TENNESSEE BROWNFIELDS

REDEVELOPMENT:

PROGRAMS & RESOURCES

ANDY SHIVASTENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION

Outline

Resources in Tennessee

ARC Grants

ARC Workshops

Application Support for Grant Applicants

Technical Support for Grantees

Targeted Brownfields Assessments

Online Brownfields Redevelopment Toolbox

Tax Incentives

Brownfields Project Voluntary Cleanup Program

Case Studies

EPA Brownfields 104(k) ARC Grants

Assessment, Revolving Loan Fund and Cleanup grants

Several types of grants that can characterize and cleanup

properties

Offered and funded by EPA to eligible entities:

Cities

Counties

States

Tribes

Quasi-governmental agencies

Non-profits (cleanup grants only)

EPA Brownfields 104(k) ARC Grants

Grant program funding is for:

Conducting Phase I and Phase II environmental property assessments,

(can be community wide or site specific)

Conducting cleanups at sites where completed assessments indicate it is

needed and

Establishing Revolving Loan Funds that provide loans or sub-grants to

private individuals to assess and cleanup Brownfields

Applications are accepted once a year in a nationwide

competitive process (SOON).

Upcoming ARC Grant Workshops

Jackson, TN, October 21st

SW TN Development District

1-4 PM

Columbia, TN, October 22nd

City Hall

1-4 PM

Knoxville, TN, October 23rd

Chamber of Commerce

1-4 PM

ARC Grant Application Support

We provide a letter of acknowledgement, as

requested, for 104(k) ARC Grant applications.

We offer applicants the opportunity for feedback

on grant applications.

Technical Support for Grantees

For recipients of EPA 104(k) ARC grants in

Tennessee, TDEC provides technical support that

includes:

Reviewing Environmental Site Assessments

Reviewing Quality Assurance Project Plans

Petroleum Determination Letters

Availability for meetings, conference calls, etc.

Targeted Brownfields Assessments

EPA awards services (environmental site assessment) in lieu of funds

Very limited availability

Case Study: Nashville Cumberland Play Park

Nashville Riverfront Redevelopment

Nashville Bridge Company, was originally a bridge builder, founded in the 1890s. After converting to shipbuilding, it was said to be the world's largest builder of inland barges by the 1960’s.

Nashville Riverfront Redevelopment

Nashville Mayor Bill Purcell announced in 2005 that the Metro Parks

and Recreation Department and the U.S. Army Corps of Engineers will

work with the Nashville Civic Design Center to create a Nashville

Riverfront Redevelopment Master Plan.

Riverfront Study Area

• A total of about 6 miles—three each on the East and West banks

of the river.

• 5.3 miles of the riverbanks in the study area are candidates for

remediation (based on historic industrial uses).

• Provide physical and visual access to the Cumberland River from

Downtown and adjacent neighborhoods for a variety of uses and

accommodate both active and passive recreation.

• Ensure high environmental and design standards for all riverfront

redevelopment.

Nashville Riverfront Redevelopment

In 2009, the Nashville Metropolitan

Council adopted a new six-year

Capital Improvement Budget that

includes up to $54 million for riverfront

redevelopment.

$30 million to construct the first phase

of the redevelopment, funded east-

bank projects will include a

• 7.5-acre Adventure Play Park,

• renovation and adaptive reuse of

the historic Nashville Bridge

Company building,

• construction of a one-acre River

Lawn.

Nashville Riverfront Redevelopment

EPA Targeted Brownfields Assessment Program

used to characterize parcels slated for

redevelopment.

• Phase I and Phase II environmental

assessments conducted by the ACOE, with

assistance from TDEC.

• PAHs, lead and arsenic identified as

contaminants which will require

management.

• Metro Nashville and TDEC cooperatively

developed plans for safe reuse of the

property.

• Some excavation/disposal required based

on design needs of the project.

• Combination of engineering (caps) and

institutional controls used to manage

contaminated soils left on-site.

Cumberland Play Park

• Tools:

Targeted Brownfields

Assessment Assistance from

EPA

Remediation conducted in

conjunction with construction

Soil management plan

Notice of Land Use

Restriction

April, 2011

March, 2012

Brownfields Redevelopment Toolbox

Site identification and

project planning

How to determine if

there is contamination

Cleaning up a site

Redevelopment

http://www.tn.gov/environment/remediation_brownfields-toolbox.shtml

Tax Incentives

Effective June 30, 2010, a franchise and excise tax

credit equal to 50% or 75%, depending on the

amount of capital investment ($25 million or $200

million, respectively) of the purchase price of

Brownfield property purchased in Tennessee for the

purpose of a qualified development project. The

total value of credits authorized is capped at $10

million per year and allows the credit to be used for

development projects using non-prime agricultural

properties in any year in which credits remain

available.

“Brownfield property” is defined as real property

that is the subject of an investigation or remediation

as a Brownfield project under a voluntary

agreement or consent order pursuant to Tenn. Code

Ann. Section 68-212-224. [Tenn. Code Ann. Section

67-4-2009]

"Qualified development project" means a project

consisting of a capital investment of at least twenty-

five million dollars ($25,000,000), utilizing at least

five (5) acres of Brownfield property, or non-prime

agricultural property as provided in subdivision

(10)(G), and having a business plan approved by

the Commissioner of Revenue in accordance with the

applicable provisions of subdivision (10)(E) or

(10)(G).

Tax Credit Terms Defined

The Commissioner of Revenue and the Commissioner of

Economic and Community Development must determine, in their

sole discretion, that the credit is in the best interest of the state

i.e. that the project is a result of the credit

Tax Incentive Caveat

TDEC Brownfields Project Voluntary Cleanup

Program

Provides a mechanism for parties to proactively work with

TDEC to:

Address necessary issues to return a property to safe productive use

Receive a ‘No Further Action’ letter and release of liability under all

applicable TDEC Environmental statutes for all areas where investigation

and cleanup is conducted.

Program used by potential purchasers of a property.

Program entry sometimes required by lenders.

TDEC and voluntary party negotiate a Brownfields Agreement

(or Consent Order) that outlines the actions to be taken to

make the property safe for its next intended use

Requires certain public notification activities (30 days)

Certain fees are required for program involvement

Final product is a No Further Action letter that provides

purchaser(s), lenders , successors in title, etc. comfort that TDEC

approves of actions taken to address the property

TDEC Brownfields Project Voluntary Cleanup

Program

Brownfields Program Process

1. Perform Phase I and Phase II assessments.

2. Submit application to the Brownfields Project VCP program

staff.

3. In consultation with program staff, determine what areas of

contamination need to addressed at the site.

4. Negotiate and finalize the Voluntary Agreement.

5. Conduct required public notices.

6. Perform and complete agreed actions in the Voluntary

Agreement including filing land use restrictions

7. No Further Action Letter

Brownfields Strategies

Incorporate Cleanup into redevelopment plan

Develop Soil Management Plan for future

development

Limit future use of the property via Notice of Land

Use Restrictions

Use of pre-emptive mitigation especially when

dealing with volatile chemicals

Case Studies!

Cleanup of brownfields properties happen all the

time, with and without grants, through business deals

and redevelopment.

Two examples are:

Redevelopment of brownfields with private dollars

(The Gulch in Nashville)

Redevelopment of a brownfield with public dollars

(Citizens Gas & Light in Jackson)

The Gulch

Just south/southwest of

Downtown Nashville

Approximately 60 acres of land

Throughout the years, it’s history

has been varied – a rail yard,

roundhouse, a maintenance

facility, etc.

Examples focus on 2 phases of

the Gulch:

Former Roundhouse

Former Maintenance

Facility/Coal Yard

The Gulch with downtown

Nashville in the background

1914 Sanborn Map

The Gulch

Aerial View of Roundhouse

1996: CSX Railroad approached

TDEC to address contamination

at the former roundhouse

property in the Gulch, with the

intention to sell it to a developer

at some point in the future.

1997: CSX entered into a

Consent Order and Agreement

with TDEC to address the

property.

2000: Investigations were

conducted to characterize the

site.

The Gulch

2000: Developers approached

TDEC to address the Alley

Cassetty Coal Yard Site (which is

NOT located in the Gulch).

Details: This was part of a

property swap between South

Central Bell (SCB) and the

developers so that the

developers could obtain SCB’s

property in the Gulch. In return,

SCB acquired a new facility on

another brownfield site (outside

of the Gulch area).

Alley Cassetty Coal Yard Prior to

Construction and Remediation

1914 Sanborn Alley Cassetty Coal Yard

SCB Property Cleanup and

Construction

The Gulch

Trains in the Gulch

Given the nature of the

contaminants, it was determined

that the clean up could be

conducted as part of the

redevelopment process.

Mid-2000s: Property was

purchased by a developer to

construct a mixed-use

development.

2008: Brownfields Agreement

was reached with developer to

address the roundhouse property.

Clean up was funded by CSX

Railroad via escrow fund.

Roundhouse Property Prior to

Construction and Remediation

The Gulch

The Gulch

2001: Developer entered into

Brownfields Agreement with TDEC to

clean up coal yard. The cleanup was

incorporated into the construction

process for the new maintenance

facility.

2005: Letter of completion was

issued by TDEC to developer, which

led to a property swap.

Currently: Icon is constructed on old

South Central Bell property. South

Central Bell is operating on their

‘new’ site (the Alley Cassetty Coal

site, an old Brownfield) north of the

Gulch.

ICON under construction

The Gulch Construction/Remediation

The Gulch

Original

South

Central

Bell

Former

Alley

Cassety

South Central Bell

moves Former

Alley

Cassety

ICON

South

Central

Bell

The Gulch

Another portion of the

property was made shovel

ready and eventually

became a mixed use

development known as Pine

Street Flats.

Currently: Velocity occupies a

portion of the old Roundhouse

property

The Gulch Summary

Tools:

•Brownfield Agreements provided new owners and developers

liability protection

•NFA letters provided comfort to lenders

•Notice of Land Use Restrictions

•Initial Characterization and cleanup funded by responsible party

(Velocity)

•Creative acquisition of land by developers (Icon)

The Gulch Summary

MDHA worked with developers

and made infrastructure changes.

There were several Brownfields

agreements on several parcels,

making them suitable for their

end use.

The Gulch has a “LEED for

Neighborhood Development”

certification, is the first one in the

Southeast, and is the 13th

neighborhood internationally to

earn this designation.

The Gulch continues to expand as

Nashville’s most vibrant mixed

use community.

ICON completed in the Gulch

Citizens Gas & Light (CGL)

Site is located on the northern fringe

of downtown Jackson, between the

Farmers Market and a

disadvantaged neighborhood.

Was a manufactured gas plant that

operated from 1871-1931.

Gas was produced by heating coal,

then extracted, stored and

distributed from this site. Along with

the production of gas, several

residual constituents were produced.

Former Manufactured Gas Plant site

discovered by public complaint

about possible contamination during

a local festival.

Citizens Gas & Light BEFORE

Citizens Gas & Light (CGL)

View of gasometer (near)

and Tar well (far)

Initially, TDEC DOR performed

investigation to identify areas of

concern requiring remediation.

Areas of concern, requiring

remediation: former tar well and

gasometer.

Jackson Energy Authority and the

City of Jackson committed to

supporting the environmental

cleanup.

Citizens Gas & Light (CGL)

Concrete slabs were segregated to be

used later for select fill

Strategy needed to focus

remediation effort and bring

more funds to project.

TDEC staff encouraged the City

of Jackson to apply for an EPA

Brownfields Cleanup Grant.

Consultant retained to conduct a

Phase I Environmental Assessment.

Jackson Energy Authority and the

City of Jackson entered into a

Brownfields Agreement with

TDEC’S VOAP to address the

areas of concern.

Citizens Gas & Light (CGL)

Jackson applied for and

received a $200,000 EPA

Brownfields Cleanup grant to

remove source areas and put a

soil cover system in place.

Data gaps were found in the

assessments, so EPA Science and

Ecosystem Support Division did

some geo-probing to fill them

prior to start of remediation.

Cleanup work began on the site

by a remedial contractor hired

by the City of Jackson.

Representative sample of material

found in "tar pit" from pre-remedial

investigation

Citizens Gas & Light (CGL)

Over $250,000 in funds were

leveraged.

610 tons of coal-tar impacted

soils were removed and

disposed of off-site.

Land Use Restrictions are

currently in place.

End use is an urban pocket

park that complements the

vision of downtown Jackson

revitalization.

Back view of Citizen's Gas building

(currently houses Farmer's Market office)

Citizens Gas & Light (CGL)

Urban Pocket Park

Farmer’s Market Office

Contacts

For additional

information regarding

EPA Brownfields Grants,

contact:

Paula Larson

615-532-0926

Paula.Larson@tn.gov

For additional

information regarding

TDEC Brownfields

Program, contact:

Barry Brawley

615-532-0908

Barry.Brawley@tn.gov