Brownfields Executive Session

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Brownfields Executive Session

• Timing and Money
• Making Brownfields Projects Work in Pennsylvania

Tuesday, February 22. 2005 Penn State Great Valley
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Welcome and Introductions Joel R. Burcat,
Esquire Saul Ewing LLP Partnering in Brownfields
Revitalization Jill Gaito Brownfields Policy
Specialist Office of Community Revitalization
Local Government Support PA Department of
Environmental Protection Brad A. Maurer,
Esquire, CPCU Executive Vice President TerraSure
Case Studies on Chester County Brownfields Mariett
a Missy Myers Chief Operating Officer Chester
County Economic Development Council
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PA DEP Partnering in Brownfield Revitalization

• Presented by
• Jill Gaito
• Brownfields Policy Specialist
• Office of Community Revitalization Local
  Government Support
• PA Department of Environmental Protection
• February 2005

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Office of Community Revitalization Local
Government Support

• Current Administrations Commitment
• Revitalization of PA Communities
• Establishing DEP as a Revitalization Partner
• Secretary took Unprecedented Actions
• Creation of Economic Development Deputate within
  Department of Environmental Protection
• Development Implementation of new tools and
  programs with input from stakeholders
• Commitment and Actions are getting Results

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Specific Enhancements

• Program Changes
• Streamlined Reporting NIR Processes
• Low Risk Sites Program
• Buyer-Seller Agreements (BSAs)
• MultiSite Remediation Agreements (MSAs)
• Local Government Actions
• MOA with EPA
• Brownfield Action Team

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BSAs Facilitate Transactions

• Gives the Seller the assurance that it will have
  the money to complete the cleanup, because it
  helps lock in the sale of the property.
• The Buyer (and DEP) have an enforceable
  commitment in writing from the Seller to
  remediate the site by a certain date.

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BSAs Bottom Line

• Once the Seller completes the cleanup and DEP
  approves the Final Report, the Seller gets the
  full Act 2 liability protection, and it
  automatically and immediately passes on to the
  Buyer.
• BSA alleviates uncertainty.

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Multi-Site Agreements

• Designed specifically for companies with multiple
  sites within PA.
• Especially beneficial when dealing with multiple
  regional jurisdictions.
• Results in significant savings in
• Time.
• Money.
• Frustration.

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Multi-Site Agreements Streamlining Consistency

• One comprehensive agreement for all sites.
• Mutually developed procedures, plans, reports,
  and formats - generic work plans.
• Interface with one core group at DEP MSA team
  coordinates with other program or regional staff
  who may have input (one-stop shopping).

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Local Government Action Items

• ID mothballed properties facilitate action
• Project Development
• Site Marketing
• Matching with Private Partners
• Project Advocate
• Participation in roundtables
• Outreach to explain program and process

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MOA with EPA

• One Cleanup Program
• Provision for addressing CERCLA, RCRA, and TSCA
  issues through the Act 2
• Coordination throughout the process
• State relief from liability
• Federal declaration of No Further Action
• First MOA under the Fed Brownfields Law

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Brownfield Action Team

• Selection identifies site as a DEP priority
• Assistance with Project Development
• Support for Funding Initiatives
• Project Advocates Single Point of Contact
• Top of the Pile permit reviews
• Application available online

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Guaranteed Fixed-Price Remediation
"Timing and Money Making Brownfields Projects
Work in Pennsylvania." Hosted by Saul Ewing LLP
February 22, 2005
Brad Maurer, Executive Vice President 1740
Broadway Ave. New York, NY 10019 (212)
488-0230 bmaurer_at_terrasure.net
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Environmental Contamination The Pandoras Box
of Brownfields.

• Risks Associated with Environmental
• Contamination
• What will it cost really?
• Impact to Redevelopment?
• What is the Publics Perception
• Who is or will be liable?
• - For the Clean-up
• - For Personal Injury

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Brownfield Projects Require a Team

• Same Interests/
• Different Priorities Regarding Environmental
  Issues
• Health Safety
• Economic Performance
• Community Acceptance
• Liability Management

Technical
Insurance
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Brownfield Environmental Remediation Requirements

• Comprehensive Characterization
• Remedial Planning- from the outset
• Procuring Early Government Buy-in
• Integration of Remediation with End-Use
• Reliable Comprehensive Cost Estimation
• Cost-Effective, Closure-Driven Project Execution
• Speed Time is Money.

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Traditional Environmental Clean-Upis
inefficient..
The Environmental Services Industry Was Built for
Superfund, Not Brownfield Redevelopment. It is
slow It is expensive.
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A Traditional Remediation Project
1. Phase I Site Assessment preliminary site walk
through to determine possible Recognizable
Environmental Conditions (RECs) 2. Phase II Site
investigation and sampling. Determine Areas of
Concern (AOCs) and Contaminants of Concern
(COCs). 3. Phase III Site characterization.
Determine extent of contamination of COCs at
AOCs. 4. Remedial Action Plan 5. Active
Remediation 6. Monitoring and Maintenance 7.
Site Closure?
Due Diligence/ Characterization
Remedial Design
Remediation Execution
The Focus is on the Sequential Process... Not
the dynamic condition of the property.
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Project Cost Uncertainty in a standard project
abates only as the remediation is undertaken.
GFPR offers cost certainty early in the project.
Time
Major Costs
Conventional
GFPR
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What is Guaranteed Fixed-Price Remediation (GFPR)?

• A Paradigm Shift in Environmental Cleanup
  Contracting
• Project Responsibility is Fully Transferred to
  the professional.
• Provider Remediates the Property Completely for
  Your Planned Use
• GFPR Services are Turn-Key - Design/Implement to
  Conclusion
• Provider Procures Governmental Sign-Off
• The Price is Set and Provider takes the Financial
  Risk of the Remediation.

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Major GFPR Benefits

• Known Remediation Cost - early in the project.
• Cost is all inclusive
• Results are Guaranteed/Transferable
• Turn-Key nature reduces your time and expense in
  managing project.
• Quicker

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Characterization, remedial Planning and Cost
Determination GFPRs Closure-Based Approach vs
Conventional
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Traditional Environmental Remediation Contract
Relationships
Seller
State Govt.
Local Govt.
Developer
Counsel
Insurer
Transport/ Disposal Contractor
Remediation Contractor
Engineer
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Traditional Remediation Contracting
GFPR Contracting
Client

• Single Contract
• Fixed Price
• Turn Key
• Reduced Soft Costs

GFPR Provider
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Mis-Alignment of ObjectivesTraditional
Contracting
Cost Reductions
Timely Project Completion
Consultant
Bill Hours
Maintain Project Activity (Bill Hours)
Client / Owner
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Alignment of ObjectivesGFPR
Value-Based Engineering and Reliable Cost
GFPR Provider
Guaranteed Performance
Results Profit, Not Hours
Client Owner
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Performance Security

• Dedicated Fixed-Price Remediation Agreement
  detailing results and schedules.
• Progress Payments Only After Milestone
  accomplishment
• Performance Guarantor of Contract
• Insurance Insured by Underwriters
• with over 20 Billion in Assets

Layer 1
Layer 2
Layer 3
Layer 4
Select projects may not be insured, but wholly
reliant on guarantors credit.
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GFPR Applied Various scenarios TerraSure has
been involved in Brownfields..
Bay Area California
Los Angeles
Commercial Litigation Settlement...
Govt.- Based Redevelopment-Industrial..
New York City
Boston
Private Redevelopment - Residential...
San Diego
Public/Private JV for mixed-use Redevelopment ...
Pennsylvania
Private Refurbishment for Commercial Occupancy.
Industrial -Commercial Reuse...
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Thank You
Brad Maurer, Executive Vice President 1740
Broadway Ave. New York, NY 10019 (212)
488-0230 bmaurer_at_terrasure.net
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CHESTER COUNTY ECONOMIC DEVELOPMENT COUNCIL

• 737 CONSTITUTION DRIVE
• EXTON, PA 19341
• WWW.CCECONOMICDEVELOPMENT.COM
• MARIETTA MISSY MYERS
• CHIEF OPERATING OFFICER

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CHESTER COUNTY BROWNFIELDS

• CASE STUDIES

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BACKGROUND

• CHESTER COUNTY ECONOMIC DEVELOPMENT COUNCIL
• PRIVATE NONPROFIT
• 501(C) 6
• ECONOMIC DEVELOPMENT AGENCY
• PROVIDES SERVICES TO THE BUSINESS COMMUNITY OF
  CHESTER COUNTY

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BACKGROUND

• PROVIDE ADMINISTRATIVE SUPPORT TO OTHER
  ORGANIZATIONS
• CHESTER COUNTY ECONOMIC DEVELOPMENT FOUNDATION
• 501(C) 3
• CHESTER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY
• COUNTY AUTHORITY

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BACKGROUND

• CENTRAL WESTERN CHESTER COUNTY INDUSTRIAL
  DEVELOPMENT AUTHORITY
• TOWNSHIP AUTHORITY
• SEED CO OF PA
• REGIONAL STATEWIDE ECONOMIC DEVELOPMENT
  ORGANIZATION

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BROWNFIELDS INITIATIVE

• BEGAN ABOUT 5 YEARS AGO
• BROWNFIELDS INVENTORY GRANT (BIG) PROGRAM
• EPA ASSESSMENT PROGRAM
• FUNDING FOR PHASE I AND PHASE II ENVIRONMENTAL
  ASSESSMENTS

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BISHOP TUBE SITE
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BISHOP TUBE

• SITE CHARACTERISTICS
• FACILITY USED FOR PRODUCTION OF STAINLESS STEEL
  SEAMLESS TUBING SINCE 1950S
• ABANDONED IN 1990S
• 13.7 ACRES ZONED INDUSTRIAL
• 144,000 SQ. FT. BUILDING, 65 FT. CEILINGS
• PAVED PARKING FOR 200 CARS
• UTILITIES - ELECTRIC, WATER, SEWER

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BISHOP TUBE

• SURROUNDING AREA
• LOCATED BETWEEN CONRAIL AND AMTRAK LINES
• LIMITED ACCESS TO SITE UNDER RAILROAD TUNNEL
• LITTLE VALLEY CREEK ON EASTERN BORDER
• RESIDENTIAL ON HILL ABOVE SITE
• TANK FARM INDUSTRIAL USE ON WEST

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BISHOP TUBE

• ENVIRONMENTAL HISTORY
• DEGREASANTS USED IN PRODUCING STAINLESS STEEL
  TUBES CONTAINED TCE
• OPERATION INCLUDED TCE STORAGE TANK AND 2 TCE
  VAPOR DEGREASORS
• EXISTING TEST WELLS ON SITE AND OFF SITE
  CONTAINED TCE

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BISHOP TUBE

• LEGAL OWNER CENTRAL WESTERN CHESTER COUNTY
  INDUSTRIAL DEVELOPMENT AUTHORITY
• CCEDC LISTED ON PA DEP BROWNFIELDS INVENTORY LIST
• DEP DESIGNATED HSCA SITE
• DEP FUNDED COMPLETED SOIL WATER ASSESSMENTS

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BISHOP TUBE

• RESULTS OF DEP ASSESSMENTS
• TCE CONCENTRATION IN 3 MAJOR AREAS ON SITE
• TCE CONTAMINATION IN LITTLE VALLEY CREEK
• DEP AGREED TO ASSUME RESPONSIBILITY FOR
  REMEDIATION PLAN FOR GROUNDWATER

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BISHOP TUBE

• CCEDC ROLE
• IDENTIFY DEVELOPER FOR PROPERTY
• DEVELOPER REQUIRED TO ADDRESS SOIL REMEDIATION
  BASED ON FINAL USE
• OBTAIN TAX FORGIVENESS
• PREPARE REQUEST FOR PROPOSALS
• 5 RESPONSES
• RESIDENTIAL, RECREATION, WAREHOUSE/INDUSTRIAL,
  OFFICE

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BISHOP TUBE

• ROUND 1
• REVIEW DEVELOPERS PROPOSALS
• INTERVIEW PROCESS BY COMMITTEE
• SELECTED DEVELOPER PROPOSING RESIDENTIAL USE
• NEGOTIATED FOR 9 MONTHS
• DEVELOPER WALKED LESSON LEARNED!

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BISHOP TUBE

• ROUND 2
• NEW REQUEST FOR PROPOSAL
• WAREHOUSE/INDUSTRIAL USE
• TIME PARAMETERS
• TWO DEVELOPERS WITH VIABLE PROPOSALS
• NEGOTIATIONS
• COULD NOT REACH SATISFACTORY AGREEMENT

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BISHOP TUBE

• ROUND 3
• ORIGINAL DEVELOPER FROM ROUND 1 BACK WITH NEW
  PROPOSAL
• CLOSING EXPECTED BY MARCH 17, 2005
• CELEBRATION PROHIBITED UNTIL DEAL IS DONE!

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PUBLIC SAFETY TRAINING FACILITY
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PUBLIC SAFETY TRAINING FACILITY

• PURPOSE
• NEW TRAINING FACILITY FOR POLICE, FIRE, AND
  EMERGENCY PERSONNEL
• LOCATION
• SOUTH COATESVILLE BOROUGH EAST FALLOWFIELD
  TOWNSHIP
• 120 ACRES
• NEAR GEOGRAPHIC CENTER OF CHESTER COUNTY

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PUBLIC SAFETY TRAINING FACILITY

• KNOWN ENVIRONMENTAL ISSUES
• ELECTRIC ARC FURNACE ASH (MONOFILL)
• SLAG PILES
• FORMER PISTOL RANGE

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PUBLIC SAFETY TRAINING FACILITY

• MONOFILL
• CLEAN UP PLAN APPROVED BY DEP EPA BUT NEVER
  COMPLETED
• VERBAL AGREEMENT BY DEP TO USE EARLIER PLAN AS
  PART OF OUR FINAL REMEDIATION PLAN
• NO EVIDENCE OF MIGRATION OFF OF THE SITE

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PUBLIC SAFETY TRAINING FACILITY

• BALANCE OF SITE
• NEED PHASE II ASSESSMENT
• TEST PIT SAMPLING OF SLAG
• ISSUES BELOW SLAG?
• SAMPLES FROM FORMER PISTOL RANGE
• 1 WELL PER ACRE IN AREAS TO BE DEVELOPED

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PUBLIC SAFETY TRAINING FACILITY

• CURRENT STATUS
• SEEKING PERMISSION OF BOTH LAND OWNERS TO PERFORM
  PHASE II ASSESSMENTS
• DISCUSSIONS WITH DEP EPA REGARDING SAMPLING
  PLAN PRELIMINARY REMEDIATION PLAN
• PERFORMING SITE SURVEY
• DEVELOPING PROJECT COST BUDGET
• PRELIMINARY NEGOTIATIONS WITH LAND OWNERS

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PUBLIC SAFETY TRAINING FACILITY

• SPECIAL BROWNFIELDS RESOURCES
• APPROVAL AS DEP BAT SITE
• REQUEST FOR BUSINESS IN OUR SITES BOS
  FEASIBILITY STUDY FUNDING
• APPROVAL TO USE EPA ASSESSMENT GRANT FUNDS
• IN-KIND SERVICES FROM EPA (UP TO 50,000)

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PUBLIC SAFETY TRAINING FACILITY

• CHALLENGES AHEAD
• IDENTIFY CONTAMINATION AND ESTIMATE COST
• GO NO GO
• DEVELOP AND OBTAIN APPROVAL FOR CLEAN UP PLAN TO
  STATEWIDE HEALTH STANDARDS
• COORDINATE CLEAN UP AND CONSTRUCTION
• PISTOL RANGE SOIL TO MONOFILL?

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EPA FUNDED PROJECTS

• PHASE I II ASSESSMENTS
• HABITAT FOR HUMANITY
• RED CLAY CREEK
• REVOLVING LOAN FUND
• PETROLEUM BASED REMEDIATION

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WORTHINGTON STEEL
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BROWNFIELD PARTNER SITES

• WORTHINGTON STEEL ONEILL PROPERTIES
• BETHLEHEM/LUKENS ISG DOWNTOWN CITY OF
  COATESVILLE
• ATWATER TRAMMELL CROW
• PHOENIX STEEL DELTA ORGANIZATION
• DOWNINGTOWN AMTRAK BOROUGH OF DOWNINGTOWN
• COATESVILLE OLIVER TYRONE PULVER

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CHESTER COUNTY ECONOMIC DEVELOPMENT COUNCIL

• 737 CONSTITUTION DRIVE
• EXTON, PA 19341
• 610-458-5700
• WWW.CCECONOMICDEVELOPMENT.COM
• MISSY MYERS
• KATE BAGANSKI