Revitalizing Southeastern Communities A Brownfields Toolkit In Rochester, NY an Old Auto Dealer Becomes Art Deco Coffee Showroom The 2.2 acre former Haliman Chevrolet automobile dealership and service garage, located in downtown Rochester, was redeveloped as part of Rochester's strategy to bring housing, nightlife, and new vitality to the City's east end of downtown. Some $10.6 million was invested in what is now known as Chevy Place for site preparation and construction of 77 new residential townhouses and apartments. Chevy Place also includes a below-grade parking garage and the renovation of the historically significant Haliman Chevrolet showroom as a 24 hour art deco-style coffee house and restaurant. A restaurant and nightclub now exists in the former dealership parts office and storage area. From 1930 until 1990, the site was one of the largest new car dealerships in Rochester. The dealership included a large, multi-bay service and repair garage, as well as a gasoline station. The site was vacant from 1990 until the City purchased the property in 1996. The project, which ultimately would take five years from start to finish, presented several challenges to the City and the developer, Home Properties of New York. Changes in New York State Department of Environmental Conservation (NYSDEC) cleanup programs, shifting redevelopment plans, historic preservation restrictions, street reconstruction, and funding constraints posed major challenges to the project — and these were in addition to the environmental concerns at the site, which included several abandoned underground storage tanks. Contaminants found during investigations by the City included asbestos and gasoline, lube oils, used motor oil, and hydraulic oil. Investigators also found petroleum-contaminated soils beneath the former gasoline station and repair garage. Other soil contaminants included heavy metals and semi-volatile organic compounds. In groundwater, free petroleum product was present and dissolved compounds were detected at concentrations that exceeded NYSDEC standards. During 1997, the City completed asbestos abatement, the closure of five storage tanks, the removal of 19 in-ground hydraulic lifts, the closure of floor drains and sumps, the removal of contaminated soil associated with storage tanks, and the installation of a blasted bedrock free product/groundwater recovery and treatment system. Home Properties' plans for expanded residential use of the property required a second cleanup phase and the demolition of the service garage. The second phase of remediation was performed from 1998 to 2000 under a joint agreement between Rochester and Home Properties. During that phase, 7,000 tons of contaminated soil and bedrock and 12 more underground storage tanks were removed under a standard NYSDEC petroleum stipulation ------- agreement. In addition, soil vapor extraction and passive soil venting systems were installed as required by the local health department. Total cleanup project costs, including both phases of remediation, were approximately $750,000. Rochester financed the initial phase of the cleanup with part of its HUD Community Development Block Grant allocation. The developer funded the second phase of the cleanup. In addition, the city assisted Home Properties with environmental costs by providing direct reimbursement for certain disposal costs, providing the company with a $2.35 million loan for the redevelopment project, and reducing the purchase price of the property due to the environmental cleanup costs. Rochester's first new downtown apartment complex in 20 years was finished in spring 2000. The project resulted in the construction of 77 new residential units — 97 percent of which were rented within three months. Chevy Place's most distinguishing architectural feature is its art deco showroom, which remains standing due to its historic site designation. The former showroom has been renovated as a 24-hour coffee shop, the Spot Cafe, and the former parts area was converted into a restaurant and nightclub called Matthews East End Grill. The apartment complex is located in Rochester's East End cultural and theater district, near the Little Theatre, the Eastman School of Music and the Eastman Theatre, and several restaurants and museums. This project has added to the vibrancy of Rochester's entire east side, and has been a catalyst for over $100 million in private investment and development in the East End. The City has since assembled another 2 acre brownfield site one block from Chevy Place and secured an EPA brownfield cleanup grant to perform soil cleanup. Proposals for upscale townhouse redevelopment of this second site have already been received. Prior to redevelopment, the abandoned dealership property and buildings sat vacant for many years. Rochester Mayor William A. Johnson Jr. stated at the grand opening of Chevy Place that brownfield redevelopment projects such as this are " ...resurrecting and reinventing our existing infrastructure." Contact: Mark Gregor City of Rochester 585-428-5978 mgregor@cityofrochester.gov ------- Revitalizing Southeastern Communities A Brownfields Toolkit Stamford, CT Uses A Brownfields Loan To Rev Up New Harley Dealership In 1999, EPA provided the first of two awards totaling $747,000 to Stamford, CT to capitalize the City's Brownfield Cleanup Revolving Loan Fund (BCRLF). In December 1999, the City of Stamford, Connecticut entered into a loan agreement with Blues Brothers LLC, which was under contract to purchase three historic industrial parcels to assemble a site for conversion to the Harley Davidson of Stamford dealership. The Blues Brothers' site is located in Stamford's distressed South End Neighborhood, a mixed use area of mostly commercial and industrial properties but also historic multifamily houses. The site had been home to a specialty lab, a brass foundry, a plating operation and an electric motor repair shop. The Phase I and II environmental assessments of the property had been completed by the seller of the property prior to marketing the site. The cost of remediation was estimated at $160,000, which was the basis of a price concession from the seller. The principal of Blues Brothers LLC, Fritz Blau, learned of the availability of BCRLF funds while attending a meeting of the South End Neighborhood Revitalization Zone, a collaboration of residents, businesses and the City. The BCRLF program enabled the Blues Brothers to borrow $160,000 to finance the cost of abatement and removal of contaminated material at the brownfield site. While the zero percent financing for 12 months was a benefit to participating in the BCRLF program, this was overshadowed by the value to the Blues Brothers of the technical assistance and guidance provided by the City and the EPA throughout the remediation process. In reviewing the environmental site assessments, EPA staff noted that the site was not tested for PCBs even though the land use history hinted that PCBs might be present. Upon advice of EPA, prior to purchasing the site, the Blues Brothers conducted more soil testing and discovered significant levels of PCBs that would add $150,000 to the cost of the clean-up. This gave an opportunity for the Blues Brothers to renegotiate the $875,000 purchase of the site. The seller agreed to escrow $150,000 for the removal of the PCB contaminated soil. The City of Stamford employed a licensed environmental professional to serve as the Brownfields Site Manager. The City also engaged an environmental consultant to work with the City staff and the EPA's staff member who was on loan to the City. Though only required to remediate to Connecticut's commercial standards, the Blues Brothers LLC was committed to working with Stamford's Community Development Office, to clean the site to residential standards. The effort was undertaken in conjunction with the state's voluntary cleanup program, to maximize options for future use. By October 2000, approximately 3,500 tons of soil contaminated with chromium, lead, cadmium, !f SHOWRpOMJ ------- petroleum hydrocarbons, PCBs, and arsenic were removed from the former industrial site, reducing exposure risks for neighborhood residents. The project was not only successful in achieving its planned goals, it was a demonstration of the ability to form effective partnerships. Resources were pooled and cooperation secured. By the grand opening on December 1, 2000, the $ 1.5 million redevelopment project had renovated two turn-of-the-century buildings that are listed on the National Register of Historic Places, and opened a Harley Davidson/Buell Dealership with a showroom, offices, and maintenance facility. The enterprise brings new life to the community, along with the creation of 10 new jobs and the preservation of 17 existing jobs. Contact: Linda Greenfield Harley Davidson/Buell 845-358 2700 x 16 Tim Beeble City of Stamford 203-977-4864 ------- Revitalizing Southeastern Communities A Brownfields Toolkit From Gas Station to Coffee House at Neighborhood Landmark in Milwaukee, Wl Sherman Perk, a successful independent coffee shop developed on an oddly sized, triangular shaped petroleum brownfield site, is located in the Sherman Park area, one of Milwaukee's most diverse neighborhoods. The building, which was renovated into the coffee shop, was built in 1939 and operated as a gas station by two generations of the same family for 50 years until the last family member retired and sold the property in 1989. Unfortunately, subsequent owners let the site sit vacant for the following ten years, and it slipped into tax delinquency and was boarded up. In the mid-1990s, a local community group, Grasslyn Manor, launched the process to register the old gas station with the City of Milwaukee's list of Historic Properties. The building was one of the few remaining unaltered examples of a Streamlined Moderne architectural style gas station in the Midwest, a feature which the group felt could give it a unique commercial advantage. Grasslyn Manor tried to acquire the property with the intent of converting it into a coffee shop — and even came up with the name "Sherman Perk" that would survive their efforts — but the group was unsuccessful. Nevertheless, it had laid the foundation and identified a market for this type of revitalization. In spring of 2000, Bob Olin, the current owner, developed an interest in the property primarily because of its historic value. However, the site had serious problems. The City of Milwaukee had ordered the gas station building demolished because the structure was seriously deteriorated and hazardous, and the site was contaminated with petroleum from years of fuel leakage. In addition, the site was nine years tax delinquent, which was a significant financial burden that had discouraged developer interest in the site. However, Olin persevered and in mid-May, 2000, he attended a meeting of the Sherman Park Historic Preservation Council to express his interest in reviving the idea of developing a coffee shop at the site, Olin was aided in his effort by a new Wisconsin state law, which was passed in large part at the urging of Milwaukee officials who had sites like his in mind. The new law was designed to encourage reuse of tax delinquent, contaminated properties by linking cleanup and reuse to tax foreclosures, assigned tax liens, and a tax forgiveness process. This statute became the tool that facilitated the saving of the gas station and the coffee shop became the pilot case for this new law. In the case of Sherman Perk, the parties to the foreclosure included the City of Milwaukee and the Wisconsin Department of Natural Resources (WDNR). The City's role was to commence with the tax foreclosure and then place the property in the hands of a developer (in this case, Mr. Olin) who would do what was needed to get the property back into tax-paying status. WDNR's role was to oversee the environmental remediation of the property, which it did through the state voluntary cleanup program. -gritSA- »«« ------- After five months of effort, the statute was applied and the petroleum contaminated Sherman Perk site was transferred to Mr. Olin for cleanup and redevelopment. As a small, community-based developer, Olin faced critical financial hurdles in getting his project underway. He worked with a variety of public agency partners to structure a package of financial incentives that made Sherman Perk a reality. The City and County of Milwaukee provided $30,000 in grants to help cover the costs of site cleanup, including removal of underground storage tanks, and the Wisconsin Department of Commerce awarded $100,000 through its brownfield revitalization program to help finance redevelopment. A key component of the "financing" proved to be the hundreds of hours of sweat equity provided by friends and neighborhood groups, who clearly wanted this project to succeed in their community. The grand opening of Sherman Perk took place on August 20, 2001, and the coffee shop has become a thriving neighborhood landmark. Olin recently received confirmation from the National Park Service that the restoration met standards for historic preservation, which will clear the way for the property's listing in the National Register of Historic Landmarks. Sherman Perk also received a Mayor's Design Award in 2002. In 2003, Sherman Perk's owner paid the greatest tribute possible to the opportunities and process of converting an abandoned petroleum brownfield site — he did it again! Bob Olin opened a second coffee shop at an old gas station site in the historic Kletzsch Park neighborhood in Glendale, Wisconsin (not surprisingly called Kletzsch Perk), and is looking for two more similar sites for additional outlets. Contact: Bob Olin 414-875-7375 www.shermanperk.com Michael Prager Wisconsin Department of Natural Resources 608-261-4927 michael.prager@dnr.state.wi.us. ------- |