FY 2013 - the Jefferson County Port Authority

advertisement
JEFERSON COUNTY PORT AUTHORITY
ANNUAL REPORT OF ACTIVITIES
FISCAL YEAR 2013
July 1, 2012 through June 30, 2013
The Port Authority of Jefferson County, during fiscal year 2013, continued development activities that,
upon completion, will result in the construction of a public-access, industrial port facility in Jefferson
County. In addition, the Port Authority continues to assist potential industrial development projects in
conjunction with the Economic Development Corporation of Jefferson County.
Actions taken on specific Development Sites follows:
HERCULANEUM SITE
RIVER MILE 152
The Herculaneum site is located at Mississippi River mile 152 and consists of approximately 4,500 feet of
total river frontage adjacent to the existing Doe Run Company lead smelter and refining plant. Usable
river frontage immediately adjacent to the site comprises approximately 1,800 feet located between the
bluffs at the north of the site and the mouth of Joachim Creek on the south. Beyond Joachim Creek to
the south, there is an additional 1,900 feet of river frontage located to the east of the UP railroad tracks.
The Herculaneum site is approximately one quarter of a mile from the Herculaneum City center and will
be directly accessible from Interstate Highway 55 via the new Joachim Creek Bridge and a roadway to
the Port Site. Improvement of the roadway is anticipated as a part of the development to occur with the
repurposing of the Doe Run Property.
The Herculaneum site includes the nearly 450 acres of land owned by the Doe Run Company, of which
approximately 115 acres is uplands , 45 acres is river frontage and the balance of the site is currently
occupied by the lead smelting operations of the Company. This site is within the municipal boundaries
of the City of Herculaneum, approximately 26 miles south of St. Louis. Recently, the Doe Run Company
has been required to buy and remediate large parts of the city center that were contaminated by lead
fallout from the plant.
Additionally, according to a consent decree entered into between Doe Run, the U.S. Environmental
Protection Agency and the Missouri Department of Natural Resources, the smelting operation is due to
cease major operations as of December 31, 2013. It is anticipated that clean-up and repurposing of the
site for port and related industrial activities will begin in 2014 or thereafter. Upon completion of the
1
clean-up and repurposing, the Herculaneum site will have a combination of available land for port
development and ownership by an entity that is motivated to put the land into economic use.
In March 2013, a development group called Riverview Commerce Park LLC (RCP) announced their plans
to purchase the Doe Run holdings in Herculaneum. RCP is a partnership of three St. Louis-area
companies, Environmental Operations Inc., Fred Weber Inc., and J.H. Berra Construction. The acquisition
is projected to be a multi-year development program with the first phase including development of a
port facility on an eighteen (18) acre tract of waterfront property. The port facility will initially focus on
renovation of the existing dock facility supplemented by new construction of conveyors and loading
facilities. This dry bulk terminal with pontoons, caissons and the new conveyor system will have the
ability to handle up to three million tons of material per year.
Initial discussions have been initiated regarding the construction of a second loading facility, a liquid
facility. In the past, the Doe Run Co. has shipped sulfuric acid from the Herculaneum Plant via barge.
The sulfuric acid is created during the smelting process. The current liquid bulk facility is no longer
accessible and the construction of a new liquid facility is under consideration. It is uncertain when or
even if this facility will be constructed. Nonetheless the Port Authority is providing assistance as
requested by the participating parties.
The Port Authority has applied for and received notice of funding from the State of Missouri under the
Port Capital Improvement Plan and the Freight Enhancement Program. This funding, approximately
$600,000 will allow for the Authority to develop, construct and manage a Barge Fleeting Operation in
the Herculaneum Port Area. The Authority has retained a professional engineering firm to complete
project planning, prepare the Permit Application for submission to the U.S. Army Corps of Engineers
(USACE), to prepare construction and bid documents and to assist the Authority in the completion and
implementation of this activity. It is anticipated that this activity will generate operating revenue for the
Authority.
ACTIONS TAKEN
1.
2.
3.
4.
5.
The Authority will continue to work with the current owner and the new owners to develop an
effective re-use plan for this site. Primary focus will be to develop a multi-user, industrial port
facility.
The Authority will retain outside experts to assist in the development of a plan to finance and
construct the port facility if requested.
The Authority will continue to market this site to potential users of the port facility in
accordance with the approved site Master Plan.
The Authority will continue its pursuit of a permit from the USACE for the development and
operation of a Fleeting Facility in the Herculaneum Port Area.
The Authority will initiate a request for the identification of an operator for the Fleeting
Program. This individual or firm will be responsible for the operation of the Fleeting Program to
service the current and future needs of the RCP facility.
2
CRYSTAL CITY SITE
RIVER MILE 149
The Crystal City port development site is located at Mississippi River mile 149 and is immediately
adjacent to the city center of Crystal City. The land is owned by the Hug Family Partnership and has
been listed for sale. The entire tract, totals approximately 400 acres includes over 1 mile of river
frontage. While a majority of the property is within the flood hazard zone, portions of the tract,
generally located on the western side of the tract, are outside of any flood hazard area. The Master Plan
for this site includes the construction of a “slackwater” harbor facility and a series of conveyors to move
bulk material from the western edge of the site to the east. It has generally been projected that
development of this site will occur after development of the Herculaneum Site.
Adjacent to the site and southwest of the Burlington Northern-San Francisco (BNSF) rail line, is a
property that was formerly the site of the Pittsburgh Plate Glass Plant (PPG). This site, now owned by
the City of Crystal City is leased to Pea Ridge Resources Processing Inc. (PRR), a firm that includes
Alberici Constructors, Inc and MFC Industrial Ltd. The firm has announced plans for a project that
includes bringing in magnetite iron ore concentrate to Crystal City via an underground pipeline from the
Pea Ridge mine in Sullivan, MO and refining the magnetite iron ore into 99.9 pure magnetite pig iron
pellets. The project includes the construction of an industrial facility on the site and the development of
a private port facility to be located just north of the confluence of the Plattin Creek and the Mississippi
River. According to a spokesman for PRR the industrial development is still proposed for construction
and operation at the site. The firm is completing feasibility studies to document the quality of the
material and “due diligence” to ensure project viability.
Also adjacent to the site is another development, Crystal City Underground. This property is located
south of Plattin Creek and outside of the municipal limits of Crystal City. The development tract totals
approximately 174 acres of which approximately 24 acres are located on the surface. The remaining 150
acres are located sub-surface in a mine that previously provided material for the PPG glass plant. The
mine area consists of space with 40 foot ceilings with columns in a grid pattern to support the mine
ceiling. The mine does have a slight 1% to 3% slope from the three entrances of the mine to the back
portions of the mine. The owner of the development has proposed a multi-user facility with uses that
include agriculture, general business, general merchandise, recreation, storage, warehousing and
manufacturing.
Highway access to the Crystal City Port Site is presently limited and vehicle traffic must pass through the
city center. This is not considered a viable option for commercial port operations by the local
community. Therefore, a new truck route and highway connection must be established if any significant
amount of cargo is to be trucked into the port. The Port Authority completed the final study of the
Master Plan for Port Development, The Preliminary Environmental Assessment and Preliminary Access
Justification Report for the Crystal City Port Access. This document provides the baseline data for future
development of an access to the Crystal City Port Area. The Study was completed in late FY 2012 and
3
accepted by the Board of Commissioners in FY 2013 details current roadways and proposed roadways
for future development. It is anticipated that this document will provide data necessary for the
preparation and submission of grant applications once the funding source for the project has been
identified.
In contrast to the highway access, rail access to the Crystal City site is well above average with two ClassI railroads located immediately adjacent to the property. Significant port development at Crystal City
will depend on rail delivery of bulk cargo. Additionally, bulk cargo connected with operation of the iron
ore plant is expected to approach 4 million tons per year. Of this material, it is anticipated to be may
also drive development of the Crystal City port.
ACTIONS TAKEN
1.
The Authority will review the recently completed surface transportation corridor study. This
component will determine the most favorable location to a roadway to carry traffic into the
proposed Crystal City site. As development occurs, either on the Crystal City tract or on the
adjacent development sites the Port Authority will work with the owners of these adjacent
tracts to locate funding sources for the construction of the most appropriate routes to the site.
2. The Authority will continue to market this site to potential users and perform other duties to
ensure that this facility is developed in accordance with the approved site Master Plan.
3. The Authority will continue to work in conjunction with the property owners to locate potential
users of the adjacent property.
PEVELY SITE
RIVER MILE 153
The Pevely site is located at Mississippi River mile 153.3 and consists of approximately 3,000 feet of river
frontage adjacent to the existing Dow Chemical insulation board plant. It is approximately eight tenths
of a mile from the Pevely City center and is accessible from Interstate Highway 55 via State Highway
61/67. The Master Port Development Plan calls for the development of a bulk liquid shipment and
storage facility at this location.
The Pevely site is divided into two parcels by the Union Pacific (UP) railroad line that runs from Crystal
City to St. Louis along the western bank. The eastern parcel, which lies between the river and the
railroad right of way, consists of approximately 40 acres of forested upland and wetlands. This parcel is
prone to flooding during river high water events and is about 10 feet below the level of the UP railroad
tracks. The 27 acre western parcel is immediately adjacent to the Dow Chemical Company plant and
slopes gently to the south. Pevely parcels are connected by a road that passes under the railroad tracks
via a small tunnel. Although passenger cars and light trucks can pass under the tracks, there is not
sufficient clearance for cargo vans to access the eastern parcel and there is no other vehicle access to
this part of the site.
4
In addition to the two parcels that are available to the east of the Dow Chemical plant, there are
approximately 10 acres of the existing plant site could be made available for development in the future.
As owner of the Pevely site, Dow Chemical Company has expressed interest in finding a compatible
commercial use for the land. However, they wish to reserve a small recreational site adjacent to the
pond on the south for company events. None of the tracts of land included in this development site are
listed for sale.
ACTIONS TAKEN
1. The Authority will continue to work with the owner of this property to promote this site for
future development.
2. The Authority will continue to work with the participating industry to encourage expansion at
the site.
OTHER DEVELOPMENT SITES
AND OTHER ACTIVITIES
in addition to those activities directly related to the implementation of the Port Master Plan and the
sites included in the Plan, the Port Authority worked to identify and determine the availability of
property for industrial development. Many of these tracts are not currently listed for sale but may have
generated interest from individuals and firms seeking industrial development within the Port District.
Other sites are explored simply to determine to their suitability for development based upon the general
characteristics of firms seeking to expand, relocate or as part of a recruitment or retention
The Port Authority also works directly with firms seeking assistance in development activities within the
Port District. The level of assistance is predicated upon the needs of the individual firms and how the
project fits within the overall economic development program of the County. It is anticipated that this
activity will become more prevalent in the future. As Board discussions continue regarding the
expansion of the Port District, the number of development opportunities will naturally increase. It is
anticipated that this activity may be a source of revenue for the Authority.
The Port Authority also continues discussions with other agencies and enterprises involved in the
movement of goods through Jefferson County. Contacts and relationships with Railroads and Trucking
companies are essential as new port facilities are developed. The Authority also recognizes that as river
shipment opportunities increase, the level of movement of goods through the County via road and rail
assets will increase. The Authority recognizes that the logistics of bulk material shipment may
significantly increase the presence of trucks on State and County roads that lead to the terminal
facilities. This will require a much closer relationship between the Authority and municipal and County
Planning and Transportation entities.
The Authority also continues to seek revenue sources to fund its continued operations. Contacts with
the County Executive and County Council have not been to the level needed and staff will need to
increase its efforts to improve these. The relationships with the State of Missouri have significantly
5
improved but remain challenging due to staff turn-over. As the relationships between the Authority
and private sector firms evolve, particularly those relationships with firms involved in development
activities, the formation of public-private partnerships will become more important. The Authority will
need to exercise caution in this activities.
Actions related to these activities included:
1.
2.
3.
4.
5.
The Authority initiated actions to identify, market and promote sites within Jefferson County to
existing and prospective industrial concerns interested in river related access. The Authority
will continue this action in the future.
The Authority continues to explore alternative funding options to generate funds to accomplish
the goals and objectives of the Authority. Of particular interest to the Board of Commissioners
of the Port Authority is funding through the Missouri Legislature. The Authority will develop
plans for presentation to local legislators in conjunction with Board members who will take the
lead in this activity.
The Authority will continue to assist firms in locating and acquiring sites for the development
and operation in the Port District. This may include projects to expand existing operations,
relocate to new facilities within Jefferson County and recruit new firms from outside of the
area. This may include locations that do not provide access to the Mississippi River but are
located within the Port District.
The Authority will continue to work with local corporations and individuals to encourage them
to donate property, goods and service to the Authority.
The Authority will continue to seek input from area ports, user groups, and agencies to develop
a comprehensive port system in Jefferson County to serve the needs of local firms and river
uses and complement existing regional port resources. The Authority will continue this in the
future.
6
Download