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The City of St. Petersburg has submitted
EPA 2007 Brownfields proposals for Petroleum Assessment ($200,000) and
Hazardous Substance ($200,000) grants and a Brownfields Cleanup ($200,000)
for the Former Atherton Oil site.
What are
Brownfields?
Brownfields is the name given to
a site or area where real or perceived environmental contamination exists
in the soil, surface water or ground water. These conditions have
presented barriers to redevelopment of older commercial, industrial and
hospital properties. In St. Petersburg, the perception in the Federal
Brownfields designated area, Dome Industrial Park, is greater than the
reality.
Brownfields designated areas (click here for map of Brownfield area). Property
owners throughout the city may request State Brownfields designation of
their commercial, industrial or residential sites.
Benefits of Brownfields Redevelopment in St. Petersburg
Regulatory Benefits
State and local governments offer various
regulatory benefits that also require the execution of a BSRA. These
benefits include:
·
Risk-Based
Corrective Action - A clear administrative process using Rules 62-785 and
62-777, Florida Administrative Code, providing for:
- Default cleanup
target levels (CTLs)
- Risk assessment
tools to derive alternative cleanup target levels;
- Risk management
options;
- Institutional and
engineering controls to achieve a No Further Action letter; and
- Special relief for
sites with groundwater CTLs based on nuisance, organoleptic or aesthetic
considerations
·
Cleanup
liability protection provided upon execution of a BSRA
·
Dedicated
professional staff in the Economic Development Department for assistance
with brownfield projects
- Expedited review of all
technical documents by the Department of Environmental Protection
(DEP)
- USEPA Comfort letters
issued for CERCLA sites
- Lender liability
protection.
Financial Incentives
Several financial incentives for brownfield
redevelopment initiatives are available through the St. Petersburg Economic
Development Department:
·
50%
Voluntary Clean-up Tax Credit applicable to Florida corporate income tax or
intangible personal property tax. Applicants may obtain tax credits
for up to 50% of cleanup cost, with a maximum of $500,000 per year per
site. The percentage is increased to 75% where the redevelopment will
result in the creation of affordable housing. In the final year of a
project applicants may claim an additional 25% of total cleanup cost up to
an additional $500,000 - for a total of $1 million in tax credits.
These tax credits may be used over a period of years, transferred to
affiliates, and bought and sold on the open market. A Brownfields
Site Rehabilitation Agreement (BSRA) is required
·
$2,500
State of Florida Brownfields Redevelopment Tax Bonus Refund for each new
job created in a designated brownfield area by an eligible entity
·
Private Lenders - The limited loan guaranty applies only to
50% of the primary lender's loans for redevelopment projects in brownfields
areas. If the redevelopment project is for affordable housing, as defined
in s.420.0004(3), in a brownfields area, the limited state loan guaranty
applies to 75% of the primary lender's loan. A limited state guaranty of
private loans or a loan loss reserve is authorized for lenders licensed to
operate in the state upon a determination by the council that such an
arrangement would be in the public interest and the likelihood of the
success of the loan is great
·
Low-interest
loans for purchase of liens, tax certificates or other clouds on property
titles
·
Sales
tax credit on building materials purchased for the construction of a
housing project or mixed-use project in a designated brownfield area
·
Up
to 5 year of state loan guarantees of loan loss reserves for redevelopment
projects in a designated brownfield area, including redevelopment and
cleanup costs; an executed BSRA is required
·
Federal
Brownfields Revolving Loan Fund is available for low-interest loans for
assessment and cleanup
·
Brownfields
tax incentive provides for environmental cleanup costs to be fully
deductible in the year they are incurred, rather than having to be
capitalized [Section 198©2(A) of the Taxpayer Relief Act of 1997, as
amended]
 Johnnie
Ruth-Clarke
Health Care Center – Winner of 2005 Phoenix Award
Since the St. Petersburg Brownfields Program
began in 1997, the city has been proactive in redeveloping brownfields
properties. The Dome Industrial Park, 122-acre industrial park, was
the first Brownfields Redevelopment Project to be undertaken with U.S. EPA
and the State of Florida Brownfields grants. Brownfields funding has
facilitated several private real estate transactions, business expansion
and relocations projects through out the city. In addition, the city
of St. Petersburg is using Brownfields grants to fund, in part, commercial
and industrial redevelopment.
The city has actively pursued grant funding
to implement its Brownfields Program. The following are Brownfields
Grant Funds awarded to date:
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EPA Brownfields Assessment grant funding
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$ 200,000
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EPA Brownfields Economic Development
Initiative
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$1,000,000
|
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EPA Underground Storage Tanks
(USTfields) funding
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$ 111,000
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EPA Brownfields Cleanup Revolving
Loan Program
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$ 350,000
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EPA Brownfields Petroleum Assessment
Grant funding
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$ 200,000
|
|
State of Florida Office of Tourism,
Trade &
Economic Development
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$
600,000
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Total
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$2,461,000
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City Initiated Brownfields Redevelopment Projects
Brownfields Environmental Assessments Performed to
Date
State Brownfields Designation Process
Atherton Oil Site –
Brownfields Site Rehabilitation Agreement
City Initiated Brownfields Redevelopment Projects:
The city has utilized the Brownfields grants
to fund and implement several major redevelopment projects including:
1.
Dome Industrial Park Pilot Project $1.5
million
The city of St. Petersburg is leading a concerted effort to revitalize and redevelop the Dome Industrial Park. In addition to a complete package of financial incentives,
training, business counseling and tax credit programs, a large number of
economic development projects are taking place in the Dome Industrial Park and along its 22nd Street South location. A major city effort is focused
on the 16+- acre project site at 5th Avenue South and 22nd Street. A
$7.5 million budget has been utilized to complete building
acquisitions/demolition, environmental clean-up, and infrastructure
improvements including approximately $1,500,000 of Brownfield funds.
2. Atherton
Oil $111,000
The Atherton Oil
project located at 600 26th Street South is another redevelopment effort of
the city of St. Petersburg. This petroleum distribution facility was
abandoned by private owners in the early seventies. In addition to
being an blighting influence, the facility was cited by the State
Department of Environmental Protection due to leaking
underground storage tanks. The city is redeveloping the
site. The two buildings and a tank truck fueling depot were
demolished. Eight underground storage tanks ranging in size from
10,000 to 500 gallons were removed. Three above ground petroleum
storage tanks, 24,000, 20,000 and 18,000 gallons, were also removed from
the property. Contamination site assessments have been performed and
a limited closure report has been completed. The project was one of
the first USTfields Pilot grant awarded by EPA. The city has expended
approximately $206,000 to perform environmental and demolition work.
3.  Mercy Hospital Site $450,000
Mercy Hospital is an
approximate 6 acre site located at 1344 22nd Street South. The only
remaining structure on the property was built in 1923 and was designated a
local historical landmark in 1994. To encourage redevelopment, the
city purchased the site. The city performed environmental assessments
and then expended approximately $186,000 for demolition and tank
removal. Redevelopment ideas were collected through a series of town
meetings held in the greater 22nd Street South area. The city
negotiated to develop a medical facility on the western 1/3 of the site.
The Johnnie Ruth-Clarke Health Center, winner of the 2005 Phoenix Award
(left) given to outstanding redevelopment projects, provides primary and urgent
care to the community. A retail outparcel is available and an
alternative reuse for the eastern portion of the site is under
development.
Brownfields Environmental Assessments
Performed To Date:
The city has also use funds to perform
environmental Assessment on privately owned property in the Dome Industrial Park. These assessments were performed to facilitate commercial and
industrial business expansion and relocation transactions.
Phase I Assessment – Research of
historical uses and activities of the site
Phase II Assessment – If Phase I
gives an indication of
hazardous substances existing on the site, then the site is tested for chemicals,
through various sampling means and analyzed
Sites not requiring remediation – No
environmental clean-up was needed
Sites requiring remediation –
Environmental clean-up was needed
State Brownfields Designation
Process:
The city is the local
authority to request designation of an area or site to participate in the
State’s Brownfields Program. A private party may request
Brownfields designation for their property. However, all requests
must be approved by the city (council resolution) and submitted to the
State. The designation process is as follows:
I. A
site or area is identified for designation. If the site or area is
outside an EZ, CRA or Hub Zone, addition consideration must be given.
a.
Is
site or area economically developable and with reasonable potential
b.
Not
overly large in geographic coverage
c.
Potential
to interest private sector
II. Public
Notice Requirements (newspaper ad, etc.)
III. Hold
Public Hearings and Resolution Adoption by City Council
IV. City
notification to Florida Department of Environmental Protection (DEP)
V. DEP
designation of the area/site
The State Brownfields designation provides an
opportunity to perform environmental site cleanup using risk-based
remediation. A Brownfields Site Rehabilitation Agreement (BSRA) is
established with DEP describing the process by which the identified
contamination will be cleaned up. A local advisory group
reviews the BSRA and may provide comments. The State designation also
provides access to the Brownfields Redevelopment Bonus Program for eligible
projects.
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