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HomeMy WebLinkAbout02-404 Resolution No. 02-404 RESOLUTION AUTHORIZING THE SUBMITTAL OF A FEDERAL GRANT APPLICATION BY RAYMOND H. MOLLER AND THE SUBSEQUENT APPROPRIATION OF CITY OF ELGIN FUNDS FOR A BROWNFIELD ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP GRANTS WHEREAS, the City of Elgin recognizes that the remediation and redevelopment of Brownfields is an important part of protecting Illinois' resources; and WHEREAS, in this action the City Council of the City of Elgin has declared its intent to complete the Brownfields assessment, revolving loan fund, and cleanup activities described in the application if awarded funds; and WHEREAS, the City of Elgin will maintain records documenting all expenditures made during the Brownfields Assessment, Revolving Loan Fund, and Cleanup Grant period; and WHEREAS, the City of Elgin will submit quarterly reports to the Agency. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the City Council of the City of Elgin requests funds and assistance available from the United States Environmental Protection Agency under the Brownfields Assessment, Revolving Loan fund, and Cleanup Program and will comply with federal rules for the program. BE IT FURTHER RESOLVED that the City Council of the City of Elgin hereby authorizes Raymond H. Moller, Director of Economic Development and Business Services, to act on the behalf of the City of Elgin to: submit an application to the United States for financial aid for Brownfields Assessment, Revolving Loan Fund, and Cleanup purposes, sign documents, and take necessary action to undertake, direct, and complete approved grant activities . s/ Ed Schock Ed Schock, Mayor Presented: December 18, 2002 Adopted: December 18 , 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk ` Agenda Item No. 4 --- City of El in (p - i) gin \� , j iii E LI G !- December 13 , 2002 ' N TO: Mayor and Members of the City Council - ECONOMIC GROWTH FROM: Olufemi Folarin, Interim City Manager SUBJECT: United States Environmental Protection Agency Grant Application PURPOSE The purpose of this memorandum is to seek authorization from the Mayor and City Council to submit an application to the United States Environmental Protection Agency for participation in USEPA Brownfields Assessment & Cleanup Grant Program. BACKGROUND The City' s Brownfield consultant, Vandewalle & Associates, has made staff aware of recently revised USEPA grant programs that could financially benefit the city as it remediates city owned Riverfront redevelopment sites north of Kimball Street . Funding is available in three areas: assessment grants, revolving loan funds and cleanup grants . Following consultation with Vandewalle staff and Illinois Environmental Protection Agency representatives, city staff is recommending that a USEPA Brownfield application be prepared and it should address the following sites and remediation options : Site Procedure 1 . 520 McBride Street $200, 000 Cleanup Grant 2 . 502 North Grove Avenue $200, 000 Cleanup Grant 3 . 35 Ann Street $200, 000 Cleanup Grant se$200, 000 Assessment Grant Local matching funds equal to 20% of Cleanup Grant funds awarded are required by the USEPA at the time the project is completed. Matchingfunds are not required for Assessment Grant funds . q It is anticipated that final notice of grant awards will be made by the USEPA in March, 2003 . United States Environmental Protection Agency December 13 , 2002 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . (rk_ FINANCIAL IMPACT The City would be required to initially pay for all expenses associated with the grant, and would subsequently receive reimbursement from the USEPA. Local matching funds of 20% of all three Cleanup Grants if awarded would equal $120, 000 . Within the proposed 2003 Budget, a total of $135, 000 has been budgeted in the Riverboat Fund, account number 275-0000-791 . 9235, project number 039527, North Kimball/Grove Remediation. Thus, sufficient funds would exist to cover the cost of matching funds . LEGAL IMPACT 1 n Wone . ALTERNATIVES 1 . Authorize the submittal of a grant application to the USEPA Brownfield Grant program. 2 . Deny the request to file the USEPA Brownfield Grant Application. RECOMMENDATION It is recommended that staff file an application with the United States Environmental Protection Agency Brownfield Grant Program for assessment and cleanup cost assistance for property located at 520 McBride Street, 502 North Grove Avenue and 35 Ann Street . Respectfully submitted, Olufemi F arin Inte im C . ger RHM: od Attachments USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site II. Applicant Information A. Project Title: Fox River Northern Housing Redevelopment Site Name of Applicant: City of Elgin . Project Contact: Ray Moller,Director of Economic Development City of Elgin 150 Dexter Court,Elgin,IL 60120 Telephone: 847/ 931-6749 Fax: 847/ 931-5610 E-mail: moiler r(a,cityofelgin.org D. Chief Executive: Mayor Ed Schock City of Elgin 150 Dexter Court,Elgin,IL 60120 Telephone: 847-931-5595 Fax: 847-931-5610 E-mail: schock_eCa.cityofelgin.org E. Location: City of Elgin,Kane and a portion of Cook County, State of Illinois F. Population: 94,487 City of Elgin (Census Bureau,2000) 863 Census Tract 8509 (Census Bureau,2000) G. Special Consideration: Elgin's population is under 100,000 Site is located in a Tax Increment Finance District Key site identified for mixed-use redevelopment in Center City/Riverfront Master Plan III. Requested Programs and Funding Assessment Grant (check if applying for this grant activity type) 611 Requested funding for assessment activities at sites contaminated by hazardous substances,pollutants,or contaminants (including hazardous substances co-mingled with petroleum): $ 200,000 (no more than $200,000 per applicant) Are you requesting a waiver of the funding limit? no If yes,specify the amount requested: $ (no more than $150,000 per applicant) ❑ Requested funding for assessment activities at petroleum sites? $ (no more than $200,000 per applicant) Are you requesting a waiver of the funding limit? no If yes,specify the amount requested: $ (no more than $150,000 per applicant) ❑ Revolving Loan Fund Grant (check if applying for this grant activity type) (total amount requested,up to $1 million per eligible entity) How much of this total is funding for addressing petroleum sites? $ Are you submitting this proposal on behalf of a coalition? ❑ If yes,please indicate the number of eligible entities within the coalition: L( Cleanup Grant (check if applying for this grant activity type) $600,000 (total amount requested,up to $200,000 per site) For each site, list the amount requested and whether it is for a hazardous substance,pollutant,or contaminant cleanup (including hazardous substances co-mingled with petroleum) or a petroleum cleanup. (You may apply for up to 5 sites.) For example,Site 1: $200,000 for a petroleum cleanup. Site 1: $200,000 for a pollutant clean-up at Elgin Lumber Yard Site Site 2: $200,000 for a pollutant clean-up at Former Lumber Yard Site Site 3: $200,000 for a pollutant clean-up at Elgin Public Works Yard Site 2 Dae rkr 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site IV. Project Overview In recent years,the City of Elgin has seen tremendous growth in its industrial and commercial sectors. This growth can be attributed to Elgin's numerous assets,including:prime location,excellent transportation facilities,efficient blic utility services, and a stable workforce. In spite of this growth,Elgin's central business district has suffered. . use many medium-sized midwestern cities,Elgin's central business district has a quality of life that is unable to compete with edge development. Typically,cities of this size are unable to balance the competing geographic development interests of edge and center because they lack sufficient resources to stimulate central development at an economically sustainable scale while developing new facilities on the city limits. A deteriorating or ignored central business district contributes to the City's malaise unless it is actively reinvigorated by strategic investment by both the public- and private sectors. Elgin has a long tradition of relying upon the Fox River and its central business district for commerce,entertainment, cultural attractions, and community identity. Today,the focus is to sustain this energy and capitali7P on the potential of Elgin's riverfront by implementing the community-adopted 2000 Riverfront/Center City Master Plan recommendations. The on-going brownfields initiative has the opportunity to be a tie that binds together this growing community with riverfront, redevelopment,public space and transportation projects that reflect insightful citizen input and dedicated community group involvement. The Riverfront/Center City Master Plan identifies the Fox River Northern Housing Redevelopment Site as a key site for central business district and riverfront revitalization. The Site is composed of four brownfield properties located along the riverfront:three sites,which are the subject of this application,and one site for which the City is leveraging State funds to conduct assessment and remediation. Table 1: Fox River Northern Housin: Redevelo•ment Site Parcels USE PA funds Site Name Location Property Acres Current Assessment requested Ownership Use Complete lean-up Grant Elgin Lumber 520 City of Elgin 3.8 Lumberyard Phase I and II Site Yard McBride warehouse Remediation Reports Street facility Clean-up Grant Former Elgin 502 North City of Elgin 2.4 Vacant Phase I and II Site Lumber Yard Grove Street Remediation Reports Assessment Elgin Public 35 Ann City of Elgin 5.2 City Public Site Clrassification Grant and Works Yard Street Works Yard under LUST program Clean-up Grant None Elgin Salvage 465 McBride Jerome 8.5 Metal Removal action, and Supply Street Roth(City in salvage yard clearance was given negotiations to commercial and to purchase) industrial standards USEPA funds will be used to conduct further environmental assessment activities to develop a remedial objectives report, a remedial action plan,and a remedial action completion report and to fund clean-up activities at the Elgin Lumber Yard,Former Elgin Lumber Yard, and the Elgin Public Works Yard. The comprehensive approach to assessing and cleaning up the Fox River Northern Housing Redevelopment Site is included as Appendix A. This project will create the momentum needed to move these properties to a level where private sector development is market feasible. Redevelopment of this area provides tangible benefits by creating new jobs for people in the immediate area. This will help lower the area's unemployment rate. The new development will also have an important --)act on the social aspects of the area,stabilizing the fragile neighborhood,eliminating blighting influences, roving neighborhood dynamics, and creating spin-off activity. Currently 25% of the residents in the rcedevelopment Site are living below the poverty level. Strengthening the economy of this area will improve the lives of residents,as well as increase City tax revenue. Furthermore,the affected population in the vicinity of the site will have a direct environmental benefit from the assessment,cleanup,and future reuse of these properties. Ultimately this project will reduce the risk of community exposure to environmental contaminants in the water, air, and soil. 3 Darrrixr 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site Assessment Grant Threshold Criteria A. Applicant Eligibility e City is a General Purpose Unit of Government, and therefore has the legal means and authority to perform all .., tasks related to the assessment of the Public Works Yard. As legal owner of all properties included in this application,the City has the right to perform the necessary activities on these properties. B. Community Notification At an open public meeting,Elgin's City Council passed a resolution (No. *'K*'E) stating the City's interest in redevelopment of brownfields and eligibility to receive funds under CERCLA 104(k) and authorizing the submission of this application to the EPA. (See Appendix D). The City also provided information to the community by posting a press release,which details the project on their website.Members of the Central Business District Redevelopment Project Management Team have reviewed a summary of this application. The tremendous support for this application by federal and state legislators, and community leaders and businesses is attached as Appendix E. C. Letter from the State (attached) Please see attached letter from Gary King,Division of Remediation Management, Illinois Bureau of Land. D. Description of Site Properties The Fox River Northern Housing Redevelopment Site is comprised of four highly underutilized properties along the Fox River,three of which are the subject of this application: Elgin Lumber Yard;Former Elgin Lumber Yard; and Elgin Public Works Yard, and one property which the City is working to acquire,Elgin Salvage &Supply.As outlined in the City's 2000 Riverfront/Center City Master Plan,this site is a key component in the comprehensive revitalization of Elgin's central business district. The community-adopted plan targets this site for residential mixed- use development. The City is applying for USEPA assessment funds only for use at the Elgin Public Works Yard Site described below, also summarized in Table 1:Fox River Northern Housing Redevelopment Site Parcels, and displayed on an aerial photo labeled as Attachment 2:Fox River Northern Housing Redevelopment Site Parcels. Site NanE and Adduss:Elgin Public Works Yard- 35 Ann Street Operational History Based on available reports,the property was used predominantly for residential purposes from 1891 until 1913,and from 1913 to the present, for light industrial purposes. Specific uses have included the Reinhart Oil Company (bulk oil supply company) and the Texas Company. Since the 1960's,the property has been utili7Pd by the City of Elgin for a variety of municipal purposes,including use by the City Water Department,Sanitation Department, Electrical Department,Engineering Department,and Public Works. Emironnrntal Concerns:Due to the variety of past industrial uses,the principal environmental concerns are the potential for petroleum impacts due to underground storage tanks,hydraulic lifts, bulk oil storage and vehicle fueling and maintenance operations. Further,the property has been used for chemical storage for salt, chemical deicing agents, solvents,ammonia,and paint.Based on the presence of transformers,PCBs may also be a potential contaminant of concern. Current Site Use and A ctizity. This property is owned by the City and is used as their Public Works Yard. 2. Property-specific Determinatiorx Not Applicable 3. Site Ozenrrship:This property is owned by the City. 4. Site C,ontananatiorx Based on initial Phase I assessment activity and the LUST investigation described below, the known sources of property contamination are leaking underground storage tanks. Identified contaminants are petroleum products. In addition,the potential for petroleum contamination exists from other sources including hydraulic lifts and vehicle maintenance operations.Solvent contamination may be present based on the historical use of solvents for vehicle maintenance. The storage of chemicals,particularly chemical de-icing agents and salt may also have resulted in soil and groundwater contamination.PCBs are a potential contaminant of concern based on the historic presence of transformers. S. Leaking Underground Storage Tank (L US7) Trust Fund Money: The City's environmental consultant is working with the Leaking Underground Storage Tank(LUST) program on the site classification.Four tanks at the property have been removed,two of which had a release of petroleum. A Site Classification has been performed and soil and groundwater contamination has been delineated. A Site Classification Completion Report is in progress and a Corrective Action Plan will be performed following approval by the Illinois EPA. Upon completion of work under the LUST program,the City will need additional funding for property assessment and cleanup, beyond removal of the tanks and remediation of related petroleum impacts. 4 Darrrlxr 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site 6. Site Ozerership and Date ofA cquisitiorz The City of Elgin has owned portions of the property since mid-1960's. 7. Site Omer Relationship and Role: Not applicable,the City owns this property. 8. OzeraerEnzironnvntalResponsibility.. Contamination from historical sources may not be the City's responsibility; the City of Elgin may be responsible for impacts related to using the property for its public works operations. Searing Un-ozerxd Sites: Not applicable,the City owns this property. 10. Waizer for$200,000 Maxinunz Not applicable 11. Ongoing or A n icipated E nzironnental E nforzerrent A ctions for Brozenfields Site: The Elgin Salvage and Supply property is located in the center of the Fox River Northern Housing Redevelopment Site at 464 McBride Street and Jefferson Street (location indicated on Appendix B) and is adjacent to all of the properties,which are the subject of clean-up grant requests in this application.As a former superfund site,an Administrative Order for this property was issued by the USEPA and clean up ensued. Principal constituents of concern included PCBs,lead,and dioxin/furans.According to available information, responsible parties expended $6 million to perform remedial actions in 1993.Remedial objectives were based on commercial and industrial standards.However,some areas of the property were not subject to removal and constituents of concern were either encapsulated or left in place beneath buildings. The property is currently used as a metal salvage yard. The property's historical Superfund status and its current operations may impact any of the properties that are the subject of this grant application and will require the City to perform detailed analysis and thorough cleanup to prepare this property for its proposed residential use. The City does not hold ownership of Elgin Salvage &Supply, but has received $4.85 million from the Governor's office to purchase,remediate, and redevelop this parcel. Ranking Criteria A. Community Need 1. The underutilized properties,proposed as the focus of this project,negatively impact the City and need to be reinvigorated by strategic public and private sector investment. The Fox River Northern Housing Redevelopment Site lies in Census Tract number 8509. Table 2:Area Demographics compares the demographics for Census Tract 8509,the City,and Kane County. Over the last decade,the percentage of people living below poverty has more then doubled,from 10.3 percent to 25.3 percent. The 2000 rate of poverty is more than three times higher than the City and County. This area also has one of the highest rates of unemployment in the City and County. The minority population and number of female,single-headed households are also significantly greater. The Hispanic population in this census tract has doubled from 415 (1990) to 863 (2000). This census tract also has one of the highest numbers of persons without a high school diploma in the City and has a substantially lower median and per capita income than the City and County. Table 2:Area Demo•ra.hics Census Tract 8509 City of Elgin Kane County Individuals below poverty 25.3% 8.1% 6.7% Minority population 45% 29.5% 21.7% Unemployment 14.8% 4.1% 3.3% Female,single-headed HHs 22% 11.3% 10% No high school diploma 35.4% 26.3% 19.9% Median income/per capita income $38,750/$14,073 $58,404/$21,112 $66,558/$24,315 2. The brownfields properties that are the subject of this application total 11.4 acres of the City's riverfront, jeopardizing community access to the water, blighting the gateway to the central business district,and limiting the economic success of the area. These brownfields have blighted the City's most prized resource,the Fox River.Alternatively,directly south of this site,the City has been able to stimulate over$69.5 million in investment including a 184,722 square foot Community Recreation Centre and a 139,980 square foot Public Library. This project has an important environmental justice component. Currently, 25.3% of the residents in the Redevelopment Site are living below the poverty level. The affected population in the vicinity of the site will have a direct environmental benefit from the assessment and cleanup and future reuse of these properties,and ultimately this project will reduce the risk of exposure to environmental contaminants in the water,air, and soil. 5 Daxrier 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site • B. Leveraging of Additional Resources 1. Financial Needs for Assessnrn Clean-up,andRedezelopnrnt The first step of environmental work for this property is the completion of a comprehensive site investigation. Based on the size of the property and the variety of potential constituents of concern, a preliminary estimate for investigation costs is approximately$200,000. These costs are likely to vary significantly depending on the number of areas of concern that are identified during the investigation planning process and whether groundwater impacts are found. 2. City qcElgin Committed Furls: The City of Elgin has demonstrated their commitment to this project by purchasing three properties and is in the process of negotiating ownership of the fourth in the Fox River Northern Housing Redevelopment Site. Elgin also has an excellent record of accomplishment for City-led development and redevelopment projects in its existing Tax Incremental Financing (1IF) Districts (See Appendix C: for TIF boundaries).With the aid of TIF,the potential for redevelopment in the area is greatly improved,enabling new development and public improvements, as well as spurring surrounding area redevelopment. Additionally,when the properties become privately owned,the City of Elgin would consider pursuing a boundary amendment to the current Enterprise Zone to include the brownfield properties. 3. Other Funding Sources: In January of 2002,the City secured an Illinois EPA Brownfields Redevelopment Grant in the amount of$91,672 for the assessment of the Elgin Lumber Yard and Former Lumber Yard properties. The City provided a 31% match ($42,278.51) to the IEPA grant in the form of monetary and in-kind services. This grant has provided critical resources for environmental assessment at the Redevelopment Site,and the community match shows the City's commitment to redeveloping this site. An additional pledge of$4.85 million from the Governor's office will offer funding for purchase, remediation, and redevelopment of the neighboring Elgin Salvage &Supply property. 4. USEPA Grant. Additional dollars are needed to fund assessment and clean up on the Fox River Northern Housing Redevelopment Site. The City will leverage USEPA funds to obtain additional Illinois EPA dollars and to entice private sector investment on this idle site. C. Ability to Manage Grants City's Ability to Manage Grant The City has demonstrated a successful track record with the management of their Illinois EPA grant funds. The funds have been used efficiently,specifically for the tasks agreed to in the application,and the City is up-to-date on their quarterly reporting. 2. City's PerfornuzxrManagingFederalFunds: As a Community Development Block Grant entitlement community, the City of Elgin received $1.05 million, in 2002,to develop low/moderate-income programs. The City developed a Consolidated Plan and complies with all United States Department of Housing and Urban Development regulations. Elgin has also received Congestion Mitigation and Air Quality and Surface Transportation Program funds for transportation related improvements. The City complies with all Federal Highway Administration regulations. 3. Conpliarxe with USEPA Standards and Reporting: Not applicable 4. Amount of USEPA FundingRernzimng:Not applicable 5. SignifcantAczrnrplisbnrnts with USEPA Funds:Not Applicable D. Site Property Selection Process 1. Process cf Site Selection These brownfield properties were selected based on their location to the Fox River and the City's central business district. The properties are located in a high poverty area,where public investment is occurring. Securing USEPA funds would help carry the momentum to turn the area around environmentally,socially,and economically. 2. Passible or Pnrziars Inzentory A ctizities and Prioritization Efforts: The City performed an initial Phase I Environmental Site Assessment in 2001 at the Public Works Yard.In addition,the City is currently in the process of addressing two leaking underground storage tanks that are located on the Public Works Yard. 3. Access Issues:Not applicable,the City of Elgin owns the properties that are the subject of this application. 6 Daerber-16,2002 • USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site • 4.4 Cleanup Grants Threshold Criteria Applicant Eligibility ie City is a General Purpose Unit of Government, and therefore has the legal means and authority to perform all the tasks related to the assessment of the Public Works Yard.As legal owner of all properties included in this application, the City has the right to perform the necessary activities on these properties. B. Community Notification At an open public meeting, Elgin's City Council passed a resolution (No.*'z*"") stating the City's interest in redevelopment of brownfields and eligibility to receive funds under CFRCLA 104(k) and authorizing the submission of this application to the EPA. (See Appendix D). The City also provided information to the community by posting a press release,which details the project on their website. Members of the Central Business District Redevelopment Project Management Team have reviewed a summary of this application. The tremendous support for this application by federal and state legislators, and community leaders and businesses is attached as Appendix E. C. Description of Site Properties The Fox River Northern Housing Redevelopment Site is comprised of four highly underutilized properties along the Fox River,three of which are the subject of this application: Elgin Lumber Yard; Former Elgin Lumber Yard; and Elgin Public Works Yard, and one property which the City is working to acquire, Elgin Salvage &Supply. As outlined in the City's 2000 Riverfront/Center City Master Plan,this site is a key component in the comprehensive revitalization of Elgin's central business district. The community-adopted plan targets this site for residential mixed- use development. The three properties that are the subject of this application and the neighboring brownfields property are described below,summarized in Table 1: Fox River Northern Housing Redevelopment Site Parcels, and displayed on an aerial photo labeled as Appendix B: Fox River Northern Housing Redevelopment Site Parcels. Elgin Lumber Yard 1. Operational History Based on existing environmental reports,the property has been used by various ice companies from the late 1800s through the early 1900s. The property was subsequently used as a lumberyard and wholesale operation by various firms. The property history includes the presence of bulk oil storage tanks on the property and underground storage tanks. A release of"F" listed solvents was reported to have occurred in 1998.Most recently,the property was operated by Seigle's Home and Building Centers,Inc. as a central warehouse and lumberyard. Entironnental Concerns:The City's environmental consultant completed the Phase I and Phase II investigation. The City enrolled the property in the Site Remediation Program and submitted a Site Investigation Report to the Illinois EPA.Environmental concerns stem from historic use of the property as a bulk oil storage facility and lumberyard. Transactional information revealed a prior spill incident of"F-listed" solvents. In addition, a closed LUST incident was reported for former on-site underground storage tanks. Finally,the property may have been impacted by the adjacent Elgin Salvage Yard property,which has a history of environmental issues. Current Site Use and ctizity. The property is currently used as a lumberyard warehouse facility. The property contains six structures, including warehouse and storage space, offices, a showroom, and storage sheds. 2. Property-SpaificDeterrrination Not Applicable 3. Site Orership:Ownership of this property was conveyed to the City of Elgin in 1997.Since that time the property has been leased back to Seigle's Home and Building,Inc., and has continued to operate as a lumberyard warehouse facility. 4. Site Contamination.Based on site investigation data obtained to date,PNAs,VOCs, and lead are the principal constituents of concern that have impacted the property soils above Illinois TACO Tier 1 remediation objectives. At various locations,these contaminants were identified in the surficial soils. VOCs and dioxins/furans were found in detectable concentrations in the groundwater. Additional site investigation work is needed to further delineate the extent of contamination. S. Leaking Underground Storage Tank (L UST) Trust Fund Money:Not applicable Site Oterership and Date ciA cquisition The City of Elgin purchased the property in March 1997. Site OcererRelationship and Role. Not applicable,the City of Elgin owns the property. 8. OtererEnti unnental Responsibility. The City of Elgin is not responsible for contamination on this property. 9. Securing Urnozened Sites: Not applicable 10. Waizer for$200,000 Maxinsrm Not applicable 7 Da,rLxr 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site • 11. Ongoing or nticzpated E nuronnental E rforwrrent A c ions for B nenfields Sites: The Elgin Salvage and Supply property is located in the center of the Fox River Northern Housing Redevelopment Site at 464 McBride Street and Jefferson Street (location indicated on Appendix B) and is adjacent to all of the site properties, which are the subject of clean-up grant requests in this application. As a former superfund site,an Administrative Order for this property was issued by the USEPA and clean up ensued. Principal constituents of concern included PCBs,lead, and dioxin/furans.According to available information, responsible parties expended $6 million to perform remedial actions in 1993. Remedial objectives were based on commercial and industrial standards. However,some areas of the property were not subject to removal and constituents of concern were either encapsulated or left in place beneath buildings. The property is currently used as a metal salvage yard. The property's historical Superfund status and its current operations may impact any of the properties that are the subject of this grant application and will require the City to perform detailed analysis and thorough cleanup to prepare this property for its proposed residential use. The City has received $4.85 million from the Governor's office to purchase, remediate, and redevelop this parcel. Former Lumber Yard 1. Site Nome and A ddress:Former Lumber Yard, 502 North Grove Avenue Operational History The property was used by Illinois Bell Telephone Company in the 1950s to the 1960s and by Harris Oil Company in the late 1970s. The property was most recently used as a storage yard related to the lumberyard operations. Enzironnental Conw ris:The City's environmental consultant completed the Phase I and Phase II investigation. The City enrolled the property in the Site Remediation Program and submitted a Site Investigation Report to the Illinois EPA. Environmental concerns stem from the historic use of the property as a bulk oil facility (Harris Oil Co.) and a lumberyard. In addition, a closed LUST incident was reported for former on-site underground storage tanks.Finally,the adjacent Elgin Salvage Yard property has a history of environmental issues,which may have impacted the subject property due to its proximity. Underground storage tanks are known to have been present and a release of unleaded gasoline was reported to have occurred from an underground storage tank on the subject property. Current Site Use and A ctizity. The property is currently vacant. z. Property-Specific Deternination Not Applicable 3. Site Ozerership:Ownership of the property was transferred to the City of Elgin in 1997 along with the Elgin Lumber Yard property. 4. Site Contamination.The City's environmental consultant has completed the Phase I and Phase II investigation and has drafted the Site Investigation Report for this property. The property's testing results were all below Tier I values. Ground water assessments were below Tier 1,except for one area,which has TCE. The three well samples displayed low level, but detectable amounts of dioxins and furans. 5. Leaking Underground Storage Tank(L US7) Trust FundMoney:Not applicable 6. Site Orerership and Date cf A cquisition The City of Elgin purchased the property in 1997. 7. Site OzererRelationship and Role. Not applicable 8. Ozorr Enzironnrntal Responsibility: The City of Elgin is not responsible for contamination on this property. 9. Securing Un-owed Sites:Not applicable 10. Waizer for$200,000 Maxim=Not applicable 11. Ongoing or AnticipatedEnzironrentalEnforcerrentActions forBnxerfidds Site. The description of Elgin Salvage & Supply in Number 11 of the Elgin Lumber Yard description above,is applicable to this property as well. Elgin Public Works Yard 1. Site Nane and Address:Elgin Public Works Yard- 35 Ann Street Operational History Based on available reports,the property was used predominantly for residential purposes from 1891 until 1913, and from 1913 to the present, for light industrial purposes. Specific uses have included the Reinhart Oil Company (bulk oil supply company) and the Texas Company. Since the 1960's,the property has been utili7Pd by the City of Elgin for a variety of municipal purposes,including use by the City Water Department,Sanitation Department,Electrical Department,Engineering Department, and Public Works. Enzirornrental Concerns:Due to the variety of past industrial uses,the principal environmental concerns are the potential for petroleum impacts due to underground storage tanks,hydraulic lifts, bulk oil storage and vehicle fueling and maintenance operations.Further,the property has been used for chemical storage for salt, 8 Da,rier 16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site chemical deicing agents,solvents, ammonia,and paint. Based on the presence of transformers,PCBs may also be a potential contaminant of concern. Gwent Site Use and A ctizity. This property is owned by the City and is being used as their Public Works Yard. Property-specific DeterminationNot Applicable Site Orerirship:This property is owned by the City. 4. Site Contamination Based on initial Phase I assessment activity and the LUST investigation described below, the known sources of site contamination are leaking underground storage tanks. Identified contaminants are petroleum products. In addition,the potential for petroleum contamination exists from other sources includinghydraulic lifts and vehicle maintenance operations. v Sol ent contamination maybe present based on Yd the historical use of solvents for vehicle maintenance. The storage of chemicals,particularly chemical de-icing agents and salt may also have resulted in soil and groundwater contamination. PCBs are a potential contaminant of concern based on the historic presence of transformers. 5. Leaking Underground Storage Tank (LUST) Trust Fund Money. The City's environmental consultant is working with the Leaking Underground Storage Tank(LUST) program on the site classification. Four tanks at the property have been removed,two of which had a release of petroleum. A Site Classification has been performed and soil and groundwater contamination has been delineated. A Site Classification Completion Report is in progress and a Corrective Action Plan will be performed following approval by the Illinois EPA. Upon completion of work under the LUST program,the City will need additional funding for site assessment and cleanup, beyond removal of the tanks and remediation of related petroleum impacts. 6. Site Orenership and Date 4-A cquisition The City of Elgin has owned portions of the property since mid-1960's. 7. Site Orener Relationship and Role. Not applicable,the City owns this property. 8. OrererEnziyrnrmmtal Responsibility. The City of Elgin is not responsible for contamination on this property. 9. Seat-ring Urrozened Sites: Not applicable 10. Waizer for$200,000 Maxinuna Not applicable 11. Ongoing or Anticipated Enzinomrtmtal E rforwrrEnt Actions for B rerrfields Site. The description of Elgin Salvage & Supply in Number 11 of the Elgin Lumber Yard description above,is applicable to this property as well. Cleanup Authority and Oversight Structure 1. The City of Elgin enrolled the Elgin Lumber Yard and Former Lumber Yard properties in the Illinois EPA Site Remediation Program(SRP), a voluntary cleanup program administered by the Remedial Project Management Section,Bureau of Land Division. Upon completion of efforts with the LUST fund program, gm, P P g the City will also enroll the Public Works Yard in the SRP as well,and upon acquisition of the Elgin Salvage &Supply site,the City will enroll that property in pursuit of a NFR Letter. 2. As mentioned in Section C:Description of Sites,the three properties in this area are owned byCityof Elgin. P P P g Elgin Salvage and Supply Yard is located between the Lumber Yard and Public Work Site. The City has received $4.85 million a portion of which will be used to acquire this property. E. Cost Share 1. The City of Elgin will provide its 20 percent match requirement ($120,000). 2. Not Applicable F. Letter from the State Please see attached letter from Gary King,Division of Remediation Management,Illinois Bureau of Land. Ranking Criteria A. Community Need 1. The underutilized properties,proposed as the focus of this project, negatively impact the City and need to be reinvigorated by strategic public and private sector investment. The Fox River Northern Housing Redevelopment Site lies in Census Tract number 8509. Table 2:Area Demographics compares the demographics for Census Tract 8509,the City,and Kane County. Over the last decade,the percentage of people living below poverty has more then doubled,from 10.3 percent to 25.3 percent. The 2000 rate of poverty is more than three times higher than the City and County. This area also has one of the highest rates of unemployment in the City and County. The minority population and number of female,single-headed households are also significantly greater. The Hispanic population in this census tract has doubled from 415 (1990) to 863 (2000). This census tract also has one of the highest numbers of persons without a high school diploma in the City and has a substantially lower median and per capita income than the City and County. Table 2:Area Demographics 9 Darfxr16,2002 USEPA Brownfields Grant Application City of Elgin-Fox River Northern Housing Redevelopment Site Census Tract 8509 City of Elgin Kane County Individuals below poverty 25.3% 8.1% 6.7% Minority population 45% 29.5% 21.7% Unemployment 14.8% 4.1% 3.3% Female,single-headed HHs 22% 11.3% 10% No high school diploma 35.4% 26.3% 19.9% Median income/per capita income $38,750/$14,073 $58,404/$21,112 $66,558/$24,315 2. The brownfields properties that are the subject of this application total 11.4 acres of the City's riverfront, jeopardizing community access to the water, blighting the gateway to the central business district, and devaluing the economics of the area. Elgin's brownfields have blighted the City's most prized resource,the Fox River. To the south of this site,the City has been able to stimulate over$69.5 million in investment in this area including of a 184,722 square foot Community Recreation Centre and a 139,980 square foot public library. This project has an important environmental justice component. Currently,25.3% of the residents in the Redevelopment Site are living below the poverty level. B. Leveraging of Additional Resources Financial Needs for Assessnznt, Clean up,andRedezelgmrnt A detailed evaluation of assessment and cleanup costs for the three subject properties has not been undertaken at this point in time. Based on the initial Site Investigation results for the Elgin Lumber Yard and Former Lumber Yard properties,the identified PNA, VOC and lead contamination will require both additional assessment activity and clean up. Based on the planned residential reuse,planning estimates for this work is in the range of$200,000 to $750,000 assuming no additional COCs are identified. These costs could increase if dioxins and furan are identified during subsequent investigations,or if groundwater remediation is determined to be necessary. 2. City lgin Counnitted Funds: The City of Elgin has demonstrated their commitment to this project by purchasing three properties and is in the process of negotiating ownership of the fourth in the Fox River Northern Housing Redevelopment Site. Elgin also has an excellent record of accomplishments for City-led development and redevelopment projects in its existing Tax Incremental Financing (TIF) Districts (See Appendix C: for TIF boundaries).With the aid of TIF,the potential for redevelopment in the area is greatly improved,enabling new development and public improvements, as well as spurring surrounding area redevelopment.Additionally,when the properties become privately owned,the City of Elgin would consider pursuing a boundary amendment to the current Enterprise Zone to include the brownfield properties. 3. Q'berFunding Sourzns: In January of 2002,the City secured an Illinois EPA Brownfields Redevelopment Grant in the amount of$91,672 for the assessment of the Elgin Lumber Yard and Former Lumber Yard properties. The City provided a 31% match ($42,278.51) to the IEPA grant in the form of monetary and in-kind services. This grant has provided critical resources for environmental assessment at the Redevelopment Site,and the community match shows the City's commitment to redeveloping these properties. An additional pledge of $4.85 million from the Governor's office will offer funding for purchase,remediation,and redevelopment of the neighboring Elgin Salvage &Supply site. 4. USEPA Grant.Additional dollars are needed to fund assessment and clean up on the Fox River Northern Housing Redevelopment Site. The City will leverage USEPA funds to obtain additional Illinois EPA dollars and to entice private sector investment on this idle site. C. Ability to Manage Grants 1. City's A bility to Manage Grant The City has demonstrated a record of accomplishment with the management of their Illinois EPA grant funds. The funds have been used efficiently,specifically for the tasks agreed to in the application, and the City is up-to-date on their quarterly reporting. 2. City's Perfornun e Managing Federal Funds: Elgin receives Community Development Block Grant, Congestion Mitigation and Air Quality, and Surface Transportation Program funds. The City is efficiently managing these funds and is in compliance with all federal regulations. J. Compliance with USEPA Standards and Reporting Not applicable 4. A urn 1USEPA Funding Rermining.Not applicable 5. Significant A ccomplisharres with USEPA Funds: Not Applicable 10 Daaa,jx,16,2002