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HomeMy WebLinkAboutSubmittal-URS Technical MemorandumTECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 prepared by The Goldstein Environmental Law Firm, One Southeast Third Avenue, Suite 2120, Miami, Florida 33131, dated February 22, 2013. Brownfields Sites and Brownfields Area "Brownfield sites" means real property, the expansion, redevelopment, or reuse of which may be complicated by actual or perceived environmental contamination. (Section 376.79(3), F.S.) "Brownfield area" means a contiguous area of one or more brownfield sites, may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprived communities and areas, and Environmental Protection Agency - designated brownfield pilot projects. (Section 376.79(4), F.S) None of the redevelopment sites that are proposed for brownfields designation are contaminated. If the permitting agencies had perceived any environmental contamination on the three sites proposed for designation, there would have been delays and additional restrictions on the property for construction such as limits on dewatering. There are three (3) reported contaminated sites in the applications for the brownfields designation. The attached Figure show their locations in reference to the redevelopment projects requested for brownfields designation. 1. CITGO site at 190 SW 8th Street for the designation of 850 SW 2"d Avenue, Vista Grande Apartments and 144-152 SW 8th Street, West Brickell View Apartments 2. Former Exxon station at 702 SW 2"d Avenue for the designation of 850 SW 2nd Avenue, Vista Grande Apartments and 144-152 SW 8th Street, West Brickell View Apartments 3. BP/Brickell Trading Post fueling station at 1245 SW 2"d Avenue for the designation of 1026 SW 2nd Avenue, West Brickell Towers Another 1000 gallon diesel UST at 1105 SW 2"d Avenue has been reported by the applicant but only as a potential source of contamination for 1026 SW 2nd Avenue, West Brickell Towers. None of the contaminated sites reported above have been known to contaminate the redevelopment projects, and have responsible parties to further assess them or remediate them under the State funded program or otherwise. The West Brickell View Apartments project that is closest to the CITGO property is under the state -funded petroleum cleanup program. This project did not present any evidence of contamination from the CITGO site during the Phase II environmental assessment completed by the 13- ex) 74g /.� - 0072/, . /11 # / tii% T&Chr)ll / Submitted into the public pp f1Z mem0vandvh-) record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Wage TECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 developer. It is not uncommon for Miami -Dade County Department of Regulatory and Economic Resources (RER) to request drainage plans for any redevelopment or construction projects in the immediate vicinity of contaminated sites. We do not believe the request to review drainage plans from RER was any reason to cause any "complications" for the redevelopment project. Legislative Intent The Brownfields Redevelopment Act (Act) was established by the Florida Legislature in 1997 (Chapter 97-277, L.O.F.). The primary goals of the Act were to reduce public health and environmental hazards on existing commercial and industrial sites that are abandoned or underused due to these hazards; create financial and regulatory incentives to encourage voluntary cleanup and redevelopment of sites; derive cleanup target levels and a process for obtaining a "No Further Action" letter; and provide the opportunity for Environmental Equity and Justice. The goal was to address properties that presented conditions of blight on the local community. When the Florida Legislature first enacted the Florida Brownfields Redevelopment Act, their key findings and declarations, as stated in the Section 376.78 were: Section 376.78(1), Florida Statutes: The reduction of public health and environmental hazards on existing commercial and industrial sites is vital to their use and reuse as sources of employment, housing, recreation, and open space areas. The reuse of industrial land is an important component of sound land use policy for productive urban purposes which will help prevent the premature development of farmland, open space areas, and natural areas, and reduce public costs for installing new water, sewer, and highway infrastructure. Section 376.78(2), Florida Statutes: The abandonment or underuse of brownfield sites also results in the inefficient use of public facilities and services, as well as land and other natural resources, extends conditions of blight in local communities, and contributes to concerns about environmental equity and the distribution of environmental risks across population groups. Section 376.78(8) Florida Statutes: The existence of brownfields within a community may contribute to, or may be a symptom of, overall community decline, including issues of human disease and illness, crime, educational and employment opportunities, and infrastructure decay. The environment is an important element of quality of life in any community, along with economic opportunity, educational achievement, access to health care, housing quality and availability, provision of governmental services, and other socioeconomic factors. Brownfields redevelopment, properly done, can be a significant element in community revitalization. 3IPage Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21113 Todd B. Hannon TECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 Brownfields Designation Process Section 376.80(2)(b)(1-5), Florida Statutes, states that a local government shall designate a brownfield area under the provisions of this act provided that: 1. A person who owns or controls a potential brownfield site is requesting the designation and has agreed to rehabilitate and redevelop the brownfield site; 2. The rehabilitation and redevelopment of the proposed brownfield site will result in economic productivity of the area, along with the creation of at least 5 new permanent jobs at the brownfield site...; However, the job creation requirement shall not apply to the rehabilitation and redevelopment of a brownfield site that will provide affordable housing...; 3. The redevelopment of the proposed brownfield site is consistent with the local comprehensive plan and is a permittable use under the applicable local land development regulations..; 4. Notice of the proposed rehabilitation of the brownfield area has been provided to neighbors and nearby residents of the proposed area to be designated, and the person proposing the area for designation has afforded to those receiving notice the opportunity for comments and suggestions about rehabilitation...; 5. The person proposing the area for designation has provided reasonable assurance that he or she has sufficient financial resources to implement and complete the rehabilitation agreement and redevelopment of the brownfield site. URS Review of Applications for Designation as Brownfields URS conducted a review of the applications and supporting documentation, as listed in this memorandum. Our review indicates that the applications support the criteria for the designation of the three (3) parcels as brownfields areas; however, they do not meet the intent of the legislature and their key findings when the Act was established, for the following reasons: 1. Urban infill is already occurring in the Brickell West area without brownfield designations. There is no evidence of blight in the local community. 2. Currently, 2,190 units are planned or underway in immediate vicinity, and resources are not underutilized. 3. Area already experiencing significant development without the need any regulatory or financial incentives available from the brownfields designation process. 4. Redevelopment activities do not indicate anything beyond normal risks faced by a developer in urbanized area. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon 4IPage TECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 The following is a summary of the sales history qualified by the Property Appraiser's Office as a result of examination of the deed. 1. Property Location: 144 SW 8th Street Folio: 0102050701060 Proposed Development Site: 144-152 SW 8th Street, West Brickell View Apartments Sales Date Amount 9/2012 $1,625,000 10/1999 $400,000 9/1990 $337,600 9/1971 $23,000 The history of sales for this parcel clearly indicates that it has significantly appreciated in value over the years with no indication of abandonment or underutilization of the property. 2. Property Location: 152 SW 8`h Street Folio: 0102050701070 Proposed Development Site: 144-152 SW 8th Street, West Brickell View Apartments Sales Date Amount 9/2012 $1,625,000 11/1999 $380,000 11/1977 $52,000 The history of sales for this parcel clearly indicates that it has significantly appreciated in value over the years with no indication of abandonment or underutilization of the property. 3. Property Location: 850 SW 2nd Avenue Folio: 0102050801150 Proposed Development Site: 850 SW 2nd Avenue, Vista Grande Apartments Sales Date Amount 9/2012 $3.500,000 10/2003 $2,500,000 11/1998 $900,000 The history of sales for this parcel clearly indicates that it has significantly appreciated in value over the years with no indication of abandonment or underutilization of the property. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11 21 13 Todd B. Hannon Wage TECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 4. Property Location: 1026 SW 2nd Avenue Folio: 0141380510110 Proposed Development: 1026 SW 2nd Avenue, West Brickell Tower Apartments Sales Date Amount 10/2012 $950,000 8/2010 $365,000 3/2005 $136,667 12/1988 $170,000 6/1974 $80,000 4/1973 $70,000 The history of sales for this parcel clearly indicates that it has significantly appreciated in value over the years with no indication of abandonment or underutilization of the property. Conclusions and Recommendations Based on our review of the applications received by the City of Miami for designation of the three (3) parcels described above, URS is providing the following conclusions and recommendations: 1. None of the three (3) parcels provide any evidence of contamination on -site or presented conditions of blight to the surrounding community prior to commencement of redevelopment activities. In fact, the sale prices, based on the County Property Appraiser's web site, have steadily been increasing through the years; 2. Based on the number of planned, approved and on -going redevelopment activities taking place in the Brickell West area, there do not appear to be any need for regulatory or financial incentives that are provided by the Florida Brownfields Redevelopment Act. 3. The documentation provided by the applicant meets the criteria for designation of the three (3) parcels as brownfields area, based on Section 376.80(2)(b)(1-5), Florida Statutes; however, in URS' opinion, they do to meet the intent of the Florida Brownfields Redevelopment Act, as provided in Section 376.78, Florida Statutes. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Wage TECHNICAL MEMORANDUM REVIEW OF APPLICATIONS FOR BROWNFIELDS DESIGNATIONS CITY OF MIAMI November 20, 2013 Based on these observations, URS believes that the three (3) parcels under consideration for designation as brownfields do not meet the legislative intent of Section 376.78, Florida Statutes. We are, therefore, recommending that the applications be denied. Prepared by: VA-4, L....,„)(T-: Vivek "Vik" Kamath, P.E. URS Corporation 7650 Corporate Center Drive, Suite 400 Miami, Florida 33126 Tel: 305.884.8900 Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon 7IPage CITGO" 19O S W; 8th Street Former Exxon Station ' �e 702SW2nAvenue, it iY nn sc , - - 152 SW 8th'Street 144 SW 8th'Street -AZT I (Feet i 0 100 200 400 600 800 Requests for Brownfield Area Designation per Florida Statutes 376.77-86 Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon What Are Brownfields? Redevelopment tool for blighted properties that results in: Economic and Community Development Increase Property values Reduction of Public Health and Environmental Hazards Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Florida Brownfields Redevelopment Act Established by the Florida Legislature in 1997 as Chapter 1997-277, Laws of Florida, with primary goals: To reduce public health and environmental hazards on existing commercial and industrial sites that are abandoned or underused due to these hazards; To create financial and regulatory incentives to encourage voluntary cleanup and redevelopment of sites. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11L21/13 Todd B. Hannon Brownfield Program Benefits "It is the intent of the Legislature that brownfield redevelopment activities be viewed as opportunities to significantly improve the utilization, general condition and appearance of these sites." F.S. 376.84 Brownfield Redevelopment Economic Initiatives Florida's Brownfield program offers businesses and developers financial incentives to clean up and redevelop a brownfield site including: • Sales Tax Credit on building materials • $2,500 Job Bonus Refund • State Loan Guarantees Brownfield Area benefits administered by Enterprise Florida, Inc. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Florida Brownfield Redevelopment Act Florida Statutes 376.77 - 376.86 Definitions: o "Brownfield sites" means real property, the expansion, redevelopment, or reuse of which may be complicated by actual or perceived environmental contamination. (376.79(3) F.S.) "Brownfield area" means a contiguous area of one or more brownfield sites, may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprived communities and areas, and Environmental Protection Agency -designated brownfield pilot projects. (376.79(4)F.s.) Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon City of Miami Designated Brownfield Area on 4 NW a.TN ar Mw MT"ST N[YETI ST } Nw al3T ST I Nw uNO ST � a xG '"" NN NTN sr F ii "�• ^ Many vacant sites remain 3_. NW NITWIT MY TSTM NW TTTN a Nw T31N R 1 NW r.T"ST NW/SIN SI LTW r1MU ST I, TJgD aT NW r2N0 ST NW , within currently designated NW N- NWTOTNST —m� ~eroTMsr NW .. Na aaT" ST NW NUN ST NM aTTN ST I. NW MTN ST tia ST kv+YtN ST WI NaT NW Nr1H SljIH2sI UI Nw. 5 1Na a2W sr area. 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F S i SW 1aTN 3i f Z ~ W SW TWIN ari��p`-tq {i ,y N sw 70rN ST W Sw TOIN sr 11� Y/ f.IVLW4N. 213T8 Sw TTN]ST sW]lsrsr 4 SW 2tSTrFJ1 � � - f d • FIST ST LASE RD City Brownfield Designated Area Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Brownfields Designation Process Section 376.80(2)(b)(1-5), Florida Statutes "A local government shall designate a brownfield area under the provisions of this act provided that:" 1. A person who owns or controls a potential brownfield site is requesting the designation and has agreed to rehabilitate and redevelop the brownfield site; 2. The rehabilitation and redevelopment of the proposed brownfield site will result in economic productivity of the area, along with the creation of at least 5 new permanent jobs at the brownfield site...; However, the job creation requirement shall not apply to the rehabilitation and redevelopment of a brownfield site that will provide affordable housing...; 3. The redevelopment of the proposed brownfield site is consistent with the local comprehensive plan and is a permittable use under the applicable local land development regulations.; 4. Notice of the proposed rehabilitation of the brownfield area has been provided to neighbors and nearby residents of the proposed area to be designated, and the person proposing the area for designation has afforded to those receiving notice the opportunity for comments and suggestions about rehabilitation...; 5. The person proposing the area for designation has provided reasonable assurance that he or she has sufficient financial resources to implement and complete the rehabilitation agreement and redevelopment of the brownfield site. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon Legislative Intent F.S. 376.78(1-9), "Legislative Intent - The Legislature finds and declares the following:" (1) "The reduction of public health and environmental hazards on existing commercial and industrial sites is vital to their use and reuse as sources of employment, housing, recreation, and open space areas..." - Urban infill already occurring in the Brickell West area without brownfield designations. (2) "The abandonment or underuse of brownfield sites also results in the inefficient use of public facilities and services, as well as land and other natural resources, extends conditions of blight in local communities..." - Currently 2,190 units planned or underway in immediate vicinity and resources are not underutilized. (3) "Incentives should be put in place to encourage responsible persons to voluntarily develop and implement cleanup plans without the use of taxpayer funds..." - Area already experiencing significant development. (4) "Site rehabilitation should be based on the actual risk that contamination may pose to the environment and public health..." - Facts surrounding properties do not indicate anything beyond normal risks faced by a developer in urbanized area. (9) "Cooperation among federal, state, and local agencies, local community development organizations, and current owners and prospective purchasers of brownfield sites is required to accomplish timely cleanup activities and the redevelopment or reuse of brownfield sites." - City was unaware of developer's intent to request designation until after construction had commenced. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon CT ST C2t 3fl2Pv SW 12TH S i .. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon 1448152SNSET SISSOFISISIN PLANWP110 DEPAR SENT 800 >>ema RIOIYS OISIEdT'.81 L 1u 162 111nal11 ST 1026 S W 2 ST Ss0 !W 2 AY.IOm Legend WEST BRICKELL PROJECTS 21113 tutus mil 2.111M11sasNsile1 UMW A�pwA IMI! RriiYrll/ Usiy 0 Ilrrr.0112 RrWrr 0 UMW CMU++sI ern R.rn.a L„r; - Ott r bawl - lww+rY Ier 11.111 wYe1WTv. lwordrer.um saes 144-152 SW 8th Street West Brickell View Apartments Affordable Housing development currently under construction - 64 one and two bedroom units (master building permit issued 8 / 31 / 2012) . First Inspection (Foundation) done on 12/ 1 /2012. Brownfield designation request received on December 28, 2012. Previous structures consisted of restaurant and audio retail store (demolition permit issued 9/28/2012). Located adjacent to a contaminated gas station with groundwater plume not affecting subject property. No documentation provided of contaminated groundwater infiltrating. Miami Dade Department of Regulatory and Economic Resources (RER) requested drainage plans during permitting process. This is their standard procedure whenever there is construction or redevelopment in the vicinity of contaminated sites. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon 1026 SW 2nd Avenue West Brickell Tower Apartments 3 Affordable housing development under construction, 32 one & two bedroom units (master building permit issued 9/5/2012). o Previous structures consisted of residential apartment units (demolition permit issued 12/ 11 /2012). o Brownfield designation request received on December 28, 2012. 0 No evidence of threat to or groundwater contamination on subject property. o Miami Dade Department of Regulatory and Economic Resources (RER) did not acknowledge any onsite contamination during permitting process. to 1 kit Ada Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/13 Todd B. Hannon 11 850 SW 2nd Avenue Vista Grande Apartments o Affordable Housing development under construction 89 one and two bedroom units(master building permit issued 8/31/2012). Previous structures consisted of residential apartment units (demolition permit issued 9/28/2012). o Brownfield designation request received on December 28, 2012. o No evidence of threat to or groundwater contamination on subject property. o Miami Dade Department of Regulatory and Economic Resources (RER) did not acknowledge any contamination issues during permitting process. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11 21 13 Todd B. Hannon Conclusion The three (3) parcels being considered for designation as brownfields do not meet Legislative Intent per Section 376.78, FS. There is no evidence that the parcels proposed for designation as brownfields were: o Abandoned or underused resulting in the inefficient use of public facilities and services, as well as land and other natural resources; or o Presented conditions of blight in the local community. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11 21 13 Todd B. Hannon Recommendation It is recommended that the applications be denied since they do not meet legislative intent and all the provisions of the Brownfields Redevelopment Act. Submitted into the public record in connection with item PH5., PH.6 & PH.7 on 11/21/1 3 Todd B. Hannon