Hall Labs and South Provo: Revitalizing the Site of a Former Economic Powerhouse Prepared by Hall Labs, LLC Rev: 22 Nov 2019 Overview Original Development and Growth For over 60 years, Hall Labs has been bringing together resources to develop powerful technologies for the benefit of society. Its multidisciplinary teams and state-of-the-art facilities support research and development projects as well as several early-growth stage companies. Hall Labs has strong ties to Provo City and Utah where its spin off entities have employed thousands of scientists, engineers, technicians, legal, support, business and other professional personnel over the years and where the company itself continues to innovate at an even accelerated rate from its headquarters in south Provo’s Ironton area. In 1923, the Columbia Steel Corporation broke ground for a pig iron plant on a 385-acre site in south Provo. Iron production began the following year, and the occasion was celebrated with speeches from several dignitaries, including Heber J. Grant, who was then the president of The Church of Jesus Christ of Latter-day Saints. He declared, “We have been accused that we have not welcomed the new industries to our state; it is an absolute falsehood. We gladly welcome all industries that will develop Utah’s resources.” Over the next 20 years, the Ironton facilities and supporting supply chain expanded steadily. By the early 1940s, production capacity was up to 600 tons of iron per day, making it the largest pig iron plant in the west. A second blast furnace with a production capacity of 900 tons per day was put into operation in 1943. This article describes how Hall Labs has worked with Provo City since the 1980s on redeveloping the former site of the Ironton Steel Mill, with the goal of turning hundreds of acres of brownfield ruins into an upscale business park. Photo from the 1923 opening ceremony for the Ironton Works. One newspaper predicted “a crowd of 40,000 to 50,000,” which would have been four to five times the population of Provo in 1920. 1 Tapping a heat of iron in the cast house of the blast furnace. 1942 photo by Andreas Feininger. 2 During World War II, production at the Ironton plant was overseen by the Defense Plant Corporation, a wartime organization of the Federal Government. The Defense Plant Corporation also oversaw production at Geneva Steel, which was constructed in Utah Valley in the 1940s. • The non-physical obstacles of numerous overlapping easements, messy property title histories (missing information in some areas, overlapping parcel boundaries in others), and other legal uncertainties pertaining to the land. • Substantial environmental issues, including low-level contaminated soils in some areas and unassessed wetlands in others. After the war, both Geneva and the expanded Ironton facilities were turned over to private industry. A series of mergers in the 1950s and 1960s eventually led to both plants operating as divisions of U.S. Steel until 1966 when the Ironton plant was closed down. Some of the Ironton facility was dismantled and demolished over the next few years, but the university ultimately abandoned its development intentions. As stated in materials from the university’s archives: “after much planning and study for the development of an industrial park on the site, [in 1971] BYU announced [its] . . . indefinite postponement because geographic and physical problems on the site appeared to make the economics of the project unfeasible.” Stagnation and Non-Use U.S. Steel donated the 335-acre Ironton site to Brigham Young University in 1968. The university accepted the donation with the intention of developing the site into an industrial park. However, the land came with two blast furnaces and over 50 major structures, including several multi-storied power and storage buildings and a coke tower. Redevelopment of the site would require solutions to many significant obstacles: After discontinuation of the university’s efforts, a variety of redevelopment plans were considered by various parties. Proposals ranged from a concrete crushing facility to a minor league baseball stadium. With very limited exceptions, however, no further redevelopment materialized. • The physical obstacles of the extremely robust Ironton Works building ruins, including thousands of tons of reinforced concrete, rail sidings, and slag dumps. A view of the plant in 1968, two years after it was closed, and in 2013, another 45 years later. 3 Hall Labs Involvement purchased by Schlumberger in 2015. Current facilities include a 69,300 ft2 production and an 11,900 ft2 R&D/testing building in south Provo as well as original production facilities near BYU campus. Hall Labs was founded by Dr. H. Tracy Hall, who is famous for inventing the process used to create synthetic diamond. Hall Labs is patterned after Edison Labs, which brought together all the resources needed to grow a new technology concept from start to finish, and it has achieved significant breakthroughs in Dr. Hall’s original field and many others. • IntelliServ: pioneered high speed downhole data transmission. Purchased by Grant Prideco in 2006. Current facilities include an 84,000 ft2 production and R&D building and several large outdoor staging and testing areas. Hall Labs moved its headquarters to the Ironton area in the 1980s, and since then has sought to develop the area in a way that establishes improvements for the long term. • NovaPick: pioneered the use of polycrystalline diamond (PCD) materials in asphalt and mining operations. Now distributed through the worldwide Caterpillar dealer network. Current facilities include a 6,000 ft2 production building and shared R&D and testing facilities in other campus buildings. Hall Labs has grown and exited multiple businesses from seed stage, and all but the first of them still operate in whole or in part in the Ironton area. A summary list: • The first Hall Labs facility in the area was a machine shop that later relocated to the Provo Airport area (Hall Labs still uses the building where the shop started). • Novatek: pioneered the concept of the solid frame press for producing diamond and continues to lead the industry in highvolume PCD production. Purchased by Schlumberger in 2015. Current facilities include a 27,500 ft2 prototyping and R&D building and large outdoor testing areas. • MegaDiamond: started by Tracy Hall in 1966 with two colleagues. Purchased by Smith International in 1985 and merged with Novatek facilities after they were One of several 4 kiloton solid frame diamond presses operating in Ironton-area facilities. 4 Enterprises still operating under the Hall Labs umbrella are housed at the following south Provo locations, among others: • 3500 Mountain Vista Parkway, 175,000 ft2 production and R&D building and the first phase of a seven-phase build-out that will result in a finished building with a total of over 1,000,000 ft2. • 3000 Sierra Vista Way, an 82,000 ft2 building with extensive office, lab, and warehouse space. Top to bottom: 3000 Sierra Vista Way, 3500 Mtn Vista Pkwy (phase 1), and ongoing site cleanup, early 2018. 5 Cooperation between Hall Labs and Provo City The refurbishment phase of redevelopment has involved a third long-term partner: Evans Grader & Paving. Evans Grader is also headquartered in south Provo, with its origins also going back to the 1980s. In a true win-winwin arrangement, Provo City, Hall Labs, and Evans Grader have steadily worked on clearing deep reinforced concrete foundations, slag dumps, rail sidings, etc. as follows: Provo City eventually purchased most of the Ironton site in the years after Brigham Young University abandoned its development efforts in the early 1970s. Provo worked with companies like Hall Labs to revive economic activity in the area through the 1980s, and also worked with U.S. Steel and the State of Utah to complete a limited environmental cleanup of the site between 1998 and 2000. Such efforts, along with the addition of two new access roads and trunk line utilities, set the stage for future redevelopment. • Provo: wins by selling otherwise undesirable land to Hall Labs. Payments are discounted by the costs of cleanup and refurbishment to a state of shovel readiness. Throughout the 1990s and the 2000s, Hall Labs continued to grow and expand its physical footprint in the Ironton area, mainly in the area north of Ironton Boulevard. Provo worked with Hall Labs as it grew, coordinating on street and utility improvements, and helping as the company built several new structures and made extensive upgrades to existing buildings. South of Ironton Boulevard where the bulk of the Ironton Works facility ruins were located, Hall Labs and the city worked together to settle issues with property titles, railroad easements, and the wetlands status of undeveloped land, all of which have required decades of consistent effort to resolve. • Hall Labs: wins by buying nearby land from Provo at a reasonable price once the costs of cleanup and refurbishment are discounted. Payments for cleanup made to Evans Grader are discounted from the purchase price. • Evans Grader: wins by doing ongoing cleanup in a way that fills out gaps in work schedules and makes it possible to more fully utilize equipment and personnel during the construction off season. …and of course all parties benefit once the land is refurbished and new buildings go up in place of the old graffiti and rubble. The Hall Labs standard is that the buildings are immediately occupied by light industry or research and development businesses, and the employees and contractors working for the businesses bring that much more economic life to the area for the long term. Consolidation and Refurbishment Although Provo purchased most of the former Ironton Plant land, it was far from the only buyer. Indeed, even after the city addressed the environmental and physical issues on some portions of the land, the fragmented nature of the properties south of Ironton Boulevard remained a significant obstacle to further redevelopment. Here again, the long-term efforts of Hall Labs have made a significant difference. Over the course of decades it has managed to consolidate dozens of parcels, and this consolidation has made it much easier to work through easement issues, issues with permitting, refurbishment, etc. Conclusion In the early 1900s, iron production and related industries created thousands of jobs and robust economic activity in the Ironton area of south Provo. All of that came to an end in 1966, and hundreds of acres of formerly productive industrial property sat largely abandoned for decades. 6 side of this property are complete (see rendering below). The groundbreaking on the project, which will include extensive office, lab, and warehouse space, is currently scheduled for early 2020. Then, in the 1980s, Hall Labs came to the area and set out to reclaim the land and revitalize the former industrial site. For nearly 40 years, Hall Labs and Provo City have worked together to resolve issues ranging from the cleanup of environmental hazards to the cleanup of messy property boundaries. The goal of all the work is to bring back the jobs that were here at the peak of iron production operations in the 1940s, this time without any pollution and safety problems. All the major obstacles have been cleared, and the Ironton area is finally seeing a surge of redevelopment. The Ironton area is also part of a recentlydesignated federal Opportunity Zone, which provides an added impetus for redevelopment. Hall Venture Partners, an affiliate of Hall Labs, was established to provide qualified investment opportunities within the area. Hall Venture Partners can offer such opportunities in part because Hall Labs has incubated a portfolio of promising businesses, many for several years, centered in the Ironton area. Hall Labs is continuing with its steady growth in the area: it is starting work on phase two of the 3500 Mountain Vista Pkwy building pictured on page 5 of this report, work that will double the size of the current building. Hall Labs also continues to acquire land in the area, recently closing on a purchase of over 60 acres. Plans for a 175,000 square foot building on the west All of these factors combine to enable Hall Labs and Provo City to look boldly to the future. An area that once was an economic powerhouse for Utah Valley will soon be a showpiece of the Valley again. Rendering of the newest planned Hall Labs facility. 7 Aerial views of the Ironton Works in the 1920s and of the same area in 2019, with green shading on tracts now under Hall Labs development. The southernmost shaded area (indicated in top right corner) is where the 2020 groundbreaking will take place. 8