Brownfields Redevelopment in the Ohio Valley

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Case study of Brownfield redevelopment in Wheeling, West Virginia region.

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Brownfields Redevelopment in the Ohio Valley

  1. 1. Managing Risk in West Virginia Regional Economic Development Partnership PO Box 1029 Wheeling, WV 26003 304-232-7722 / 232-7727 www.redp.org
  2. 2. Regional Economic Development Partnership <ul><li>Private non-profit development corporation </li></ul><ul><li>Established 1961 </li></ul><ul><li>Mission to create jobs and stimulate the local economy </li></ul><ul><li>Manage 894,945 sq.ft. of real estate, and over 117 acres of land </li></ul>
  3. 3. Wheeling Experience: 1990 <ul><li>Rich Industrial Heritage </li></ul><ul><li>Many former sites with potential for redevelopment </li></ul><ul><li>Little track record of reuse </li></ul><ul><li>Limited new development sites </li></ul>
  4. 4. <ul><li>Media </li></ul><ul><li>Financial </li></ul><ul><li>Legal </li></ul><ul><li>Government </li></ul><ul><li>Business </li></ul><ul><li>Utilities </li></ul><ul><li>Economic Development </li></ul><ul><li>Industry </li></ul><ul><li>Education </li></ul><ul><li>Health Care </li></ul><ul><li>Environmental </li></ul><ul><li>Historic Preservation </li></ul><ul><li>Neighborhood and Community Groups </li></ul>
  5. 5. <ul><li>#1: Find partners with common goals </li></ul>
  6. 6. Results of 1998 Pilot
  7. 7. Benefits of 1998 Pilot <ul><li>Employment in 1977: 2,092 </li></ul><ul><li>Employment in 1995: 130 </li></ul><ul><li>Employment in 1999: 0 </li></ul><ul><li>Employment in 2006: 750 </li></ul>
  8. 8. <ul><li>#2: Government needed to take some initial risk. </li></ul>
  9. 9. RED Buildings / Properties <ul><li>Wheeling Machine Roll Shop (2000) Wheeling </li></ul><ul><li>Purchased by RED, redeveloped as multi-tenant building. </li></ul><ul><li>Home to 7 companies, including 3 Environmental Businesses. </li></ul>
  10. 10. <ul><li>#3: Attorneys can be your friends-hire one with environmental experience </li></ul>
  11. 11. RED Buildings / Properties <ul><li>Marshall County Industrial Park-Phase I (1994) McMechen </li></ul><ul><ul><li>14 acres </li></ul></ul><ul><li>Marshall County Industrial Park-Phase II (1998) Benwood </li></ul><ul><ul><li>40 acres </li></ul></ul><ul><ul><li>WV Voluntary Remediation Program 2004 </li></ul></ul>
  12. 12. <ul><li># 4: Hire a good consultant-they do this every day-you don’t. </li></ul>
  13. 13. RED Buildings / Properties <ul><li>Wheeling Stamping Associates LP- (2001) </li></ul><ul><ul><li>88,000 sq.ft. industrial building renovated </li></ul></ul><ul><ul><ul><li>$10 Million in improvements </li></ul></ul></ul><ul><ul><ul><li>$2 Million in acquisition and demolition </li></ul></ul></ul><ul><ul><li>Leased to Orrick, Herrington, Sutcliffe – 10 year lease </li></ul></ul><ul><ul><ul><li>Global Operations Center for the international law firm </li></ul></ul></ul><ul><ul><ul><li>Information technology & accounting positions </li></ul></ul></ul><ul><ul><ul><li>250 employees: avg. salary $37,000 +benefits </li></ul></ul></ul>Stamping Before Stamping Finished
  14. 14. Wheeling Stamping Building <ul><li>Built between 1890 and 1905 by the Nail City Lantern Company </li></ul><ul><li>Four stories with a total of 88,000 square feet </li></ul><ul><li>Unknown Environmental Condition </li></ul>
  15. 19. Results: <ul><li>Orrick productivity increase </li></ul><ul><li>Serving the customer better </li></ul><ul><li>Saving over $5 million per year </li></ul><ul><li>Quality jobs created </li></ul>
  16. 20. <ul><li>#5: Just because it is empty or abandoned doesn't mean it can’t be re-used. </li></ul>
  17. 21. RED Buildings / Properties <ul><li>Stone Center @ Market Plaza (2006) </li></ul><ul><li>Former Stone and Thomas department store </li></ul><ul><li>Acquired December 2004 </li></ul><ul><li>180,000 Sq. Ft. building </li></ul><ul><li>22,000 Sq. Ft. per floor </li></ul><ul><li>$8,400,000 Renovation </li></ul><ul><li>Target market: High-end back office / Shared Services </li></ul><ul><li>Below market lease rates </li></ul>
  18. 22. The Stone Center @ Market Plaza Williams Lea: The leading global provider of Corporate Information Solutions
  19. 23. <ul><li>#6 Quantify and Manage the risk and the additional cost-it is part of the project. </li></ul>
  20. 24. Formula for Success <ul><li>Communication </li></ul><ul><li>Long Term Partnership </li></ul><ul><li>Build on past success </li></ul><ul><li>Banks comfortable with project </li></ul><ul><li>Community Involvement and Support for Brownfield Redevelopment </li></ul><ul><li>Job Creation </li></ul><ul><li>Creativity </li></ul><ul><li>Patience </li></ul><ul><li>Persistence </li></ul>

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