Brownfields Update for the Pacific Northwest

Oregon’s use of its share of ARRA Brownfield funding is an example of a successful strategy to allocate revolving loan funds (RLF) to stimulate economic development. These awards are not supplemental grants to existing RLFs but separate funding awards  given only to entities that currently possess an RLF and have received loans previously. Unlike the regular RLF funding, where only 40% of  loan funds can be used as grants for specific projects, there are no percentage limitations on how much ARRA RLF funding can be used for this purpose.

The Oregon Business Development Department (Business Oregon) has managed some form of an EPA Brownfields RLF since 2000. As part of the ARRA Brownfields funding received this year, Business Oregon was awarded $614,000. All will be distributed as grants.

According to Karen Homolac, Brownfields Program Specialist for Business Oregon, the agency received many requests for funds for specific Brownfields projects. The decision on which projects to fund was made by taking into consideration two criteria: that the funding be sufficient to complete either the entire cleanup of the sites or a discrete portion, and that once completed, the sites meet the goal of job creation or another important EPA Brownfields cleanup imperative.

Business Oregon selected the following three sites that not only met the criteria but also, once clean, would have a significant impact on their communities: Newport International Terminal, the former Sunnybrook Hop Farm in Grants Pass and Oakridge Industrial Park.

Port of Newport International Terminal – $200,000 for petroleum cleanup

The Port has started a project to redevelop its international terminal, built on two World War II era concrete cargo ships. After the ships were sunk bow to bow, the terminal was constructed on top. One of them, the S.S. CW Pasley, is listing toward the bay. Over the years, the current has eroded the sediment, causing the ship to become unstable. A 1996 petroleum release from the Pasley caused contamination to enter the bay.

By 2002, the Port closed that portion of the terminal.  In addition to a previously voter approved bond measure to redevelop the terminal, supplemental grants from the State Department of Transportation and two Brownfields programs have been received. Business Oregon also awarded the Port a Brownfields Revolving Loan from its Brownfields Redevelopment Fund.

The additional ARRA funds will support previous efforts to address petroleum contamination still onboard the Pasley as well as the cleanup activity associated with construction of the new dock.

Former Sunnybrook Hop Farm – $200,000 for hazardous substance cleanup

The City of Grants Pass purchased the former Sunnybrook Hop Farm in 2006 with the goal of redeveloping the site into a 250-acre regional park, now referred to as the River Road Reserve. The city has a shortage of land suitable for parks, particularly soccer fields, and the Farm’s large expanses of flat land seemed ideal for this, as well as other development. Located outside the city’s Urban Growth Boundary, the land was considered to be an attractively priced purchase to meet current and future park and green space needs. The city’s vision is for the Farm to become a centrally located park and natural area as its urban growth area expands.

The city was aware of some environmental contamination at the site and set aside $67,000 to address it. However, it has since spent $150,000 of its own funding to delineate soil and groundwater contamination at the site. The contamination occurred from poor management practices associated with a dip tank operation  to treat wood poles that support hop vine trellises with the wood preservative pentachlorophenol. The spent solution is suspected to have been dumped on the ground, causing impacts to the soil and eventually, the groundwater.

The Oregon Business funding through the ARRA will be used for the cleanup, supplemented by additional assessment funds from the Oregon DEQ. The city believes the funding from the DEQ and the ARRA will be sufficient to finalize the characterization of the site and resolve the contamination issues, alleviate community concerns about the cost of the cleanup and allow for the property’s redevelopment.

A recent editorial supporting the project can be found here under the headline, “Potential’s bright for city-owned Naumes property” (another name for the site).

For more information, contact:
Martin Seybold, Director, Parks and Community Services
City of Grants Pass
mseybold@grantspassoregon.gov
541-474-6354

Oakridge Industrial Park – $160,000 for hazardous substance cleanup

The City of Oakridge acquired the closed Pope & Talbot mill in 1994 under the Northwest Economic Adjustment Initiative, a Clinton-era economic development program. To spur the local economy in this city of 3745 people, the USDA purchased the site and transferred ownership to the city. Oakridge has made a considerable effort to turn the 250-acre site into an industrial park leaders hope will provide living wage jobs.

Over the years, city officials estimate that more than $1 million has been spent addressing environmental contamination at the site. The money has come from many small grants from the DEQ and other sources.  Progress has included demolition of old mill buildings and the addition of business park infrastructure, including roads and utilities. Sixty-four acres of the property have been subdivided into 25 developable lots, all of which have been given a “No Further Action” determination by the Oregon DEQ. The city used the concept of parcelization to sell off the clean lots and use the proceeds to help pay for further assessment and cleanup of those still contaminated.

Potentially PCB-contaminated sediment and fish in cooling, detention and log ponds on the property are remaining issues. The city and its consultant have determined that the Business Oregon funding will be sufficient to perform the necessary investigation and complete site remediation on the cooling and detention ponds.  If the PCB levels in the fish are below hazardous minimums, there may be no need for further remediation on the log ponds.

Though recent economic conditions have had a negative affect on the industrial park’s utilization, City Administrator Gordon Zimmerman says the city is thrilled at finally being able to put the contamination issues to rest and is hopeful about the future of the site.

He adds they also are excited about a study funded separately by Oregon Business of the feasibility of refurbishing a rail line from the main Union Pacific line through Eugene, 45 miles to the northwest that could make the park more attractive to prospective purchasers and tenants.

A recent Portland Oregonian newspaper article about the city’s overall redevelopment efforts can be seen here.

For more information contact:
Gordon Zimmerman, City Administrator
City of Oakridge
gordonzimmerman@ci.oakridge.or.us
541-782-2258