

INCOME FROM SALES  

Live/Work Duplex $7,176,000

Live/Work Flats $3,825,000

Total Sales $11,001,000

Less 5% Transaction Costs -$1,100,100

Less 15% Capital Gains Tax -$216,000

NET INCOME FROM SALES $9,684,900

   

Total Remediation Costs -$5,700,000

Next Steps Conduct air sampling

Perform structural and code review

Create partnerships