Midtown Redevelopment: Brownfield to Boomtown

1
Midtown Redevelopment Brownfield to Boomtown
2
Team MembersA valuable part of the equation
Bullock Environmental, LLCGallet
AssociatesPritchett Law FirmCity of
BirminghamJefferson County CommissionAlabama
Dept. of Environmental Management (ADEM)Bhate
Environmental Associates, Inc.
3
Seller Partnership
Liberty National Life InsuranceShepherd
Family Managing expectations of the
seller is critical
4
Former Tom Williams Cadillac SiteCorner of 20th
Street South 4th Avenue South
Future Hyatt Place Hotel
Old Tom Williams Cadillac Building
5
(No Transcript)
6

• Property operated as a car dealership and
  service center for more than 50 years.
• Property sat vacant from 2004 until site
  construction began in 2007.
• Environmental site assessments revealed
  contamination associated with former auto
  services onsite.
• CRD put site under contract in 2004, applied for
  admission and was accepted into Alabama Voluntary
  Cleanup Program in 2006.

7

• Benefits of participation in the Voluntary
  Cleanup Program for clean hands purchasers are,
  among others
• Third party liability protections
• General immunity to future changes in
  environmental
• regulations
• Decreased risks for potential lenders

8

• The protections afforded under the Act are
  transferable to future property owners.
• Statutory milestones established under the
  Voluntary Cleanup Program allowed for the
  completion of remedial work prior to beginning
  construction in the fall of 2007.
• Partnership with the City of Birmingham was
  instrumental in the success of the project.

9

• Environmental Milestones
• Entered into the Voluntary Cleanup Program in
  July 2006, Letter of Concurrence issued August
  2007. Timeframe of approximately 13 months.
• Site construction began in the fall of 2007.
• Participation in Voluntary Cleanup Program
  allowed for more favorable loan terms, and
  predictable timeframes for site cleanup and
  response times from ADEM.

10
Hyatt Place HotelCorner of 20th Street South
4th Avenue South
Opening January 2009, Hyatt Place is a six-story,
150-room select service hotel featuring 6,000 SF
of restaurant space, as well as meeting rooms,
indoor pool and a fitness center.
11
Block 121NE Corner of 20th Street South 2nd
Avenue South
12
(No Transcript)
13
Historical use of the property included various
auto body repair facilities, a printing facility,
gas station, and various other commercial
enterprises with the potential to cause
contamination to the site.
14

• Environmental site assessments revealed various
  areas of contamination but risk-based evaluation
  of the issues resulted in minimal cleanup in the
  area surrounding the former gas station.
• The City of Birmingham was, again, a valuable
  partner in the development of the property and
  was instrumental in the success of the project.

15

• Environmental Milestones
• In partnership with the City of Birmingham, CRD
  entered the site into the Alabama Voluntary
  Cleanup Program in 2006.
• ADEM issued a Letter of Concurrence for the site
  in 2007 and the property was acquired shortly
  thereafter. The time period from entry into the
  program to receipt of the Letter of Concurrence
  was approximately 11 months.

16
Block 121 NE Corner of 20th Street South 2nd
Avenue South
Site development plans include a 272,960 SF
mixed-use retail and residential development to
be constructed in one phase and completed 1st
quarter 2010.
17
Summary
Project costTom Williams Site 26.5
millionBlock 121 35.6 million 62.1
million
Value addedJobs GeneratedAd Valorem TaxSales
Use TaxOccupational TaxHotel Lodging
TaxBusiness Licenses20th Street Corridor
ActivityServices and Products to UABResidential
GrowthTourist Dollars for Surrounding Businesses
18
(No Transcript)