Brownfields: The New Green

A Look at Upcoming Projects and How They’re Improving Communities

By Cara Aliek
Published Online  03/14/08

It seems everywhere you look these days, the message of environmental consciousness is grabbing for our attention. Gargantuan gas-guzzling SUVs are slowly being passed over for more environmentally-friendly hybrids, retailers are reaping the benefits of offering products that donate a portion of their sale to environmental protection efforts, and a growing trend — if not the largest in terms of size and money — is re-establishing the functionality of land and buildings. In some cases, these properties are designed using energy-efficient Leadership in Energy and Environmental Design (LEED) principles, a trend still continuing to explode.

This spring (May 5-7) Detroit hosts The National Brownfields Conference and with many sites still untouched, (it’s estimated 1 million brownfield sites are available in the U.S.) investors and developers are taking advantage of their benefits. In this article, we’ll take a look at a few upcoming brownfield projects and what they’re doing to reuse, reduce and recycle community eyesores. We’ll also introduce a company that helps persuade companies to donate their vacant industrial property so they can be used for small businesses.


LIBERTY HARBOR
Brunswick, GA

Liberty Harbor is a $2 billion Brownfield redevelopment in Brunswick, Ga.

During World War II, the J.A. Jones Company Shipyard cranked out 99 Liberty ships in Brunswick, Ga. Today, a $2 billion waterfront development is slated to begin construction first quarter 2008 on the former shipyard’s site and is one of the biggest brownfield redevelopments in the country. The 155-acre community will feature approximately 1,600 residences, 250 home sites, a boardwalk and a 450-wet slip marina, the largest marina between Charleston, S.C., and Miami.

Georgia Representative Jerry Keen and Brunswick Mayor Bryan Thompson pushed for legislation to start brownfield redevelopments, which lured Liberty Harbor developer WW Group Holding/Liberty Harbor Development LLC. Mayor Thompson says his city has already seen great support.

“As a port city with a good deal of waterfront industry both past and present, Brunswick is a prime example of a city that has truly benefited from the Georgia Brownfield Program. Brownfield sites can be invaluable and catalysts for growth as evidenced by the success of Liberty Harbor. (Liberty Harbor) has become the centerpiece for the economic development of our community,” Mayor Thompson said.

National Brownfield Associations CEO Robert Colangelo says Brunswick’s historic value, underutilized land and opportunity for growth made it an easy choice to redevelop this brownfield.

“In an area of such incredible natural beauty and rich history, successful brownfield redevelopment is also a cornerstone of sustainable growth. Rather than using pristine green space for new and necessary development, brownfield sites provide the opportunity to return underutilized land to the community in a way that best serves their present and future needs,” Colangelo said.

Another highlight of the project will include the Liberty Harbor Yacht Club, which will overlook the marina and offer entertainment and dining options. The club will also provide education and training programs to teach safe boating practices that will stress awareness and protection to endangered marine life.

Colangelo added, “For many years, brownfields were most associated with the heavy industrial areas of the Northeast and Midwest. But we’ve come to realize that these sites exist across the country. In Georgia and across the Southeast, it is along the waterfront where we are seeing some of the first brownfield redevelopment opportunities. Using brownfield sites is the highest form of recycling and the ideal foundation for the construction of energy-efficient, green buildings — brown is the new green,” he said.


LOWER TOWN
Ann Arbor, Mich.

Lower Town, a mixed-use Brownfield, is being developed by Strathmore and will achieve LEED certification.

Strathmore Development Co. broke ground on this $171 million mixed-use project in December and is expecting a fourth quarter 2009 completion date. Located adjacent to the University of Michigan Health System medical campus in Ann Arbor, this project will include 185 residential units, 152,689 square feet of medical and general office space, 138,275 square feet of retail space and a 760 parking garage.

Image 1 (Building A)
Image 2 (Building Uses)

Scott Chappelle, president of Strathmore, says his company has completed a number of brownfield projects over the last 10 years, most with some degree of contamination.

“(Lower Town) was a contaminated retail center formerly anchored by a Kroger and later a CVS/pharmacy. The contaminated soils will be removed to an appropriate landfill and the intent is to remediate the contamination to residential standards,” Chappelle said.

The project will receive tax increment financing through the Michigan Economic Development Corp. and the Washtenaw Brownfield Redevelopment Authority in order to remediate pre-existing environmental contamination to residential standards.

Chappelle added, “The environmental contamination is migrating towards the Traver Creek and will eventually impact the ground water to the point of significantly increasing the risks of exposure to surrounding residents. By removing the source of the contamination, this risk will be avoided.”

Lower Town is being constructed by Clark Construction Co. and will achieve LEED certification.


WOODRUFF POINT
Greenville, S.C.

A $600 million, 75-acre, mixed-use development is getting organized on the site of the former Hoechst Celanese fiber plant in Greenville. GreenbergFarrow, an Atlanta-based architecture, planning and development consulting firm, is handling the planning and design of the town center and is working with McChesney Investment Advisors on this ambitious project.

Woodruff Point will feature 500,000 square feet of retail, 600,000 square feet of office space, a 420-room hotel, restaurant space, 1,225 condominiums and 1,125 apartments. Walkways, bike trails and recreational green spaces will be incorporated.

“This is one of the largest brownfield redevelopment projects in the country that will transform a 2 million-square-foot factory, on a site that has become a virtual wasteland, into a vibrant urban center,” said John Clifford, principal of planning at GreenbergFarrow.

“Taking on a redevelopment project of this scale is no small task and we eagerly accept the challenge. The initial stages of site development will play an essential role in ensuring its long-term success.” he said.

Shay Eskew, director of development at McChesney Investment Advisors, said getting the project approved for things like zoning and road structure has required perseverance.

“It was a pretty extensive start. The main road, Carolina Point Parkway, had been designed based on the previous (industrial) zoning and we met with the city and neighboring property owner to explain to them our vision for the (mixed-use) property. They were agreeable along with our sellers to do a land swap to put in a new road design. It was something that took three land owners to make happen,” Eskew explained.

“The plant was operational in the 1950s, ’60s and ’70s and was part of a larger assemblage that was once over 200 acres,” Eskew said.

“Getting into a true brownfield requires a lot of extensive testing to really understand what all the potential issues might be,” Eskew concluded.

The first phase will be the demolition of the factory, which is expected to begin early this year, with the entire project scheduled to roll out within a decade.

SEEDAMERICA
Alpharetta, GA

Shelby

In addition to these upcoming projects, a unique company has found a niche in the way vacant industrial sites are handled. SeedAmerica, an Alpharetta, Ga.-based nonprofit, utilizes the 561 Exchange, taken from the rules of outlined in Publication 561 of the IRS tax code, to persuade corporations to donate their unproductive industrial properties that they in turn rent to small businesses. The lease income generated from these transactions, go into an endowment to fund graduate-level business schools to train entrepreneurs and business leaders who are aspiring greater levels of leadership. Steve Shelby, vice president of SeedAmerica, says the 561 Exchange concept was foreign to most a few years ago, but is becoming more prevalent.

“As with any corporation, we feel we have a great solution for people, but how do we get around the phrase ‘charitable contribution?’ Unlike the 1031 Exchange, the 561 Exchange is not an exchange of properties, but a property transfer title is actually conveyed to SeedAmerica. Not only does the corporation receive benefits in the form of tax breaks, but they are no longer burdened with escalating carrying costs. Residential and industrial property can be transferred through the 561 Exchange,” Shelby said.

Shelby said that when companies donate their vacant properties, they aren’t the only ones who benefit from the transaction.

“We are repurposing old buildings, and in many cases we’re able to help with the environmentally challenged properties. The good news is we also have other byproducts. We bring jobs back to communities where vacant manufacturing buildings stand as reminders of lost jobs and fractured economies. We want to encourage and stimulate entrepreneurship in America and that’s another byproduct of the 561 Exchange,” Shelby said.

SeedAmerica currently has approximately $45 million in its endowment and is expected to reach $100 million by mid-2008. That is when it plans to start on the business schools, a vision of SeedAmerica CEO Joseph Johnson.

“We all know what happened to Enron. We’ve gotten away from our core values as a country. We want to have graduate business schools all over the country and eventually all over the world. The schools are not geared toward the person who just wants an MBA. (Johnson) is interested in attracting students who are current business professionals and leaders,” Shelby said.

SeedAmerica looks to establish its first school in 2 years and expand internationally within a decade.


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Links:
Liberty Harbor
Lower Town
Woodruff Point
SeedAmerica