Charlotte City Council Environment Committee Meeting Summary for January 22, 2008 COMMITTEE AGENDA TOPICS I. II. III. Subject: Committee Background/Accomplishments/Look to the Future Action: None. Subject: Overview of City’s Brownfields Action: None. Subject: Meeting Schedule for 2008 Action: The Committee will meet the third Monday of each month at 3:30 p.m. COMMITTEE INFORMATION Present: Absent: Time: Edwin Peacock, Nancy Carter, Warren Cooksey and Andy Dulin Susan Burgess 3:30 p.m. to 4:55 p.m. ATTACHMENTS 1. Agenda Package 2. Presentation: The City’s History of Brownfield and Contaminated Property Redevelopment 3. Presentation: City of Charlotte Brownfield Program Environment Committee Meeting Summary for January 22, 2008 Page 2 DISCUSSION HIGHLIGHTS Committee Discussion: Committee Chair Edwin Peacock welcomed everyone to the meeting and asked the Committee members to introduce themselves. After a preview of the agenda, Council member Peacock stated his desire to make the environment more relevant and easier to understand for citizens. He would like to explain what the City is doing in simpler terms. For example, the phrase greenhouse gas was used 12-15 times in the background information. Council members Cooksey and Dulin said they were looking forward to reviewing the materials. I. Committee Background/Accomplishments/Look to the Future Julie Burch referred the Committee to the notebooks that were distributed with the agenda for background information and highlights of past work done by the Committee. Included is the City’s Strategy aka Balanced Scorecard showing the environment as an overall strategy towards our corporate objectives. Next is the Focus Area Plan, which is the meat behind the objectives. The scorecard is what drives City staff. Carter: I would like for the closer relationship with smart growth to be expressed in some way. There is close linkage between smart growth and the environment and sustainability. Burch: I think that is explained in the policy, but we can certainly check. Ms. Burch continued that the Focus Area Plan was approved in March 2006, and an Environment Committee was created. The first thing the Committee did was establish environmental principles (reflected on the first page of the Focus Area Plan). In July 2006, those principles were used to develop the first focus area plan and a number of initiatives. Those were adopted in March 2007. We will review those initiatives and anticipate they will be referred back to Committee. The five basic initiatives of the focus area plan were created by the Environmental Cabinet. The Cabinet is made up of staff from the City, County, CMS and COG. Carter: Can we get a list of participants on the Cabinet? Burch: Yes. Ms. Burch advised that within the Cabinet are several green teams. One major piece of work for the Cabinet and City staff is greenhouse gas emissions reductions. In May 2007, the Sierra Club made a presentation asking the City to become a “Cool City.” Council adopted a resolution, which affirmed a lot of things we are already doing (land Environment Committee Meeting Summary for January 22, 2008 Page 3 use, reduce sprawl, transportation, energy efficiency, sustainable buildings, etc.), but also advised us to conduct an inventory by June 2008. We are on target. We are utilizing resources such as our membership with ICLEI to assist us. Dulin: Where are we with the inventory? Burch: We are on track to complete the inventory by June 2008. Engineering is heading this up. Dulin: It will be interesting to see those results moving forward. Burch: We anticipate presenting the results at a Workshop or Dinner setting with a referral back to the Committee for action. Dulin: There is also this issue of non-attainment. I know the public transportation fleet is changing and also with new police cars. Blackwell: Better automation is important. It is also important for our buildings to make changes. Burch: I believe we have 30 hybrids in our fleet and on Monday night there was a request for additional hybrid buses. Dulin: I look for them when I am driving around. You can see the new garbage trucks. Blackwell: There are a lot of good stories to tell. Carter: I have heard the personnel are satisfied with the hybrids out there. Are we providing bio-diesel fuel for school buses? Burch: I don’t know. We can find out. Carter: I know Wayman Pearson is now working for a private business that equips engines with a device that makes them hybrid. Solid Waste Services is a huge fleet that we could transfer to hybrid with that device. Burch: I’ve had an email from Wayman Pearson and I know he is talking with our Equipment Management folks. Dulin: Hybrid buses really stick out. I had a conversation in the past with Ron Tober regarding the additional cost and the cost benefit analysis. $600,000 vs. $400,000 but if it gets better mileage, but then what about brake pads, tires, etc. Environment Committee Meeting Summary for January 22, 2008 Page 4 Burch: It is about $100,000 difference with hybrids. The challenge is putting a price on better air quality. It is difficult to put a figure on that. Peacock: [Resolution] Are the targets in the US Mayors resolution all satisfactory? Burch: We believe so. Ms. Burch advised the next section of the notebook is a listing of blue sky ideas from the Committee. There are a number of these ideas already in progress. You will be seeing the Tree Ordinance this spring. Engineering is studying options for green buildings and there will be a discussion regarding designing City facilities for LEED certification in early spring. Peacock: So, we are underway with number 4 [green buildings]? Burch: Yes. Carter: I think some members of the Committee have been contacted by Chatham Olive from the Sierra Club that the 18 through 20 of April is an Earth Day weekend. Would it be valuable for the City to have a handout with recommendations for citizens with water and air quality ideas and sustainability? Burch: Staff will contact Mr. Olive. Ms. Burch continued with the Environmental Summit that the County is planning in early May. There will be a lot of focus in April and May. Peacock: What is the location of the summit? Burch: That has not been determined yet. The City will be participating in the Summit. Peacock: Council member Carter, you were part of the blue sky discussion, would you like to place emphasis on any of these items or take this a little further? Carter: I would like to say that this list was not prioritized and there are several overarching ideas listed. Several of us recently attended a conference in Chapel Hill that showed how some of these ideas would be effective in the community. There are two processes: 1) submitting ideas and receiving feedback from ICLEI regarding the best cost benefit and 2) decision making. Olympia, Washington is a City government that could help us. Peacock: Are there other model ideas? Environment Committee Meeting Summary for January 22, 2008 Page 5 Burch: That would require more staff work, so you would need to ask Council for a referral for staff to drill down further. Ms. Burch advised the Committee that the remainder of the notebook is the chronology (not all inclusive) and past agendas showing the subject matter the Committee dealt with in 2007. Peacock: How many people are members of the Environmental Cabinet? Burch: Approximately 35. There is a KBE and staff. We will send you a list of the members and who they represent. Carter: I think you said COG is part of the Cabinet and I would like to say thank you to Al Sharp and the group for making such a regional push for environmental causes. You do a great job for all of us. Sharp: We have a great partnership. Burch: This is not a listing of everything we have done. We have tried to capture recent history and the policy initiatives that got us to the focus area plan. This is really just the tip of the iceberg. Peacock: Council member Carter, do you see anything missing? Carter: Just the fireworks of celebration. Cooksey: There is a reference to Utilities charges. Is there a timeline? Burch: We will bring the Committee information on CMU and Stormwater. They are two enterprise funds that are self-supporting by fees and other charges. Last year during the Budget process, it was determined that it would be helpful for the enterprise funds to report out to Committees. CATS and the Airport report to Transportation. We will touch base with the Budget office regarding the funds discussion for this year. You will probably get a presentation in the March and April timeframe. Dulin: If we are monitoring water as a community, can we get a report we can share with citizens about how many days of water we have? There is lots of discussion about how many days we have. I know Duke controls the lakes. Burch: We can arrange tours of the facilities as part of CMU’s report. But, you will also have opportunities to ask questions about their function and services. Environment Committee Meeting Summary for January 22, 2008 Page 6 Dulin: I can put the time forward to understand the issues so that I can be a better advocate. I am interested in seeing things versus reading something on Wednesday and Friday and then being asked to vote on Monday. It is easier to see and tell. Like I went to see Ron Tober to look at the hybrid buses. Now, I can advocate for them. Carter: I had heard South Carolina was suing North Caroling. When appropriate, I would like an update, also on the interbasin transfer and the impact of growth on the water supply. I’d like responses we can give to the Green Industry. There has been discussion about stopping growth and tiered services to the community. Dulin: There is a study about possibly stopping growth? Carter: It is being voiced to us that we should study stopping growth and the impact of protecting our resources to ensure we can provide basic services. Burch: You have growth management strategies on your Retreat agenda. Peacock: Just brainstorming about water, we need to know what citizens can do when we have our conversation with Mr. Bean. A quick analogy, kids are being taught in school not to flush the toilets, but when you are potty training kids at home, you teach them to flush. Its little messages about conservation that are missing. What can citizens do? When are we going to run out of water? When should we be concerned, etc.? I’d like to see that under headings, ideas that are percolating now that we should be paying attention too. I challenged Mr. Bean to come up with a list of the top 10 ways to conserve water. We need to ask our citizens to get involved; we need to bring relief to the Green Industry. In closing, we need to find out how the citizens see this issue of the environment. If we keep the message simple, I think they will respond. Carter: Not just citizens, but industry. We have appealed to the residents, we need to evaluate industry use and see that impact on the economy. Look at Duke Power. I think I heard 1 kw of water = ½ gallon of water. As we move towards conservation it is important for us to understand all the impacts. Burch: CMU routinely meets with the top 20 users in the region. Would you like an update? Carter: It doesn’t have to be part of the Environment Committee discussion, but it would be interesting to know. Environment Committee Meeting Summary for January 22, 2008 Page 7 Peacock: II. There’s Duke Energy, but also Piedmont Natural Gas. The number one subject on everyone’s mind is water. I think they will continue to collaborate because Mr. Rogers is involved at the national level. Overview of City’s Brownfields Ms. Burch said the issue of Brownfields was referred to the Committee in 2007. During a discussion of City property last June related to redeveloping private properties, the question was asked if there was interest in City-owned properties and could they be catalyst for redevelopment. Jeb Blackwell and Tom Warshauer will be making the presentation. Jeb Blackwell began his presentation [copy attached]. [Past Success: PFTA Training Ground Redevelopment/Slide] Peacock: Where is this located? Blackwell: Near the Fire Academy. [Current Major Project: Statesville Avenue Landfill/Slide] Dulin: How would it be determined which Committee will work on Statesville Avenue? Would it be worked through in ED/Planning or straight back to Council? Burch: It could go either way. It could go back to Council to determine which Committee; normally it is easier to go through one Committee. But, it is up to Council. Blackwell: The two most important issues are 1) mitigating the liability (environment) and 2) value of the land (economic development). When looking at what committee, the questions are what you want to be the ultimate use of the land, the liability and value. Peacock: Thank you. This was an excellent presentation. Carter: Have we determined there is no long term need for this property for the City? Environment Committee Meeting Summary for January 22, 2008 Page 8 Blackwell: There is a part we are interested in, but it would be easier to transfer the property to a developer so they can manage the liability and insurance. That way the parcel would come back to us clean. We are aware of the niceness of the location. Peacock: Are there any outside comparables we could look at? Blackwell: In the state of North Carolina there are not a lot of landfill sites that have been reused for buildings, just parks. This would be a unique redevelopment situation. Peacock: I know there is one in Manhattan that has a private golf club with a $500,000 fee to join. In the future, we may be seeking these types of redevelopments. Burch: Just for information, back in June the question was how much surplus property is City-owned brownfields and how could they put into play. The answer was not much and the major piece was already in play. Our goal is to minimize the liability and get that parcel back on the tax rolls. Dulin: Where is Greenville? Johnson: It is one of the 4 parcels that are 5-10 acres. Carter: Is there a State brownfields fund? I heard the Federal funds ran out. Blackwell: Yes. Brownfield funds were created to protect the innocent land owner. Tom Warshauer then began his presentation on the private side of brownfields [copy attached]. [Charlotte Grants/Slide] Carter: For local industries, are they creating local jobs too? Warshauer: Yes. Dulin: That is the most important number on the slide, 870 jobs. [Charlotte’s State Projects since 1997] Carter: Do we know what the two pending projects are? Warshauer: I don’t know. Carter: Can I get that information? Environment Committee Meeting Summary for January 22, 2008 Page 9 Westbrook: Yes. Peacock: Thank you for another excellent presentation. Carter: How long will it take to complete the reassessment? Warshauer: About two months. Carter: Can you please bring an update back to us. III. Meeting Schedule for 2008 The Committee discussed maintaining the previous schedule of the third Monday at 3:30 p.m. Ms. Burch indicated staff would send to the Committee a draft calendar with the dates noted for final approval. Meeting adjourned. Environment Committee Tuesday, January 22, 2008 at 3:30 p.m. Charlotte-Mecklenburg Government Center Room 280 Committee Members: Edwin Peacock, Chair Nancy Carter, Vice Chair Susan Burgess Warren Cooksey Andy Dulin Staff Resources: Julie Burch AGENDA I. Committee Background/Accomplishments/Look to the Future Staff Resource: Julie Burch Staff will provide a brief overview of the Committee and accomplishments since its inception in 2006. The attached notebook provides summary materials. Chairman Peacock is asking that Committee members think about possible topics they may wish to suggest to the Council as future Committee referrals. II. Overview of City’s Brownfields Staff Resources: Jeb Blackwell, Eric Johnson, Tom Warshauer Council referred this topic to the Committee in 2007 for information and discussion. The staff presentation will cover: 1) the existing inventory of City-owned brownfield properties, of which there are two, and 2) the City’s involvement in redeveloping privately-owned brownfield properties that may be eligible for City or State assistance. No action is requested. III. Meeting Schedule for 2008 The Committee will be asked to set a meeting schedule. Topics which have been referred to this Committee include Enterprise Fund reports for Stormwater and Utilities and proposed revisions to the Tree Ordinance. Distribution: Mayor/City Council Mac McCarley PCCO Stakeholders Curt Walton, City Manager Leadership Team Environmental Cabinet Brenda Freeze Environmental GDP Stakeholders The City’s History of Brownfield and Contaminated Property Redevelopment Jeb Blackwell, PE January 22, 2008 Topics • Brief Regulatory History of Environmental Laws • Past City Successes with Redevelopment • Current Property Inventory • Current Major Project Description: Statesville Avenue Landfill Regulatory History • 1980/1986 CERCLA and SARA (Superfund) – established Joint, Several, Strict and Retroactive Liability • 1995 Brownfield Economic Redevelopment Initiative – liability relief for innocent developers – removed 24,000 sites from NPL wait-list – loans and grants to conduct cleanup • 2002 Brownfields Revitalization Act – expands list of potentially eligible properties – clarified definition of “All Appropriate Inquiry” Past Success: Cedar Street Waste Cell • former Smith Metal & Iron site • 1995 Soil “Waste Cell” built for Panthers Practice Field Development • 2001 Waste Cell Removal • 2002 Brownfield agreement to benefit J&W Development Past Success: PFTA Training Ground Redevelopment • 1970’s accepted industrial waste for Fire Training • 1992 EPA Consent Order for hazardous waste assesment • 2003 Soil Remediation • Currently available for Re-use by Fire Dept. Past Success: Federal Courthouse Property • Uptown parcel used for surface parking (former Auto Dealership) • 2002 Soil & Groundwater Remediation to support sale to Federal Gov’t • ‘No Further Action’ Letters Received Environmental Contamination: An Everyday Issue Current Property Inventory • City-owned Total Parcels = 1,517 – 878 Airport – 451 Active City Uses – 188 Remainder (Potential Surplus) • 188 Potential Surplus properties – 86 limited suitability for development (slivers) – 102 Potential Surplus • 87 Residential properties • 15 Commercial properties – 8 parcels: 1-5 acres – 4 parcels: 5-10 acres – 3 parcels: 10+ acres Current Major Project: Statesville Ave. Landfill • City Landfill 1940’s to 1970 • 1987-1995 Site Investigations by State/Federal EPA • 1996 Placed on CERCLA NFRAP List • Recent interest by Developers spurred City RFQ Process Current Major Project: Statesville Ave. Landfill • Statesville Avenue Landfill Sale - Path Forward: – 1 to 2 Months: • Negotiate Acceptable ‘Letter of Intent’ from Developer • Brief Council on Agreement Terms – 3 to 6 Months: • Developer’s State EPA due diligence • Negotiate/Finalize Sales Contract City of Charlotte Brownfield Program Council’s Environment Committee January 22, 2008 Charlotte’s Brownfield Program • • • • • Definition and Roles Local History Team Building Money Matters Time is Critical • Market Support What is a Brownfield? • Brownfields are: “abandoned or underutilized properties whose redevelopment is impaired or complicated by real or perceived environmental contamination.” Source: EPA Government Roles • Federal: – Enforcement – Funding through EPA • State: – Enforcement – Brownfield Agreements – Tax Abatement • Local: – No Enforcement – Funding for Assessment Local History • $200,000 EPA Assessment Grant awarded 1996 – focus on SouthEnd/Wilmore • $100,000 EPA Supplemental Grant awarded in 2000 - expanded to include Business Services Geography • $200,000 in local funds added – focus on expediting local review • State employee added to Charlotte in 2002 Local History • First in the Carolinas • Assisted other cities with applications • Frequent speaker about our program • Savvy Award for our marketing material • Recognition for our community outreach • National Brownfield Conference held in Charlotte in 2002 Team Building • Not much trust between private sector disciplines • Established Brownfield Partners • Committees intermingled disciplines • City worked with many consultants • Community’s expertise expanded Money Matters • • • • Assessment funds most at risk City initially paid all upfront costs Changed to 50% of costs up to $20,000 EPA funds expended, now funded locally • Application simple – http://edo.charmeck.org Carson Boulevard Thomas Construction • 23 jobs retained • $6,800 assessment • $5,000 cleanup CityWest Shopping Center Before renovation • $108,000 assessment ($20,000 grant) • $83,000 clean up • 36,000 square feet • $3,200,000 project • Sold in 2007 for $3.6 million After Dynatech / Truck Equipment Manufacturing • • • • Priority site for community Created 65 new jobs $27,000 assessment $ 5,000 cleanup Charlotte Grants • Most sites did not require cleanup • Where required, less than expected – 20 projects on 57.3 acres – $281,850 awarded ($211,795 spent) – $468,889 assessment leveraged – $805,705 clean up leveraged – $38,393,691 est. construction leveraged – Over 870 jobs created Time is Critical • System not initially set up for speed • Redevelopment (developers) require speed • City initially paid for State Employee to expedite Charlotte projects • Now fully funded by State Charlotte’s State Projects since 1997 • 42 Recorded Brownfield Agreements (State: 111) • 23 Active Eligible (State: 115) • 2 Pending (State: 42) – Carolyn Minnich – carolyn.minnich@ncmail.net – 704 661-0330 State Program • Application and Processing Fee of $5,500 • 5-Year Tax Exclusion for Real Property Improvements (first 5 taxable years) – Year 1: 90% – Year 2: 75% – Year 3: 50% – Year 4: 30% – Year 5: 10% Program Sites Concentration along South Corridor, but sites located all over Charlotte Market Support • South Corridor Light Rail Line opened 2007 • Utilizes 9.6 miles of old Norfolk Southern track, from uptown to I-485 • Old industrial lines the tracks • Creates a strong market for mixed-use projects, if brownfield issues resolved South Corridor Projects • Approx. 7200 residential units proposed, under construction or completed in last 3 years • Over 480,000 square feet of new commercial property • Over $1B in new construction New Bern Station Area South End Harris Murr Building Pike’s at Camden Square Park Ave and Camden Rd Northeast Corridor NoDa – over 350 new residential units in the past 5 years. Completed Highland Mills Alpha Mills – reuse from mill into residential rehab and new residential Charlotte Program • • • • • Path of success paved. Projects doable. Projects getting done. Assessment funds still needed. Geographic eligibility being updated with other ED Programs. Questions ? Tom Warshauer / Emily Westbrook Economic Development Office City of Charlotte 704 336-4522 / 704 432-2076