Post on 29-Sep-2020
Transforming brownfields into urban futures
Urban Places Group
Transforming brownfields into urban futures
Stantec’s Urban Places Group • Jeff Sauser, Associate, Senior Urban Designer • David Dixon, Senior Principal, Urban Places Group
Leader • Elias Rashmawi, Managing Senior Principal, Urban &
Brownfield Development
SunCal • Peter Johnson, Senior Vice President, Director of
Operations, Eastern Region • Brett Sherman, Vice President
Transforming brownfields into urban futures
1. The emerging role brownfields sites in urban transformations
2. Overcoming redevelopment challenges at brownfield sites
3. A developer’s perspective and case studies
4. Panel discussion and audience questions
Urban brownfields: “The hole in the donut”
Urban brownfields: “The hole in the donut”
Urban brownfields: “The hole in the donut”
Union Square
Once-in-a-generation opportunity to create lasting public value
Complex problems demand interdisciplinary solutions…
…and creative public-private partnerships
Planners play critical roles
• Identify and promote development opportunities
• Re-zone to unlock new value • Incent to enhance public benefit • Convene potential partners • Catalyze public-private
partnerships • Procure funding sources to cover
feasibility gaps • Negotiate in the public’s interest • Advocate for the under-
represented and disenfranchised • And more…
American Planning Association 2017 National Planning Conference May 8, 2017
Overcoming Redevelopment Challenges at Brownfield Sites
Elias Rashmawi Managing Senior Principal North America Brownfields Sector Leader
Resiliency
Sustainability
Brownfield Re-Use
Smart Cities, Growth, Communities & Streets ….
smart planning for our
Future
Montage of Deferred Dreams
Demystifying the
Unknown
Harnassing Value &
Transforming Assets
Today
1 Market Trend
2 Redevelopment Approach
3 Case Studies
Market Trend 1
P.H. Glatfelter Paper Mill Neenah, Wisconsin
Source: Emerging Trends in Real Estate, 2016
Improvement in All Business Lines
450,000 Brownfield Sites in the US alone
Brownfield is Infill VALUE
POINT
Engaged Sectors Manufacturing
Oil & Gas
Power & Energy
Pharmaceuticals
Technology
U.S. Department of Housing and Urban Development (HUD),U.S. Department of Transportation (DOT), and the U.S. Environmental Protection Agency (EPA) joined together to help communities nationwide improve access to affordable housing, increase transportation options, and lower transportation costs while protecting the environment.
VALUE
POINT
EPA Funding
Types of EPA Brownfield Funding
1. Assessment Grants 2. Cleanup Grants 3. Area-Wide Planning Grants 4. Revolving Loan Fund Grants 5. Job Training Grants
Redevelopment Approach
2
Buyer &
Seller
Context
• Market Demand • Regulatory Requirements • Public Agencies • Community
Investigation Risk
Assessment &Feasibility
Remedial Action
Plan Implement O&M
Due Diligence Land Use Conformity
Design (Vertical & Horizontal)
Construction Use
Risk & Value Progression
Selle
r Risk
Bu
yer V
alue
RAP Approval Certification
VALUE
POINT
Development Roadmap - Pg. 1
Development Roadmap - Pg. 2
Decommissioning Matrix
Critical Path Items:
Planning a. Market Analysis b. Land use & building massing/footprint c. Roads & Open Space d. Utilities e. Subterranean floors f. Zoning
Design a. Grading and transportation grid b. Foundation types and pad elevations c. Dry & wet utility distribution and approx. trench depth d. Stormwater scenarios (infiltration?) e. First floor on-grade or below-grade?
Critical Path Items Continued
Coordination a. RP remediation b. Municipal infrastructure c. Sustainability concepts d. Environmental approval e. Legal commitments
Funding a. P3 b. RP roles c. Phasing of vertical and horizontal improvements
Critical Path Items Continued
Regulatory a. Land use b. Cleanup goals c. Restrictions d. Environmental approvals e. Stormwater
Acquisition a. Which parcels b. Responsibilities assumed c. Due diligence
Key Regulatory Issues
• CERCLA & RCRA • Long term O&M • Inspections • 5 year reviews • Discovery of unknowns
post certification
Cleanup Goals
• Commercial • Industrial • Construction worker • Engineering controls • Institutional controls
Step 1
Site Feasibility Evaluate Market, Financial Proforma & Development/Entitlement Highest & Best Uses
Clean-Up Achieved
Development Required
Step 1.A Site-Specific Gap Analysis Model
Remediation Status
Due Diligence Data
Development Requirements
& Value
VALUE
POINT
$ Gap?
Step 2
Structure the Deal
Seller
Buyer
Future Owner
• Soil, groundwater & vapor goals
• Institutional engineering controls
• Operation & maintenance
• Unknown discoveries • Third party liability
$
Step 3
Program Phasing & Entitlement • Design & Contractor Teams • Remediation & Development Phasing • Zoning and Entitlement Entitlement Design Construction O&M
VALUE
POINT
Example Tool: Critical Issues Tracking Matrix
Critical Issue Pa
rcel
Phas
e W
hen
Trig
gere
d
Who
is
Resp
onsib
le
Whe
n is
Reso
lutio
n N
eede
d
Age
ncy
Ove
rsig
ht
Valu
e of
Im
pact
Impa
ct o
n In
fra o
r Ve
rtica
l
Risk
for P
roje
ct
Crit
ical
Pat
h
Reso
lved
Task
Mas
ter
Deed Restriction
Impacted Soil
Impacted GW
Vapor
UST
Operating Systems
Cap Cover
Clean Soil Cover
Waste Pit
Above Ground Features
Asbestos
PCB
Lead Paint
Product Lines
Other (?)
Quantifying value of each planning, design, and construction components relative to cleanup requirements is a must to evaluate risk & liability.
VALUE
POINT
Example Design Element: Foundation Types, Grading & Cut/Fill Analysis
T1 • Existing topography • Impacted with contamination
T2 • Remediation topography • Minimum required by regulators
T3 • Development topography • Conforms to regulatory & land use
VALUE
POINT
Architect’s Design Process: Impact on: Civil, Geotechnical, Environmental, MEP, LSA …
SD •Schematic Design •Determine fundamental elements
DD •Design Development •Finalize elements and conduct VE
CD •Construction Documents •Change is very costly - constructability
VALUE
POINT
Land Use Change Industrial Commercial Unrestricted 1 T1 Unchanged 2 T1 to T2 X% of site Y% of site Z% of site 3 T2 to T3 X% of site Y% of site Z% of site 4 T3 to other uses X% of site Y% of site Z% of site
Land Use Change Short Term Liability
Long Term Liability
Remediation Cost
Development Cost
O&M
1 T1 Unchanged
2 T1 to T2
3 T2 to T3
4 T3 to other uses
Condition Soil Groundwater Vapor Land Features Other 1 T1 Unchanged 2 T1 to T2 3 T2 to T3 4 T3 to other uses
Land Use Change Grading Open Space
Foundations Wet/Dry Utilities
Public Roads
Other
1 T1 Unchanged 2 T1 to T2 3 T2 to T3 4 T3 to other uses
Example Worksheets
Case Studies 3
Thank you
Elias Rashmawi Managing Senior Principal
North America Brownfields Sector Leader
555 Capitol Mall, Suite 650 Sacramento, California 95814
Office (916) 442-3230 I Direct (916) 669-5904
elias.rashmawi at stantec.com www.Stantec.com
Strictly confidential
May 8, 2017
SunCal APA Conference NYC
46
SunCal Overview
• Founded in the 1930s, SunCal is one of the largest privately-held real estate developers in the country
• Specialize in large-scale, complex projects with the potential to create long term value through pre-development, horizontal and/or vertical development
• Focus on a select number of high-value projects, taking a prudent approach to risk
• Integrated development management company with in-house entitlement, brownfield management, horizontal development and construction management capabilities
• Privately held company backed by a small number of investors with a focus on long term involvement
Who We Are
• Pre-Development
– Creating value through master-planning of the property, entitlement, remediation, site infrastructure and delivery of finished lots/pads to homebuilders
• Horizontal and Vertical Development
– Projects include residential, retail, office, hotel and other mixed-use components
– Particular strength in industrial re-use, brownfield cleanup, historic preservations, repurposing and sustainable development
What We Do
Founded: 1930 Offices: 8 Employees: >100 Invested Capital: > $1 Bn Acres Under > 21,000 Control: Homesites Under > 44,000 Control: Current Projects: 24
SUNCAL AT A GLANCE
47
• SunCal is focused on large-scale, complex and high margin transactions with two primary strategies
– Suburban development near major employment centers
– Urban redevelopment in select metropolitan areas
• SunCal works on a select number of high-value projects designed to achieve attractive risk-adjusted returns that create long term multiples of capital
– Land development is a relatively inefficient market with few large scale competitors creating the opportunities for outsize returns
• SunCal’s unique competitive strengths:
– In-house capabilities covering entitlement, and all aspects of horizontal and vertical development
– Historical track record of maximizing development entitlements, master planning, re-positionings and de-risking complicated projects outside the risk curve
– Extensive experience in complex military and defense site reuse, brownfield cleanup and site management
– Management continuity – senior executives have worked together an average of 14 years through various market cycles and has been led and managed by founding family for over 80 years
Development Strategy & Competitive Strengths
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Selected Project References
• In 1996, General Motors shut down its major assembly plant on the site after an 82-year run. For the next 17 years, the property sat in limbo and plans stalled. In January 2014, our company and Diversified Realty Advisers, LLC, formed a joint venture to launch a redevelopment plan for the site.
• Edge-On-Hudson is designed as a world-class master-planned community on the banks of the Hudson River, and, with an estimated cost in excess of $1Billion, is one of the largest projects in Westchester County.
• When completed, Edge-On-Hudson will feature 1,177 condominiums, townhomes and apartments; a 140-room boutique hotel; 135,000 square feet of retail space; and 35,000 square feet of office/loft space.
• Set within walking distance of two Metro-North train stations with direct access to Grand Central Terminal, the community will feature 24 acres of parks and gardens as well as a waterfront promenade winding along the river’s edge.
• Initial site construction is expected to begin in late 2015. Development will proceed in three phases, including the Loft District, with a modern-day vision for loft living derived from the site’s industrial heritage, the Central Park District, inspired by Hudson Valley architecture and set in natural landscaping with ample open space, and the Waterfront District, featuring contemporary residential buildings.
Edge-On-Hudson Location: Sleepy Hollow, New York Property Type: Mixed-use, transit-oriented, master-planned waterfront community Acreage: 65 Units: 1,177 Status: In development
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Selected Project References Dublin Crossing Location: Dublin, California Property Type: Mixed-use, transit-oriented, master-planned community Acreage: 189 Units: 1,995 Status: Sold in 2015
• Representing the Army’s largest-ever Reserve Property Exchange Agreement, we worked with the U.S. Army Reserve at the Parks Reserve Forces Training Area to build Army facilities in exchange for 189 acres that will become a mixed-use, transit-oriented development.
• Constituting six major projects for the Army, including a medical training building, a 600-
person training center, a public works facility, maintenance facilities and various infrastructure improvements, as each phase is completed, our company is obtaining title to land designated for the Dublin Crossing master-planned community development.
• The approved plan envisions up to 1,995 housing units, significant parkland and
commercial uses. This will be a pedestrian-friendly neighborhood that creates new homes and businesses; and provides parks, trails and recreational amenities. Sitting near the interchange of two interstate highways and a BART light-rail station, Dublin Crossing will have various transportation benefits.
• In May 2015, the Army opened the first completed military project, the Access Control Point (ACP) on the west side of Camp Parks, which includes a new Main Gate and associated components. In exchange, our company received title to 20 acres representing the initial portion of the new community
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Selected Project References • This property is a former Naval Medical Center that was decommissioned in 1996 after
continuously serving military personnel since World War II.
• Our company conducted the demolition and cleanup of more than 100 former Navy buildings
throughout the site, including the implosion of the 11-story concrete and steel main hospital tower dating to 1968.
• We have held a series of successful workshops and worked closely with the City of Oakland to win public support as we shape the development vision.
• Extensive land planning and progressive community relations/public outreach have
yielded a comprehensive plan that will restore a creek, provide open space, allow homes on a prominent slope and offer a mix of residences, shops and restaurants.
• Besides new homes, the community will feature 72,000 square feet of commercial/retail uses; 76 acres of public parks and open space; over four miles of trails; and a new community center. New shaded walkways, cycling and running paths will flank the creek that will be restored to a natural state.
Oak Knoll Location: Oakland, California Property Type: Mixed-use, master-planned community Acreage: 187 Units: 935 Status: In entitlement process
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Selected Project References • Occupying 24 acres in the historic Charlestown section of Boston, the Bunker Hill Apartments
is the largest public housing project in the Boston Housing Authority’s portfolio
• SunCal and its local partner, Corcoran-Jennison Associates, were designated by the BHA as the team responsible for the redevelopment of the site on September 29, 2015
• Encompassing the demolition of more than 45 buildings, removal of all existing infrastructure and streets, remediation and abatement of soils and hazmat materials and the replacement of all 1,100 affordable units with 3,200 units of mixed-income housing, the Charlestown project is the largest urban in-fill redevelopment in the country
• Working with a stakeholders group that includes the Boston Housing Authority, the Boston Redevelopment Authority, Federal Department of Housing and Urban Development, the Boston City Council, the Charlestown neighborhood council and various other interested parties, SunCal is expecting entitlement and zoning approval in Spring 2017.
• Similar to other projects SunCal has worked on, the Charlestown project will utilize city, state and federal financing incentives to support the remediation and redevelopment of the site
Charlestown, Boston Location: Boston, MA Property Type: Mixed-use, master-planned community Acreage: 24 Units: 3,200 Status: In entitlement process
Thank you!
STANTEC’S URBAN PLACES GROUP Jeff Sauser Associate, Senior Urban Designer jeff.sauser@stantec.com | (404) 583-8735 David Dixon Senior Principal, Urban Places Group Leader david.dixon@stantec.com | (617) 416-7217 Elias Rashmawi Managing Senior Principal, Urban & Brownfield Development elias.rashmawi@stantec.com | (916) 669-5904 SUNCAL Peter Johnson Senior Vice President, Director of Operations, Eastern Region PJohnson@argentmanagementllc.com Brett Sherman Vice President bsherman@suncal.com