Emeryville, California BCRLF Pilot Project

PILOT SNAPSHOT Emeryville, CA

Date of Loan: January 2001 Amount: $300,000 Loan Profile: The City of Emeryville is making a $300,000 loan to EmeryStation Associates II, LLC for the cleanup of parts of the EmeryStation II commercial building development in Emeryville.

BACKGROUND

The City of Emeryville was historically dominated by industrial uses. The majority of the industrial companies left the area in the 1970s. In 1996, 234 acres in Emeryville were vacant or underused, and 213 acres were known to have soil and groundwater contamination. Although there is demand for residential and commercial development, the cost and risk associated with these brownfields have impeded their redevelopment. The result for the city was a loss of $13.3 million in tax revenues and 450 jobs between 1991 and 1996. Nearly half of the city's citizens are low-income, and more than half are minorities. Most of the city's poor live in neighborhoods bordered by brownfields.

The City was awarded a Brownfields Assessment Demonstration Pilot grant of $200,000 in May 1996. The City also developed a "one-stop shop" internet-based database of environmental and general parcel information for prospective developers. In 1999, EPA awarded the City $200,000 in supplemental assistance to complete implementation of the City's groundwater management plan, augment the "one-stop shop" database, and perform assessments for expansion of the City's greenspace resources.

EPA awarded the City $500,000 to capitalize a Brownfields Cleanup Revolving Loan Fund (BCRLF) Pilot in May 1999. Referred to as CIERRA - Capital Incentives for Emeryville's Redevelopment and Remediation, the BCRLF will bridge the gap between environmental assessment and development of brownfields properties by providing the capital to fund cleanup efforts for brownfields sites. The City is also supplementing CIERRA loans by providing additional funds for activities not eligible under the BCRLF.

STRUCTURE OF BCRLF PILOT PROGRAM

The City will serve as lead agency and fund manager. The City's Public Works Department will serve as site manager, with additional technical support provided by a contracted consultant.

BCRLF CLEANUP SITE

The cleanup site is part of the EmeryStation II commercial building development located at 6121 Hollis Street, near 62nd Street, in Emeryville, California. The former Westinghouse Electric Corporation owned and operated an electrical manufacturing facility that included the site, which is presently used as a parking area. Under a negotiated agreement with the current developer, a portion of the PCB-impacted soils on the cleanup site will be removed by Westinghouse's successor (Viacom) to allow construction of a utility trench and access road for the EmeryStation II project. The developer, EmeryStation Associates II, will construct an asphalt cap, which will also serve as part of the access road, over the remaining PCB-impacted soil on the cleanup site.

PCBs were detected in soil on the cleanup site from 0.5 to 6 feet below ground surface (bgs), with the highest concentrations within the upper one-foot. The highest PCB concentration detected within the cleanup site was 3300 mg/kg at 0.5 feet bgs. PCBs have also been detected at relatively low concentrations in groundwater samples from several wells. Typical PCB concentrations in groundwater have decreased to less than 10 mg/l.

BCRLF BORROWER AND LOAN STRUCTURE

The City of Emeryville loaned $300,000 to EmeryStation Associates II, LLC for the site cleanup in January 2001. The parent company of EmeryStation Associates II purchased the property in 1984 subsequent to its contamination. The loan term is four years and the interest rate is two percent. There is a no-interest/no-payment grace period for the first year, and there are no pre-payment penalties. The City is also providing $10,000 in additional funds for oversight activities.

COMMUNITY OUTREACH

Capitalizing on previous public participation activities, the City prepared a Public Participation Plan (PPP) for CIERRA that involved interviews with 15 interested parties. Site-specific issues for CIERRA loan sites will be addressed through addenda to the PPP. The PPP can be found on the Internet at: http://www.ci.emeryville.ca.us/bf/publicplan.html

For the EmeryStation Associates II site, the City mailed Removal Action Fact Sheets to 250 adjacent residents, business and property owners within 500 feet of the site, and interested parties identified in the PPP. The Fact Sheet summarized the Engineering Evaluation/Cost Analysis (EE/CA), notified interested parties of the public meeting and the 30-day public comment period, and provided information regarding the administrative record. In addition, a notice was published in a daily newspaper.

PROPOSED SITE REUSE PLAN

The BCRLF loan funds will be used to cap contamination on property to be used as an access road and utility corridor for the EmeryStation II commercial building. The access road forms part of the Horton Street Extension, which is an alternate north-south artery through the city, and serves the existing Amtrak railroad station and the EmeryStation project, which are part of an emerging urban transit village. Construction has been completed or is underway for 400,000 square feet of office and retail space, 101 housing units, and parking structures. Additional buildings are planned in the area, including the remainder of 6121 Hollis Street. By completing the development of the transit village, the City will demonstrate that technical and financial assistance and partnerships across all parts of the community can turn mothballed industrial properties into centers of business, transit, and housing.

Use of BCRLF Pilot funds must be in accordance with CERCLA, and all CERCLA restrictions on use of funding also apply to BCRLF funds.

CONTACTS

Ignacio Dayrit, City of Emeryville Brownfields Director
(510) 596-4356

EPA Region 9 Brownfields Coordinator
(415) 744-2237

U.S. EPA-OSWER Outreach and Special Projects Staff
(202) 260-4039;

Visit the EPA Region 9 Brownfields web site at:
http://www.epa.gov/region09/waste/brown/index.html

For additional information, contact the RCRA/Superfund Hotline at: (800) 424-9346 or visit the EPA Brownfields website at: http://www.epa.gov/brownfields.