Tupelo Fairpark, National Phoenix Award Winning Brownfield Project
SUSTAINABLE REUSE OF
Brownfield
BROWNFIELD PROPERTIES IN MISSISSIPPI
Redevelopment
Brownfield Basics What is a brownfield? The term brownfield typically refers to land that is abandoned or underused, in part, because of concerns about contamination. The federal government defines brownfield sites as “abandoned, idled or underused industrial and commercial properties where expansion or redevelopment is complicated by real or perceived environmental contamination.” Brownfield sites may make you think of dirty, blighted, abandoned industrial property, but that image is too narrow. Though some brownfield sites are old industrial sites, others are commercial buildings with little or no environmental contamination. Brownfield sites could be – • • • • • • • •
former service stations, former dry cleaners, factories, warehouses, parking lots, former co-ops, vacant lots, and many more types of facilities.
Many of these brownfield sites could be turned from possible liabilities into successful developments. Is there a brownfield in my community? Ask yourself – • •
Is there land that is idle, vacant, or less productive than it could be? Are concerns about environmental contamination contributing to the problem?
If you answered yes to both questions, then that property might be a brownfield.
Why the interest in redeveloping brownfields? Brownfields offer opportunities that go beyond their old uses. Developers have transformed brownfields into everything from golf courses and driving ranges to mixed developments with housing, offices, shopping, and open space. Smaller properties have found new life as bakeries and greenhouses. In short, many uses may be open to a clean site. What are the benefits of brownfield redevelopment? • • • • • • •
Benefits to the community: Eliminating health and safety hazards; Eliminating eyesores; Bringing new jobs into the community: Bringing new investment into the community; Increasing the productivity of the land; Increasing property values and tax receipts by local and state governments.
As a community member interested in a brownfield it is important for you to know and be able to discuss with potential developers and property owners the benefits to them of cleaning up and reusing a site. Some of the advantages to owners and developers are: •
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Avoiding potential environmental enforcement actions by federal, state, and local regulatory agencies that could impose penalties and costly cleanups; Receiving tax benefits for cleaning up and reusing the property; Reducing the likelihood that contamination from the property will migrate off site or into the groundwater under the site, thereby limiting liability for, and long term costs of, cleaning up the property; Creating good will from the community; Reducing the potential need to address liabilities associated with the property in financial statements and Securities and Exchange Commission filings; Realizing an enhanced return from the property by making it more valuable and marketable.
Program Highlights Mississippi Receives Two National Awards at 2013 Brownfield Conference The Mississippi Department of Environmental Quality (MDEQ) has joined a distinguished group of entities who can proudly say they have won a Phoenix Award for excellence in brownfield redevelopment. MDEQ, CSX Transportation, Inc. (CSXT), the General Services Administration (GSA), and ARCADIS were recognized at an awards ceremony in May at the National Brownfield Conference in Atlanta. These collaborative partnerships have been cited as among the best of the best in the Southeast in 2011 and 2012 when it comes to remediating and transforming brownfield sites into significant community assets. The National Brownfield Conference is the largest event in the nation that focuses on environmental revitalization and economic redevelopment. The Phoenix Awards are awarded by a nonprofit entity, The Phoenix Awards Institute, Inc., to recognize successful revitalization projects, honor project participants, and encourage project participants to share their knowledge/techniques so these model projects can be replicated across the country. This marks the third time that MDEQ has been recognized nationally for its brownfield redevelopment efforts. In 2008, MDEQ and the City of Tupelo won the Phoenix Award for the Tupelo Fairgrounds project that involved the redevelopment of the old fairgrounds and a former dry cleaner into Tupelo Fairpark. Mississippi was the only State to receive two (2) Phoenix Awards during the Ceremony.
2011 Region 4 Phoenix Award CSX Gautier Oil Cleanup & Restoration Project Since 1992, CSXT has spent nearly $20 million on the environmental investigation and cleanup of the former Gautier Oil Site. The project is a successful model for low impact, CSX Gautier Oil Cleanup & Restoration community 2011 Phoenix Award Winner friendly remediation/restoration of a former wood treating facility that would typically include abundant engineered structures, systems, and ongoing remediation. The acceptance and implementation of practical, low maintenance remedial components has resulted in re-establishing near natural estuarine environs along the Pascagoula River, the only unimpeded (no dams) river that flows into the Gulf of Mexico. The Site, now a healthy and vibrant green space, has been recognized on state and national levels.
Phoenix Awards Ceremony National Brownfields Conference Atlanta, GA – May 16, 2013 Most recently the Site was certified by the Wildlife Habitat Council under its Wildlife at Work certification program in November 2012. The Site restoration efforts have also been recognized by multiple professional organizations and societies for the innovative restoration of estuarine habitats.
2012 Region 4 Phoenix Award GSA Jackson Federal Courthouse Project The redevelopment and construction of the Jackson Federal Courthouse over two city blocks located in the Central Business District of Jackson Mississippi had a total project cost was approximately $150M of which total environmental cost was approximately $1.5M. The GSA has transformed vacant lots, a former dry cleaner, former vehicle maintenance facility into a state of the art, energy efficient courthouse to replace the former Eastland Federal Courthouse. The Jackson Federal Courthouse was designed with a number of sustainable features. The facility is expected to reduce potable water consumption by as much as 50%. Construction involved the use of over 14% recycled content materials, resulting in over 75% reduction of construction waste being diverted to a landfill. The courtroom doors were made from salvaged lumber from site demolition and were part of the Art and Architecture Program.
Jackson Federal Courthouse – 2012 Phoenix Award Winner
2008 Region 4 Phoenix Award Tupelo Fairpark – Long’s Laundry Project On January 19, 2011, House Concurrent Resolution No. 29 was adopted by the Mississippi House of Representatives and the Mississippi Senate commending the Downtown Tupelo Main Street Association and the Mississippi Department of Environmental Quality for their outstanding efforts. The partnership between the City of Tupelo and MDEQ was highlighted in November 2009 at the National Brownfield Conference in New Orleans when we received national recognition for our work on the redevelopment of contaminated property at the old fairgrounds in Tupelo. The regional Phoenix Award was presented to the Downtown Tupelo Main Street Association and MDEQ for their efforts to transform the area around a former dry cleaner into the popular downtown Fair Park District. The Phoenix Awards Institute recognizes groups that MDEQ and Tupelo Accepting Phoenix Award in New Orleans remediate and redevelop Willie McKercher and Trey Hess of MDEQ, Debbie Brangenberg of Downtown Tupelo Main Street Assn., Trudy brownfield sites and Fisher, Executive Director of MDEQ, and Charles Coney, Consulting Project Manager. represents the industry’s highest honor. In 2000, during the acquisition of property that included the former Long’s Laundry, the City of Tupelo learned from environmental studies that the soil and groundwater beneath the site had been contaminated by chlorinated solvents. The project stalled until 2003, when the Downtown Tupelo Main Street Association applied for Targeted Brownfield Assessment assistance through MDEQ. “We were dead in the water until the brownfield folks at MDEQ came to us and helped. Up to that point, the city had spent close to $200,000 dollars in environmental studies with no clear end point in sight,” says Debbie Brangenberg, Director of Main Street. With a clear understanding of the intended future use of the property and the city’s objectives for redevelopment, MDEQ was able to develop a strategy for the environmental assessment to be completed, for liability protection to be secured, and for the site to be redeveloped in a manner that was protective of human health and the environment. In 2004,
demolition of the former dry cleaner began, and the transformation of the properties into “Fair Park” had begun. Today, the Fair Park District includes the Renasant Center for Ideas, serving the community as a regionally-based business incubator; the Tupelo Automobile Museum; City Hall, serving as the centerpiece of Fair Park; City Park with its dancing fountain that attracts children and families from all over, and a variety of upscale retail and small businesses that blend modern amenities with the architectural character and scale of a traditional small city.
Moss Point Finds Reuse of Brownfield Property at Conference Center The former Swifty-Serve gas station, which operated on Highway 613 in Moss Point, was abandoned prior to Hurricane Katrina. The City of Moss Point purchased the land to build the Pelican Landing Convention Center. The gas station and the fuel dispensers were subsequently demolished and removed from the location, but three (3) 10,000 gallons underground storage tanks (USTs), the fuel dispenser island, and the product piping remained, leaving the small section in front of the convention center unusable and unsightly. In 2007, then Mayor Xavier Bishop of the City of Moss Point requested assistance from MDEQ through its Targeted Brownfield Assessment Program to perform an environmental assessment of the section to aid the City in determining the best approach to dealing with the unusable and unsightly section of the property. Through the Target Brownfield Assessment Program, MDEQ provided an environmental assessment for the City. The environmental site assessment revealed that the USTs were still in the ground and empty but not properly closed in accordance with MDEQ UST regulations. In addition, limited contamination was present. In order to properly assess the soil and groundwater underneath the tanks, the USTs were removed and disposed along with the fuel distribution piping. MDEQ’s contractor performed subsequent assessment activities on the shallow and deeper soil and groundwater to determine the residual impact of petroleum hydrocarbons. Based on the findings, the area has been capped to prevent future potential exposure to the any residual subsurface contamination. It is also subject to an institutional control to be incorporated into the property deed to document the environmental conditions associated with the property. The institutional control will also include requirements for approval from MDEQ for future construction on the property. The City of Moss Point has committed to use the property as an extension of the parking area for Pelican Landing Conference Center. UST Removal at former Swifty Serve in Moss Point.
House Concurrent Resolution No. 29 signed by then Speaker Billy McCoy and Governor Phil Bryant
According to then Mayor Bishop, “the assistance provided by the MDEQ Targeted Brownfield Assessment Program has proven not only the beneficial Reclaimed land at Pelican Landing Conference Center in Moss Point services for the Pelican Landing parking area, but has also provided economic benefits that have enabled the City to focus its limited resources on other area of redevelopment in the City.”
redevelopment of the property was able to commence.
Kossen Equipment Locates New Headquarters on Brownfield in Richland
In November of 2010, the 69-acre Whirlpool brownfield site in Oxford, MS was sold to the University of Mississippi for $3.4 million. To ensure the property is safe as well as marketable, Whirlpool entered into a Brownfield Agreement with the Mississippi Commission on Environmental Quality (MCEQ) during its October, 2010 meeting to clean up an area in the defunct plant that showed the presence of hydraulic fluid, which has contaminated a small, 500 square foot Former Whirlpool Facility – Oxford, MS area. MCEQ, during the October Meeting, also approved the sale of the site to the University of Mississippi.
Prior to 2009, the former Pilot Travel Center on Highway 49 South, in Richland, Mississippi closed and had been sitting idle, generating no sales tax for the City of Richland. In August, 2009, Former Pilot Travel Center, Richland, MS (Before Picture) MDEQ approved the Brownfield Agreement with Empire Truck Sales of Louisiana, LLC regarding the remediation of site. It was the first brownfield in Mississippi to be subject to an Environmental Covenant pursuant to the Uniform Environmental Covenants Act (“UECA”), Miss. Code Ann. § 89-23-1, et. seq. (Rev. 2008). With remediation and liability protection addressed through the Brownfield Agreement,
In January 2011, Kossen Equipment, Inc. announced that it had begun construction of a new corporate headquarters on Highway 49 South on the site of the former Pilot Travel Center. Kossen Equipment has twice been named one of Mississippi’s ‘40 Fastest Growing Companies’ by the Mississippi Business Journal and has an employee base of 100. The company services more than 10,000 accounts, including health care facilities, telecommunications sites, manufacturing plants, computer installations, grocery stores, food service distributors, retail stores, lumber yards, office buildings, casinos, malls, wastewater treatment plants, emergency operations facilities, municipalities, agriculture sites, as well as residences. Kossen’s customer base is spread throughout Mississippi, Alabama, Florida, Louisiana, Arkansas, Texas, Tennessee and Georgia.
Brownfield Redevelopment in Oxford
The Mississippi Attorney General’s Office approved the university’s purchase, provided Whirlpool agreed to pay for any problems caused by hydraulic fluid contamination. The state’s College Board has also approved the deal. Whirlpool first announced the Oxford plant’s closure in July 2008 and that production of its built-in cooking appliances would transition to the Cleveland, TN facility. The Mississippi site closed in March 2009. Regional news outlets quoting Larry Sparks, vice chancellor for finance and administration at the university, reported the school doesn’t have immediate plans for the site but the long-term vision for the manufacturing facility is another matter. “I’d say the plans are more long term than short term,” Sparks told NEMS360.com, a division of Journal Inc. “It’s (site) contiguous with land we already own and it already has utilities on the site as well as other infrastructure.” Sparks suggested some of the site’s older buildings will probably be demolished but that newer structures will be used for storage with the intent of freeing up academic space on the existing campus. “We’ll start using the new buildings for storage and
Kossen Equipment Inc., Headquarters (After Picture)
other purposes,” he told the Journal Inc. news site. “That will free up other space on the main campus for our academic mission.” Max Hipp, director of the Oxford-Lafayette County Chamber of Commerce, reported several companies looked at the building over the past 18 months, but the college settled the deal. Jill Saletta, director of external communications for Whirlpool Corp. headquartered in Benton Harbor, Mich., said the university has served as an integral member of the Task Force to review ownership and future use options for the facility. “The university was part of the original Task Force that was assembled to look at all options for the parcel,” Saletta said. “That Task Force included state, local and utility economic development officials.” Saletta acknowledged the University of Mississippi was a logical buyer because of the site’s location, but that many directions were considered. “While everyone will say the proximity to the university made it a natural buyer for the long term, the Task Force looked at a multitude of options including reuse, manufacturing and redevelopment,” the Whirlpool spokeswoman said. “Over time, it became clear the long-term highest and best use was associated with the land being utilized by the University of Mississippi.”
The Mill at MSU Transforms Landmark Cotton Mill In February 2014, the Commission on Environmental Quality approved a Brownfield Agreement for the redevelopment of the Cooley Center, an old textile mill that sits on the National Register of Historic Places and will serve as the development’s centerpiece. The mixed-use development, which sits on the edge of Mississippi State University’s campus, will be constructed in phases and involve a hotel, parking garage, infrastructure and the development of outparcels. The brownfield agreement included provisions for addressing asbestos abatement and the removal of several underground storage tanks and solid waste. The parking garage – which will have three bays and four levels – will have a parking capacity of 650 vehicles, and is being paid for by an $8 million community development block grant issued by the Mississippi Development Authority. The city of Starkville is managing that part of the project. In early January, the design for the Cooley Building got preliminary approval from the Mississippi Department of Archives and History followed by MDEQ’s approval of the cleanup in February. It then moved to the National Parks Service, which had the final say whether the design meets the standards for historic buildings. The Parks Service signing off on the design was crucial, because it makes the project eligible for historic and new market tax credits. The Cooley Building will be remade into a conference center and office space. To go with the parking garage and the hotel, the developer would ideally like to include two to three restaurants in the final version of the development. The demolition of everything on the site that is not on the Historic Register and the removal of the underground storage tanks and solid waste was part of the first phase which is now complete. Work on the Cooley Building has begun with asbestos removal and makes up the second phase which is currently taking place. This is just another example of public-private partnerships working together to bring redevelopment to brownfields in Mississippi.
DeSoto County school bus lot is transformed into commercial development Prior to 2000, Commerce Street in Hernando was home to the DeSoto County school bus lot where maintenanc e and parking of DeSoto County School Bus Lot – 1990s the school district’s school bus fleet was located. With the boom in commercial development in Hernando, the County was approached by a private development group interested in purchasing the property and developing it into a tax generating commercial development. Because petroleum above-ground storage tanks had been located at the site and maintenance of the fleet had occurred, DeSoto County requested assistance from MDEQ in the assessment of the property on behalf of the developer and the city. By conducting the assessment activities, MDEQ saved the two entities around $80,000 and helped pave the way for the developer and the County to forge a public-private partnership in removing the tanks and demolishing the maintenance facility. The development is now home to a bank and retail space that generates significant tax revenue for the city and county.
Elevance Renewable’s brownfield purchase brings $225 million and 165 full-time jobs to Natchez
Amoco/Afta Brownfield site in Natchez with the assistance of the Mississippi Department of Environmental Quality (MDEQ) and the Mississippi Development Authority (MDA). Through the Mississippi Industry Incentives Financing Revolving Fund, MDA provided assistance for upgrades at the Natchez/Adams County Port, as well as a $25 million loan to the Elevance. Meanwhile, MDEQ, through the Mississippi Brownfields Program, reached a Brownfield Agreement with Delta Biofuels, Inc. that addressed liability concerns related to legacy environmental conditions at the facility. The company is converting the facility to a biorefinery and derivatives operation that will involve an investment of more than $225 million and will create 165 fulltime jobs over the next five years, in addition to 300 construction jobs. The financial assistance from MDA and the Brownfield Agreement, approved by the Mississippi Commission on Environmental Quality (MCEQ), paved the way for the brownfield redevelopment project to materialize.
Elevance Renewable Sciences CEO K’Lynne Johnson and then Gov. Haley Barbour announce plans for a new facility in Natchez.
Elevance Renewable Sciences Inc., creator of high-performance renewable specialty chemicals for use in personal care products, detergents, plastics, and lubricants, was able to acquire the former
Former DeSoto County School Bus Lot is now home to Communty Bank, Waffle House, Verizon Wireless, UPS, and other commercial businesses.
Brownfield Agreement in Pascagoula spurs $7.2M Expansion at Signet Maritime On September 27, 2012, the Commission on Environmental Quality reached a Brownfield Agreement with Colle Towing Company. The remediation of a portion of former Colle Towing Company facility laid the foundation for Signet Maritime Corporation to expand its Shipbuilding & Repair Division. Signet Maritime has matched $3.6M from the Katrina Supplemental Community Block Grant Program for a $7.2M investment in the Pascagoula facility. Signet Maritime will increase the current workforce in the Mississippi Division by fifty (50) people over a 3 year period. Signet has already started the hiring process for thirty-two of the fifty people in preparation of the construction of a 60 Metric Ton Bollard Pull tractor tug to be named SIGNET MAGIC. The SIGNET MAGIC will increase the Signet Pascagoula Harbor Tug Fleet and lower the average age of the Fleet to 3.2 years. The current construction schedule calls for steel cutting to commence begin immediately to meet the delivery date of July 2013. In addition, the grant funding is providing new berthing, drainage and support buildings to support the Pascagoula repair and construction facility and will aid the growth of Jackson County and the Jackson County Port Authority.
Community Outreach Each year, the U.S. Environmental Protection Agency solicits proposals for communities interested in receiving grant funding for brownfield redevelopment activities. In 2014, communities across 44 states in the United States shared $67 million in EPA Brownfield grants to help clean up, revitalize, and sustainably reuse contaminated properties, turning them from problem properties to productive community use. The grants, awarded by the U.S. Environmental Protection Agency, provide funding to eligible entities through brownfield assessment, revolving loan fund, and cleanup grants. Historically, Mississippi communities have been unsuccessful in securing these competitive EPA Brownfield Grants. In 2010, no Mississippi communities were awarded an EPA Brownfield Grant. In 2009, only one (1) community received a grant
(Hattiesburg). Recognizing the competitive nature of the national grant writing field, coupled with a reduction in its own EPA Brownfield grant, MDEQ stepped up its outreach efforts to help communities write better grant proposals. In cooperation with the Mississippi Municipal League (MML) and EPA Region 4, the Mississippi Department of Environmental Quality (MDEQ) for the past three years has been holding an “Advanced Brownfield Grant Writing Workshop” at the Mississippi Coast Coliseum and Convention Center during the annual MML Conference in Biloxi, Mississippi each year. The purpose of the Advanced Workshop is to provide communities in Mississippi that have been unsuccessful in receiving an EPA Brownfield Grant an opportunity to receive feedback on their grant proposals from technical experts who have been successful in securing Brownfield Grants. One goal of the advanced workshop is to identify weaknesses that should be eliminated and strengths that should be highlighted. In 2014, the five (5) communities which were successful in competing for a Brownfield Grant were Biloxi, Corinth, Gautier, Laurel, and Monroe County, totaling $1,950,000 in grant funding. In 2013, the six (6) communities which were successful in competing for a Brownfield Grant were Greenville, Holly Springs, Moss Point, Pascagoula, Starkville, and West Point. The winners in 2012 that will be wrapping up their three (3) year grant cycle in 2015 are Hernando, Columbus, and McComb. MDEQ believes that the enhanced outreach efforts have shown positive results with a continued increase in Brownfield Grant Success Rate. In addition, a fair number of new grantees have applied this year in hopes of receiving an EPA Brownfield Grant this year.
Brownfield Grant Success Rate National – .447 (264/590 Region 4 - .286 (28/98) MS 2014 - .417 (5/12) MS 2013 - .600 (6/10) MS 2012 - .200 (3/15) MS 2011 - .167 (2/12) MS 2010 - .000 (0/8) MS 2009 - .067 (1/15)
Among the communities applying for a 2014 Brownfield Grant are: 1) 2) 3) 4) 5)
Columbia Greenwood Isola Natchez Rankin-Hinds Pearl River Flood Control & Drainage District
In 2014, EPA received 590 proposals from across the nation. Because this is a highly competitive grant program, EPA awarded only 264 grants totaling $67M. For 2014, Mississippi communities fell just below the national average (.447) due to more grants being awarded against fewer national applications. However, Mississippi communities continued to beat the Regional average (.286) with a .417 success rate. Mississippi’s success rate has continued to be strong over the past several years and can be attributed to the collaborative outreach efforts of MDEQ, MML, and the brownfield consulting industry.
EPA Brownfield Grant Winners 2014 Biloxi Corinth Gautier Laurel Monroe County
2013 Greenville Holly Springs Moss Point Pascagoula Starkville West Point
2012 City Leaders ask questions about EPA brownfield grants at annual MML Conference
Columbus Hernando McComb
2011 Gulfport Quitman
2010 None
2009 Hattiesburg