O.K. I admit it. I’m addicted to the Food Network. Whether it’s Bobby or Emril, Guy or Giada, I love watching these master chefs take the simplest ingredients, a little time, and a lot of creativity, passion and expertise, to create a dish anyone would admire.
So, as the smell of roasting turkey wafts under the doors of my home office this past holiday season, my choice of analogy to describe one of the most hearty and satisfying brownfield creations is not too surprising. Just like a slow simmering specialty dish, the University of Dayton has cooked up, arguably, one of the most delectable brownfield redevelopment projects in recent memory. The General Electric Electrical Power Integrated Systems Research & Development Center (the “GE EPIS Center,” what a mouthful!) will serve not only as a tremendous boost to Dayton’s regional economy, but also as an outstanding recipe for economic development chefs across the United States.
Detailed Planning and Preparation
Of course, like any culinary masterpiece, no tempting dish can begin without immaculate planning and preparation. The GE EPIS Center project, in fact, is the first new construction stemming from the University of Dayton’s catalytic redevelopment of a 50-acre urban brownfield acquired from National Cash Register.
This site sat largely vacant for decades before being acquired by an affiliate of the University of Dayton. As University President Daniel J. Curran described, “this property represented an unparalleled opportunity for the University of Dayton that will allow us to grow for decades into the future. The property secures a border to the University, gives us the opportunity to create a landmark entrance and will drive regional economic development.”
This brownfield site had stood largely unused since NCR removed its world-renowned factory buildings from the site during the 1970s. Of the two buildings that remained on the property, the university razed one and converted the sole remaining structure, a 477,000-square foot former multi-story manufacturing facility, into a mixture of uses. These uses included new research labs, classrooms and an entire floor housing the Dayton Early College Academy, a nationally-celebrated charter high school.
The remaining acreage will be dedicated to creating a mixed-use development, including new academic buildings envisioned in a campus master plan, such as a proposed University Center for the Arts and an arts plaza. However, when the opportunity to connect the University’s research arm, (UDRI), one of the nation’s leading research institutes, to a collaboration with General Electric’s Aviation Electric Power Systems Group, all of the planning and preparation came to fruition.
Identifying Necessary Ingredients
So, what are the ingredients for a successful brownfield redevelopment? Obviously, the number of potential ingredients is unlimited and is based on what you are trying to create. However, as any “top chef” will advise, a few basic ingredients are always a must. Certainly, these fundamental elements were used in the GE EPIS Center project.
Vision – Great chefs need to know where they’re headed before putting the first ingredients into the pan. Undoubtedly, UD employed that approach. In fact, before the University embarked on this redevelopment project, I recall President Curran’s speech to the Board of Trustees before the initial vote to acquire this 50-acre brownfield site.
Like a fourth generation restaurant owner describing the history of a famous dish passed through the generations, President Curran described the vision of the University’s founding fathers in 1850, when a few prescient individuals decided to purchase the land that became the University of Dayton. The vision for creating a premier institution, which forever would change the local community, was a key element in founding the University of Dayton. Therefore, it was not surprising that as the University embarked on this brownfield acquisition with the same focus that can be traced to the University’s own establishment, the willingness to add the second critical ingredient to this recipe became readily apparent.
A Heaping Cup of Risk – If you have ever watched the show “Iron Chef,” successfully manipulating the “secret ingredient” always is a key to success. Obviously, this success results from long experience in tackling complicated issues, and the willingness to rely on other team members to manage inherent risks. In my experience, all successful brownfield projects effectively deal with the surprises, which inevitably are a part of the process.
A Gallon of Capital Investment – Major brownfield redevelopment projects often require significant capital, not only to address historical environmental liabilities, but also to appropriately manage risks. In this project, the University of Dayton invested approximately $25 million in initial acquisition costs. Working with partners at the City of Dayton and federal government, the University was able to attract a smorgasbord of additional funding, including approximately $5.5 million in Clean Ohio Revitalization Fund grants, to help mitigate historical demolition and environmental issues on the 50-acre property, and an additional $5 million in federal funds to address outdated infrastructure.
Never Too Many Chefs
Unlike the old saying, “there can’t be too many cooks in the kitchen,” the GE EPIS Center project had multiple cooks in this kitchen. This project required tremendous collaboration between the University of Dayton, the City of Dayton, the State of Ohio, particularly Ohio EPA and the Ohio Dept. of Development, and multiple private parties, first and foremost, General Electric, to focus on the initial new construction project on this 50-acre redevelopment.
Hemisphere Development LLC led a team of environmental consultants, including Hull & Associates, Inc., to address all environmental issues on the property pursuant to the requirements of the Ohio Voluntary Action Program (VAP). All soil and groundwater issues on the property were addressed to meet VAP cleanup standards for the property’s intended redevelopment use.
This process involved an extensive public involvement program to seek input related to the approval of an Urban Setting Designation, a critical component to maintaining redevelopment momentum and to mitigating unnecessary costs. An Urban Setting Designation is a formal recognition by the State of Ohio that groundwater within an area was not being used as a drinking water source and poses no other threats to the surrounding community.
This tool allows communities to cost-effectively address historical groundwater impacts at brownfield properties without compromising public health. As the environmental issues were resolved, the redevelopment’s next phase took hold. While too numerous to mention, participants from staffs of the University, GE, and teams of outside contractors and consultants, converged on the property, requiring the precision and teamwork necessary to bake one of Duff Goldman’s – aka The Ace of Cakes – most intricate twenty-layer creations.
Cooking Time: 9 Years?
As most brownfield developers know, complex redevelopment projects often take years “to bake.” Beginning in 2004 with initial due diligence on the 50-acre brownfield site, the GE EPIS Center didn’t take shape until 2011. The anticipated project completion date currently targets Spring 2013. While the dough took its time to rise, like most major brownfield redevelopment projects, the product will be worth the wait.
The Result
After all of the planning, preparation, ingredients and cooking time are integrated, one of the most fabulous dishes any economic team would like to savor will be produced. In summary, the University of Dayton will build a special-purpose building and enter into a long-term lease with GE. The facility will house the headquarters and research labs for GE Aviation’s Electric Power Systems Group. The building itself will consist of an approximately 141,000-square foot structure, including nearly 89,000 square feet of laboratories and 52,000 square feet of office space. Total design, engineering, and construction costs will exceed $50 million. Like the number of ice cream scoops in a food challenge in “Man vs. Food,” project financing will include healthy scoops of equity, grants, new market tax credits and bank loans. Undoubtedly, the cherry on top will consist of the building’s LEED certification.
Are You Hungry?
Unquestionably, every community faces similar brownfield redevelopment challenges. Some challenges are best served by a cadre of master chefs – while others can be handled by your standard chili cook. Nonetheless, the process of executing a successful brownfield recipe requires a number of common approaches, techniques and ingredients. Hopefully, the GE EPIS Center’s recipe for success can be replicated in the economic development kitchens across America.
Todd S. Davis, Esq. is the CEO of Hemisphere Development LLC, a nationally recognized brownfield redevelopment company based in Cleveland, Ohio. He is also the author of the American Bar Association’s best selling book entitled Brownfields: A Comprehensive Guide to Redeveloping Contaminated Property (3d. Ed. ABA).