Reuse and the Benefit to Community
South Andover Site
Executive Summary
This case study documents the evolution of the South Andover
Superfund Site (known officially as the South Andover Site) and
nearby industrial properties from waste disposal and auto
salvage yards into a major shopping destination for Andover
residents and explores the related benefits for the community.
Andover, Minnesota is a suburban community located about 15
miles north of Minneapolis. Until the 1980s, a number of
properties in southern Andover were used to store waste and
salvage materials, including numerous junked cars and over 3
million scrap tires. The enormous tire piles caught fire twice,
the second of which took more than a day to extinguish.
Because of ground water and soil contamination, the U.S.
Environmental Protection Agency (EPA) added a 50~acre portion
of this area to its National Priorities List (NPL) in 1.983, referred
to as the South Andover Superfund site.
Following intensive cleanup efforts, local leadership, land use
planning and development have radically changed the site.
Commercial shops and offices are now open in the same space
that was once covered with scrap tires. Where an estimated
1,000 barrels (most containing dangerous substances) once
dotted the landscape, residents from Andover and nearby
communities now have access to a Target, a grocery store, a
Walgreens drug store, a movie theatre and restaurants.
Together these businesses make up a large portion of the
redevelopment area known as Andover Station. Viewed as
Andover's new downtown, this award-winning, pedestrian-oriented development is attracting shoppers,
boosting the local tax base and helping to foster a more walkable and livable community.
Positive impacts
•	Cleanup and redevelopment of the South Andover Superfund Site and nearby properties have transformed a
heavily blighted section of Andover into Andover Station, an award-winning commercial development.
•	Since 2000, over 20 retail shops, service centers and business offices have opened at Andover Station.
•	Businesses in Andover Station employ approximately 500, providing nearly $10 million in annual employee
income to the community.
•	Andover Station properties together generate nearly $800,000 in property tax revenue each year.
•	Walkways, open space and sitting areas create opportunities for more active lifestyles for nearby residents.
Figure 1: Tires and auto parts littered the site in
the 1980s,
Figure 2: The site is now home to Andover
Station, an award-winning pedestrian-oriented
retail and commercial center.

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Introduction
Superfurid site remediation results in restored value to site properties and the
surrounding community. Making a property ready for reuse can revitalize the
local economy with jobs, new businesses, tax revenues and local spending, as
well as enhance recreational and ecological opportunities. This case study
captures the qualitative and quantitative impacts that new development on a
Superfund site and nearby area has had on Andover, Minnesota, a suburban
community located about 15 miles north of Minneapolis,
The South Andover Superfund Site occupies 50 acres near the southern and
eastern borders of Andover's city limits. It falls within the 90-acre area now
known as Andover Station. This area is surrounded primarily by residential
homes. According to 2010 Census data, approximately 3,300 people live in the
surrounding census tract.
Site History and Cleanup
The South Andover Superfund site was originally comprised of several properties used for waste handling
operations during the mid-1950s. In the 1960s and 1970s, solid and liquid chemical wastes were dumped at the
site and burned in open pits. At one point prior to cleanup, the properties stored more than 1,000 drums of
waste and 3 million scrap tires. Most auto salvage and waste disposal activity at the site ceased by 1981.
However, scrap waste remained a considerable public health threat throughout the 1980s. In the late 1980s, the
enormous tire piles caught fire twice, the
second of which took more than a day to
extinguish.
EPA became involved in the site in 1979 at the
request of the Minnesota Pollution Control
Agency (MPCA). The site was proposed to the
NPL in December 1982 and listed in
September 1983.'The contaminated media
included debris, ground water and soil. The
primary contaminants of concern included
metals, polycyclic aromatic hydrocarbons,
polychlorinated biphenyls and volatile organic
compounds (VOCs).
Property Cleanup and Transformation
EPA completed in-depth studies to identify the station redevelopment area,
nature and extent of contamination in ground
water, surface water and soils in the late 1980s and early 1990s. EPA's remedies included monitoring ground
water for contaminants of concern; excavating, treating and backfilling contaminated soil; and drum removal,
which began in 1992. EPA negotiated an agreement with some of the site's potentially responsible parties (PRPs)
to implement the remaining cleanup actions required as part of the soil cleanup remedy and in 1994 the PRP
1 For more information on the site's discovery and listing, please see:
http://www.epa.gov/superfund/sites/rods/fulltext/r0588065.pdf
2
Andover, MN
Figure 3: Andover's location in
eastern Minnesota.
1135 0.
« ,W;i .1,
Anoka

Andover
Andover Station
redevelopment area
Coon Rapid*-
Figure 4: The boundary includes the South Andover Superfund site
and the nearby properties that together make up the Andover

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group undertook the excavation and treatment of the contaminated soil. Ground water monitoring was
completed in 1997. In 1998, EPA deleted the soil portion of the site from the NPL.
Some important issues continued to require additional
attention. Investigations in 1997 and 1998 showed a
VOC plume underneath the site that had not been
identified in earlier studies. EPA, the City of Andover
and the PRP group continued to investigate the ground
water contamination and in December 2007, the PRP
group determined that the overall plume area and its
relevant contaminant concentrations had diminished.
Although there has been no final resolution of ground
water contamination issues, in 2007 the PRP group
confirmed that all residences overlaying the plume are
connected to municipal water. In addition, all property
owners are required to connect to the municipal water
before obtaining a Certificate of Occupancy.
Figure 5: Junkyards on part of the site that would become
Andover Station.
The City of Andover first became interested in redeveloping the site and nearby industrial properties while EPA
was conducting site investigation activities in the mid-1980s. The city anticipated that redevelopment of the site
and nearby properties could result in a number of economic and environmental benefits. The city took out
bonds to pay for additional site cleanup and established a tax increment finance (TIF) district encompassing the
South Andover Superfund site and nearby properties to help pay off the bonds. In 1996 and 1997, the city
acquired each of the parcels comprising the site and the nearby properties, mostly through eminent domain.
Collectively these properties, totaling 90 acres, would come to be known as Andover Station.
34-32-24-31-OQ35
O , 'Q
u no. .~
Figure 6: Aerial image of the Andover Station redevelopment area. The area bounded by Thrush Street, Bunker Lake
Boulevard, Station Parkway and Jay Street together make up Andover Station, which includes the South Andover
Superfund site.
Bunker Lake Blvd.
Andover Station
i»

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Once it acquired the properties, the City of Andover began performing additional remedial actions where
necessary. The city also hired an architectural, engineering and
planning firm to develop a master plan and further prepare the site
for redevelopment. Other pre-redevelopment activities included
street and infrastructure installation, relocation of the original
wetlands and construction of storm drainage ponds. Site assembly,
preparation and cleanup costs totaled $10 million. Businesses first
began locating at Andover Station in 2000. Since then, numerous
businesses have followed. In 2000, the City Engineers' Association of
Minnesota awarded the City of Andover its "Project of the Year" for
its work at Andover Station, an award given for a project that
"incorporates public benefit, design and construction innovations,
environmental benefits, or significant safety improvements to a
community."2 In 2003 the Minnesota Shopping Center Association
awarded Andover Station the STARR award for "Development
Process".3
In addition to the commercial and retail space occupying much of the
Andover Station redevelopment, a new major commercial
development is also underway just north of Andover Station referred
to as Andover Station North. Moreover, in 2003 and 2004,
townhouses were constructed directly south of Andover Station that,
according to a city official, likely would not have been built had it not
been for the redevelopment activity at Andover Station.
Local Impacts
The remediation and subsequent redevelopment of the South
Andover Superfund site and nearby industrial properties have resulted in significant economic impacts for the
community. New businesses have located at the site, including: Festival Foods grocery store, Andover Cinema,
Target, Walgreens, H&R Block and Wells Fargo. Restaurants, coffee shops, a bowling alley, an events center and
a nail salon have also opened. The Andover Station offices, retail shops and service centers directly support over
500 jobs annually and contribute $9.9 million in annual employment income to the community.4
Andover Station is also creating positive local economic impacts through the increased local tax revenue earned
on sales resulting from commercial activity. Although nearly all sales taxes collected in the City of Andover and
Anoka County are dedicated to the state, in July 2008 a one quarter of one percent sales and use tax became
effective for the city and surrounding counties that will raise funds for improvements to the regional transit
system, including light rail, commuter rail and bus rapid transit. In 2010, total annual sales reported by
businesses in Andover Station were over $3 million, with some of the largest businesses not reporting.5 These
2	University of Minnesota Technology Exchange. "City of Andover Project Wins CEAM Project of the Year Award: Turning
Trash to Treasure." http://arlene-ltap.software.umn.edu/Publications/Exchange/2000-2/070605.html
3	http://www.msca-online.com/starrAwards.html?vear=2003#5
4	Bureau of Labor Statistics, 2009 Quarterly Census of Employment and Wages State Occupational Employment and Wage
Estimates, Anoka County, Minnesota.
5	Target was one of the businesses that did not report. In 2009, Target stores across the U.S. generated $63.4 billion in
sales, an average of $36.5 million per store. The average sales at this location would have resulted in approximately $2.6
million in additional tax revenue. See Target 2009 Annual Report.
http://investors.target.com/phoenix.zhtml?c=65828&p=irol-reportsAnnual
4
Andover Station Businesses
Provide Jobs and Income
•	Target employs 200 and
contributes $3.9 million in
annual employee income to
the community.
•	Festival Food grocery store
employs 97 and contributes
$2.3 million in annual
employee income to the
community.
•	Tanners Steakhouse and Bar
employs 70 and contributes
nearly $1 million in annual
employee income to the
community.
•	Walgreens drug store
employs 40 and contributes
nearly $1.5 million in annual
employee income to the
community.

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sales resulted in approximately $230,000 in tax revenue, based on the 7.125 percent combined sales and use tax
in place.
Benefits from Increased Property Values
Another important way that the cleanup and redevelopment of
contaminated property can have positive economic impact is through
local tax revenue generated from property taxes. In 1999, a local
newspaper reported that the Andover Station redevelopment had seen
its property values increase from approximately 83 cents per square
foot when junkyards still occupied much of the area to roughly $2 to $3
per square foot after most cleanup work and improvements had been
completed.6 The estimated total (land plus improvement) value for all
properties within Andover Station in 2010 is over $43 million. In 2009,
property taxes levied on these properties by Anoka County totaled
nearly $800,000/
Property taxes earned on properties within the Andover Station TIF
district are allocated to the City of Andover, Anoka County and the
school district each year at the level these properties were paying in
1986. The TIF system requires property taxes collected that are above
the 1986 property tax level (the base amount) to be used to pay back the city's debt obligations incurred from
its initial site cleanup and improvement costs. Because the city's debt has been nearly paid off, excess property
tax revenue is now being directed to a TIF account to pay for additional special economic development projects
within the district. The city is using $1 million of the excess TIF
funding to pay for costs incurred from the development of
recreational facilities in the large-scale development project
located just north of Andover Station and is identifying
opportunities for additional TIF projects. The Andover Station
TIF district undergoes decertification in 2011. After that, all tax
revenues, including those originally retained for the TIF district,
will be allocated to the city, county and school district at rates
proportional to current property values.
Improved Aesthetics, Walkability and Greenspace
Site cleanup and redevelopment have also resulted in
considerable aesthetic improvements to the South Andover
Superfund site and nearby areas, which was one of the
motivations for the redevelopment. Prior to its redevelopment,
Andover Station was heavily blighted, containing mostly
junkyards. In their place, a number of Andover Station buildings
were built in accordance with robust architectural design
guidelines intended to evoke an urban-oriented commercial
center. In addition, Andover Station includes walking trails and open space. The site's pedestrian-oriented
Shannon Hahn. (1999, October 1). "Trash to Treasure in Andover." Minneapolis St. Paul Business Journal.
http://twincities.biziournals.com/twincities/stories/1999/10/04/storv3.html
7 Data on the most recently assessed property value for each of the properties within Andover Station was collected from
property records accessible through Anoka County's online property records database.
City Investment Pays Off
•	Site cleanup and preparation
costs of $10 million are nearly
paid off.
•	$1 million in excess TIF funds are
being used for new recreational
facilities at a new nearby
development. Other TIF-funded
projects are being explored.
•	The TIF system expires in 2011,
after which all taxes originally
retained for the TIF district will
be allocated to the city, county
and school district.
Figure 7: Walkway, open space and sitting area
constructed alongside a storm drainage pond at
Andover Station. The Target store is visible in the
background.

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elements, combined with the site's greenspace, further increase opportunities for recreational use of the area
and more active lifestyles for shoppers and nearby residents.
Conclusion
The transformation of the South Andover Superfund
site and nearby industrial properties is as impressive
as it is important. Once a significant human health
and environmental threat, this area is now a thriving
retail and commercial center providing jobs, boosting
the City of Andover's tax base and supporting
revenue generation for the regional transit system.
With the assistance of EPA, MPCA and a number of
other partners, the site's transformation began in
earnest in the late 1980s. Following cleanup work by
EPA and the PRP group, city leaders made a
courageous decision to assemble the many
properties located within and near the South
Andover Superfund site. Undaunted by the prospects
of dealing with a formerly contaminated Superfund
site, the city chose to work directly with MPCA and EPA to carefully address contamination issues. After
obtaining the necessary properties, the city funded and oversaw the site planning and preparation necessary to
make the area's commercial redevelopment a reality.
Because of leadership by the city, private property development
companies and ultimately the numerous businesses that chose to
locate at the site, the dream of Andover Station has been realized.
Although some issues remain, it is very likely that Andover Station
will continue benefiting residents of Andover far into the future.
According to the city's Community Development Director, Will
Neumeister, Andover Station redevelopment is widely viewed as a
success by local residents. Moreover, the Superfund status has
"mostly been forgotten." This story should serve as a model and
important source of lessons for other municipalities considering how
to transform contaminated properties into productive economic
assets for their communities.
'nnijon;
Figure 8: Walgreens is one of the many businesses that
opened at Andover Station in the 2000s.
"Residents were happy to have the
site cleaned up and put into reuse.
The success of this development has
kept the bar high for what is at the
site and what will be there in the
future."
-City of Andover's Community
Development Director, 2009

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