RETURN TO USE INITIATIVE 2010 Demonstration Project MANY DIVERSIFIED INTERESTS, INC. Houston, Texas THE OPPORTUNITY: The MDI Site is located in Houston's Fifth Ward, a historically African-American district that is undergoing a rapid transformation due to Houston's economic growth and the Fifth Ward's proximity to downtown. Based on these factors, as well as the property's large size and central location, the MDI Site represented a potentially significant value to developers. A community-based reuse planning process was initiated with help from a $100,000 pilot grant to the City of Houston from EPA's Superfund Redevelopment Initiative (SRI). With input from a diverse group of local stakeholders, the plan anticipated mixed residential and light commercial land uses at the Site, based on the Site's neighborhood surroundings and the growth of new development PICTURED: View of the MDI Superfund Site and the Houston skyline in 2008 BEFORE: Abandoned metal casting foundry and chemical recycling facility AFTER: Planned mixed-use residential development overlooking downtown Houston THE SITE: The Many Diversified Interests Inc. (MDI) Superfund Site occupies approximately 36 acres in Houston, Texas. From 1926 until the early 1990s, two metal casting foundries and a chemical recycling facility were located at the MDI Site. Metal casting foundries created specialty molded steel parts that served as the foundation for industrial, railroad and mining operations across the country. Site operations and waste materials resulted in soils contaminated with lead and ground water contaminated with other metals. MDI filed for bankruptcy in 1992, and EPA added the MDI Site to the Superfund National Priorities List (NPL) in January 1999. Remedial actions included the off-site disposal of abandoned catalyst drums, asbestos materials, and an underground storage tank; and the excavation, treatment, and off-site disposal of contaminated soils. Ground water restrictions were instituted to prevent exposure to site contaminants, and monitored natural attenuation for the Site's ground water is ongoing. PICTURED: Abandoned foundry molds and debris on MDI Site BARRIER: Redevelopment of the Site hampered by lack of responsible party to fund cleanup SOLUTION: First-ever agreement between EPA and a non- liable party for the cleanup of a Superfund site United States Environmental Protection Superfund Redevelopment Initiative 1—J § m Agency kAgency Updated: June 2010 1 ------- projects throughout the Fifth Ward. Mothers for Clean Air, a community group that received a Technical Assistance Grant from the EPA, heightened awareness of the Site and encouraged local engagement in the planning process. THE BARRIER: By 2004, it looked like plans for the MDI Site had reached a stalemate - the fenced-off area had been idle for 13 years, the Site was owned by a bankruptcy trustee, and EPA had placed a lien on the Site to recover past costs. Although the U.S. bankruptcy court determined in late 2003 to sell the Site at auction, without a responsible party to clean up the Site, it was believed EPA would need to clean up the Site before redevelopment could begin. THE SOLUTION: During EPA informational sessions with the City of Houston and other stakeholders, EPA identified a new, innovative solution: a non-liable party could acquire, clean up and redevelop the Site. This had never been done. EPA Region 6 staff worked with the U.S. Department of Justice and the Texas Commission on Environmental Quality (TCEQ) to develop draft "Agreed Order on Consent and Covenant Not to Sue" documents that ultimately served as the framework for the Site's cleanup and redevelopment. Knowing that the Site would be auctioned and that a buyer was likely, EPA was able to draft a document to share with potential buyers. The Remedial Investigation and Feasibility Study, performed by EPA during the Superfund investigation process, extensively documented the Site's characteristics, condition and contamination. This study provided crucial information for the Site's potential reuse. A Bona Fide Prospective Purchaser agreement facilitated the acquisition and cleanup of the Site by a private party. Parties at the MDI Site charted new territory in addressing stigma and liability issues. A group of stakeholders and EPA came together and created an innovative agreement that has led to a new future for the Site and addressed the Site's contamination, thereby protecting human health and the environment. THE SITE NOW: In March 2005, several months after EPA provided the draft Agreed Order on Consent and Covenant Not to Sue to the Site's bankruptcy trustee, the 36-acre MDI Site property was sold at auction to Clinton-Gregg Investments for $7.8 million. In order to address stigma concerns about the property's Superfund history, the Site owner has requested a partial Site deletion from the NPL for all of the soils within the fenced boundaries of the Site and part of the underlying ground water. Cleanup has been completed for the areas proposed to be deleted and they are no longer contaminated. Construction of the MDI Site's $6.6 million remedy is now complete, and the developer plans to begin redevelopment after the partial Site deletion has been finalized. EPA has continued to support redevelopment efforts at the Site and will solicit public comment on the proposed partial deletion in the near future. All parties anticipate that the Site's cleanup and reuse will benefit future site residents and the surrounding community. They are hopeful that redevelopment will contribute to the long-term social, economic, and environmental health and vitality of the Fifth Ward district and the City of Houston. FOR MORE INFORMATION, PLEASE CONTACT: Rafael Casanova, Remedial Project Manager, at (214) 665-7437 or casanova. rafael@epa.gov: or Casey Luckett Snyder, Region 6 Superfund Redevelopment Coordinator, at (214) 665-7393 or luckett.casev@epa.aov. United States Environmental Protection i Agency Superfund Redevelopment Initiative Updated: June 2010 2 ------- |