Dallas Brownfields Program Spurs
Neighborhood Revitalization
Like many large cities, Dallas experienced marked population growth in the early 1990s, expanding by 17 percent or 686,000 residents. Most of the growth occurred on the city's fringes and in the surrounding suburbs. However, the outer-ring growth drew businesses and residents from downtown, leaving many properties vacant. To stem the migration from downtown and redirect development toward declining areas, the city adopted the Dallas Plan, which emphasized promoting economic development, preserving the city's neighborhoods, and encouraging private redevelopment of vacant sites in west and south Dallastwo of the city's poorest areas. The city faced significant obstacles in its quest to spur redevelopment. Many of the vacant and abandoned sites had been used for landfills, warehousing, and a variety of industries. Some contained hazardous materials that could slow down a project and add significant costs for cleanup and subsequent construction delays. For this reason many developers were hesitant to initiate projects. To address the developers' concerns, the city made brownfields redevelopment an integral part of its downtown revitalization strategy and created the Dallas Brownfields Program (DBP) with a $200,000 Assessment Pilot grant awarded in October 1995 from the U.S. Environmental Protection Agency (EPA). The program educates developers and the public about the benefits of reclaiming brownfields. Staff members also pinpoint potential hazards through environmental site assessments (ESAs) and facilitate property redevelopment by connecting developers with the needed city, state, and federal resources for cleanup. Getting Started. "When we first started, few people knew what brownfields were," comments Anne Grimes, analyst for DBP. Through DBP's education efforts, more people understand that brownfields include not only properties with real hazards but also sites with perceived contamination that hampers redevelopment. "Now it is more of a mainstream issue which is tied very closely to economic development and housing issues," says Grimes. Once the vacant or abandoned sites are cleaned up, redevelopment for commercial, retail, and residential use attracts people and other investment into previously declining neighborhoods. The Brownfields Forum is the cornerstone of DBP's education initiative. The forum consists of more than 200 members who meet every 2 months to discuss progress on projects, identify solutions to any obstacles to redevelopment, and then determine the direction of the city's brownfield policies. The forum members include developers, environmental consultants, bankers, community residents, and partner agencies at the state and federal level and serve as a link to the community. One example of the forum's impact on the program comes from its first meeting. DBP's staff planned to catalog all the brownfield sites across the city. However, the forum members, many of whom had been involved in redevelopment projects, argued that a list of properties would deter property owners from seeking assistance because such a list would focus on the sites' potential liabilities. As a result, local brownfield designations are done voluntarily. By designating a property as a brownfield, a property owner receives a free ESA, assistance in following applicable state and federal regulations, and help navigating any barriers or obstacles stemming from the site's designation as a brownfield. Many of the property owners seeking assistance from DBP are referred through forum members. One such property is the Centennial Plaza Addition, which was referred to DBP when the project was almost derailed because of conflicting local and state regulations. The property owner initiated development of the former municipal solid waste landfill and cement company to provide for commercial and warehouse space but encountered problems when trying to install utilities on the 15-acre site where the landfill had been located. The state required doubled-sleeved piping for water delivery, whereas the city's standard was more stringent. The developer was willing to follow the local guidelines, which required site excavation, capping of the landfill walls with clay, and a plan to deal with methane gas. To resolve the conflict, DBP made the necessary connections between the developer and local and state officials so that a compromise could be reached. Now the property is the site of a Schlotzsky's Deli, a Hearthside Extended-Stay Suites hotel, and warehouse facilities that resulted in a private investment of $4 million and 28 new jobs. Seeing Results. Dallas' brownfields strategies are paying off across the city. DBP has helped spur redevelopment of 24 brownfield sites, which leveraged over $894 million in private and public investment. The city has also been designated as a brownfield showcase city by the EPA. The South Side on Lamar project, just south of downtown, is one example of the impact brownfield redevelopment is having on Dallas and its neighborhoods. The Sears, Roebuck Catalog Merchandise Center, which was built in phases starting in 1912 and ending in 1915, closed in 1993. The closing of the 17.5-acre facility, consisting of six buildings totaling 1.4 million square feet, emphasized the decline of the surrounding Cedar neighborhood. Matthews Southwest, a regional developer, looked beyond the neighborhood's decay and saw opportunity. The site's historic character and proximity to the downtown convention center and two of Dallas's light-rail train stations made the property a great location for mixed-use redevelopment. The developer also knew there were several financing options available to him because of the property's location in a historic district and a federally designated Enterprise Community and State Empowerment Zone. The developer slated the main 9-floor building for 455 residential lofts with commercial and retail uses on the main floor. DBP funded a phase I ESA to identify potential hazards on the property. The walkthrough of the site, photographs, a search of federal and state regulatory databases, and other local historical data identified lead-based paint and asbestos that could easily be mitigated during the development process. Development of the lofts began in 1999 with the first units being occupied in July 2000. The project appears to be a success. The residential occupancy rate is 85 percent, and there is continuing development on the site. Restaurants and other entertainment facilities are being added. There are also plans to transform one of the smaller warehouses into a hotel. As a result of the South Side on Lamar project, redevelopment in the Cedar neighborhood is continuing. The city has just broken ground for a new police headquarters on land donated by Matthews Southwest, which is opposite the South Side on Lamar development. As another brownfield, the DBP worked with the EPA Region VI office and the U.S. Army Corps of Engineers to conduct phase I and phase II ESAs on the police headquarters site, which was previously a Sears Auto Service Center. The phase II assessment provided a full investigation of the potential hazards including underground storage tanks on an adjacent property, residual hazards from a dry cleaner previously located on a portion of the site, waste from hydraulic hoist that could leak if not dismantled appropriately, and several containers of unknown materials identified during the phase I ESA. As a result of the two assessments, the city was required to do some mitigation, but it expects the facility to open in 2003. For more information, see: Strategies for Successful Infill Development, Northeast-Midwest Institute, 2001. Web: www.nemw.org/infillbook.htm. Or contact: Anne Grimes, Analyst, City of Dallas Economic Development Department Brownfields Program, (214) 670-3056, Web: www.dallas-edd.org/bfieldpage.htm.
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