Remediation of a 500-Acre Brownfield Site - Essay Example

The development plan for the remediation of a 500 acre Brownfield site. Introduction Development projects boost economic health. They complement over all plans for socio economic progress. They execute and bring to realization the country’s development objectives and aspirations for growth. The importance of preparing a development plan would aid decisions for resource allocations, program implementation and desirability of a project. A development project will be discussed for the proposed clean up of the Brownfield area in Sugar Creek Township. 1. Project profile. a. Nature of the project, its major component and other salient features. There are about 60,000 Brownfield areas lying idle all over the U.S. Brownfield sites are industrial and commercial properties abandoned because of issues of contamination and environmental quality. These properties have been passed over to the government for redevelopment. (source) One of these areas is 500 acres of land which used to be a petroleum refinery area. The former owner of the property, the Amoco Oil, together with the Sugar Creek Township would like to apply to the government for remediation of this property. They would like to redevelop this property and turn the 300 acres into a commercial and industrial site. They believe that the development of this property would bring back the value of the property, create job employment, and bring progress to the community. (source) b. Project area Amoco oil has occupied 500 acres of land on both sides of Sugar Creek. The Missouri River bounds the site to the north, wooded areas are on the East Buff and West Bluff, and residential areas are t the south.(in ASTRA) The Norledge area is adjacent south side of the site. The Alchion Topeka & Santa Fe and the Missouri Pacific railroad lines run through the northern portion of the site. c The intended beneficiaries The target beneficiaries of the project are the population residing in locations within 1 mile of Amoco site. d. Financial requirements and proposed source of funding. The following capital costs of development will have to be considered: Cost of building and infrastructures Cost of 3 mile road and utilities Cost of remediation and rehabilitation Cost of park development Sources of funds for the project Categorical funds from the state and government : Assessment fund Revolving loan fund Clean up grants Issuance of municipal bonds Debt/equity Proponent’s contribution (US EPA) The state and the government provide financial assistance to qualified Brownfield developers as part of the Brownfield Assistance Program. Since Sugar Creek is a partner in this venture, municipal obligation bonds may be issued on a long term maturity to provide sufficient time for development. Amoco on its part of the deal may use corporate borrowings in forms of debt and or equity from shareholders e. Proponent or implementing agency Amoco Oil, in partnership with the Sugar Creek administration will be jointly responsible for remediation of the 500 acres of Brownfield area in Sugar Creek. f. A statement as to whether or not the proponent project has been found feasible from the marketing, technical, economic and operational viewpoints. a. Technical viewpoint. The technical side of the remediation is the identification or eligibility of participation of the proponents in the Brown field Cleanup program. A technical assessment will be done by the US EPA if the area qualifies to be in the Brownfield program (Dept. of Conservation) b. Remediation process. Clean up can make use of several process but use of pumps was found appropriate for Amoco’s purpose Initial efforts used a trench-type recovery system to control migration of hydrocarbons and groundwater into the creek. The system consists of a trench filled with rocks and drain tiles to carry water containing hydrocarbons to an API separator and then to a public operated treatment works (a POTW or sanitary sewer). (Blackhawk) Use of pumps. For the northern area of the site with different geologic conditions, a decision was made to install Blackhawk 102 Electric Anchor Piston Pumps because they were effective in the clayey soils and less intrusive than the trench-type system. There are many ways of cleanup but BP Amoco preferred Blackhawk Anchor Pumps as it proved to be better for them in the northern area near the creek. They effectively control and contain the groundwater from migrating toward the creek. They have been using four Anchor Pumps,all of them electric 102Es, to pump groundwater mixed with hydrocarbons to the API separator and then to the POTW. . c. Marketing. Out of 500 acres, 300 acres will be developed into an industrial and business park to be leased to the city. From the statistics, rental of houses is common among the population of Sugar Creek, and there is 5% rate of unoccupied houses in 2007. There is no data on the availability of industrial park and its leased properties.(Bestplace) d. Economic viewpoint. The development of the site would increase the value of the real property; bring progress thru job creation, commerce and industry. 11. Background Identifying the specific problem in the region, locality and sector which the remediation project seem to alleviate. The petroleum refinery operations of the Amoco Oil Company began in 1904 in Sugar Creek, Missouri. The company produced gasoline, distillate fuels, jet fuels, residual fuels, asphalt, petroleum coke, liquefied petroleum gases (LPG) , sulfur and polymers thru crude oil brought in by pipeline from several states. The petroleum refinery operations stopped in 1982, but the operations of Amoco has continued using a small portion of the site as a light oil petroleum product marketing terminal, a pipeline facility and an asphalt receiving and processing center. (ATSDR) ` Numerous spills and leaks occurred throughout the site while the refinery was operational. The site has several processing units and storage tanks wherein leaded gasoline and naphtha were used. The contamination of the Amoco site is brought by numerous spills and leaks that occurred during the refinery operation. The site has numerous processing units and storage tanks wherein leaded gasoline and naphtha were used. (ATSDR) Amoco-BP is faced with the problem of existence of hydrocarbon contaminants some of which mixed with groundwater and others that are lighter than water float on top of it are hard to clean up. Some of the hydrocarbons were discharging into surface hydrocarbons from migrating into the Sugar Creek. The contaminants as described in Wikipedia internet source as something made by the release of waste products and contaminants into surface runoff into river drainage systems, leaching into groundwater, liquid spills and wastewater discharges In the same way, soil contamination occurs when chemicals are released by spill or underground leakage. Among the most significant soil contaminants are hydrocarbons, heavy metals, MTBE, herbicides, pesticides and chlorinated hydrocarbons. (Wikipedia) People residing in Sugar Creek were afraid that soil and groundwater contaminants will have an adverse effect on their health and environment, particularly the children who were most vulnerable of getting diseases. Fortunately, the environmental assessment made by the government pacified their fear and concluded that chemicals gathered from the area will not provide cancerous effect to people. (surce) Remediation of the area is in response to the program of the government to redevelop idle brown field areas. It will also clear the fear of the residents from the adverse effect of contaminants. b. The objectives. This will serve as a guide to direct the entire project development and the target market that will benefit from the project. Emphasis is placed on property development. The scope of the project is expected to support these objectives. Plans, goals and objectives. The planned goals and objectives, in concurrence with the township of Sugar Creek should be established along with the desires and visions of the community. The Sugar Creek Steering committee arrived at a comprehensive development plan (CDP) after a six month consultation with the people and stated in the chart below. (Comprehensive Development Plan. Sugar Creek Township) Objectives of the CDP of the Sugar Creek Township * Retain rural character of the township * Manage the pace and quality of future development within the township in accordance with the other goals of the plan * Protect key assets within the Township as identified in the plan * Retain viable agriculture within the Township * Provide viable and continuing strategy for preserving open space in Township * Manage transportation demands and conflicts within the township * Provide criteria and guidance for future infrastructure development within the Township * Plan for recreational areas within the Township * Protect the geographic integrity of Township Source: Comprehensive Development Plan In response to the policy goals set by the Township, Amoco had set company objectives which are given as follows Objectives of the remediation project. To bring progress and development to the community as investors are expected to come for business and industry. To create jobs and employment To develop new roads for ease of transporting goods and services To provide greeneries and landscape To provide efficient sewerage and water system Scope of the project 500 acres of Brownfield land will be cleaned up and developed. 300 acres will be developed into a business park fr commercial and industrial use. 3 miles of new roads and utilities will be constructed Green space and parks will be developed to preserve the sugary and green image of Sugar Creek. Sewerage and water systems c. Brief socio-economic profile of Sugar Creek and of the proposed project influence in the area. The profile includes information on the population, sources of livelihood and description of present living conditions and will relate the development plan and other programs affecting the remediation plans. 1. Population, sources of livelihood and present living conditions Following data for 2007has been provided by the Perling’s Best Places for the demographic profile of the Sugar Creek population Demographic profile of Sugar Creek Township, 2007 Population 3,544 Population growth -7.68% Median cost of home $82,000 Cost of living 26.23% (lower thn US average Unemployment rate 5.00 percent )US ave. is 4.60% Job growth rate positive 0.64 percent People density 428 people per square mile Median age 39.6 Ave. household size 2.27 Male population 50% Female population 50% Married population 53.87% Single population 45.13% Sales taxes 7.35% Income taxes 7.00% Income per capita $22,348 Household income $44,586 POPULATION BY OCCUPATION SUGAR CREEK US Management, business & financial operations 3.38% 13.61% Professional & related occupations 10.31% 20.24% Service 13.21% 14.75% Sales & office 32.81% 26.74% Farming, fishing & forestry 0% 0.74% Construction, extraction & maintenance 18.50% 9.48% Production, transportation & material moving 16.70% 14.44% Source: Perling’s Bestplace The Township Comprehensive Development plan wants to preserve the rural character and viable agricultural land of the Township in the process of development. However, from the data by occupation, there is a 0% of employment on agriculture, and more are concentrated on business, 32.81.% There is also available labor 16.70% who could be used to support development construction, and 32.81% expertise for sales and office. There is a low percentage of 3.38% people who could be tapped for management, business and financial positions. 2. Relevance of remediation to Sugar Creek * Construction of industrial park will perk up construction in Sugar Creek. Housing construction was low, as from 1999 to October 2005, growth of housing structures built was only 2% compared with a previous figure in 1970s which was 11.91%. The largest construction time was in 1950s with a 23.46%. The median home value in Sugar Creek, MO, according to the data of Bestplace is $82,000. Home appreciation is -3.42% over than last year. The median age of Sugar Creek, MO, real estate is 50 years. (besplace) * Renters make up 30.86% of the Sugar Creek, MO, population. 6.99% of houses and apartments in Sugar Creek, MO, are unoccupied (vacancy rate). (Perling’s Bestplace) The figure shows only apartments and houses and does not show factory and commercial buildings. This figure has relevance for the estimation process as target market of Amoco are leasers and renters. * The 5% unemployment is expected to be reduced as there will be jobs in construction, and in other employment positions. * Growth in population is expected to rise as income opportunities will attract people to transfer to Sugar Creek. III. Marketing Aspects Assessment of the marketing prospects for the industrial park resulting from remediation. In the Sugar Creek Township Development plan, the demand for housing product types in the recent years is for the single type homes with two stories. (Perling’s Bestplace) Economic Analysis Based on the zoning study of the Sugar Creek Township Development plan (p.30), the Township could provide an additional 4,340 single residential units for a potential population of 11,718, and commercial area of 1,080,048 commercial spaces. The plan of Amoco falls in place with this zoning requirement of the Township. In terms of potential employment, the Comprehensive Development Program of the Township shows a figure of 4,340 potential employments as a result of infrastructure development, and could be solved partially with Amoco project. .IV. Socio economic impact The socio economic development has been laid on the comprehensive plans of Township. This has been the guide of Amoco in designing their own objectives and scope of project to maintain a balanced program of implementation. Results and conclusions The development of Brownfield lands has been encouraged by the government and is being done all over US. In Sugar Creek Township, Amoco refinery is only a portion of idle lands that could be converted to practical and economical usage. A lot more is still undeveloped. Amoco development will address the future growth of population and the needs for parks, residential and commercial establishments. Remediation will eliminate the fear of people of contamination from hazardous elements and correct their perception towards sensitivity on the Brownfield area. It will bring economic development, progress and job employment that will roll up taxes that is expected by the Township. Relevant experience learned from Amoco Brownfield remediation is that with concerted effort and participation of the government, the city and partnership with business entities, the once idle area can become productive and pride of the community. The development plan has been limited as there is no thorough study on the costs estimation, engineering designs, and financial analysis on the profitability of the project as it will require another scope of study. These aspects of the study are most needed to analyze the value of the project in a business perspective. This development plan therefore is not complete, but has provided an insight on the proper approach in planning a project. Nevertheless, from whatever little information we get from the study, it could be concluded that the project has the prospect of viability in terms of technical and marketing approach. Costs will have to be weighed in order to get a total picture of viability. Economic and social aspects are viable in terms of growth development. Cooperation of the Sugar Creek Township as partner is well in place to provide support both in funding for municipal bonds issuance and for issuing ordinances for the project. List of references ASDR. Agency for Toxic Substances and Disease Registry Public Health Assessments & Consultations [online] Available from Accessed 04 Dec. 2008 Blackhawk Technology Co. Black Hawk Case Studies. [online] Available from http://www.blackhawkco.com/casestudies/case_bpch.htm Accessed 06 Dec. 2008/ Comprehensive Development Plan. Sugar Creek Township. ;[online] Available from Accessed 12 Dec. 2008. Dept. of Environmental Conservation. Brownfield Cleanup Program. [online] Available from Read More