Reuse and the Benefit to Community: South Point Plant South Point Ohio

Reuse and the Benefit to Community
South Point Plant, South Point, Ohio
Executive Summary
The tri-state region, where Kentucky, Ohio and West
Virginia come together on the Ohio River, has long been
one of the nation's commercial and industrial
manufacturing hubs. During World War II, the area,
spurred by several ammunition factories, was a vital part
of the Industrial Defense Zone.1 The area, however, was
largely idle for the four following decades. In the early
1980s, the Lawrence Economic Development Corporation
(LEDC) identified the South Point Plant Superfund site (the
Site) in Lawrence County, Ohio, as an ideal property for
reuse as an industrial park. Cleanup and reuse at the Site
resulted in The Point, an industrial park which currently
hosts a variety of businesses that employ over 320 people.
Throughout the Site's cleanup, the U.S. Environmental
Protection Agency (EPA) staff met with community
stakeholders to share site information and to incorporate
community feedback into the Superfund process. The
remedy selected by EPA enabled the Site's reuse for
commercial and industrial purposes. This case study
explores regional economic revitalization resulting from the cleanup and redevelopment of this Superfund site.
Positive Impacts
• Superfund cleanup and subsequent redevelopment of the South Point Plant Superfund site has
transformed the area into a premier industrial park. In 2011, businesses at The Point employed
approximately 320 employees and provided over $12.2 million in annual income to employees.
• LEDC anticipates that the number of jobs at The Point will continue to rise in 2012. When the industrial
park is fully developed, LEDC expects that it will support 2,000 to 3,000 jobs.
• Properties at The Point generate nearly $85,000 in annual property tax revenue.
• With riverfront access to the Ohio River and direct access to the interstate highway system and the
region's rail network, The Point is an intermodal transportation and logistics hub, allowing businesses to
take advantage of the most cost-effective methods of transporting goods.
• LEDC provides a range of equipment for on-site businesses, including a rail scale, a truck scale and a
Gantry crane.
• EPA's Ready for Reuse Determination continues to assist LEDC in recruiting businesses to The Point.
SOUTHERN
INDUSTRIA
Aercier s
Figure 1: Entrance sign at The Point
1 United States Environmental Protection Agency. "History of Contamination." First Five-Year Review Report for the South
Point Superfund Site. 4-5. 31 Dec. 2008.

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Introduction
Superfund site cleanup and reuse results in restored v
Once a site property is ready for reuse, it can revitalize a
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Figure 2: The South Point Plant site is located in southern Ohio.
value to site properties and surrounding communities,
a local economy with jobs, new businesses, tax revenues
and local spending. This case study describes the
EPA cleanup and captures the on-site and community
impacts of new development at the South Point Plant
Superfund site (the Site).
The Point occupies approximately 500 acres in the
Village of South Point, Lawrence County, Ohio. It is
situated between U.S. Route 52 to the east and the
Ohio River to the west. According to 2010 Census
data, Lawrence County has a population of
approximately 62,000.
Site History
Over a 60-year period, manufacturing facilities at the Site produced ammonium nitrate explosives, fertilizers,
industrial chemicals, coal pitch pellets, ethanol and liquid carbon dioxide. Waste materials and four major
releases contaminated soil and ground water with volatile and semi-volatile organic compounds, ammonia,
nitrates and metals like arsenic and cadmium. EPA listed the Site on the Agency's National Priorities List in
September 1984.2
Following site investigations and a risk assessment, EPA
selected a remedy in the Site's 1997 Record of Decision.
Further site assessment found that contamination affected
only small portions of the Site. Clean-up actions included
excavation and off-site disposal of contaminated soils,
construction of a cap for a 13-acre area, and ground water
treatment and monitoring. The ground water system will
continue pumping and treating between two and four million
gallons of water daily until contaminants have dropped to
acceptable health-based levels. Institutional controls limit site
uses to industrial or commercial uses and restrict the use of
site ground water. Cleanup activities at the Site began in May
2001 and the construction of the site's remedy was completed
by Honeywell, the site's potentially responsible party, in
December 2001.
Figure 3: South Point's location along the Ohio River
2 For more information on the site's discovery and listing, please see http://www.epa.gov/superfund/sites/rods/fulltext/r0595293.pdf.
South Point Plant
iHuntington
tFfirguson Field
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Site Cleanup and Renewal
Throughout the Site's cleanup, EPA staff met regularly with
community stakeholders to share site information and to
incorporate community feedback into the Superfund
process. The remedy EPA selected enabled the Site's reuse
for commercial and industrial purposes, which EPA had
determined to be the Site's reasonably anticipated future
land uses The remedy for the Site included: institutional
controls; excavation and proper on-site consolidation of
contaminated soil; the placement of a dual barrier cap;
surface control for the Northern Fly Ash ponds; removal of
contaminant mass; containment; and ground water
monitoring.
Catalyst for Change
Figure 4: Riverfront access at The Point
"The Ready for Reuse determination at the South Point Plant
has made a significant impact on our ability to recruit
businesses to the Point."
Jeremy Clay, Director, The Point
The catalyst and champion for much of the Site's redevelopment was the LEDC, a non-profit organization. Local
governments established the LEDC in the early 1980s as part of a region-wide economic revitalization effort.
After assessing several economic
development opportunities, the LEDC
identified the Site as the leading candidate
for an industrial park that would be
centrally located on the Ohio River, in close
proximity to transportation networks and
infrastructure, in 2001, the LEDC purchased approximately 500 acres of the 610-acre site property from Ashland,
inc., one of the Site's potentially responsible parties, for $3.68 million. The LEDC developed a two-phase,
community-based master plan for the industrial reuse of the property. The plan's vision for The Point was to
create an essential regional resource built around an intermodal transportation and logistics hub. The LEDC soon
initiated marketing and outreach efforts to attract businesses to The Point. Throughout the process, the LEDC
built relationships with regional, state and federal organizations and elected officials and pursued state and
federal resources. In October 2004, EPA issued a Ready for Reuse
(RfR) Determination stating that the LEDC parcels at the Site
were "Ready for Industrial Reuse." The LEDC has indicated that
the RfR Determination makes a significant difference in their
ability to recruit businesses to the industrial park. Engines Inc., a
parts fabrication plant, was the critical first tenant.
Figure 5: Truck scales, part of the infrastructure
offered at The Point
Ready for Reuse Determinations
EPA issues RfR Determinations for
selected sites to inform potential site
users and the real estate marketplace
about the environmental conditions
and limitations of Superfund sites in
order to facilitate their reuse.
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The current and projected future success of redevelopment at The Point relies on the infrastructure that the
LEDC provides for businesses located there. With riverfront access to the Ohio River, easy access to the
interstate and eight miles of railway track, businesses at The Point are able to take advantage of several
methods of transporting goods. In addition, the LEDC has provided a rail scale, a truck scale and a Rubber Tired
Gantry Crane. The organization's efforts to turn The Point into an intermodal transportation and logistics hub
also serve other businesses in the area. The LEDC's embrace of a vision much larger than The Point, benefitting
other local businesses, contributes to the success of the redevelopment efforts at The Point.
In addition to The Point's large, contiguous acreage; proximity to major markets; out-of-floodplain location;
deepwater port frontage on the Ohio River; and access to transportation networks, the industrial park is also
benefiting from ongoing infrastructure and economic development initiatives in the tri-state region. These
initiatives include the expansion of the Heartland Corridor rail network and the expansion of the Port of
Huntington. In July 2011, Lawrence County achieved Foreign
Trade Zone status, a federal designation designed to facilitate
international trade and increase the global competitiveness of
American companies.
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critical in recruiting businesses and maximizing new jobs at The Point. Additionally, when recruiting businesses,
the LEDC looks for companies that will install high-value equipment at The Point. This commitment helps ensure
that the businesses and therefore jobs stay in the area for the long term.
The Lawrence Economic Development Corporation
The LEDC was formed in 1983 through the merger of several local economic development organizations and
designated as the economic development agent for Lawrence County, Ohio. The LEDC's goals are job creation
and retention. The maintenance and development of The Point is one of the LEDC's primary responsibilities. The
services it offers to area businesses include:3
• Financing assistance.
• Technical assistance.
• Resource information.
• Community profiles.
• Industrial development.
• Industrial development bonds.
• A site and building inventory.
Figure 7: The LEDC's offices are also home to the
Greater Lawrence County Area Chamber of
Commerce.
Located at The Point, the LEDC employs 10 people. Its offices
are also home to the Greater Lawrence County Area
Chamber of Commerce, the Lawrence County Convention
and Visitors Bureau, and the Southern Ohio Procurement
Outreach Center.
"We expect up to a possible 2,000 to 3,000jobs
when the industrial park is fully developed."
Bill Dingus, Ph.D.
Executive Director, LEDC
Ohio University's South Point Training Center
This training center, built in 2006, is a partnership between the University, the LEDC, the Greater Lawrence
County Area Chamber of Commerce, and the Huntington-lronton Empowerment Zone. The Center's 2,000
square feet provide training, conference and office space for businesses at The Point.4 The Center partners with
businesses, schools, agencies and individuals to improve performance and increase productivity. The Center
customizes training programs to meet the specific needs of employers. Trainings are often delivered on site,
using an employer's machinery and processes, reducing travel and lost production time. Recent trainings include
a sign language course for seniors and their caretakers and a Spanish class designed for local prison employees.
3 http://epa.gov/superfund/ii)rograms/recvcle/pdf/southpoint-casestudv.pdf
4 http://www.southern.ohiou.edu/pages/business-communitv/busiriess-industrv/home.html
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Engines Inc.
A machining and fabrication business, Engines Inc. was the first
tenant at The Point. The firm started with one building at the
Site, has expanded into three buildings, and may soon be in the
market for a fourth building. Engines Inc. employs 115 people,
contributes an estimated $6.8 million in employment income
and has approximately $10 million in annual sales.
Figure 8: Engines, Inc., the critical first tenant at
The Point
M&M Mailing
This direct mailing company opened its 16,000-square-foot
facility for business in March 2007. The firm processes circulars,
publications and billings for clients nationwide. Other company
operations include ink jetting and bar coding for mail processing.
M&M Mailing employs 17 people and provides an estimated
$600,000 in local employment income.
Figure 9: M&M Mailing's facility at The Point
Chatham Steel
Chatham Steel celebrated its arrival at The Point in July 2011. The
company provides metal products and processing services to
diverse clients. The firm currently employs 32 people at The Point
and expects to expand, employing up to 60 people within two
years.
Additional businesses
Additional businesses at The Point include: Applied Industrial
Technologies, an industrial products distributor with 10 employees; Figure 10: Chatham Steel truck at the
Calgon Carbon Corporation, an activated carbon and air/water company's South Point facility,
treatment system manufacturer with 10 employees; Emerson
Network Power, an industrial heating and cooling company with 75 employees; M&M Service Station Equipment
Specialist, Inc., an agricultural equipment specialist with 14 employees; Mercier's Incorporated, a railroad right-
of-way maintenance company with 35 employees; and Superior Marine Ways, a company providing shipbuilding
and tugboat services with 3 employees.
Increased Property Taxes
The cleanup and redevelopment of contaminated property can lead to increased local property tax revenues.
The estimated total appraised value (land plus improvement) of all properties at The Point in 2011 is
approximately $6.3 million. In 2011, annual property taxes levied on these properties by Lawrence County
totaled nearly $85,000.
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Future plans
Future pians include the addition of new tenants, expansion of facilities, and continued strengthening of
infrastructure that will serve as a road, rail and river transportation resource for the region. The LEDC continues
to construct buildings that are built on a speculative basis, and completed in accordance with tenants'
specifications, allowing businesses the option to lease-to-own their buildings. These buildings, along with other
incentives, assist in the recruitment process. The LEDC continues to work to bring new businesses and jobs to
the area. The LEDC projects that 2,000 to 3,000 jobs are possible when The Point is fully built out.
Figures 11 & 12: M&M Service Station Equipment Specialist, Inc. (left) and Mercier's Incorporated (right)
Conclusion
In South Point, Ohio, local entities, potentially responsible parties, community representatives, state agencies
and EPA came together to share resources, collaborate regionally and coordinate closely to clean up and
redevelop the South Point Plant Superfund site. These efforts resulted in two successful outcomes: the
protection of human health and the environment and community revitalization. Today, South Point has
attracted new tenants and jobs, restoring manufacturing and industrial development in the tri-state region. The
outcomes are striking: over 320 jobs and $12.2 million in annual employee income. Future plans include
additional tenants, expanded facilities, and construction of an intermodal facility that will serve as a road, rail
and river transportation resource for the region In the years to come, The Point will continue to play a vital role
in the ongoing resurgence of one of the country's preeminent industrial regions. EPA has continued to work with
local stakeholders through the Superfund remediation and into the long term operation and maintenance of the
remedy, and has focused on removing barriers to the Site's reuse. This has encouraged appropriate
redevelopment at the Site and will continue to allow future opportunities for additional redevelopment.
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