A Case Study in Brownfield Development Ponce City Market

Transcription

1 Georgia Environmental Conference A Case Study in Brownfield Development Ponce City Market John C. Spinrad, Partner

2 Ponce City Market 2

3 Atlanta s Most Iconic Redevelopment Jamestown, the owner of Ponce City Market, is restoring 1.1 million square feet of the historic Sears, Roebuck & Company building, creating a vibrant urban centerpiece that combines: Retail and Restaurants 350,000 square feet Office Space 517,000 square feet Residential Flats 259 units 3

4 Retail and Restaurants 350,000 Square Feet Food Hall promises to be the premiere Southeast Food destination with chef-driven dine-in restaurants and grab-and-go market stalls The retail space includes men s and women s fashion, home décor and leisure retailers and sporting goods vendors 4

5 Office Space 517,000 Square Feet Ponce City Market is one of several developments in Atlanta that has been approved for the Georgia Opportunity Zone. The Opportunity allows new or existing businesses who hire at least two employees to qualify for a state tax credit of $3,500 for each new job it creates. 5

6 Residential Flats 259 Units The evolution of Ponce City Market connects residents to the best neighborhoods, offices, retail, and cultural scenery in the city by way of a pedestrian network, green city spaces and access to the already accessible and future Atlanta BeltLine trails. 6

7 History

8 Original Construction Originally constructed by Sears in 1926 on the site of the former Ponce de Leon Amusement Park, the iconic structure remains the largest brick building in the Southeast United States. For decades, the department store and regional distribution center served as a center of commerce for Atlanta, flanked by freight and trolley lines, and the Atlanta Crackers baseball field. 8

9 After Sears closed the retail store in 1979, followed by warehouse operations in the late 1980s, the City of Atlanta purchased the building for administrative offices in 1991 and partially occupied the space until mid Jamestown acquired the property in 2011 with plans to capitalize on the ideal location with a mixeduse, community focused development. 9

10 Timeline Interior Demolition October 2011 through June 2012 Parking Deck Demo February 2012 through June 2012 Exterior Shell Repair began May Phase almost complete. Brick tuck pointing, window repair/reglazing, etc. Marketing Center Grand Opening Summer 2012 Dancing Goats August 2012 Site work July 2012 through August 2013 Begins with North Avenue plaza foundations and construction Service Building Construction Began October 2012 Tenant Improvements to occur late 2013 through 2014 Suzuki School and Binders Art Supplies and Frames to open fall 2014 Main Building Construction October 2012 through middle-2014 Retail & Office Tenant Improvements to occur early 2014 and continue Residential Marketing Center Spring 2014 Residential Move In Move-ins begin fall 2014 Opening Begins fall

11 Preservation Ponce City Market reflects the authenticity of the historic structure and the surrounding neighborhoods, returning the building to its prominence as a thriving landmark in the Southeast 11

12 Preservation The redevelopment focuses on preserving the building's historic character, environmental sustainability and its connection with the community. 12

13 Challenges and Solutions

14 Environmental Team Jamestown Silverman (construction manager) Gay Construction and Subcontractors Environmental Consultants: AMEC: Assessment and site remediation NOVA: Lead paint and asbestos Environ: Risk assessment and vapor mitigation. Arnall Golden Gregory LLP 14

15 Environmental Challenges Property is built on the Ponce de Leon Spring. It is the low point on Ponce, from both directions. Regional groundwater contamination migrating onto the property from both sides of Ponce former manufacturing operations (e.g. Ford factory), numerous dry cleaners, etc. Former service station used by Sears and the City. Miscellaneous tanks, contaminated fill, dewatering issues. 15

16 Indoor Issues Asbestos present throughout the buildings Lead paint used throughout the buildings Sand Used under wood floors present in non-residential spaces Risk of vapor intrusion 16

17 Solutions Fully assess the property, inside and out Apply to the Georgia Brownfield Program to address subsurface issues, and to obtain Brownfield tax credit Abate or encapsulate lead and asbestos hundreds of workers abated ACM and LBP for months 65,000 panes of glass from the historic structure were removed, abated and restored Perform risk assessments to determine residual risk Remaining ACM, LBP & sand addressed with O&M programs Residual VI risk addressed through mitigation system 17

18 Green Benefits Thousands of tons of materials are being recycled or reused for this site. Result: The reuse alone is equivalent to saving 1,198,050,000 MBTUs total energy from the existing building (instead of constructing the same amount of new space). That equals 10,417,826 gallons of gasoline, or 12,501 trips around the equator at 30 mpg. Highly-efficient HVAC system with variable-speed, water-source heat pumps. Sub-metered electrical panels to manage and measure tenant energy use. This allows tenants to measure effects of personal efficient lighting and equipment programs; employees may also participate and measure energy conserving practices. Fully-restored, original steel-frame windows create a tight envelope and minimize heating and cooling costs. Result: Targeted energy savings above minimum code is 10% to 15%--an impressive feat in a 90-year-old building. State-of-the-art recycling stations. 18

19 Green Benefits (cont d) Waterless urinals and low-flow fixtures. Result: Saving 1,000,000 gallons annually. Energy-saving, LED lighting. Green cleaning materials and equipment Result: Healthier air and water for employees, tenants and visitors. Electric charging stations and preferred parking for low-emission vehicles. Also, bicycle valet services, along with changing facilities and showers to encourage alternative commuting options. Result: If only 10% of users arrive by bicycle or on foot, there would be 1,000+ cyclists and pedestrians clean-commuting to Ponce daily. Recaptured rainwater and reclaimed water for site irrigation. Result: 50% reduction in site water use. 19

20 For more information: John C. Spinrad, Partner Arnall Golden Gregory LLP All rights reserved. This presentation is intended to provide general information on various regulatory and legal issues. It is NOT intended to serve as legal advice or counsel on any particular situation or circumstance.