xvEPA www.epa.gov Reuse and the Benefit to Community South Point Plant Superfund Site Executive Summary The tri-state region, where Kentucky, Ohio and West Virginia come together along the Ohio River, has long been one of the nation's commercial and industrial manufacturing hubs. Decades of manufacturing activities in this area contaminated soil and ground water. Cooperation among the U.S. Environmental Protection Agency (EPA), the Lawrence Economic Development Corporation (LEDC) and other stakeholders has resulted in the successful cleanup and reuse of part of the area known as the South Point Plant Superfund site. Stakeholders recognized that the site's location and proximity to existing infrastructure would make it an ideal location for an industrial park. Project priorities included designing a remedy that would be compatible with future site uses and addressing liability concerns. Today, 21 commercial, industrial and local government facilities are open for business at the site, serving as an economic engine for surrounding communities and the tri-state region. Site uses also provide valuable public services and educational resources to the local community. Businesses include the Ohio Strategic Training Center (OSTC), a machining and fabrication operation, a shipbuilding and repair business, a motor vehicle parts wholesaler, mail and package delivery businesses, a right-of-way and vegetation management company, and various other manufacturers, as well as the LEDC. This case study explores the site's cleanup, reuse and continued use, illustrating the opportunities and beneficial effects of Superfund redevelopment in action. Beneficial Effects • Twenty-one commercial, industrial and local government businesses are currently active at the site. • Site businesses employ over 950 people, providing annual employment income of about $47.2 million to the local community. • In 2013, site properties generated over $150,000 in tax revenues and have an estimated value of $11.7 million. South Point Plant Superfund Site .shland South Point Ohio River Catlettsburg Sandy River South Point, Ohio i Figure 1. The site's location in South Point, Lawrence County, Ohio. July 2014 ------- Introduction When a Superfund site is restored for reuse, it can revitalize a local economy with jobs, new businesses, tax revenues and spending. Cleanup may also take place while there are active land uses on site. This case study captures the beneficial effects of the continued use and redevelopment at the South Point Plant Superfund site, both on-site and in the community. The site occupies about 610 acres in the village of South Point in Lawrence County, Ohio (Figure 1). It is part of the tri-state region, where Kentucky, West Virginia and Ohio meet. U.S. Route 52 borders the site to the east and the Ohio River borders the site to the west. Residential, commercial and agricultural areas are located to the north and south. Nearby cities include Huntington, West Virginia, about 10 miles to the southeast, and Ashland, Kentucky, about seven miles to the northwest. According to 2013 Census data estimates, about 62,000 people live in Lawrence County. Site History Between 1943 and 1997, manufacturing facilities operated on site. Activities included the production of ammonium nitrate explosives, fertilizers, industrial chemicals, coal pitch pellets, ethanol and liquid carbon dioxide. Investigations between 1981 and 1984 by the Ohio Environmental Protection Agency (Ohio EPA) determined that facility operations, waste disposal activities and four major releases resulted in the contamination of soil and ground water with volatile and semi-volatile organic compounds, ammonia, nitrates and metals. In 1981, one of the site's potentially responsible parties (PRPs), South Point Ethanol, Inc. (SPE), installed ground water extraction wells between the site and the Ohio River to help capture contaminated ground water. In September 1984, EPA placed the site on the Superfund program's National Priorities List. Site Cleanup and Transformation Following investigations and a risk assessment, EPA selected a cleanup plan in 1997. Further assessment found that contamination affected only small areas of the site. In March 1999, the site's PRPs, which included Ashland Oil, Allied Signal and South Point Ethanol put institutional controls in place for the site. These controls limit land uses to industrial and commercial uses and restrict the use of ground water in the area. Cleanup began in May 2001 and included excavation and off-site disposal of some contaminated soil, consolidation and capping of the remaining contaminated soil, ground water monitoring, and continued operation of the site's ground water extraction system. The system will continue pumping and treating between two and four million gallons of water daily until cleanup goals are met. The PRPs completed construction of the site's remedy in December 2001. Throughout the cleanup, EPA staff met regularly with community stakeholders to share site information and bring community feedback into the Superfund process. The remedy was compatible with the site's planned reuse for commercial and industrial purposes. Coordination with EPA also made it possible for three existing businesses - American Bottling Company, Pyro-Chem Corporation and Quality Carriers - to continue operating on site during and after cleanup. Figure 2. Aerial view of past manufacturing activities at the site 2 July 2014 ------- The catalyst and champion for much of the site's redevelopment was the LEDC, a non- profit community organization. Local governments established the LEDC in the early 1980s as part of a region-wide economic revitalization effort. As the economic development agent for Lawrence County, the LEDC's goals are job creation and retention. After evaluating several economic development opportunities, the LEDC identified the site as the leading candidate for an industrial park centrally located on the Ohio River, close to transportation networks and infrastructure. In 2001, the LEDC purchased 500 acres of the 610-acre site property for $3.68 million from Ashland, Inc., one of the site's PRPs. Later that year, EPA awarded the LEDC a Superfund Redevelopment pilot grant to evaluate potential site reuse opportunities. With EPA's support, the LEDC developed a two-phase, community-based master plan to transform the site into an industrial park named "The Point." The plan's vision was to create a manufacturing center and intermodal transportation and logistics hub that would serve as a valuable regional resource. North ~ Site Boundary 0 375 750 1,500 2,250 Figure 3. Aerial view of The Point The current and projected future success of redevelopment at The Point relies on the infrastructure that the LEDC provides for site businesses. 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. The LEDC has also provided a rail scale, a truck scale and a rubber-tired gantry crane for their use. The LEDC soon started 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 were "Ready for Industrial Reuse." LEDC staff notes that the RfR Determination makes a significant difference in the LEDC's ability to recruit businesses to the industrial park. Engines Inc., a parts fabrication plant, was The Point's critical first tenant. Figure 4. Presentation of the RfR Determination in 2004 3 July 2014 ------- In addition to The Point's large, contiguous acreage, proximity to major markets, deep-water port frontage on the Ohio River, and access to transportation networks, the industrial park also benefits from ongoing infrastructure and economic development initiatives in the tri-state region. These efforts 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. The LEDC's efforts at The Point, "Southern Ohio's Premier Industrial Park," have focused on increasing employment opportunities in the area. The emphasis on becoming an intermodal transportation center for the region and providing infrastructure for industrial companies has been critical in recruiting businesses and maximizing 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 jobs stay in the area for the long term. Local Business Development Today, 21 site businesses support over 950 jobs and contribute about $47.2 million in annual employment income to the community. These businesses bolster the region's economy, provide valuable services to the local community, and help generate local and state sales and property tax revenues. Table 1. List of Identified Site Businesses M & M Service Station Equipment Specialist Jennmar McSweeney Mercier's Ohio Strategic Training Center Orica PRD Technologies Pyro-Chem Corporation RW Rentals & Supply, L.L.C. Quality Carriers Superior Marine Ways The American Bottling Company This section describes several of the businesses at the site. Emerson Network Power This company protects and optimizes critical infrastructure for data centers, communications networks, healthcare and industrial facilities. It employs 75 people, contributing over $5.4 million in estimated annual employment income. Figure 5. Entrance sign for The Point Applied Industrial Technologies Calgon Carbon Services Emerson Network Power Engines Inc. of Ohio Expedited Mechanical Solutions FedEx Intermountain Electronics Company Ken Builders Supply Lawrence Economic Development Corporation M & M Mailing Company 4 July 2014 ------- Engines Inc. of Ohio This business provides custom rail car fabrication, steel mill services, blasting, painting and specialty machining services. It employs 100 people, contributing over $6.3 million in estimated annual employment income. Estimated 2013 sales reached $6.7 million. Ken Builders Supply Figure 6. This commercial and residential building supply company is one of nine branch distribution centers serving Ohio, Kentucky, West Virginia and central Indiana. It employs 20 people, contributing over $940,000 in estimated annual income. Applied Industrial Technologies This leading North American distributor of industrial products and services serves many industries, including the mining, government, chemical and petrochemical, transportation and utility sectors. It employs 25 people and provides an estimated $1.1 million in estimated annual employment income. Ken Builders Supply Orica This 80,000-square-foot manufacturing plant produces a wide Figure 7. Orica range of steel products, including bolts and plates used in the underground mining, tunneling and civil engineering fields. The company moved to The Point in 2013. It employs 75 people, contributing $3.9 million in estimated annual employment income. The LEDC expects that Orica will employ 100 people in the near future. M & M Mailing Company This direct mail advertising company specializes in inkjetting, personalization, mail preparation and political campaign mailings. It employs 17 people, providing nearly $670,000 in estimated annual employment income. Estimated 2013 sales Figure 8. Jennmar McSweeney reached $500,000. Jennmar McSweeney This drill steel manufacturer moved to the site in 2013. It provides services to the mining, railroad, construction and highway industries. Its 55,000-square-foot facility employs 200 people, contributing nearly $10.5 million in estimated annual employment income. FedEx This global firm provides worldwide freight, package delivery and distribution services. Its on-site distribution facility employs about 200 people and provides over $5.8 million in estimated annual employment income. Figure 9. FedEx 5 July 2014 ------- "Our priority was making sure that the agencies understood the value of the site, and that the community would be able to use this remarkable property for industrial land uses in the future." - Dr. Bill Dingus, LEDC Executive Director Pyro-Chem Corporation Careful planning and cooperation between EPA and site property owners enabled this business to continue operating during and after the site's cleanup. Pyro-Chem Corporation manufactures premixed fire retardant mine sealants used in the underground coal mining industry. Pyro-Chem relocated to South Point in 1992 to be close to major U.S. underground coalfields. In 1994, the company moved into a new 18,500-square-foot building on site. The facility employs 14 people, contributing over $990,000 in estimated annual employment income. Estimated 2013 sales reached $4.5 million. Figure 10, The American Bottling Company The American Bottling Company This manufacturer, bottler and distributor of soft drinks operates a 37,000-square-foot facility in the northwestern corner of the site. It employs 45 people, contributing over $2.1 million in estimated annual employment income. The business is another example of continued use at the site. LEDC and the Ohio Strategic Training Center Offices at 216 Collins Avenue house the LEDC and the Ohio Strategic Training Center (OSTC). The LEDC offers several services to area businesses, including financial and technical assistance, resource information, site and building inventories, and industrial development. The OSTC provides creative, results-oriented training and customized business solutions. Led by a group of local business and education professionals, the OSTC actively works with area businesses and industries to meet their needs for a skilled, sustainable workforce. The Lawrence City Chamber of Commerce also operates as part of the LEDC. The LEDC employs 13 people and contributes over $350,000 in annual income to the local community. Annual business sales in 2013 reached $4.6 million Figure 11. LEDC's offices at The Point Property Values and Tax Revenues In 2013, site properties generated over $150,000 in total tax revenues, with an estimated total property value of over $11.6 million. On-site businesses that produce retail sales and services also generate tax revenues through the collection of sales taxes, which support state and local governments. 6 July 2014 ------- Future Site Use Looking forward, EPA will continue to work with site stakeholders to support protective reuses and ensure the long-term stewardship of the remedy. Recent LEDC recruiting efforts have attracted three new companies to The Point, Expected to open by the summer of 2015, these new businesses will provide an estimated 200 additional on- site jobs. Plans for The Point include recruiting additional tenants, expanding facilities and building an intermodal facility that will serve as a vital road, rail and river transportation resource for the region. Conclusion Collaboration and cooperation among EPA, state and local agencies, area communities, responsible parties, developers and site business owners has been key to the successful cleanup, reuse and continued use of the South Point Plant Superfund site. EPA's carefully designed cleanup protected public health and the environment, and supported the revitalization of the local community. Today, site uses provide valuable public services and educational resources, and support local economic growth, providing over 950 jobs and $47.2 million in annual employee income and generating over $150,000 in tax revenues in 2013. As businesses continue to locate at The Point, additional jobs and tax revenues will continue to benefit the area, and the industrial park will continue to play a vital role in the reestablishment of one of the country's preeminent industrial regions. Figure 13. View of the Ohio River, looking north from The Point #.int INDUSTRIAL Southern Ohio's — rmnitrIrtMiUMk PROPERTY FOR SALE, LEASE, OR BUILD TO SUIT For information: (740) 377-4550 1-800-408-1334 www.thepointindustrialpark.org Figure 12. Sign advertising land available for development at The Point For more information about EPA's Superfund Redevelopment Initiative (SRI), visit: http://www.epa.gov/superfund/proarams/recvcle/index.html. 7 July 2014 ------- |