Barriers to and Benefits of Brownfield Redevelopment

A Citizen’s Guide to the Bayside Brownfield Redevelopment Project

Portland, Maine

Kiersa Benson, Andrew Hughes, Ian Kyle, Dave Parsons and Julia Ledewitz

Table of Contents

Definition of a brownfield......

Implications & Risks of Brownfield Development......

Implications......

Redevelopment Risks......

Description of Bayside Brownfield......

Table 1. Contaminates and Their Health Effects......

Barriers to and Benefits of Brownfield Redevelopment......

Brownfield Redevelopment in Maine......

Federal Programs......

State Programs......

Local Programs......

Examples of successful redevelopment in Maine......

Lewiston, Maine:......

Old Town, Maine:......

Additional Contacts

Definition of a brownfield

Brownfields are lands, which are contaminated from previous use. Generally where industry has been, there tends to be the most contamination of the land from chemical runoff and toxic waste. Because cleaning up and redeveloping is expensive and discouraging, when the Environmental Protection Agency deems these areas “Brownfields”, the EPA helps to fund renovations of the area.

Implications& Risks of Brownfield Development

Implications

Brownfields are more common than we realize. Before brownfields are deemed “Brownfield” by the EPA, they are completely abandoned. Most developers would much rather develop safe greenspace than a dirty brownfield space. Therefore, often the condition of the brownfields lasts much longer than it should. The presence of contaminated areas greatly decreases the property value around the area.

Redevelopment Risks

1. The laws state that the owner of a brownfield is required to restore the land to a usable state (non-toxic). However, in most cases, the owners have abandoned the land and therefore, developers are forced to pay for the clean up process.

2. Defining “clean” is hard. The standards are strict, which force the developer to spend more funds than could make the land worth buying in the first place. Also, when developers are faced with the standard of "protective of human health or the environment,” there is very little information given about how much that might be to a developer- and is therefore a huge hindrance when deciding which land to buy.

3. When potential property owners see that the land was designated a ‘brownfield,’ there is no document to explain if further restoration is necessary. Therefore, the potential market for buying is discouraging for a developer as well.

Environmentally, there are risks to potentially every part of the land and therefore every part of homes there. When soil is toxic, it can lead to water toxicity and danger for children playing outside. When the land has been deemed toxic, it is hard to assess how dangerous a risk it is or will be in the future.

Description of Bayside Brownfield

The bayside brownfield project covers a 14-acre, 10 parcel plot of land in the bayside community.

The general location is:

North- Franklin Arterial (commercial and industrial buildings of Marginal Way and Fox Street, multi-tenant residential buildings of the Portland Housing Authority).

East- Somerset and Lancaster St (commercial and industrial)

South- Chestnut, Elm and Preble St (commercial and industrial)

West- Marginal Way

Historically the site has been home to a stove foundry, railroad tracks, warehouses, scrapyards, a lumberyard and small factories. As a result of these industries, the site has been contaminated with a variety of pollutants. Currently out of the 10 parcel site, five are considered vacant and the other five contain a commercial building, two scrap metal facilities, and parking lots.

After receiving Brownfield status from the EPA, Portland commissioned a report from an environmental firm, Tewhey Associates of South Portland. In their initial survey they were allowed by 6 of the 9 land owners to conduct environmental quality tests. The three other owners, who own the remaining 85% of the land, initially refused access but this spring (2005) two more of the scrapyards were made available for testing. So far, the following contaminates have been found on the site: Polycyclic aromatic hydrocarbons (PAHs), Total petroleum hydrocarbons (TPH), Volatile Organic Compounds (VOCs), Trichloroethylene (TCE), PCBs, and metals (See Table 1).

Due to their highly toxic nature, the high levels of PAHs and VOCs may indicate a need for an intensive cleanup process in some areas of the site. However, the overall levels measured thus far fall within the low to moderate levels in comparison to other brownfield sites. This indicates that the plots tested are not in immediate need of cleanup though the status of the untested areas is unknown. The Maine Department of Environmental Protection (MDEP) has designated the site as a non-attainment zone, indicating that groundwater cannot be accessed for human use.

*Information obtained from:

City of Portland. A New Vision For Bayside. Portland: City of Portland, 2000.

Tewhey Associates. SITE ASSESSMENT AND ENVIRONMENTAL

ANALYSIS. Tewhey Associates. 1999.

Table 1. Contaminates and Their Health Effects

Barriers to and Benefits of Brownfield Redevelopment

Brownfield redevelopment is a difficult, but not an impossible process. The two main challenges to redevelopment are usually cost and community support. Liability used to be a concern until January 2002 when President Bush signed the “Small Business Liability Relief and Brownfield Revitalization Act.” The new laws protect the owners of a Brownfield from legal responsibility for cleanup when the owners did not contribute directly to the contamination.[4] In Bayside, where the Brownfield has been used for many different industrial purposes in the past, this legislation was welcome relief.

The cost of redevelopment still remains a barrier to Brownfield restoration. Especially if the site is heavily contaminated, the fees for removing dangerous chemicals can cost developers a lot of money.[5] The cost of hiring an environmental consultant and testing for contamination is also high. In the case of Bayside, the City of Portland has shouldered much of the cost thanks to funding from the United States Environmental Protection Company (EPA).

With that money the city has already hired a consultant, Tewhey Associates of South Portland. According to the Maine Department of Environmental Protection (MDEP) there have been over 30 spill-incidents near the Portland Brownfield Project site since the 1970s. Most have involved petroleum products, according to the Tewhey Associates. Testing stopped in2001 and the contamination level of Bayside appears to be low to moderate.[6] As a result, the cost of redevelopment has not been very high.

The second barrier to Brownfield redevelopment is rallying community support. This is not an issue with the Bayside Brownfield site. Thanks to the Bayside Neighborhood Association, the community has come together to make redevelopment easy.

A third barrier, unique to Bayside, is the lack of cooperation from businesses that own land on the Brownfield prior to redevelopment. Environmental testing stopped in Bayside in 2001 because the owners of the remaining untested plots of land refused to allow their land to be tested. These areas were privately owned scrap yards. However, the untested land was sold to the city in the late spring of 2005. There is still money available from the EPA grant so testing on that land should begin shortly.

The benefits to Brownfield redevelopment are greater than the costs. Redevelopment is very rewarding for a community because it creates new businesses, housing, and parks[7]. Since Portland is located on a peninsula and land is scarce, these new businesses, homes, and parks on former private land will be welcome relief. A larger tax base, new jobs, and increased recreation opportunities can result from redevelopment. The specific redevelopment plans for Portland can be found in the “Future Plans” section.

Redevelopment will also help Bayside improve its help and appearance. The removal of dangerous contaminants will be good for the health and safety of Bayside and Portland residents. The improved appearance will also benefit the City of Portland, especially as it becomes more attractive to travelers passing by on I-295. Another benefit is that the redevelopment of Bayside can serve as an example for future projects in Portland, other cities in Maine, and areas around the country.

Brownfield Redevelopment in Maine

Brownfield redevelopment projects in Maine can take advantage of federal, state, and local government programs offering various forms of assistance. The US Environmental Protection Agency (EPA), the Maine Department of Environmental Protection (DEP), and the City of Portland are all committed to encouraging brownfield identification, assessment, remediation, and development.

Federal Programs

At the federal level, the Environmental Protection Agency’s Brownfield Pilot Program offers financial and administrative assistance to state and local governments for help in brownfield redevelopment. The program offers grants and revolving loans for environmental assessments, site cleanups, and job training. Importantly, in 2002 the US Congress passed the Small Business Liability Relief and Brownfields Revitalization Act, which provides the EPA with additional funding and congressional support for continued brownfield redevelopment. Since 1995, the EPA has awarded 554 assessment grants, 171 revolving loan pilot grants, 67 job training pilots, and 69 cleanup grants. All told, the EPA has invested nearly $700 million in brownfield redevelopment across the United States. This relatively modest investment has leveraged more than $5 billion in redevelopment funding from the private and public sectors and has created nearly 25,000 jobs.

In 1997 the City of Portland was granted funds through this program for redevelopment of the Bayside area. In addition, other cities in Maine such as Lewiston and OldTown, as well as the Maine State Planning Office have received grants to facilitate brownfield redevelopment.

State Programs

At the state level, the legislature passed a law in 1993 called the Voluntary Response Action Program (VRAP) to assist with brownfield redevelopment throughout the state. According to the statute, the program “promotes the investigation, remediation and redevelopment of contaminated properties by offering liability assurances/protections from state enforcement actions for applicants to the program.” Importantly, it is nearly impossible to obtain financing for redevelopment of a brownfield in Maine without a certification by the state through this program.

By participating in this program, developers can obtain technical assistance from the DEP, as well as a bit of flexibility in meeting cleanup requirements. For example, if the developer successfully completes a cleanup plan, the DEP will issue a “certificate of completion” freeing the owner from liability for those contaminants identified in the cleanup assessment. In addition, during the cleanup process, the DEP will not take enforcement actions against the owner for those contaminants identified in the cleanup assessment. Participation in the program not only helps obtain government financing, it makes the redevelopment process easier by reducing liability on the part of the developer and alleviating pollution concerns of the community by ensuring proper cleanup.

In 1997, the EPA awarded the Maine State Planning Office (SPO) a pilot grant which supports the Maine Brownfields Initiative. This grant established a revolving loan to help municipalities complete brownfield site assessments, a database of brownfield sites throughout the state, and a two-volume guidebook for Maine municipalities and developers looking to redevelop brownfields.

Nicholas Hodgkins manages the VRAP program for the DEP and serves as the coordinator for brownfield redevelopment in Maine. For more information on the VRAP program or on Maine’s Brownfield Initiative, contact:

Nicholas Hodgkins

Maine DEP, 17 State House Station

Bureau of Remediation and Waste Management, VRAP Program

Augusta, ME04333-0017

Phone: (207) 287-4854

e-mail:

Local Programs

Consistent with the goals outlined in A New Vision for Bayside, the City of Portland has encouraged urban style redevelopment on several parcels in the Bayside neighborhood area. Already, the neighborhood has seen successful development by companies such as the DHS rent-a-center, AAA, and Wild Oats. In addition, the neighborhood has a new residential complex, UnityVillage. In addition, construction recently began on the Chestnut Street Extension, seen as vital for encouraging pedestrian access from the downtown to Marginal Way. Several office buildings are also in the works, each designed to be between fifty and eighty thousand square feet. The buildings are intended to be mixed use, promoting both residential and commercial tenants. In addition, plans for a new 410-person student-housing complex have been filed with the city.

The City has also obtained funding through the SPO revolving loan for municipalities for an environmental site assessment of the publicly owned parcels in the neighborhood. Though some private owners refused to allow environmental assessments on their property, recent negotiations with some private owners proved successful, and environmental assessments have begun on those parcels.

Rick Knowland, a senior planner with the City of Portland, is overseeing redevelopment of the Bayside neighborhood. He coordinates the City’s goals for the neighborhood with residents, potential developers, and funding agencies at the DEP, SPO, and the EPA. For more information on development in the Bayside neighborhood, contact him at:

Rick Knowland

Senior Planner, City of Portland

Phone: (207) 874-8725

e-mail:

Examples of successful redevelopment in Maine

Lewiston, Maine:

The Bates of Maine Woolen Mill

With a history that dates back to the Civil War, the Bates Mill has been a focal point for industry in the great state of Maine. The plant, a textile manufacturer, that once helped outfit the legendary Grand Army of the Potomac, was once the largest single employer in the state. The mill maintained that status until the early 1960s when the domestic textile industry began to loose steam due to the pressure of foreign competition. By 1992, the majority of shop operations had ceased and only 50 workers operated in a small section of the massive 1.2 million square foot structure. Operations stopped altogether soon afterward leaving six acres and the dozen buildings the once comprised the mill vacant and potentially contaminated. The city of Lewiston gained ownership of the property and the Lewiston Mill Redevelopment Corporation, a nonprofit organization, now manages the enormous property.

Environmental assessments revealed levels of PAH’s, metals, PCBs, votile organic compounds, lead, asbestos, and petroleum products. US Environmental Protection Agency provided a Brownfields Assessment grant of $200,000 in 1998, an additional $75,000 in supplemental funding in 2000, and a half million dollar Brownfields Revolving Loan Fund set up in 1999, to help the city of Lewiston assess and remediate the huge 1.2 million square foot textile mill. The transformed complex will bring millions of dollars in new business investments to the community’s struggling economy.

The Bates Mill complex is expected to become the hub of economic redevelopment for Lewiston. The finalized complex is expected to employ over 5,000 workers. Following completion of the complex, which is projected to house both fitness and a daycare center for employees, private businesses and a regional conference center, city officials will move on to other portions of the city that are in need of environmental and economic revival.

Contacts:

EPA Project Manager

Address:One Congress Street, Suite 1100 (HIO), Boston, MA02114-2023

Phone #:1-617-918-1389

E-Mail:

Local Contact

Name:James Andrews

Address:27 Pine Street, Lewiston, ME04240

Phone #:1-207-784-2951

E-Mail:

*Information obtained from

Old Town, Maine:

Lily-Tulip Factory

In 1996, a $20,000 EPA-Conducted Targeted Brownfields Assessment (TBA) was carried out at the former Lily-Tulip factory site. Information gained during this assessment was used as a strategic marketing tool to sell the property to developers. Following much discussion, the city council supported the purchase and redevelopment of the site. The most resent owners, Owens-Illinois Company and Sweetheart Cup Company agreed to pay a combined $100,000 towards cleanup and demolition.

Cleanup activities included removal of extensive structural and asbestos materials, 4 underground storage tanks, several electrical transformers containing PCBs, stock tanks, the contents of an oil/water separator, and removal and treatment of 2,570 cubic yard of petroleum contaminated soil. Upon completion of these activities, the City of Old Town acquired the property in 1997.