REVITALIZING
AMERICA'S MILLS
    A Report on Brownfields Mill Projects

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Foreword
Across America, communities are revitalizing abandoned, contaminated brownfields. Through collaborative
partnerships, thousands of brownfields have been cleaned up and restored to productive use. Brownfields
projects carry the spirit of rebirth ~ uniting environmental protection, economic development, and
community revitalization.

This report focuses on mills ~ former textile, wood, paper, iron, and steel mills. The report describes the
challenges and opportunities of mill sites with case studies highlighting some of the most creative solutions
from across the country. I am proud that EPA was able to provide support for this report, demonstrating the
federal government's commitment to local revitalization initiatives. I hope that this report provides inspiration
and ideas for the next generation of communities moving forward with brownfields projects of their own.
Susan Parker Bodine
EPA Assistant Administrator for
Solid Waste and Emergency Reponse
Prepared by:
SRA International, Inc. (Contract No. 68-W-01-048)
3434 Washington Boulevard
Arlington.VA 22201

Prepared for:
U.S. Environmental Protection Agency
Office of Solid Waste and Emergency Response
Office of Brownfields Cleanup and Redevelopment
Washington, D.C. 20460
Front cover photo:
Essex Mills, a former textile mill in New Hampshire, during renovation.
Inside front cover photo: Essex Mills during its operation as a textile mill.

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Table  of Contents
Mills - Past, Present, and Future .................. 2

Textile Mills .................................................. 6

   Taunton, Massachusetts Case Study ................ 8

   Rock Hill, South Carolina Case Study ............. 1 0

Wood Product and  Paper Mills .................. 1 2

   Little Falls, Minnesota Case Study ................. 14

   Astoria, Oregon Case Study ......................... 1 6

Iron and Steel Mills .................................... 18

   Sterling, Illinois Case Study .......................... 20

   Johnstown, Pennsylvania Case Study .............. 22

Realizing the Possible ................................. 24

Resources..                              ..25
                                                     Top photo: An illustration of an early textile mill.
                                                     Center and bottom photos:
                                                     Riverside Mills in Providence, Rhode Island,
                                                     before (center) and during renovation.

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      Introduction and Purpose
                                                           Mill Definition
     Mills tell the story of America. Flourishing mills
     invoke images of America's industrial strength
     and success. As mills thrived, so did their
     surrounding communities, developing into towns
     and cities. When the mills closed, these towns
     and cities were left to search for stability and new
     opportunities  outside of their mill town identity.
     Today, revitalized mills throughout the country
     serve as reminders of their historic roles and as
     demonstrations  of reinvention.
For the purposes of this report, "mill" refers to an
operation that uses raw material to manufacture products
that include textiles; pulp, paper, and paperboard;
engineered and traditional wood products for
construction; and iron and steel for construction. These
operations process cotton, wool, and other raw fibers;
wood and wood fiber, both virgin and recycled; and iron
ore, coal, and metal scrap.
     The mill industry's overall decline left an extensive legacy of vacant, often abandoned, and sometimes
     contaminated former mill sites. These properties now fall under the category of "brownfields"—denned
     by the U.S. Environmental Protection Agency (EPA) as "real property, the expansion, redevelopment,
     or reuse of which may be complicated by the presence or potential presence of a hazardous substance,
     pollutant, or contaminant." To date, EPA's Brownfields Grant Program has contributed to the revitalization of
     approximately 355 mill sites throughout the country.
                         Mill Properties Funded by EPAs Brownfields Program
                       Data pulled from Assessment Cleanup & Redevelopment Exchange System (ACRES)*
I
                                                                                      355 Total Funded Mill Properties
                                                                                      (Data as of April 2006*)
                                                                                  (•ft"
                            nded Mill Property
     *Data do not include properties targeted by Section 128(a) State & Tribal Response Program Grants; geographic placement of dots may not be exact.

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This report highlights examples of successful mill
redevelopment, identifies common challenges,
describes innovative solutions, and suggests tools and
resources available to assist in mill redevelopment.

Background and Overview
The history of U.S.  mill operations predates the
country itself—going as far back as the first British
settlements on the North American continent 400
years ago. Mill operations were the lifeblood of
those seedling communities, serving as the economic
foundation and often the sole source of livelihood for
residents.
Common Lessons Learned
The project examples used in this report offer insight to
some successful strategies for mill redevelopment and reuse.
Some examples include:
    Implementing a reuse strategy with community
    needs at the forefront
    Developing and implement a master redevelopment plan
    Exercising persistence and patience
    Recognizing the ability to preserve historic features
    Building partnerships—enlist political leaders, state
    environmental agencies, and developers
    Identifying resources and agencies with access to
    multiple funding sources
Mills were at the heart of the American manufacturing
industry. Mills grew from our economic demand
for an ever-changing variety of products. As our demands changed with technological advancements, so
did the mills that manufactured the products that fueled our economy. In the 1600s and 1700s, iron was in
high demand for use in the manufacture of items such as tools, nails, plows, and hinges. In the mid-1800s,
technological advances in alloying and manufacturing reduced the country's demand for iron, and the demand
for steel increased as the construction and rail industries flourished.
Sawmills appeared in increasing numbers across the expanding landscape in the early and mid 1800s. These
mills processed logs into boards  for construction, typically using waterwheel-powered saws until steam power
became commercially feasible.
Snapshot of Grey Hosiery Mill
The former Grey Hosiery Mill was established in 1915.
The mill was a major employer in the county, manufacturing
children's and women's hosiery for more than 50 years until
it closed in 1967. In 2001, the Old Mill Cultural Center, Inc.
(OMCC), a local nonprofit, formed to bring a cultural and
performing arts center to the city. Understanding the historic
importance of the former mill, the city donated the property to
OMCC for inclusion in the new arts center development plan.
Scheduled to open in 2009, the Mill Center for the Arts will
serve the community's growing need for arts and culture and
stimulate commercial activity and the local economy in the
downtown area.
             Hendersonville, North Carolina
                                                               The Grey Hosiery Mill building before redevelopment.

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    Textile mills, which use machinery to spin and weave
    raw fibers (such as cotton and wool) into cloth,
    first appeared in the United States in the late-1700s
    to early-1800s. Like sawmills, textile mills relied
    primarily on water power until steam engines became
    common. The textile mill industry grew significantly
    from the late  1800s to the early-mid 1900s before
    beginning a decline.

    The Current Landscape
    All of these mill industries—textile, wood product
    and paper, and iron and steel—suffered significant
    declines during the latter part of the 20th century.
    These declines can generally be attributed to two
    major market forces:
            New  Global Market - Due to the availability of inexpensive labor and raw materials, as well as
            a sharp drop in product-to-market transportation costs, mills operating overseas gave the U.S.
            manufacturing industry increased competition, resulting in mill closings and job losses.

            Modern/Efficient Manufacturing Processes - Emerging mills in foreign markets used new
            technologies that improved efficiency and reduced operating costs, while most U.S. mills—built early
            in or  at the turn of the 20th century—were burdened with antiquated equipment and out-dated or labor-
            intense production processes.
The front view of the Allen Rogers Wood Turning Mill
 in Laconia, New Hampshire, before redevelopment.
Snapshot of Five Mile Creek Greenway Project
            Jefferson County, Alabama
From the late 1800s through World War II, Jefferson County
was a hub of coal mining and coking operations supporting
Birmingham's growing steel industry. As the demand
for coke declined due to technological advances in steel
production, the coal mines, coke batteries and ovens, many
of which were located along waterways or rail lines, were
abandoned. In 2002, a regional partnership was formed by
the Black Warrior - Cahaba Rivers Land Trust along with
six cities bordering the creek, Jefferson County, the Regional
Planning Commission, and local nonprofit organizations.
The primary goal of the partnership is to transform this
former industrial area into a 27-mile greenway with a
planned system of parks and paths along Five Mile Creek.
The City of Tarrant developed a 16-acre park along this
greenway. The other communities in the partnership recently
acquired park property totaling 350 acres.
      The Five Mile Creek Greenway.

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The decline of American manufacturing
industries left a legacy of vacant, often
abandoned, and sometimes contaminated
former mill sites. Many of these properties
are now brownfields. As do many of the
estimated hundreds of thousands of brownfields
across the country, former mill properties
often lie in prime locations with ready access
to transportation and utility infrastructure.
Developers and other interested parties may
hesitate to become involved with brownfields
because of uncertainty about cleanup costs
and the extent of potential liability for past
environmental contamination.
The Design Center of the Carolinas in Charlotte, North Carolina,
           formerly the Nebel Knitting Mill.
Each mill site presents unique and varied
challenges and opportunities for redevelopment. While different in many ways, mill sites have some
common characteristics. Mill properties often are large, encompassing tracts of land, and often require long
redevelopment timeframes. Mills often are located on water bodies and rivers and can present distinctive
redevelopment potential centered around historical preservation and waterfront redevelopment.
Snapshot of Oakridge Industrial Park
A 220-acre mill was once the dominant employer in rural
Oakridge, Oregon. The mill manufactured various wood
products from 1939 until it closed in 1990, costing the
town more than 400 jobs. The town sought to redevelop the
site into an industrial park complex. Oakridge conducted
numerous assessments, including an EPA Targeted
Brownfields Assessment, and a cleanup that included the
removal of drums, underground storage tanks (USTs), and
contaminated soils.
The city has also focused its efforts on the recreational
value of the site, taking advantage of the surrounding public
lands that provide an opportunity for tourism.
                              Oakridge, Oregon
The 220-acre Oakridge Lumber Mill property prior to redevelopment.

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     textile  Mills
   A vital part of American industry for more than 200 years, textile mills served as the economic
   foundation for hundreds of emerging towns and cities during the early 1800s and the industrial
   revolution. U.S. textile operations remained strong until the 1970s, when social, economic, and
   environmental changes caused many of them to close. Even while some mills were successful in
   downsizing, adapting, or changing their product altogether, mill communities often suffered from the
   loss of the industry 'sjobs, productivity, and support. In the last decade, former textile mill sites have
   shown renewed promise, with growing interest in their redevelopment from towns and developers.

   Opportunities for Redevelopment

   Former textile mills are often the centerpiece of a town's history, presenting opportunities for redevelopment.
   Since many dormant textile mills are designated historic structures, rehabilitation of these buildings,
   structures, and facades needs to be addressed in redevelopment plans. Many mills are being converted to
   residential reuse in communities where the cost per square foot for residential housing is high enough to
   compensate for the expenses associated with redeveloping a mill property and cleaning it to residential
   standards. Additional redevelopment advantages of these properties include:

   •   Architecture and history - Textile mills often include appealing architecture features such as high ceilings,
       large windows, open floor plans, and working infrastructure. These features make abandoned mill
       properties highly marketable for loft-style commercial and residential redevelopment.

   •   Desirable location - Since many textile mills were originally water powered, they often are located in the
       center of towns near rivers and other bodies of water. Some of these properties represent the only land
       available for development  and offer opportunities for towns to center their smart growth goals around the
       redevelopment of the mill property.

   •   Potential economic and social revitalization - Regardless of a mill's location, its cleanup and
       redevelopment can have a  large  impact on the area's economic and social revitalization. Since many
       communities were developed solely on the mill economy, the economic and social revitalization of these
       communities therefore may rely strongly on the restoration of the mill property. Redevelopment of a mill
       site can increase property values and tax revenues, create much-needed residential or commercial space,
       and improve the social outlook of the area.

   •   Accommodating growth - Many communities are experiencing population increases, which results in
       the need for additional housing,  recreational, and work resources. Redeveloped mill properties provide
       opportunities to accomodate expanding urban populations and increase the economic viability of a
       community's central business district.
Textile Production Facilities in the U.S.
             Number of Textile Production Facilities
          • •
                                                        Between 1972 and 2002, there was a 45 percent
                                                        reduction in the number of operating textile
                                                        manufacturing facilities. In addition, the value of
                                                        American textile production decreased by 62 percent.
                                                       • - Information derived from U.S. Census Data
                                                       provided in Statistical Abstracts for indicated years.


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Snapshot of Pillsbury Mill
                Tilton, New Hampshire
When the Arthur S. Brown textile mill closed its doors in 1985
after more than 100 years in operation, the Town of Tilton, New
Hampshire, recognized an opportunity to use the highly visible
site for a downtown riverfront park. With assistance from the New
Hampshire Department of Environmental Services and a U.S.
EPA Removal Action, the town identified and addressed the site's
environmental concerns. The Tilton Riverfront Park Committee
helped advance redevelopment by securing grants, donations, and
a town bond to finance the project. Completed in September 2006,
the site is a scenic waterfront community park with a sledding hill,
a meadow for play, an ice skating rink, swings, handicap-accessible
paths, and picnic areas.
Site of the former Arthur S. Brown mill, redeveloped into the
             Tilton Riverfront Park.
Challenges to Cleanup and Redevelopment

Specific issues associated with the production histories of textile mills create challenges that affect decisions
about their ownership, assessment, cleanup, redevelopment, and financing. These issues include:

•   Contamination - Inadequately documented environmental histories cause concern for resolving real or
    perceived environmental contamination problems. Typical textile mill contaminants include asbestos,
    mercury, polychlorinated biphenyls (PCBs), lead, other metals, and volatile organic compounds (VOCs).

•   Location - Textile mills—especially those in the South—are typically found in remote, rural
    communities, once hubs of economic activity but far removed from today's economic markets. Their
    proximity to declining residential areas with small populations can limit potential redevelopment options.

•   Size and complexity - Most
    properties are large, with numerous
    buildings to address.

•   Ownership and liability - Properties
    may be abandoned, with tax liens
    and potential liability issues.

•   Historic status - Mills often
    are appealing because of their
    historical significance. However,
    the restrictions of an historical
    designation can increase
    redevelopment and financing costs.

The following case studies describe
redevelopment projects in Taunton,
Massachusetts, and Rock Hill, South
Carolina. These case studies demonstrate
how former textile mill properties can
be approached as opportunities for their
surrounding communities.
                                        M^^^^^^^^^^H
                                                        The redeveloped Bates Mill complex in Lewiston, Maine.

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                  unton,  Massachusetts
            Stabilizing the financial risk of this $15 million redevelopment project through negotiated
            contingencies within a Purchase and Sale Agreement and historical tax credits, the WEIR Corporation
            celebrated the grand opening of 64 affordable housing rental units in December 2005.
             Background

             In 1890, the Cohannet Mill cotton factory opened
             in Taunton, Massachusetts. It was the third textile
             mill to locate in what was then a bustling seaport
             and industrial community. After the factory ceased
             cotton production, the mill facility was re-tooled for
             several different industrial uses, including hosiery
             and yarn manufacturing and curtain production.
             In 1970, cotton spinning returned to the mill
             when Robertson Factories took ownership of the
             facility. In the following years, the local economy
             declined. As a result, several nearby mills and
             industrial facilities shut down,  leaving abandoned
             and underutilized properties throughout the
             historic Weir Village neighborhood. The Robertson
             Factories eventually ceased mill operations in the
             1980s. By 2003, 75 percent of the former Cohannet
             Mill site (now known as the Robertson Mill) sat
             empty and Weir Village became one of the most
             depressed areas in Taunton.
8

           A new playground facility at the Robertson on the River property.
Taking on the Risk

As part of a five-year strategic plan to restore its
economy and outlook, the Weir Economic Industrial
Revitalization (WEIR) Corporation, a local,
nonprofit community development corporation
(CDC), targeted the 140,000 square-foot, 6.5-
acre former Cohannet Mill property as one of its
top three sites for redevelopment. The CDC also
identified the redevelopment of the mill property as
essential to the revitalization of Weir Village. While
a number of reuse ideas were proposed for the
mill site, the CDC envisioned a mixed-use, smart
growth renovation of the former mill that would
create affordable housing and commercial space
while restoring the property's riverfront access and
associated greenspace.

To make this vision a reality, the WEIR Corporation
needed to gain ownership of the property. The City
of Taunton demonstrated its support for the project
by providing a loan for property acquisition. To
minimize the risk of undertaking a project of this
magnitude, the CDC completed an environmental
assessment of the property and leveraged all
of the required $15 million in financing before
purchasing the property in 2002. As part of the
process, the WEIR Corporation created a diverse
and experienced redevelopment team composed of
environmental engineers, developers, architects,
and lawyers. In the innovative Purchase and
Sale Agreement, the CDC stated the property
acquisition (or purchase) would be dependent
upon the completion of permitting, financing,
and environmental due diligence activities.
This agreement enabled the WEIR Corporation
to purchase the former mill property in 2003.
With the Purchase and Sale Agreement and the
environmental assessment documents, the investors
received the assurances needed to commit funding
to the revitalization of the property.

   "People love the space; they like being in an
   historical mill structure. The market is there, which
   creates the incentive to do the work to renovate the
   structures."
                               -Teri Bernert,
                           WEIR Corporation,
                                Taunton, MA

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    Results

    In December 2005, the "Robertson on the River"
    development opened, featuring 64 affordable
    residential units and 18,000 square feet of
    commercial space. The property already is 100
    percent occupied, with a waiting list for residency.
    The development offers riverfront greenspace and
    views of the river that restored the river's significance
    to the community. Other successes include:

    •   The property was cleaned up to stringent
       residential standards. This included the
       removal of contaminated soil (containing
       lead and polycyclic aromatic hydrocarbons
       [PAHs]) along former railroad easements,
       asbestos contamination, a transformer, and two
       underground storage tanks.

    •   The development serves as a model for smart
       growth in Massachusetts. The residences
       feature a "village" environment with access to
       transportation, shopping, recreation, and housing.

    •   This development provides new river access
       to the community, opening up additional
       recreational uses.

    Financing as Key

    Assembling the $15 million in funding for the
    Robertson on the River redevelopment project was a
    complicated process involving many sources. While
    the historic elements of this project significantly
    increased redevelopment costs, the site's historical
    status worked in the project's favor. Historic tax
    credits were essential in allowing the project to
    proceed. Funding sources  for this redevelopment
    effort are broken down as  follows:

Financing Strategy for Taunton, Massachusetts
                                              Textile  Mill  Case  Study
Community Strategy and Insight
    Timing is essential: Costs are greatly impacted by
    timing and can skyrocket if a project experiences
    significant delays. The WEIR Corporation created an
    experienced development team that was able to keep
    the project moving forward. The development team
    ensured that construction deadlines were met and
    helped coordinate multiple funding sources.

    Leverage of funding sources: Having assembled a mix
    of loans and grants, the WEIR Corporation used more
    than 10 funding sources to finance this project. State
    tax credits and U.S. Department of Housing and Urban
    Development funds were key to secure other funding
    and move the project forward.
    The exterior of the redeveloped Robertson on the River property.

U.S. EPA Brownfields Revolving Loan Fund Subgrant to City of Taunton
U.S. EPA Brownfields Revolving Loan Fund Loan to City of Taunton
U.S. EPA Cleanup Grant to WEIR Corporation (CDC)
Low Income and Federal Historic Tax Credits
State Historic Tax Credits
City of Taunton Section 108 Loan
Affordable Housing Trust Funds
State Facilities Consolidation Funds
Massachusetts Department of Housing and Community Development - Housing Stabilization Fund
Massachusetts Housing Partnership Loan
Mass Development Environmental Assessment Funds
Amount
$148,000
$140,000
$52,000
$8,915,031
$690,000
$600,000
$900,000
$321,258
$750,000
$2,700,000
$54,000
 Total
                                         $15,270,289


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              Rock  Hill,  South  Carolina
              Through a master plan and wide-ranging partnerships, the City of Rock Hill addressed the
              economic, social, and health impacts of the closure of four textile mills.
              Background

              For more than 100 years, Rock Hill, South Carolina,
              was an important cotton market for county farmers.
              Nearly 20 textile mills were located in the area at the
              peak of the cotton manufacturing era.  The Rock Hill
              Cotton Factory opened in 1881 as the  first steam-
              driven textile mill in South Carolina and played
              a leading role in the city's industrialization. The
              Highland Park Mill, Arcade Textile Mill, and Rock
              Hill Body Company Mill all opened in the 1890s.

              A gradual decrease in cotton crop production and
              an increase in labor costs spurred the decline of the
              area's textile industry until it virtually ceased to exist
              in the
              early 1980s. As a result, Rock Hill lost its major
              economic driver and faced a citywide  unemployment
              rate of 17 percent. In addition, the neighborhoods
              that existed as mill  communities for generations
              suffered severe economic and community impacts,
              including declining housing and infrastructure, and
              rising crime and health concerns.
Meeting the Challenge

Rock Hill needed a strategy to quickly address the
loss of its economic driver to prevent further social
and economic decline. Two partnerships emerged
to develop and support this strategic approach. The
Rock Hill Economic Development Corporation
(RHEDC) formed in 1983 to combat the area's
economic decline and spearhead redevelopment.
The Rock Hill Council of Neighborhoods was
incorporated in 1999 to preserve and promote the
integrity of the city's neighborhoods and assist with
the transformation of former mill communities.

In 2003, project partners developed the Textile
Corridor Master Plan that included a feasibility
study and physical assessment for the redevelopment
of Old Town Rock Hill and four associated mill
sites. In 2004, the city and county worked with the
Rock Hill Council of Neighborhoods to develop the
Neighborhood Master Plan to restore infrastructure,
provide amenities, and spur investment.

The RHEDC successfully stabilized the city's
economic situation, enabling the city to focus on
improving neighborhoods and redeveloping the
mill sites. In 2002, the city and the council worked
together to revitalize the former Arcade Textile Mill
site. A fire at the property in  1996 destroyed the mill
building and heightened environmental concerns.
RHEDC and the city jointly acquired the property
through foreclosure and demolished the remaining
structures. Assessment and cleanup of the property
are ongoing. Once completed, the site is scheduled
for redevelopment as single-family homes that will
complement the surrounding neighborhood.

Two other mills in Rock Hill were restored to
preserve their historic  architecture. In 2001, a private
developer worked with the City of Rock Hill and
formed a public/private partnership with the York
County Council on Aging and the Rock Hill Housing
Authority to redevelop the Highland Park Mill
into 116 apartments for the elderly. In May 2006,
the RHEDC sold the five-acre former Rock Hill
Cotton Factory for $300,000 to Williams & Fudge,
a national college loan agency, and Bryan Barwick,
a Charlotte developer, for office and retail space that
will bring 200 jobs to the area. The fourth mill, the
Rock Hill Body Company, is privately owned and
plans for redevelopment are in place.
              The Rock Hill Cotton Factory building before redevelopment.
10

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    Results

    Rock Hill's textile mill sites remain important
    landmarks and symbols of the city's industrial
    heritage. Targeting these properties for cleanup
    and redevelopment is eliminating environmental
    health hazards, decreasing crime, creating housing
    and retail space, and improving and updating the
    infrastructure of the community. Cleanup of the
    Arcade Textile Mill property will eliminate a major
    blight on the neighborhood and allow the property
    to once again benefit the community it supported for
    generations.
        "The projects are unique because of the unique
        architectural features of the buildings.. .people
        want to own them."
                                     -Mary Foote,
                        City of Rock Hill's Economic
                  and Urban Development Department
                                               Textile  Mill  Case  Study
Community Strategy and Insight
    Implement a neighborhood strategy: In 2004, the
    city, Rock Hill Council of Neighborhoods, and
    community members organized to develop a
    neighborhood strategy for the Arcade-Westside
    neighborhood. The strategy identified obstacles
    to community revitalization such as zoning and
    environmental conditions and created a vision for
    the neighborhood with short, medium, and long-term
    implementation plans.

    Develop and implement a master plan: A team
    consisting of urban economists and designers,
    landscape architects, transportation and environmental
    engineers, and a historian was hired to develop a
    process to achieve feasible redevelopment goals.
    Due to the underlying social, economic, and health
    effects of the mill closures, it was necessary to involve
    a range of partners that included neighborhood
    organizations and elected officials. These partners
    identified reuse options that would provide the
    greatest overall benefit to the community.
    Financing

    The Master Development Plan was financed by
    $1,540,000 pledged by seven local partner
    organizations, as well as from EPA and the U.S.
    Department of Housing and Urban Development.
    Additional federal grants were used to complete the
    assessment, cleanup, and redevelopment of the textile
    mills. For example, in 2003, the city obtained an EPA
    Brownfields Assessment grant to target three of the
    former mill properties.  In 2005, the city received an
    EPA Cleanup grant and the State of South Carolina's
    first EPA Revolving Loan Fund loan to address
    environmental issues at the Arcade Textile Mill site.
                                                                     ; senior housing apartments located in the
                                                                      redeveloped Highland Mill building.
Financing Strategy for Arcade Mill in Rock Hill, South Carolina

Funding Source Amount
&
S.C. Department of Health and Environmental Control
U.S. EPA Brownfields Revolving Loan Fund Loan
U.S. EPA Brownfields Assessment Grant
U.S. EPA Brownfields Cleanup Grant
HUD Community Development Block Grant (CDBG)
$425,000
$200,000
$ 1 60,000
$755,000
 Total
                                          $ 1,540,000
                                                                                                                   II

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   Wood  Product  and  Paper  Mills
   A centerpiece of America's agricultural and industrial past, wood product and paper mills were some
   of the earliest mills in the country. From the first paper mill established by William Rittenhouse in
   Pennsylvania in 1690 to modern, large-scale sawmill operations in the South and Pacific Northwest,
   wood product and paper mills were always a staple of the American economy. The shift to a global
   market, fluctuations in the availability of timber, and the modernization of the manufacturing
   process left many communities with abandoned and underused wood and paper mill properties.
   According to 1972 U.S. Census data, there were approximately 40,000 operating wood and paper
   product facilities in the U.S. In 2002, that number had dropped to approximately 23,000.
   Opportunities for Redevelopment

   Former wood product and paper mill properties have several common features that make them particularly
   attractive to developers, including:

   •  Waterfront redevelopment potential - Most wood product and paper mills are located along bodies of
      water, creating opportunities for waterfront redevelopment. In rural areas, waterfront property is ideal for
      recreational use, while in towns or cities its scenic attributes make it valuable for greenspace and mixed-
      used redevelopment.

   •  Recreational development - Because of their proximity to public lands, many of these properties can be
      reused for recreation and tourism.

   •  Historic preservation - Since many wood product and paper mills date back to the 1800s and are
      considered historic landmarks, they are eligible for a variety of federal, state, and local historic
      preservation grants. Historic preservation also extends and enhances the heritage, value, and cultural
      elements of the community.
Status of U.S. Forest Products Industry
                            --.-   '---•
                     Map courtesy of The Pulp & Paperworkers Resource Council

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Challenges to Cleanup and Redevelopment

The redevelopment of former wood product
and paper mill properties involves a number of
complicating issues, including:

•   Contamination - Former wood product mills
    typically are contaminated with wood-treating
    chemicals and residual waste material. Many
    still have abandoned and leaking USTs that were
    once used to store fuel to power machinery.
    Soil and ground water contaminants can include
    petroleum, VOCs, creosote, dioxins, and lead.

•   Unclear government jurisdiction - Because
    many former wood product mills are located on
    water bodies, government jurisdictions often
    overlap. Resolving jurisdictional issues can cause
    lengthy delays and contribute to setbacks in the
    implementation of cleanup and redevelopment
    plans.

•   Historic preservation - Because many wood
    product and paper mills date back several
    centuries, they are considered historic landmarks and require preservation. Historic preservation enhances
    the cultural landscape and protects the heritage of the area, but it also can increase project costs.

The following case studies for Little Falls, Minnesota, and Astoria, Oregon, demonstrate that redevelopment
of wood product and paper mills can retain some of the cultural heritage of their communities.
The former Astoria Plywood Company in Oregon before redevelopment.
Snapshot of Allen Rogers Wood Turning Mill
                    Laconia, New Hampshire
A five-acre, former wood products mill on the banks of the
Winnipesaukee River in the heart of downtown Laconia,
New Hampshire, will soon be redeveloped into residential
housing. Best known for making wooden eggs for the
White House Christmas Tree, the mill closed in 1998 due
to lack of business. The property was bought by a housing
developer who targets mill buildings in New Hampshire and
Southern Maine. The state's Department of Environmental
Services provided a $500,000 EPA Brownfields Revolving
Loan Fund loan to clean up the site.

Following similar residential development projects that
succeeded in southern New Hampshire, Laconia will benefit
from the building's attractive characteristics, including large
windows, brick construction, and a waterfront location.
                                                     The rear view of the Allen Rogers Wood Turning Mill before redevelopment.
                                                                                                        I
                                                          13

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              Little  Falls,  Minnesota
             In Little Falls, Minnesota, the community and its partners redeveloped the Hennepin Paper Mill
             into a park while overcoming the challenges of historic preservation and finding funding sources.
              Background

              Located on the banks of the Mississippi River and in
              the heart of rural Little Falls, Minnesota (population
              8,300), the Hennepin Paper Mill was the oldest
              paper mill west of the Mississippi. For more than
              four generations, from 1890 to 1998, workers took
              pride in the mill as "the place to work," producing
              newsprint, poster board, construction paper, and
              at one  time, every Crayola crayon wrapper in the
              country.

              Upon closure of the mill, Minnesota Power, one
              of the current property owners, began to remove
              unwanted materials from the site and initiated
              assessment and cleanup activities. Two miles
              of asbestos piping was discovered, as well as
              petroleum-soaked bricks and soils, dye- and PCB-
              contaminated concrete, and other soil contaminants.
              In 2003, Minnesota Power and the Burlington
              Northern Santa Fe Railroad Company, which owned
              and used a portion of the site as a transportation
              corridor, donated the entire property to the city.
14

            The smokestack at the Hennepin Paper Mill before redevelopment.
                  The salvageable lower portion of the smokestack
                     was included in the design of the park.
Meeting the Challenge

With a retired Hennepin Paper Mill employee
leading the way, private citizens, the city council, city
administrative staff, and Community Development
of Morrison County staff joined together to hold
public meetings and pursue avenues of funding.
The community exercised patience and persistence
to reach consensus and decided to develop the
narrow, rectangular-shaped property into a park. The
redevelopment plan recognized that the property's
shape, its past railroad activity, and the disrepair of
its buildings made commercial development unlikely.

The extent of contamination on the site was initially
underestimated; assessments funded by Minnesota
Power revealed the true size and extent of the
contamination. In 2003, the city applied for and
received two EPA Brownfields Cleanup grants and an
EPA Brownfields Revolving Loan Fund grant.

As determined by a review under Section 106 of
the National Historic Preservation Act, the site met
the criteria to be listed in the National Register of
Historic Places. Consultations for this designation
included working with  local historical societies,
former Hennepin Paper employees, and area  Indian
tribes. A Memorandum of Agreement  (MOA) was
signed with EPA, the Federal Energy Regulatory
Commission, the Minnesota State Historic
Preservation  Office, and the Mille Lacs Band of
Ojibwe, acknowledging that historically significant
uncontaminated building structures and various
pieces of equipment would be salvaged during the
cleanup and redevelopment process and used as
cultural artifacts throughout the park. This was the
first negotiated brownfields MOA under Section 106
of the National Historic Preservation Act.

Cleanup began in November 2003. By June
2004, approximately 1,340 tons of contaminated
materials and soils were removed from the site.
Redevelopment began in June 2004, and by August
the site was seeded, concrete walkways installed, and
gravel walking paths were in place. Mill Park was
officially dedicated in June 2005.

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    Results

    The cleanup and redevelopment of the Hennepin
    Paper Mill site is complete. Through active
    community involvement and community leadership,
    and by incorporating some historic attributes,
    redevelopment of the site preserved original artifacts
    from the mill, including the company sign, brick
    arches, original millstones, and the canal that
    diverted water and powered the facility. An outdoor
    environmental educational facility and a winter ice
    rink are currently under development. Informational
    kiosks and a memorial to employees lost in industrial
    accidents will be featured. A kiosk at the north end
    of the property will acknowledge a historical Indian
    gathering spot near the waterfalls.
    Financing

    Initially, Minnesota Power contributed $600,000
    toward assessment and cleanup of the Hennepin
    Paper Mill property. The Minnesota Department
    of Employment and Economic Development and
    Minnesota Department of Natural Resources each
    contributed $200,000. In 2003, EPA awarded the
    City of Little Falls a $200,000 Brownfields Cleanup
    grant for hazardous substances and a $200,000
    Brownfields Cleanup grant for petroleum. The
    community also received a $200,000 Brownfields
    Revolving Loan Fund grant. The Minnesota State
    Legislature allocated $1 million to the project,
    Morrison County donated $100,000, the city
    contributed $137,892 and a private foundation
    contributed $10,000.
Community Strategy and Insight
    Persistence and patience: A retired Hennepin Paper
    Mill employee, private citizens, the city council, city
    administrative staff, and Community Development of
    Morrison County staff kept the project moving forward
    by pursuing varied funding sources. Securing funds
    and reaching community consensus took more than
    five years; but the community prevailed by remaining
    patient and focused on its goals.

    Preserve historic features: The city engaged the
    community in a comprehensive planning and design
    process and drew other federal, state, tribal, and local
    partners into the project, extending and enhancing the
    project's historical reach and cultural elements. The
    redevelopment incorporated historic attributes and
    preserved original artifacts from the mill, including the
    company sign, brick arches, original millstones, and
    the canal that diverted water and powered the facility.
                                                             The rear view of the Hennepin Paper Company before redevelopment.
Financing Strategy for Little Falls, Minnesota
Funding Source
U.S. EPA Brownfields Cleanup Grant - Hazardous Substances
U.S. EPA Brownfields Cleanup Grant - Petroleum
U.S. EPA Brownfields Cleanup Revolving Loan Fund Grant
Minnesota Power
Minnesota Department of Employment and Economic Development
Minnesota Department of Natural Resources
City of Little Falls
Morrison County
Minnesota Legislature
A Private Foundation

Amount
$200,000
$200,000
$200,000
$600,000
$200,000
$200,000
$137,892
$100,000
$1,000,000
$10,000

 Total
                                           $2,847,892
                                                                                                          °
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                     :oria,   Oregon
              The City of Astoria overcame the high cost of cleaning up the former Clatsop Mill by contacting
              the state environmental agency early in the process, including the developer in discussions with the
              state environmental agency, and keeping the community involved in the decision-making process.
              The project's extensive cleanup effort paved the way for the completion of the Mill Pond Village—a
              mixed-use redevelopment that includes a public promenade, shops, a credit union, and individual
              residential housing lots, and preserved the aesthetics of the city's fishing-village heritage.
              Background

              Astoria, Oregon, is a small, rural fishing community
              located at the mouth of the Columbia River,
              approximately 100 miles west of Portland. The
              20-acre former Clatsop Mill property at the east
              entrance  of town is a gateway to the community.
              The mill  opened in the early 1870s.The Astoria
              Plywood Company took over the facility's plywood
              veneer milling, drying, pressing, sanding, and cutting
              operations from 1950 until it closed the mill in 1989.
              The property includes a 3.7-acre pond, located north
              of where the former processing buildings stood, that
              was used to store logs and received runoff from the
              mill.

              The mill  was a small cooperative, worker-owned
              facility. When operations ceased, the property was
              abandoned. The mill's bankruptcy cost the city
              216 jobs. Multiple liens were assessed against the
              property by the U.S. Small Business Administration,
              the local power company, and other local businesses.
              The liens impeded the city's ability to claim title
              to the property, creating a complex redevelopment
              situation. In addition,  in an attempt to recoup a
              portion of the money owed to them, several of the
lien holders auctioned off equipment and salvageable
pieces of the mill buildings, leaving a desolate
brownfield laden with more than a century of
contamination.

Meeting the Challenge

After EPA performed a Superfund removal action to
clear some of the site's more severe contaminants—
including 14 buried capacitors and approximately 10
tons of PCB-contaminated soil—the city contacted
the Oregon Department of Environmental Quality
(DEQ) to discuss cleanup and redevelopment. After
an assessment funded through an EPA Brownfields
grant detailed the extent of the site's remaining
contamination, the city entered negotiations with the
many lien holders to relinquish their stakes in the
former mill. It was clear that the amount of the liens
held against the property was greater than what they
could realistically expect to recover from the value
of the property. The process came to fruition when
the property was officially signed over to the city in
1996.

The city wanted to clean up the site's remaining
contamination and then leverage private funds for
redevelopment, but could not afford the estimated
$1.5 million cleanup  cost. In response, the Oregon
DEQ proposed to pay for half the cost of cleanup,
and ShoreBank Enterprise  Pacific (formerly Shore
Trust Advisory Services), a nonprofit business
development organization, facilitated a loan for the
remainder.

Cleanup activities began in August 1996 and took
four years. Part of the process included draining
a portion of the mill pond,  dredging the sediment,
and refilling it with approximately 57,000 gallons
of clean water. Cleanup also included engineering
controls, such as using a layer of clay to cap portions
of previously contaminated "hot spots."
16
                     Completed homes at Mill Pond Village.

-------
   Once cleanup was complete, the city requested
   design proposals for the property. In 1999, the city
   sold the property to Venerable Group, a Portland
   development company, with the condition that
   the company follow environmentally sustainable
   deed restrictions and institutional controls as
   part of the development. An integral part of deed
   restrictions and institutional and engineering controls
   that were arranged with Oregon DEQ included
   methods suggested by the developer for meeting
   the environmental restrictions while preserving the
   property's aesthetic value. The city and the Oregon
   DEQ drafted prospective purchaser agreements
   exempting the developer and  any future property
   owners from liability due to prior contamination.
   During this entire process, the city involved the
   community in decision-making and planning, leading
   to redevelopment strategies that complemented
   the community's goals for the area. The city's
   commitment to  keep the community engaged in the
   planning proved invaluable to the project.

   Results

   Thanks to the city's persistence, support from
   the community  and the Oregon DEQ, and the
   preservation of the site's aesthetics, the former
   Clatsop Mill property was redeveloped into the
   Mill Pond Village. This mixed-use redevelopment
   includes a public promenade, shops, a credit
   union, and 82 individual, residential housing lots.
   Surrounding the former mill pond and bordering
   the Columbia River, these houses were designed to
   maintain the aesthetics of Astoria's fishing-village
   heritage. The development also contains plenty of
   greenspace, including five public parks with a gravel
   river walk that provides panoramic views of the
   Columbia River.
                                           Lumber  Mill  Case  Study
Community Strategy and Insight
    Contact the state environmental agency early in
    the process: As the first step, the city contacted the
    Oregon DEQ to discuss cleanup and redevelopment
    opportunities. This proved to be the key to the
    project's success. Involving DEQ in discussions
    concerning the future use of the property helped
    establish a mutually beneficial partnership that led
    DEQ to pay for half of the cleanup costs.

    Include the developer in discussions with the state
    environmental agency: A key part of the design of
    the deed restrictions and institutional and engineering
    controls that were arranged with Oregon DEQ,
    included methods for meeting the environmental
    restrictions while still preserving  the property's
    aesthetic values.

    Keep the community front-and-center in the decision-
    making process: The city involved the community
    in the decision-making and planning process that
    lead to redevelopment strategies that complemented
    community goals for the area, a benefit that more than
    compensated for project delays.
                                                             The Mill Pond Village development along the Columbia River.
Financing Strategy for Astoria, Oregon
 Funding Source
                                         Amount
U.S. EPA Brownfields Assessment Grant
ShoreBank Enterprise Pacific (formerly Shore Trust Advisory Services)
Oregon Department of Environmental Quality (DEQ)
$200,000
$750,000
$750,000
 Total
                                         $1700,000
                                                                                                                 17

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              Through its rise and decline, the U.S. steel industry was an integral part of the nation's economy
              and infrastructure. While today the industry is increasing its competitive stance through
              restructuring and operational efficiencies, it left behind a legacy of older, obsolete mills—
              including buildings and land—with which surrounding communities must contend.

              Opportunities for Redevelopment

              Steel mill redevelopment offers unique opportunities for communities.
              Many former steel mills feature the following benefits:

              •    Central location - Because many towns and cities were built
                  around steel mills, these properties are often still located in
                  the heart of their communities, providing opportunities for
                  revitalizing downtown areas.

              •    Transportation access - Many steel mill properties have
                  established rail, highway, and river access, which can support new
                  industrial development and/or facilitate transportation-oriented
                  development.

                  Easily parceled land - Large tracts of land, often in single
                  ownership, lend themselves to parceling. Because parceling can
                  lead to multiple reuses, redevelopment need not rely on attracting
                  a single economic engine.

              •    Potential economic diversification - Redevelopment of steel
                  mill properties offers communities the  chance to diversify their
                  economies, ending their dependence on one industry.               Exterior of the farmer 14 inch Mill in sterling, Illinois,
                                                                                       now the Sterling Industrial Park.
                  Greenspace and recreation - Because many steel mills were
                  located along waterways, used rail transportation, and are  large in
                  size, they lend themselves to greenway planning and recreational opportunities including rails-to-trails.
          Steel Production Facilities in the U.S.
                           Number of Steel Production Fadltcki In the U,S-
                                             (1972^1002)
                      2000
                      I sou
                      1300
                       500
                              1*72
                                                Year
Between 1972 and 2002,
almost 600 operating
steel manufacturing facilities
shut down.
• - Information derived from
U.S. Census Data provided
in Statistical Abstracts for
indicated years.
18

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Challenges to Cleanup and Redevelopment

Like other brownfields projects, steel mill cleanup and redevelopment can be challenging due to real or
perceived contamination, liability and regulatory issues, permitting processes, cost overruns, and limitations
on financing. Compared to typical brownfields projects, there are some challenges more commonly associated
with steel mill redevelopment, including:

•   Gaining control of property-Many
    steel mill properties are controlled by
    a bankruptcy court/trustees or the steel
    companies themselves. Negotiating terms
    of sale or property transfer with these
    entities can be a challenge.

•   Subdividing large tracts of land - As
    many of these properties are large in scale
    (encompassing 100 acres or more), they
    must be subdivided to best fit the needs of
    multiple end-users.

•   Contamination - Contaminants typical of
    steel-related industries include petroleum-
    based products (used to cut and coat steel)
    in spill areas, PCBs, asbestos in structures,
    USTs, and Slag.                                      The McCollough-Unis School, on the former Sharon Steel site in
                                                                        Dearborn, Michigan.
The following case studies for Sterling, Illinois,
and Johnstown, Pennsylvania, prove that while
redevelopment of abandoned or underused steel mill properties may seem daunting, it can be done.
Snapshot of Firth Sterling Site
           McKeesport, Pennsylvania
In 1889, the Sterling Steel Company began steel manufacturing
on the 14-acre Firth Sterling site in McKeesport, Pennsylvania.
The company's obsolete steel mill shut down in 1981 and the
property fell into bankruptcy. A private company obtained
the property in 2000 and sought the involvement of the
Redevelopment Authority of Allegheny County (RAAC) after
potential environmental issues prevented site improvements.
EPA-funded Phase I and Phase II assessments identified minor
petroleum and asbestos contamination. Following assessment
activities, RAAC purchased the site and commenced cleanup in
fall 2005 using EPA Brownfields  Cleanup grant funding. RAAC
is evaluating redevelopment proposals for the Firth Sterling
property to determine which will  provide the highest and best use
for the city and county. Possible reuses include a waste-to-energy
facility as well as a transfer station for recycling wood waste.
The Firth Sterling steel mill before redevelopment.
                                                                                                                     19

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              Sterling,  Illinois
              When the Northwestern Steel and Wire (NWSW) Company closed its doors in 2001, the
              community of Sterling devised a plan for redeveloping the 720-acre property. The city's aggressive
              approach to finding purchasers, securing funding, and building partnerships resulted in the
              redevelopment of 92 percent of the property in five years.
              Background

              The City of Sterling, Illinois (population 15,500), in
              rural Whiteside County, lies approximately 100 miles
              west of Chicago. Founded in 1879, the NWSW steel
              mill grew to become the county's largest employer,
              with 4,600 people on its payroll by 1979. Its decline
              in the 1980s and 1990s led the company to file for
              bankruptcy in December 2000 and eventually close
              its doors in 2001.

              Meeting the Challenge

              When NWSW closed, 1,500 workers lost their jobs
              and 7,500 seniors lost their retirement benefits.
              The county's former lifeblood now represented a
              monumental challenge: what to do with the 720-acre
              industrial property.

              Sterling took an aggressive posture to redevelop the
              site. In 2001, the city, community members, labor
              leaders, and economic development partners worked
              together to develop a strategic plan for the area,
              resulting in the Rock River Redevelopment project.
              The strategy involved:

              •  Determining which portions of the property
                 could be readily  reused;

              •  Identifying available economic redevelopment
                 programs  and funding sources; and

              •  Building partnerships with all project
                 stakeholders.
The city built a strong relationship with the
bankruptcy trustees and court that resulted in the
city acting as real estate broker for the bankruptcy
trustee - a role usually reserved for a brokerage firm.
The city conducted preliminary negotiations with
possible purchasers and took the parties' information
to the bankruptcy trustees and court. This scenario
accelerated the property divesture process and
allowed the city to negotiate the best end use of the
property.

While the city acted as real estate broker, the Greater
Sterling Development Corporation (GSDC) took the
lead in identifying and pursuing potential purchasers
of the property, partially based on a list of former
NWSW customers. This list included Leggett and
Platt,  a FORTUNE 500 company that manufactures
coil springs for furniture and mattresses. The
company's initial concerns about environmental
liability issues were allayed by working with the city
and entering into a Prospective Purchaser Agreement
with EPA. This agreement provided Leggett and Platt
with federal  Superfund liability protection. Leggett
and Platt purchased the core of the dormant mill,
approximately 145 acres, to produce steel rods and
billets for its own use. Assessments revealed that in
general, contamination on the property was minimal
and little cleanup was required.

Results

The former NWSW mill now hosts 11 operating
businesses, including the  Leggett and Platt steel
operation, a retail outlet, and a grain terminal
for shipping to markets in the Southwest. Other
accomplishments associated with this project include:

•   Capital investment of over $59 million

•   Completed environmental assessments on 700
    acres, or 97  percent, of the property

•   Creation of  350 permanent and 300
    temporary jobs

•   Retaining the core areas of the former steel mill

•   A much more diversified business community
20
             New lumber store under construction at the former NWSW mill.

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                                                   Steel  Mill  Case  Study
   Today, Sterling's diversified economy is drawing
   larger retailers and manufacturers to the area,
   including a major retail distribution center that
   opened in April 2006 and employs more than 700
   workers.

   Financing and Special Incentives

   To make this project possible, the city sought
   assistance from federal and state agencies and
   partnered with local government entities and
   private interests to secure funding for assessment,
   cleanup, and redevelopment. Funds from the Illinois
   Environmental Protection Agency (IEPA) paid for
   assessments on 70 percent of the property, and
   U.S. EPA funds were used for assessments on the
   remaining 30 percent. These assessments removed
   uncertainties regarding potential contamination of
   the property and provided the catalyst for cleanup
   and redevelopment. Local government entities made
   financial commitments to the project and provided
   special incentives to entice developers to reuse the
   property, including:

   •   Creation of Tax Increment Financing District

   •   Whiteside County Enterprise Zone (EZ)
       provided incentives for developers (tax credits
       and educational training  opportunities)

       City provided free legal services

   •   City negotiated with county to eliminate back
       taxes

   •   City waived permit fees (building and
       demolition)

       City and GSDC advertised the property in trade
       journals and other media sources
Financing Strategy for Sterling, Illinois
Community Strategy and Insight
    Enlist political leaders: Sterling's mayor, city council,
    and city manager were the catalysts and project
    champions of this redevelopment effort. These  city
    leaders worked with the community to develop a plan
    for the property and aggressively pursued available
    funding and prospective purchasers.

    Leverage resources: The city identified resources it
    could commit to the project, including funding and
    staff. The city also invested $1.6 million, provided free
    legal services, and waived permit fees while seeking
    funding and support from other sources.

    Build partnerships: The city forged partnerships with
    all potential stakeholders, including federal and state
    agencies, local government entities, businesses, and
    community groups. The city also successfully built
    relationships with less traditional stakeholders, such as
    the bankruptcy court and trustees.
                                                                The Wallace Street Foundry Building before renovation.

Funding Source
U.S. EPA Brownfields Assessment Grants
Illinois EPA
Illinois Department of Transportation
Illinois Department of Commerce
City of Sterling
Sterling Township
Whiteside County
Private and Foundation Investments

Amount
$400,000
$420,000
$500,000
$25,000
$ 1 ,600,000
$200,000
$60,000
$1,200,000

 Total
                                           $4,405,000 ]
                                                                                                                    21

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             Johnstown,  Pennsylvania
              To successfully clean up and redevelop the Cambria Iron Works steel mill complex, the Johnstown
             Redevelopment Authority (JRA) and its many partners faced the challenge of gaining property
             access and ownership. With the Authority's persistence and support from other agencies, JRA was
             able to obtain ownership of the property, and some aspects of redevelopment are already complete.
             Background

             Johnstown was one of Pennsylvania's preeminent
             steel manufacturing communities, due in part to the
             12-acre Cambria Iron Works Complex, established in
             1848 by the Cambria Iron Company. The Bethlehem
             Steel Corporation purchased the Complex in 1923,
             and after 50 successful years, significantly reduced
             its Johnstown operation. The company closed all of
             its Johnstown plants in 1992, ending steel production
             in the city.

             At the height of Johnstown's steel industry, mills
             stretched for more than 12 miles along the city's
             rivers. Closure of steel mills in the region had
             a devastating impact, and in response the JRA
             sought to diversify the local economy by returning
             the Cambria Iron Works Complex, with its prime
             downtown location, to reuse. The city was declared
             a "distressed community" under the state's
             Municipalities Recovery Act in 1993. Today it
             operates under a state-mandated Recovery Plan that
             requires the diversification of the employment base
             to promote economic growth.

             Demographic and Economic Information for
             Johnstown, Pennsylvania
Johnstown, PA 1950-1953 1980-1983 Present
Population
Unemployment
rate
Tons of steel
produced
63,232
4. 1 percent
2,000,000
35,000
25 percent
700,000
23,900
5.1 percent
0
            The Cambria Iron Works carpenter shop building after renovation.
22
Leading the Charge

After five years of negotiations with Bethlehem
Steel, the company allowed JRA to access the
multiple sites within the Cambria Iron Works
Complex in 1998. This extremely lengthy and labor-
intensive process involved several stakeholders,
including the Pennsylvania Department of
Environmental Protection (PADEP), in an attempt
to convince the company to allow JRA to purchase
the Complex's sites.  JRA also worked with state
officials to encourage Bethlehem Steel's participation
in the project. In 2003, Bethlehem Steel filed for
bankruptcy and the company's assets were purchased
by International Steel Group, Inc. (ISO). The
Complex's sites subsequently were purchased from
ISO by JRA.

JRA's purchases within the Complex included the
Carpenter Shop, Machine Shop, Blacksmith Shop
Rolling Mill Office Building, Electric Storage
Building, the Pedestrian Footbridge and several
acres of vacant land. The Complex also included the
Roll Shop, Axle Works, and 11-inch Mill Buildings,
which are privately owned and now bustling with
industrial activity.

With assistance from more than $ 1 million in EPA
Brownfields grant funding, JRA spearheaded the
Cambria Iron Works Complex project. JRA worked
with several partners in addition to EPA to obtain
funding for the Complex's assessment, cleanup, and
redevelopment.

A central player in the project is the Johnstown
Partnership, which represents local officials and
businesses who work together to promote strategic
projects for the benefit of the city and region. This
innovative partnership includes JRA, the City of
Johnstown, Johnstown Area Regional Industries,
the Greater Johnstown Chamber of Commerce,
and the Pennsylvania Department of Community
and Economic Development (DCED). Through
this partnership's outreach efforts, multiple federal,
state, and local agencies provided financial and
technical resources for the restoration and reuse
of the Cambria Iron Works Complex. More than
20 different funding  sources contributed to the
assessment, cleanup, and restoration of the Complex.

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                                                   Steel  Mill  Case  Study
    Results
    JRA's multi-partner efforts are returning the Cambria
    Iron Works Complex to light industrial use as
    cleanup and redevelopment continues. Johnstown
    is overcoming its dependence on one industry by
    redeveloping some of its brownfields, including
    several within the Cambria Iron Works Complex for
    use by new industries such as wood refmishing and
    steel plate processing. With buildings dating back to
    the Civil War era, the Cambria Iron Works Complex
    is the only steel mill in the country with a National
    Historical Landmark designation. Such a designation
    requires upgrading rather than demolishing some
    of its buildings. As a result, some of the  historical
    structures are now being reused for their original
    purposes, such as blacksmithing and carpentry.
    Newer technologies also are being employed at other
    industrial facilities within the Complex,  including
    powder-coating metals and precision assembly
    of towers for the wind-energy industry. The most
    historic of the buildings, the 1854 Blacksmith
    Shop, is slated to become part of the Southwestern
    Pennsylvania Heritage Parks as a working blacksmith
    shop and tourist destination.

    To date, approximately 400 jobs resulted from the
    cleanup and redevelopment of the Cambria Iron
    Works Complex. Final cleanup and redevelopment
    of the Complex will create at least another 100 jobs.
    While Johnstown's steelmaking heyday  is long past,
    thanks to JRA and numerous partners, the city is
    making a comeback as an attractive community in
    which to work and live.

Financing Strategy for Johnstown, Pennsylvania
                                                        Community Strategy and Insight
Persevere: For many years, JRA had difficulty gaining
site access—much less ownership—of the Cambria
Iron Works Complex. JRA's dedication to the project
overcame these challenges and made it possible to
achieve the progress evident across the site today.
Designate a lead agency with access to multiple funding
sources: JRA  spearheaded the entire Cambria Iron Works
Complex redevelopment project, including obtaining
all grant funding and marketing the project. The agency
reached out for help when necessary and worked with
as many influential organizations and individuals as
possible.
Diversify uses: JRA successfully developed sites within
the Cambria Iron Works Complex for a wide range of new
uses. Some of the sites are being used for their original
historic uses, while newer technologies are operating at
other properties within the Complex.
The Pedestrian Footbridge provided access for the employees of the
   Cambria Iron Works Complex to Johnstown neighborhoods.
Funding Source
U.S. EPA Brownfields Assessment Grants
U.S. EPA Cleanup Grants
U.S. Economic Development Agency
National Parks Service
National Parks Service Save America's Treasures
Program
U.S. Army Corps of Engineers
Appalachian Regional Commission
PA DCED Industrial Sites Reuse Program
PA DCED Infrastructure Development Program
PA DCED Employent and Community
Conservation Program
Amount
$800,000
$800,000
$550,000
$20,000
$460,000
$300,000
$100,000
$1,262,025
$1,205,952
$75,000
Funding Source
PA DCED Communities of Opportunity Program
PA DCED Growing Greener II Program
Pennsylvania Historical and Museum Commission
PA Department of Conservation and Natural
Resources
Pennsylvania Heritage Parks Program
Southwest Pennsylvania Heritage Preservation
Commission
PA Department of Transportation's
Transportation Enhancements Program
PA Department of Environmental Protection
Growing Greener Program
Building improvements paid for by private
building tenants

Amount
$ 1 00,000
$275,000
$180,000
$252,000
$135,000
$225,000
$500,000
$150,000
$ 1 ,500,000

                                                                                                    $8,889,977

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                    alizing the  Possible
              Mills, an essential part of our industrial
              heritage, have cycled through periods of activity
              and decline, and, in some cases, closure and
              abandonment. As the successes highlighted in
              this report demonstrate, mill sites are receiving
              recognition for their redevelopment potential and
              finding value and use once again. From Lewiston,
              Maine, to Astoria, Oregon, the successful
              combination of vision, partnerships, public, and
              private funding at mill properties  is restoring land
              and revitalizing communities.
              The more than 350 mill projects assisted by
              EPA's Brownfields Program are only a handful of
              the sites finding paths back to productive reuse.
              There are many more mills remaining that need
              attention to reclaim their place in the history
              and fabric of communities. The challenges and solutions presented in this report provide a starting point for
              communites to begin looking at their former mills as opportunities for revitalization. The final section of the
              report provides resources and tools to help with that effort.
               tVWHHMIHVN M«I
An artist's rendering of the Old Mill Cultural Center in Hendersonville,
       North Carolina, formerly the Grey Hosiery Mill.
                                                                                  IP I til  Ml
24
                             A Wal-Mart distribution center under construction in Sterling, Illinois at the former Sterling Mill site.

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A  Summary  of  Federal  Resources
                                       Windham Mills in Windham, Connecticut, after renovation.
U.S. Environmental Protection Agency
Brownfields Program
www.epa.gov/brownfields
Brownfields assessment, cleanup, job training, and
technical assistance

Appalachian Regional Commission
Area Development Program
www.arc.gov/index. do ?nodeld= 101
Projects that increase job opportunities and/or develop and
improve infrastructure in Appalachia

U.S. Department of Agriculture, Rural Development
Water and Waste Disposal Loans, Loan Guarantees,
and Grants
www.rurdev.usda.gov
Development and repair of water, sewer, storm drainage and solid waste systems in rural areas with populations of
10,000 or less

U.S. Department of Housing and Urban Development
Community Development Block Grants, Section 108 Loan Guarantees, Brownfields Economic Development Initiative,
HOME Investment Partnerships Program
www. hud. go v/grants/index. c fm
Brownfields site acquisition, site assessment, and cleanup activities; building demolition/rehabilitation; housing
construction; brownfields project planning

U.S. Department of Labor
Job Training and Technical Assistance
www.doleta.gov/grants
Job training services and technical assistance expertise, such as courses on technologies used for site assessment and
cleanup activities

Economic Development Administration
Public Works and Economic Development Facilities Program
www.eda.gov/AboutEDA/Programs.xml
Construction or rehabilitation of essential public infrastructure and facilities that generate jobs and investment;
brownfields redevelopment; heritage preservation development

National Park Service
Federal Save America's Treasures Program Grants
www.cr.nps.gov/helpyou.htm
Preservation or conservation of historic districts, sites, buildings, and structures

National Park Service and Internal Revenue Service
Federal Historic Preservation Tax Incentives
www.cr.nps.gov/hps/tps/tax/index.htm
Twenty percent tax credit for the certified rehabilitation of certified historic structures; 10 percent tax credit for the
rehabilitation of non-historic, non-residential buildings built before 1936

U.S. Army Corps of Engineers
Center of Expertise for the Preservation of Historic Buildings and Structures
www.nws.usace.army.mil/PublicMenu/Menu.cfm?sitename=historic&pagename=mainpage
Program provides a variety of preservation services, including technical assistance in the evaluation and rehabilitation
of historic structures
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U.S. Environmental Protection Agency
State and Tribal Response Program Grants
www.epa.gov/brownfields
State Brownfields and Voluntary Response Programs:
An Update from the States
http://www.epa.gov/brownfields/pubs/st_res_prog_report.htm

Program provides grants to states and tribes to develop or enhance their
response programs that address the assessment, cleanup, and redevelopment
ofbrownfields. The report explores the evolving landscape of state
environmental, financial, and technical programs, including the incentives
designed to promote brownfields cleanup and redevelopment.

Illinois Department of Transportation
Transportation Enhancement Program
www. dot. il. go v/opp/itep .html
Program provides funding for infrastructure improvements

Illinois Environmental Protection Agency
Brownfields Redevelopment Loan Program
Municipal Brownfields Redevelopment Grant Program
Brownfields Cleanup Revolving Loan Fund
www.epa.state.il.us
Programs provide funding for brownfields investigation, cleanup, and
demolition costs
The North Fork Timber Mill
  in Madera, California.
Massachusetts
Massachusetts Historic Rehabilitation Tax Credit
www.dor.state.ma. us/rul_reg/reg/830_CMR_63_3 8R_l.htm
The credit is equal to a percentage, not to exceed 20 percent, of qualified rehabilitation expenditures

Massachusetts Department of Housing and Community Development
Massachusetts Housing Finance Agency
Massachusetts Affordable Housing Trust Fund
www.masshousing.com/imageserver/BusinessPartners/AHTF_Guidelines.pdf
Program provides resources to create or preserve affordable housing for households whose incomes are not more than
110 percent of median income

MassDevelopment
Brownfields Redevelopment Fund
www.massdevelopment.com/financing/lg_brownfields.aspx
Program provides low- or no-interest loans for site assessment and cleanup activities

Minnesota Department of Employment and Economic Development
Cleanup Revolving Loan Fund
Contamination Cleanup Grant Program
Contamination Investigation and Response Grant Program
Action Plan Development Grant Program
www.pca.state.mn.us/publications/reports/brownfields-guide.pdf
Programs provide loans and grants for brownfields assessment and cleanup activities and meeting requirements for
public participation in project review

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Minnesota Department of Natural Resources
Brownfield Site Assessment Grant Program
www.dnr.state.wi.us/org/aw/rr/rbrownfields/sag.htm
Program provides funding to conduct brownfields assessment
activities

North Carolina
Tax Credit for the Revitalization of Historic Mill Facilities
www.nccbi.org/resources/LB-06-16-06.pdf
Credit equal to a percentage of the qualified rehabilitation
expenditures or the rehabilitation expenses with respect to the
eligible site
                                                                 The Nebel Knitting Mill in Charlotte, North Carolina.
Oregon Department of Environmental Quality
Brownfields Program
www.deq.state.or.us/wmc/cleanup/brnO.htm
In conjunction with EPA Region 10, the program provides funding for brownfields assessment, cleanup, and other
activities

Pennsylvania Department of Community & Economic Development
Industrial Sites Reuse Program
Infrastructure Development Program
Employment and Community Conservation Program
Communities of Opportunity Program
www.newpa.com
Programs provide funding for brownfields assessment, cleanup, and redevelopment as well as infrastructure development

Pennsylvania Historical  and Museum  Commission
Keystone Historic Preservation Grant Program
Pennsylvania History and Museum Grant Program
www. artsnet. org/phmc/grants .htm
Programs provide funding for preserving or restoring historic resources listed in or eligible for listing in the National
Register of Historic Places as well as projects that fulfills one of three goals outlined in the Pennsylvania Historic
Preservation Plan

South Carolina
Textiles Communities Revitalization Act
www.scstatehouse.net/code/t06c032.htm
Twenty-five percent credit against property taxes or a 25 percent state income tax credit for redevelopment of abandoned
textile mill sites

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Local Initiatives Support Corporation
Funding and technical assistance
www.lisc.org/section/products/
Housing and community facility development (child care centers,
schools, health care facilities, playing fields), and economic
development (industrial, office, and retail buildings)

National Trust for Historic Preservation
National Preservation Endowment
www.nationaltrust.org/flinding
Funding provided to nonprofit organizations, government
agencies, commercial entities, and private citizens for restoration
of historic homes and income-producing properties
                                                                      A former steel factory in Springfield, Vermont.
National Association of State Development Agencies
Directory of Incentives for Business Investment
and Development in the United States: A State-by-State Guide
www.nasda.com
Database of state funding available, including: loans, loan guarantees, infrastructure improvement grants, enterprise zones,
pollution control incentives, employment tax credits, land and building loans and tax credits, job training packages, site
development support, and venture capital

National Council of State Historic Preservation Officers
Historic Preservation Legislative Database
www.ncsl.org/programs/arts/statehist_intro.htm
Database for all state  legislation or state constitution articles that contain specific references to historic properties

NeighborWorks America
Financial support, technical assistance, and training
www.nw.org
Community-based revitalization efforts, including economic development and affordable housing projects

National Association of Development Organizations
Technical assistance and training
www.nado.org
Training and resources on brownfields redevelopment topics including rural components

National Association of Local Government Environmental Professionals
Technical assistance and training
www.nalgep.org
Research and informational resources on brownfields and other topics including smart growth, USTfields, and clean water

Northeast-Midwest Institute
Technical assistance
www.nemw.org
Information including financing and community involvement aspects of brownfields projects

National Brownfield Association
Technical assistance and education
www.brownfieldassociation.org
Information, educational opportunities, and events for a wide range of brownfields stakeholders

International City/County Management Association
Technical assistance
www.icma.org
Information and services for projects such as economic development and environmental management
The above is a list of representative resources; similar programs may be found within other organizations

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                                     Inside back cover photo:
            Essex Mills, a former textile mill in New Hampshire.
Back cover photo: The Royal Mill in West Warwick, Rhode Island.

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United States
Environmental Protection
Agency
Office of Solid Waste and
Emergency Response
EPA-560-R-06-001
November 2006
www.epa.gov/brownfields/

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