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l m ——
.w Plan B Paper
Johnson, Natalie LaJoyce. 2006.

 

 

 

' www.Detroityes.com

 

 

 

I 3 [CI -- I *URNI ‘ m1

C

MICHIGAN STATE UNIVERSITY

REUSE OF ABANDONED INDUSTRIAL SITES
CULTURAL INDUSTRIAL SITE CONVERSIONS

A PROPOSAL SUBMITTED TO THE FACULTY ADVISOR FOR THE DIVISION OF SOCIAL SCIENCES
IN CANDIDACY FOR THE DEGREE OF MASTER OF
URBAN AND REGIONAL PLANNING AND DEVELOPMENT

SCHOOL OF URBAN PLANNING AND LANDSCAPE ARCHITECTURE
DEPARTMENT OF URBAN PLANNING AND DEVELOPMENT

BY: NATALIE LAJOYCE JOHNSON
EAST LANSING, MICHIGAN
CONVOCATION MAY 6, 2006

To Barbara, my mom, Audrey, my sister, and
in honor of Bishop W.S. Wilson, my grandfather,
thank you for planting the SEED and sharing with me THE FOUNDATION to build upon.

You all have inspired me more than you will ever know.

CONTENTS

 

 

 

 

 

 

 

INTRODUCTION 6
DEFINITION OF THE PROBLEM 9
DEFINITION OF BROWNFIELDS .................................................................................................................... 9
EFFECT OF URBAN ABANDONMENT ............................................................................................................ 9
ENVIRONMENTAL EFFECTS .................................................................................................................... 10
SOCIAL EFFECTS ................................................................................................................................... 14
GREENFIELD DEVELOPMENT 20
APPLICABILITY To BROWNFIELD DEVELOPMENT ...................................................................................... 20
CRITICAL ELEMENTS ................................................................................................................................. 24
FEDERAL FINANCING INITIA TIVES .......................................................................................................... 26

STA TE FINANCING INITIA TIVES ............................................................................................................... 29
MICHIGAN’S POTENTIAL FOR CULTURAL INDUSTRIAL SITE CONVERSIONS .................. 35
METHOD OF ANALYSIS .............................................................................................................................. 36
SUMMARY OF 2004 REPORT ............................................................................................................. 37
TORONTO, CANADA .............................................................................................................................. 37
DUISBURG, GERMANY: NOR TH LANDSCAPE PARK ............................................................................... 43
JEONGSEON CASINO RESORTIN KOREA .............................................................................................. 49
APPLICABLE CRITERIA 53
CULTURAL REUSE CRITERIA ..................................................................................................................... 53
APPLICABLE SITE: MICHIGAN CENTRAL RAILROAD STATION (MCS) 56
HISTORY ................................................................................................................................................... 56
SCALE ....................................................................................................................................................... 58
CRITERIA APPLIED TO MICHIGAN CENTRAL STATION 59
DEPRESSING AFFECT ON SURROUNDING COMMUNITY REGION ................................................................. 59
UNIQUE CULTURAL REUSE POTENTIAL ..................................................................................................... 60
UNIQUE STRUCTURE ................................................................................................................................. 63
POTENTIAL To STIMULATE OTHER DEVELOPMENT ................................................................................... 64
PUBLIC AND PRIVATE LEADERSHIP FOR THE REUSE OF THE SITE .............................................................. 65
FINDINGS & RECOMMENDATIONS 66
FINDINGS ................................................................................................................................................... 66
RECOMMENDATIONS ................................................................................................................................. 66
ANNOTATED BIBLIOGRAPHY 70

 

ILLUSTRATIONS

FIGURE 1. I EMPLOYMENT IN MANUFACTURING IN DETROIT ........................................................................ 19
FIGURE 2. I CANADA CASE STUDY: PREVIOUS SITE ...................................................................................... 38
FIGURE 3. I CANADA CASE STDUY: NURSERY ............................................................................................... 4]
FIGURE 4. I CANADA CASE STUDY: POTTERY ............................................................................................... 42
FIGURE 5. ICANADA CASE STUDY: ICE HOCKEY ........................................................................................... 43
FIGURE 6. I GERMANY STUDY: PREVIOUS SITE ............................................................................................. 47
FIGURE 7. I GERMANY CASE STUDY: BLAST FURNACE CONVERTED INTO A OPEN AIR THEATRE ................. 48
FIGURE 8. l KOREA CASE STUDY: PREVIOUS SITE ......................................................................................... 52
FIGURE 9. I KOREA CASE STUDY: CASINO AND HOTEL ................................................................................. 52
FIGURE 10. I CUTURAL REUSE CRITERIA ...................................................................................................... 53
FIGURE I 1. I IMMIGRANT ARRIVING AT MCS, C. 1912 ................................................................................. 57
FIGURE 12. l MCS: COMPARED TO NEARBY BUILDINGS ............................................................................... 59
FIGURE 13. I MCS: FRONT VIEW ................................................................................................................... 64
FIGURE I4. I MCS: SURROUNDED BY A RAZOR WIRE FENCE ........................................................................ 66

INTRODUCTION

Historically, brownfields have been recognized as barriers to the growth of urban
communities. Many abandoned industrial sites are the result of the lack of industrial
retention in the 19405.2 The lack Of industrial retention opened the gate for
manufacturers to leave the central cities to less dense areas searching for cheaper land
and labor. Former industrial sites have been abandoned as the original company either
moves elsewhere, fails at global competition, neglects to implement technological
change, or simply has outdated equipment. Retention encourages renovations,
rebuilding, and innovative transformations that sustain companies and improve the
quality of life of their cOmmunitieS.

“The lack of industrial retention caused people to migrate to the suburbs because
cities have very little space for greenery; the lack of high-quality green public space. . .is
prompting many people to leave the city. If the increasing suburbanization is to be halted
then it is Vital to make our cities healthy, versatile and attractive again. The departure of
the manufacturing industry gives us the chance to make dramatic, innovative
improvements in the living quality of the city. In this respect the incorporation of first
rate public space for the urban community is just as important as residential and office
space development.”3

The reuse of brownfield industrial sites for recreational purposes will be

beneficial for communities from an aesthetic, economic, social, and environmental

 

2 Joe Lorenz and Tom Mignery “Urban Revitalization Requires Local Groups to Learn to Identifi)
Brownfield Sites and Understand the Liability and Environmental Concerns, " Brownfield Remediation,
Environmental Protection Magazine.

3 www.creativecity.com

perspective. The goals Of reusing these Sites are to create an attractive city where people
will enjoy living, working, Spending their free time, and to create a ‘Spill over’ effect,
which increases the value of the land in surrounding neighborhoods, thus increasing
home ownership and economic development. “Brownfields Often have prime locations in
urban area[s], since they [are] often situated next to a natural transportation corridor
such as a river or a railroad line.”4 These transportation corridors tend to be highly
accessible and visible to the public; however, both the private and public sector have
shown limited interest in reusing existing contaminated industrial brownfields in these
community settings.

Today, it is important for urban planners to identify critical concepts that preserve
community activities that respond to the needs of local business investments, increase
home ownership, and provide new green cultural spaces that will enhance the urban
character in central cities. Applying these concepts will create a proactive environment
that will strengthen communities’ economic base rather than a reactive environment
which responds to volatile changes. The planning profession requires the incorporation
of predictions, preparation, and developments that change, manage and create healthy
communities. The implication of this research paper is to provide planners with an ideal
model to fight the barriers of industrial redevelopment through change: (CISC) Cultural
Industrial Site Conversions.

Cultural Industrial Site Conversions is defined as the use of abandoned

industrial sites for cultural or other recreational uses with full reverence to the site’s

 

original structure, characteristics, historical background and its recreation_al use potential.

The emphasis is on converting the Site into complex, cultural, recreational uses without

 

4 Supra note I.

altering the historical building structure. Recreational uses are numerous; therefore, the
site’s location and structure will be critical factors in determining the recreational use
chosen for the site.

Cultural Industrial Site Conversions are similar to Historical Preservation with a
slight difference. Historical Preservation’s goal is to “protect the irreplaceable places that

tell America’s story.”5

Historical Preservation drives to preserve buildings that provide
interesting and attractive surroundings while Cultural Industrial Site Conversion will
work to create interesting and attractive surroundings that were not present before.
Furthermore, Cultural Industrial Site Conversions lends itself to specific abandoned sites
and uses, while Historic Preservation’s primary purpose is to acquire historical sites
only.6

This research paper discusses the decline of the manufacturing industry in
Michigan and proposes the development of a policy to reuse contaminated industrial Sites
for cultural recreational uses. The redevelopment will be based on criteria derived from
case studies that examined why reusing contaminated industrial sites is a beneficial
strategic action for public and private partners to pursue. This innovative policy is

applicable to abandoned contaminated sites in Michigan. The Michigan Central Station

is a potential site for redevelopment.

 

5 www.nationaltrust.org

6 Ibid.

DEFINITION OF THE PROBLEM

DEFINITION OF BROWNFIELDS
Brownfields are defined by the United States Environmental Protection Agency
(EPA) as ‘abandoned, idled, or under-used industrial and commercial facilities where
expansion or redevelopment is complicated by real or perceived environmental

contamination.”

EFFECT OF URBAN ABANDONMENT

Industrial displacement has been widespread in central cities.8 Beginning in the
1940s, the level of suburban manufacturing growth exceeded that of cities. By the 19605,
both suburban and urban economies were restructuring, with continued growth of high
valued-added manufacturing in the suburbs, and decline of manufacturing in the cities,
where business services were expanding.9 By the late 19803, the location of economic
concentration for manufacturing in many suburbs was higher than their corresponding
central cities.10 These patterns still exist today. The relocation of many manufacturing
plants caused the abandonment of industrial sites and a cycle of deterioration in urban
centers throughout Michigan.

The decline of manufacturing has caused Significant problems for cities and first
ring suburbs in Michigan. One important aspect of the problems is the lack of industrial

retention. Industrial retention includes activities that respond to the needs of local

 

7 Supra note 5. See also supra note 3.
8 Ibid.

9 Ibid.

'° Ibid.

businesses, such as infrastructure improvements, safety concerns, technical assistance in
modernization, and employment training. These factors strengthen the city by preserving
its economic base, rather than responding to the threat of plant re-locations and

closings. 1'

ENVIRONMENTAL EFFECTS

Contaminated brownfield industrial sites present a number of potential dangerous
environmental impacts through the hazardous waste remaining within the site. The EPA
defines hazardous waste as “toxic, corrosive, ignitable or reactive materials These
materials are corrosive to the skin tissue or materials, unstable and can explode or release
toxic fumes or have harmful concentration of one or more toxic materials that can leak
out.”'2

Brownfield Sites have the potential to pose a threat to public health and safety in
two ways. First, nearby residents are at risk if the sites have been exposed and affected
by industrial activities or by the storage or disposal of hazardous waste; these sites
usually do not have the appropriate enclosures to keep out trespassers.l3 Secondly,
brownfields have a dangerous effect on surrounding bodies of water, which destroys our
wildlife and present psychological barriers to recreational activity.

In an effort to clean up the most polluted areas in the Great Lakes, the United

States and Canada, in Annex 2 of the Great Lakes Water Quality Agreement, committed

 

'1 Joan Fitzgerald & Nancy Green Leigh, Economic Revitalization: Cases and Strategies for Cities and
Suburbs, Sage Publications 2002. (This book offered an alternative perspective for cities to keep their
industrial market, which provides a large tax base for their communities. The lack of industrial retention
contributed to the loss of manufacturing.)
:: US. Department of Labor, Bureau of Labor Statistics (1990-20003).

Ibid.

10

to cooperate with State and Provincial Governments to ensure that Remedial Action Plans
(RAPS) are developed and implemented for all designated Areas of Concern (AOCS) in
the Great Lakes basin For example, the Detroit River is identified as a Great Lakes

‘4 “[T]he governments of Canada, the United States, Ontario and

Area Of Concern.
Michigan signed a Letter of Commitment which will re-energize the restoration and
clean-up of the Detroit River which specifies the roles and responsibilities of the four
agencies in implementing and restoring the Areas of Concern shared between Canada, the
United States, Ontario and Michigan. These roles and responsibilities include
administrative commitments, development of bi-national de-listing process, public
involvement and outreach and reporting progress to the International Joint Commission
and the public.”'5 “Nine beneficial use impairments have been identified in the Detroit
River Combined sewer overflows (C805) and municipal and industrial discharges are
major sources of contaminants within the [Area of Concems].”l6 (Emphasis added).

The reuse and redevelopment of an industrial site will decrease the potential
health risks to the surrounding residents, and provide a better land use. That land use will
also potentially provide new economic growth through new businesses, which will create
new jobs, or a park for the residents to enjoy.

In many instances, owners of the abandoned industrial sites take the chance of
contamination being determined upon the sale of the site instead Of cleaning up the Site
beforehand, because remediation of the site will cost more than what the site is worth.

Usually as a result, contamination is not known until the Site is sold or a health risk has

reared its dangerous head. Levels of contamination are determined by qualified

 

'4 W See also www.mnrg.gov/2003roundtable/detroit—report.html.
'5 Supra note 12.
‘6 Ibid.

11

engineers that assess the site and analyze ecological and human health exposures to
determined whether the concentration of chemicals on the Site pose concern. Engineering
assessments along with zoning restrictions dictate whether a site is suitable for a specific
potential use.'7 Once contamination is found, cleanup liability is applied by the federal
and state environmental laws.

“Environmental assessment should be conducted as early as possible in the
planning and proposal stages of the project for the analysis to be valuable to decision
makers and to incorporate mitigated measures into the proposed plans. Timely and
efficient environmental assessments result in more informed decision making that

”'8 There are benefits to conducting the assessments

supports sustainable development.
early on in the process; Opportunity for public participation, increased protection Of
human health, sustainable use of natural resources, reduced project cost and delays,
minimized risks of environmental disasters, and increased government accountability.”

The federal government plays a critical role in the environmental assessment
process. “The federal government determines whether it has a responsibility to ensure
that an environmental assessment is conducted... [If the federal government determines
that a responsibilities present], it contacts other federal authorities, or other responsible
parties, that may have a responsibility [in the process]... [Together, the responsible
authorities] identify how the assessment will be conducted by looking at the proposed
project, the scope of the factors that must be considered when conducting an

environmental assessment, and timelines.”20

 

'7 Supra note I l.

'8 www.ceaa-acee.gc.ca
‘9 Ibid.

2° Ibid.

12

The EPA describes three phases within the Environmental Site Assessment
(“ESA”) conducted by qualified engineer firms, which takes place when an industrial site
is purchased and sold. In Phase I, the history of the site is reviewed; “typically required
for transactions involving commercial or industrial properties or any other property
having known know history of use that may have caused recognized environmental

conditions?”

This phase identifies the owners of the site for the past 30 years or more.
It determines prior uses of the site, as well as the previous use of the adjacent sites. In
addition, the site’s regulatory background is investigated, which reveals the type of
permits that have been issued for the site. This phase allows the landowner or bank to

claim the “Innocent Landowner”2

2 defense provided by law.23

In Phase II, samples of soil and water are collected; tailored to the specific
conditions identified in Phase 1. Potential contaminants are identified, and a formal plan
for assessing the property is developed. A timeline is created to investigate the extent of
contamination on the site, and a schedule is devised for the final completion of cleanup.
Phase II ESAs cost between $20,000 and $200,000 or more.

Phase III is the actual cleanup of the brownfield site and offers three treatment
options. First, hazardous substances and contaminated materials are excavated and
disposed of in either an on-site or off-site landfill, or some can be burned. Containers,
such as barrels or drums, of hazardous waste are removed from the site. Contaminated
soil is treated or disposed. Second, containment is used to prevent the contamination Of

the site from spreading to other locations. TO accomplish this, the site may need a cap

made of asphalt or clay. Third, is treatment, which removes or remediates lingering

 

2' www.applieder.com
22 Ibid.
23 See note 20.

13

contaminates so they no longer pose a threat to human or ecological receptors. Waters,
including rivers, ponds, or underground aquifers are remediated, and the soil may be
removed, washed or incinerated. Treatment is the most expensive option, but it appears

to be the most effective.

SOCIAL EFFECTS

Brownfield industrial sites provoke negative views and impacts on the
communities where they are located. Communities that have inactive contaminated
brownfield industrial sites present economic and other social problems. Economic
problems are a result of lost tax revenues, decreased surrounding property value, and
decreased employment opportunities created by the lack of thriving operations and
investment. For some cities, this can total hundreds of thousands of dollars in wages that
might otherwise circulate through the area, bringing more economic benefits to
communities.24 As a result of the relocation of manufacturing industrial sites and
residents,. .. cities experience decay and a loss of tax revenues; the city is incapable of
maintaining infrastructure and providing civic services to the residents left behind.25
Those left behind, through their tax dollars, are left with the burden of maintaining the
infrastructure of a city that is too large for the current population.

The relocation of residents and jobs to the suburbs has one of the most detrimental
affects on cities, economic loss. Detroit suffered an enormous economic loss when its

population decreased more than half. It experienced major declines in employment and

 

24 ., . . . ..
www.nemworg, Coming C lean. Framework ofEnvrronmental and Economrc Development Concerns.

2’ See Alan Gordan, California Brownfields: Neglected, Abandoned and Ignored. Pub. NO. 98-6, March 1998.

14

income taxes and an increase in social problems. Its business district continues to suffer
from the lack of interest by real estate developers to invest in new development. Cities
usually collect 60% of their revenues from property taxes. Detroit, however, has been
left with the remaining residents and businesses property taxes which amount to 12% of
the city revenues. This is not enough money to support a city that was once built for two
million people.

The decline Of manufacturing jobs increased poverty levels in cities and promoted
Greenfield development.26 Manufacturing jobs are important to our economy because
they pay higher wages than the service industry overall. In 2001 , the average weekly
earning for manufacturing workers was $593.03 compared to $441.94 for service
workers. The difference in wages between theses two sectors has remained constant
since 1990.27 The number of hours worked and required specialized skills are both
important factors when it comes to the differences in wages paid. "Manufacturing
employment edged down in August 2005, and has declined by 110,000 over the year.”28
“Motor vehicles and parts manufacturers, the largest industry in Michigan, shed 8,000
jobs in August; since May, employment has declined by 37,000. This industry has
accounted for nearly half of all jobs lost in manufacturing over the year. Compared to the
service industry, in August, the long—term employment has lost 46,000 jobs over the

year.”29 Since 1980 to 2006, the average weekly hours worked have fluctuated

 

2" www.investmentlanddirectoryco.ukfgreenfield-land: “Land that has not been developed before. ”

2’ Supra note 3 at 2000.
28 www.5wleaming.com/economics.
2" Ibid.

 

15

tremendously as a result Of the changes in the [region and national] economy, which adds
to the comparable difference displayed in wages.30
Second, abandoned contaminated brownfield industrial sites result in a waste of
cities’ resources. Existing streets and roads, water lines, rail spurs, and other
infrastructure systems go unused; in jurisdictions with numerous brownfield sites,
billions of dollars in prior public and private investment are essentially wasted.
Brownfields are strategically placed near waterfronts and downtowns.31 Their
dilapidated structures negatively affect their surrounding sites, discourage revitalization
and hinder new real estate development projects. “One of the best ways to arrest urban
sprawl is to develop brownfields and make them productive pieces of land, where people
can live and work. By one estimate, for every one acre of redeveloped brownfields,
we save 4.5 acres of open space.”32 As manufacturing moves further out, the inner ring
suburbs will have to turn their attention to industrial retention. Therefore, a redeveloped
brownfield is central to most people, businesses, and already-built infrastructure, making

it a more efficient location both in terms of transportation, but also in terms of less

government outlay of infrastructure by reusing existing infrastructure.33

 

3° Supra note 3. See also supra note 27 at diagrams/data, “. ..It is evident that hours worked provides an
excellent indicator of key turning points in the economy. The beginning of a recession is indicated by a
decline in manufacturing hours worked. Likewise the end of all three recessions since 1980 are clearly
marked by a sharp increase in the growth rate in hours worked per employee. The recession in 2001 was
indicated by a drop-off in average hours worked beginning in the third quarter of 2000. Since then, average
hours worked in manufacturing has fluctuated with no clear trend, though the data through the first two
quarters of 2005 indicates a slowdown.”

3 Supra note 11.

32 George W. (George Walker) Bush,” Public Papers Of the Presidents of the United States, George W. Bush,” US.
G.P.O. Publishers, January II, 2002.

33 A study by the US Environmental Protection Agency of a Brownfield redevelopment project in San
Diego, California. The Brownfield site would require an estimated $1 million in new public infrastructure,
while the same project in a Greenfield site would require between $5 and $9 million in new public
infrastructure.

16

Third, contarninations from the abandoned industrial sites affect the health Of the
surrounding community. One of the biggest fears of exposure to contaminants is
cancer.34 Contaminant exposures may cause other diseases in addition to cancer such as
immune deficiencies, asthma, reproductive disorders, neurological disorders, blood and
liver disorders, and other health problems and skin conditions.35 Chemicals can be
released into the soil, water or air from spilled or leaking containers, leaking landfills or
dumps, through spraying, or released from smokestacks.36 These chemicals follow a
pathway37 or a route from the time Of release to the point of human contact. When a
substance enters the ecosystem where it is not normally found, it is called a contaminant.
Humans become exposed to these contaminants by touching, breathing, or ingesting
substances that contain the chemical.38

It is in the cities best interest to make use Of the contaminated brownfield
industrial sites. Reusing brownfields require solutions designed to attract new
businesses, retain jobs, build a stronger tax base, and make communities attractive places
to live and work. The challenge facing community members, developers, and
government Officials in urban and industrial areas is the implementation of a process that
facilitates brownfield redevelopment while ensuring that the interests of all key

stakeholders, including local residents, are met [with sustainable measures].39

 

3" www.cnvirotools.org

35 Supra note 36.

36 Ibid.

37 Ibid. A pathway is (I) The source 9how the contaminant got into the environment, (2) The transportation
media (how the contaminant runs through the environmental, (3) The exposure point (How the people cam
in contact with the contaminant, (3) The exposure route (how the contaminate entered the body), and (4)
The receptor population (how susceptible is the population to the contaminant).

’8 Ibid.; See also supra note 30.

39 A. Donati C. Rossi and CA. Brebbia, “Brownfields Sites [I 2004.

17

Loss OF MANUFACTURING IN MICHIGAN

“Michigan leads the nation in automobile manufacturing and is the home of the
Big Three automakers: General Motors Corp., DaimlerChrysler AG and Ford Motor
Company. Michigan also manufactures a wide variety of other products. These include
non-electric machinery, furniture and appliances, cereal, baby food, chemicals,
pharmaceuticals and lumber. The number of workers in manufacturing jobs totals
885,040.”40

The loss of manufacturing in Detroit, among other cities in Michigan, and
massive corporate downsizing from the 19805 to 19905, convinced individuals that the
manufacturing era had ended. Detroit manufacturing employment changes over the last
ten years are due in a large part to actions by global corporations such as General Motors,
which has a long manufacturing history in Southeastern Michigan. However, even
though the manufacturing employment section of the state remains significant, the
“retooling” of the industry has resulted in a number of abandoned industrial sites in
Michigan.

Due to major plant closings, job cuts and the change from blue collar to white
collar workers caused a great change in the country’s economy. However, manufacturing
still accounts for 15.8 percent of the nation’s employment and is still an important
component of many urban economies. For example, Detroit’s percentage Of
manufacturing employment in 1980 was 31 percent, 23 percent in 1990, and 20.8 percent

in 2000.41 (See Figure 1.1.)

 

‘0 www.michigangov

4' Supra note 7, www.nationaltrust.org.

 

18

Major plant closing also caused displacement of jobs for residents of Detroit.
Manufacturers purchased land in the suburbs for new development of industrial sites,
which we refer to as Greenfield Development; the fatal attraction of manufacturing to less

density and cheaper land.

 

PERCENTAGE OF EMPLOYMENT IN MANUFACTURING IN
DETROIT

 

 

 

 

35%‘I '

 

 

 

 

  
  

30%~ '
PERCENTAGE

OF
0 d l
EMPLOYMENT 25 /o

20°/¢r

 

 

 

  
  
  
  
 

 

I II 96 of Employment in Ianufactunng I

 

 

15%— I
10% :
5%
0%-

 

 

 

1980 1990 2000

 

 

 

 

Figure 1. 1
YEAR OF MANUFACTURE EMPLOYMENT

 

 

 

l9

GREENFIELD DEVELOPMENT

APPLICABILITY TO BROWNFIELD DEVELOPMENT

Maj or impediments to the redevelopment of abandoned contaminated industrial
sites are the direct cost of cleanup of hazardous materials and the potential liability
associated with environmental contamination. The regulations and legal actions that
surround brownfield redevelopment, in many ways may have increased the barriers to its
success. This has resulted from several federal and state initiated innovative policies and
funding to overcome these barriers.42 The federal government has been working with the
states to create memorandums of agreement (MOAS). “A Superfund Memorandum
Agreement (SMOA) or (MOA) can be negotiated between a state and the EPA, making
the state and EPA partners in the redevelopment process.”43

The legal issues surrounding brownfields are complicated and manifold. Multiple
parties, such as past and present owners, can be held liable for any legal liability
associated with contaminants. However, the government can interject itself to assess and
resolve liability through Environmental Liability Releases. An environmental liability
release, is a benefit (concession) granted by Federal, State, and/or local governments to
owners or Operators of facilities or businesses (including commercial real estate
properties) that frees them from all or part of responsibility for environmental cleanup

costs under Federal, State, and/or local laws.44 These liability releases may be structured

in advance for prospective purchasers of properties or negotiated between the public

 

’2 See supra note 15.
‘3 Ibid.
’4 Supra note 33.

20

sector and private owners/developers with specified conditions delineating the extent of
liability relief granted and the degree of private contribution to any planned and/or
unanticipated cleanup effort.45 The most common types of environmental liability
releases Offered by State governments include covenants-not-tO-sue, no-further-action

6 The problem with the liability relief is that it does

letters, and certificates-Of-release.4
not provide complete exoneration from liability when the property changes hands, which
subjects the landowners to liability after transfer of title has taken place.

The primary federal law affecting brownfield redevelopment is the
Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”
or Superfund). CERCLA is the most significant federal statute guiding public officials
and private parties through the process of buying and purchasing properties with site
contamination. The Superfund deals with past dumping of hazardous materials and the
toxic legacy of sites that pose grave threats to public health and the environment.
CERCLA is perhaps the most influential environmental law affecting whether and how
contaminated sites are cleaned and redeveloped. These aspects of the law should be of
particular interest to local economic development practitioners.

The initial intent of CERCLA was to promote cleanup of contaminated properties
and to provide opportunities for the EPA to recover cleanup costs from all potentially
responsible parties. CERCLA classified potential responsible parties as past and present
property owners, lending institutions, and developers even if they did not contribute to

the contamination.47 Due to fear of liability, potential parties are vigilant of taking title,

and financial institutions are hesitant to lend on properties that might have previously

 

‘5 Ibid.
4° Ibid.
’7 Supra note 6.

21

been contaminated. The concept of liability applied in CERCLA under its common law
meaning of “strict” liability (i.e. not requiring any demonstration of wrong-doing on the
part of the polluter, showing evidence of pollution only) was created by lawmakers to
Offer several advantages to the government as it sought ways to control and reduce
discharges Of hazardous substances into the environment.48 “Bankers and insurers were
drafted into the Superfund’s liability scheme, receiving protection from liability when
companies ‘Operate according to environmental laws and avoid enforcement and liability
expenses. (Emphasis added).

669'

However, there are two exceptions to CERCLA. First, is the Innocent
landowners’ defense,” which releases property owners from liability, as long as certain
requirements are met. The second exception is that property owners must not have
known or had any reason to know of any contamination present on the site.49

“In 1977, Congress enacted the Community Reinvestment Act (CRA) to require
banks, thrifis, and other lenders to make capital available in low and moderate-income
urban neighborhoods, thereby boosting the nation’s efforts to stabilize these declining
areas.”50 Due to this lending requirement the second exception was put in place to
accommodate financiers’ conventional underwriting and lending practices. The second
exception, the “secured creditor exception,” covers lending institutions. Lending
institutions have very limited involvement in the operation of a property. The key here

is that lending institutions will not be liable if they maintain a security interest in the

property only. The theory behind this is that lenders’ participation is encouraged to help

 

’8 Supra note 1 l.
‘9 Ibid.
5" Ibid.

22

further the public interest to address the problem of pollution and clean up site
contamination.5 ‘

Lenders and developers tend to avoid getting involved in projects with companies
and properties with environment risks. The size and financial resources of the current
owner now influence a site’s marketability and reuse potential. For example, prospective
purchasers may buy an industrial site from a large, thriving corporation that can afford
the necessary site remediation. Therefore, if the EPA sues for cleanup, the new owner
can go after the seller to recover remediation costs, or the EPA can go afier them
directly.52 Allocation of responsibility and cleanup cost should be clear in the purchase
and sale agreement.

States have the authority to manage state level programs in accordance with
federal law. “Individual states manage their federal programs as long as the state proves
that their program is at least as stringent as the federal program in order for them to be
permitted to manage a state level program. In many cases, state level programs are more
stringent than the federal program.”53 For example, Michigan has implemented a liability
reform, which unlike federal law does not impose liability on a property owner merely
because Of property ownership; liability is imposed upon those causing the release of
contamination. Liability for remediation is imposed generally only on those who own or
operate a facility, which is or was responsible for an activity causing the contamination at

the facility.“

 

5' Supra note 11.

52 Supra note 1 l.

53 Supra note 33.

5" D.S. Card and RH. Kummler, “Michigan Brownfield Regulatory Review, ” Hazardous Waste
Management Program, Wayne State University 1999.

23

The state programs mentioned above are useful and necessary to make Phase 1 of
the Environmental Site Assessment more efficient by making the site history more
accessible. Shielding property owners from liability is a cooperative initiative.

While significant public policy has been implemented to limit the liability of
those redeveloping a contaminated brownfield industrial site, the added cost Of cleanup
and reconstruction are still impediments to the process of redevelopment and reuse. The
next section will examine financial federal and state programs intended to reduce the

financial impediment.

CRITICAL ELEMENTS

Brownfield redevelopment has been replaced by farmland conversions, i.e.
Greenfield Development. “Greenfields include undeveloped land, restored land,
agricultural properties, and parks. These areas have high ecological, social and
community values.”55 Greenfield development is critical because it destroys the health
and viability of inner cities with its direct effect on economic development. On the other
hand, some believe it is beneficial because it provides an alternative for residents and
businesses to the busy, fast-paced city life. Most people believe the suburbs or rural
areas are perfect to raise a family because they appear to be safer and more community
oriented. Businesses prefer greenfield development because it offers more space at a
much lower price than in urban areas. “Rather than reus[ing] former urban industrial
sites, businesses instead moved to suburban or rural ‘greenfields,’ which carry fewer

perceived risks to development.”56 AS a result, the migration of manufacturers to the

 

5’ www.sustainableschools.dgs.ca.gov
5‘5 www.cpagov/brownfiled/other_bf_related_laws.htm

24

suburbs physically and economically destroyed urban neighborhoods by draining cities of
their middle-class tax base. (See Previous Section: Definition of the Problem).

Greenfield development increased sprawl by encouraging developers to build out,
not up. Traffic commutes have become longer and more congested for city residents and
those that commute there to work and spend their leisure time. “Transportation policies
have consistently favored suburban migration. For most of the 20th century, all levels of
govemment have funneled money into highway construction."57 Sprawl (unplanned
development of undeveloped land) resulted from these policy decisions. “Urban Sprawl
is a synonym for Suburbanization. the geographical expansion of urban areas at or
beyond the fringes of the inner city."58 “In an effort to preserve the character of
Michigan, the 26-member council was charged with addressing the trends, causes, and
consequences of unmanaged growth and development in Michigan. The council provided
more than 150 recommendations to the governor and the legislature designed to minimize
the impact of current land use trends on Michigan's environment and economy.”59 As it
relates to this topic, “creating vibrant hip cities that combine the best of the Old with the
new redeveloped buildings promote a healthy balanced viable environment.”60

Brownfield redevelopment is an alternative to greenfield development.6|
“Redevelopment of current buildings provides the benefits of reusing all or part of Old
buildings, thus saving money on labor, materials, improvements to parking areas, and all

other unused existing infrastructure.”62

 

57 Ibid.

’8 www.wikipcdia.org

59 www.michiganIanduseoru finalrcport.
6° Ibid.

6' See note 17.

‘2 Ibid.

 

25

FEDERAL FINANCING INITIATIVES

Successful financing of environmental cleanups are Often the result of leveraging

resources at the Federal and State level and the knowledge of funding available.

63

Federal funding mechanisms are:

Block/formula Grants: payments made by a Federal Government agency
to States, counties, cities, or towns according to a statute-based or
regulation-based formula. The allocation formula typically is based on the
State's or other recipient government's population. Some block/formula
grant programs require the government receiving the grant to allow
residents to be substantially involved in developing plans with grant funds.

Direct Loans: loans from a Federal Government agency to a borrower for
a specific time period, with a reasonable expectation of repayment. Terms
of the loan may or may not require the borrower to make interest

payments.

Guaranteed/insured loans: financial assistance from a Federal
Government agency in which the agency indemnifies a private lender
against the possibility that a borrower will not repay the loan.

Insurance: financial assistance provided by a Federal Government agency
to ensure reimbursement for any losses that may result from specified
occurrences (such as a flood). Insurance coverage may be provided
directly by a Federal Government agency or through a private insurance
company.

Project Grants: payments made by a Federal Government agency to
another government such as a State, county, or city or a private
organization for a Specific project or the delivery of a Specific service or
product. Project grants include, but are not limited to, demonstration
grants, planning grants, technical assistance grants, and construction
grants.

Sale, Exchange, or Donation of Property and Goods: an arrangement in
which a Federal agency provides for the sale, exchange, or donation of
Federal property or other goods including land, buildings, equipment,
food, and drugs.

 

63 www.nemw.org

26

Superfund Trust Fund: the Superfund Trust Fund, also known as the
Hazardous Substance Response Trust Fund, was established in 1990 to
pay for cleanup and enforcement activities at waste sites. Superfimd Trust
Fund monies are also being used to firnd brownfield national
demonstration pilots as part of US EPA's Brownfields Economic
Redevelopment Initiative. This dedicated trust fund has historically been
financed primarily by petroleum excise taxes, chemical feedstock excise
taxes, and environmental income taxes. The fund has also received monies
through cost recoveries from parties determined responsible for
contaminating particular sites, penalties, income taxes, and interest
income.

Superfund Program: The Superfund Program has cleanup activities,
short-term removal actions and/or long-term remedial actions, underway
or planned for the approximately 1300 seriously contaminated sites on US
EPA's National Priority List. Actions at Orphan Sites, where no
responsible party can be identified, are funded by the Trust Fund. The
Trust Fund also funds actions begun at sites with responsible parties but
prior to a final determination and acceptance of liability. USEPA always
tries to identify those responsible for contaminating a site and then to
make them pay for its cleanup. These responsible parties may include the
Site’s past and current owner(s) and operator(s), the original hazardous
waste generator, and the transporters of hazardous waste to the site.

The Federal sources of funds include the Environmental Protection Agency,
Department of Agriculture, Department of Commerce, Department of Defense,
Department of Energy, Department of Housing and Development, Department of
Interior, and the Department of Transportation.

For example, the US. Department of Housing and Urban Development can play a
critical role in local economic development by using their resources to support a wide
variety of financial assistance programs such as loans, loan guarantees, and grants.64
Community Development Block Grants (CDBG), a federal program controlled by local
governments, provides direct funding for activities that support the reuse of industrial
sites. These resources can be used to fund rehabilitation of privately owned buildings

and sites, covering specific costs related to labor, materials, construction, renovation,

 

6’ Supra note 1 l.

27

entrepreneurial counseling, and preparation of work specifications, loan processing, and

site inspections. This grant is “well suited for the ‘new generation’ Of industrial site reuse

projects that require a much stronger focus on environmental concerns.”65
Projects focused on remediating environmental contamination must meet

at least one of the program’s national objectives:

020 Providing benefit to low and moderate-income persons;

.0

.0 Aiding in the elimination or prevention of slums or blight; or
03° Meeting other urgent community needs.

This program was changed to increase the flexibility at the local level to make it more
sufficient for specific problems delaying site reuse activities unique to communities.

Section 108 Loan Guarantees enables local governments to finance physical and
economic development projects too large for front-end financing with single year CDBG
grants. Localities issue debentures to cover the cost of such projects, pledging their
future CDBG grants as collateral. Local governments can use their annual CDBG grants
to pay Off the loan; however some use income generated from the development projects
for some or all of the payments. Activities under this loan must meet the same
requirements under the CDBG program. These funds have been used for property
acquisition, clearance or rehabilitation of obsolete structures, and constructions Of public
improvements. Brownfields are included as a permitted use, specifically for removing
hazardous waste and toxic contaminants.66

Empowerment Zones (EZS) and Enterprise Communities (ECs) are geographic

areas targeted to receive special federal treatment and incentives in order that private

 

65 Ibid.
6" Supra note I 1.

28

investment and other economic activity might be attracted to them. Designation brings
several benefits to the selected areas, including $100 million in social service grants for
each of the urban EZS. In addition, these communities can compete for as much as $2.5
billion in new tax incentive to induce investment in the targeted distressed areas. Theses
incentives include:67
03° New tax-exempt facility bonds, available in both E28 and ECs, that
provide business up to $3 million to finance construction of new facilities

or expansion of existing ones, and to acquire equipment and machinery;

’0

’0

Employer wage credits for companies located in EZS of up to $3,000 per
year per employee; these credits Offset the salaries and training costs for
employees who both work and live in the zone; and
03° A $20,000 increase is permitted Section 179 expensing to allow EZ-based
companies to take greater depreciation deductions for equipment in the
year it’s acquired (bringing the annual total up to $37,500).
Applicants are required to explain how they will use these funds to confront economic

distress and unemployment.

STATE FINANCING INITIATIVES

Today, brownfield redevelopment needs are very diverse; states believe the
answer is a combination of sources.‘58 States have recognized the critical role that
financing initiatives play in resolving brownfield reuse issues and have started financing

initiatives that focus on brownfield reuse cases. These funds are focused on small to mid-

 

“ Ibid.
6" Supra note 1 l.

29

size companies that go through state voluntary cleanup programs. For example, Ohio
firms can receive a ten-year state tax abatement for increase in property values, and
localities can offer an additional ten-year waiver Ohio also plans to make low-interest
loans available for brownfield uses.69 The Taxpayer Relief Act was originally signed into
law in August 197770, but was amended in December 2000". This law included a tax
incentive to spur the cleanup and redevelopment of brownfields in distressed urban and
rural areas. “It intended to remove many of the financial disincentives preventing the
cleanup and reuse of [contaminated abandoned industrial sites]?72 Federal tax law
requires expenditures that increase the value of or extend the useful life of property to be
capitalized. However, “under the Brownfield Tax Incentive, environmental cleanup costs
are fully deductible in the year they are incurred. The government estimates that while
the tax incentive costs approximately $300 million in annual tax revenue, the tax
incentive is expected to leverage $3.4 billion in private investment and return 8,000
brownfields to productive use. This ability to spur investment in blighted properties and
revitalize communities makes the tax incentive a valuable tool for restoring

brownfields.”73

State funding initiatives can be useful in the completion of redevelopment of
brownfields. Although, redevelopment of brownfields is perceived as a risky investment,
a joint venture with the state increases leverage for developers and encourages positive
results. The programs listed in this section are most useful with brownfield

redevelopment.

 

69 Ibid.

7° Brownfield Tax Incentive, Public Law 105-304 Tax Payer Relief Act
7' Public Law 106-554, Appendix G. HR. 5662.

72 www.cpagov/brownfieldsfactsheet

73 Supra note 74.

30

The state funding programs are”:

Industrial Development Funds: special funds established by state and
local governments for the purpose of improving real estate properties in
order to make them suitable for industrial development. These funds are
economic development tools that governments use to attract or retain
industry. Industrial Development Funds may be structured as direct pass-
through funds or as special purpose revolving funds. They draw funding
through a variety of mechanisms including special property and other
taxes, industrial development bonds, unappropriated surpluses in the
controlling government's budget, and the proceeds from the sale of real
estate and other property.

Revolving Funds: a source of money that provides loans to specified
parties. The parties reimburse the fund for the loan amount plus interest.
Through payback of principle and interest, the fund is able to maintain the
same or increased levels of funding. Revolving funds are typically
developed through revenue disbursement from a trust fund.

State Grants: can provide communities with the funding needed for
cleanup and development incentive packages within brownfield programs.
Also, grants can be made from state trust funds for local establishment of
revolving funds.

Tax Abatements: Tax abatement is a temporary moratorium on charging
the usual tax rate on a new investment. It may take the form of a full or
partial exemption from taxes such as tangible personal property and/or real
estate. The exemption will only be in effect for a specific period of time
such as five or ten years. The tax abatement granted might be restricted to
new development in special designated areas such as empowerment
zone/enterprise community, or it may be targeted on a case-by-case basis
to particularly desirable individual development. Tax abatements are
individually tailored regarding time and scope to allow the State or local
government to calculate the exact cost of the tax change, and thus, the
exact tax benefit Offered as well. Tax abatements can make otherwise
uneconomical projects attractive to property owners, developers, and
financial supporters. These abatements can often provide a substantial
incentive for all parties to participate in particular projects. If the new
development is properly structured and successful, the community tax
base will grow at a rate, and to a size, that more than Offsets the loss of
taxes due to the abatement.

 

7" Supra note 66.

31

0 Tax Incentives: include a wide variety of mechanisms used to encourage
redevelopment of brownfields through use of public taxation tools. These
often take the form of tax credits or tax deferrals. By crediting or deferring
taxes to be paid on property, income, or sales, governments can provide
businesses with the incentives needed to create redevelopment
opportunities for brownfields.

0 Tax Increment Financing: is created through local government's
assessment of property values. Special assessments are made on properties
that are expected to accrue particular benefits from a general
improvement, or from environmental activity, such as a cleanup. The
incremental difference in tax revenues between the original assessment
rate and the new, higher assessed rate is then used to finance the
improvement activity.

0 Trust Funds: special accounts developed to receive and disburse revenues
from taxes and/or fees for dedicated purposes. These funds differ from
revolving funds in that they do not maintain firnding capacity through
payback of loans, but through new injections of revenue through taxes
and/or fees.

Brownfield sites in urban areas are inherently dangerous investments. One
obvious concern is the redevelopment almost never produces enough returns to meet or
exceed remediation cost; therefore, grants are greatly coveted for industrial sites in urban
areas. Grants will assist current owners to remediate their site without losing an
enormous investment. Listed below are “samples of state assisted programs that provide
for areas where these sites are typically found:”75

'3' Connecticut’s Urban Sites Remediation Action Program was capitalized with

$30.5 million in state bond funds for assessment and remediation of sites in

distressed municipalities and targeted investment communities.

 

7’ Ibid.

32

O

0.0 Massachusetts’ Brownfield Redevelopment Fund has focused $30 million of
funds for low-interest loans and grants for site assessment and cleanup in

economically distressed areas.

.0

.0 Ohio’s Urban and Rural Initiative Grant Program provides grants to
municipalities or nonprofit organizations in distressed areas.

Loan programs will put the state in the position of a commercial lender by
lending money directly to the consumers. However, the state has to be willing to take
some risk. On the other hand, the state will have a large security interest in the success of
the redevelopment. The state may want to be more involved in the project than a lending
institution, which will place more responsibility on the state to ensure stable economic
development specifically of abandoned industrial sites.

Loan guarantees will allow the state to minimize various risks for financial
institutions and for themselves. Loan guarantees are based on the state’s pledge to cover
most or all of the outstanding balance of a loan made by a private lending institution in
the event a borrower defaults. For companies, loan guarantees help increase the
availability of capital and Often reduce the cost Of borrowing. For lenders, they lower the
fiduciary risks of lending.76

The Michigan’s Funding Mechanisms implemented the Environmental Response
Division (ERD), which administers the Michigan Department of Environmental Quality
(MDEQ) programs that involve the cleanup and redevelopment of contaminated sites.
Funding assistance for Brownfield redevelopment is available from a number of state

sources including:77

 

76 Supra note 6.
77 Supra note 28.

33

0.0 Site Assessment Grants: The Department of Environmental Protection’s Site
Assessment Grant (SAG) Program offers financial assistance to small
businesses to help them find ways to reduce pollution, wastes, energy use and
related costs. 78

v Site Reclamation Program: seeks to reclaim blighted property, including
land previously used for mining, commercial, or industrial purposes, and to
convert that property to useful recreational, residential or commercial

purposes.79

0’ Clean Michigan Initiative (CMI): The Clean Michigan Initiative (CMI) is a
$675 million bond approved by Michigan voters on November 3, 1998 to
improve and protect Michigan's water resources.80

.0 Waterfront Redevelopment Grant Program: Brownfields Assessment
Grants that fund environmental site assessment work.81

'20 The Cleanup and Redevelopment Authorities: encourages redevelopment
of environmentally contaminated property by providing financial incentives
for both the cleanup and redevelopment.8

02° Single Business Tax Brownfield Credit (SBT): Eligible Tax payers may
claim a Michigan Single Tax Brownfield Credit under the SBT Act for a
percentage of certain eligible investment in a brownfield development project.

0.0 Coastal Management Program: The National Coastal Management Program
is a federal-state partnership dedicated to comprehensive management of the
nation’s coastal resources, ensuring their protection for future generations
while balancing competing national economic, cultural and environmental
interests. 83

0.0 Michigan Transportation Economic Development Fund: Michigan
legislation provides an exceptionally strong program to encourage solutions to
historical contamination while protecting health and the environment.

0.0 Other sources.

Brownfield redevelopment is not expressly excluded from the funding mechanisms

above; therefore, these funds can be used for Cultural Industrial Site Conversions.

 

7" Supra note 39.

79 Supra note 79.

8° Supra note 39.
81www.mciauth.com#walerfront redevelopment
82 Supra note 39

83 www.0crm.nos.noaa.gov/czm/

 

 

34

MICHIGAN’S POTENTIAL FOR CULTURAL INDUSTRIAL SITE
CONVERSIONS

In spite of numerous public acts limiting the liability Of new landowners of
previously contaminated industrial sites and the availability of a variety of public
financial incentives to differ the cost of rehabilitation, hundreds of abandoned sites
continue to depress the economies of the older industrial communities in Michigan.
According to The Detroit News, “in Detroit Metropolitan area alone there is an estimated
3,000 Brownfields existing on tens of thousands of acres of land.”84

Other forces maybe at work that inhibit the redevelopment and reuse of key
industrial Sites, but what portrays the greatest impediment to reuse is a “weak”
manufacturing market in the US.

International competition coupled with rapidly changing industrial technology has
forever changed the nature Of the manufacturing enterprises. The potential for Michigan
to attract or create the sheer number of private manufacturing or industrial enterprises
that might reuse the vast number of abandoned sites seems highly unlikely in today’s
global economy. This obligates the public to play a greater role when public health and
safety is at risk. The environmental, cultural, and historic nature of the site offers unique
advantages, such as the potential to stimulate further redevelopment in communities
where the opportunity to leverage unique public and private resources may exist. Given
this scenario, what Options does a state or locality have to “green” its abandoned
industrial jungles? This is particularly critical for these sites that are highly visible and

have a depressing effect on the larger community.

 

3’ Supra note 2.

35

In scattered locations across the world, communities are developing a unique and
innovative reuse strategy for redevelopment of specific industrial sites. “Greening” of
abandoned industrial Sites has a number of potential benefits to a broad set of public and
private institutions. The following section introduces selected case studies of this

innovative strategy of industrial reuse.

METHOD OF ANALYSIS

The Michigan State University Urban Policy Team composed of graduate
students under the guidance of Dr. Rex LaMore, under took a fifteen week analysis of
existing green industrial reuse in the fall Of 2004. The team identified cases with
brownfield industrial sites that underwent redevelopment for recreation uses that
preserved the original structure. Reuse of the industrial site is critical when the nature of
the site Offers unique advantages. The method of analysis included examining a group of
case studies according to their:

03° Previous uses,
02° Size of the parcels,
0.0 Character of the new structure,
0.0 Surrounding neighborhoods,
.0 Accessibility or ease of access,
03° Infrastructure,
02° Number of jobs created from new development,

.0 Nature Of the partnership that initiated redevelopment,

.0 Cost of redevelopment,

36

03° Economic impacts,
02° Implications, and

02° Sources of information (contact information).
The case studies included are 1) Toronto, Canada, 3) Duisburg, Germany, and 4)
Jeongseon, Korea. Although all the case studies are different, our research produced a
useful framework to determine appropriate sites for cultural industrial Site conversions.85
This paper takes the research a step further and applies the criteria to an abandoned
industrial site in Detroit, Michigan to determine the feasibility of a cultural industrial site

conversion on the site. Examining a Specific site under the criteria will provide a

template for planners to determine appropriate sites for this concept in the future.

SUMMARY OF 2004 REPORT
TORONTO, CANADA
1. Previous Uses

As an estuary in the Don River where silt would collect, aboriginal communities
likely used the Brickworks site for centuries as a source for clay. In more recent
history, from 1889 to 1984, the Brickworks site was one of Canada’s pre-eminent
brickyards. Today, the Brickworks represent the evolution of one of Toronto’s

oldest industrial sites, from a brownfield to a natural environment park.

The Don Valley Pressed Brickworks Company was established in 1889. The
plant produced a wider variety Of bricks and kiln fired clay products than any
other brick plant in Ontario. The present Brickworks complex building dates

back to this period and documents the historical manufacturing process.

 

85 Report available at www.ced p.111 sued II.

37

Toronto’s skyline owes much to the Don Valley Brickworks. Many of the city’s
most prestigious buildings have been made from bricks manufactured at the
Brickworks, such as the Hart House, Trinity College, Convocation Hall, Casa
Lorna, Old City Hall, Queen’s Park, Osgoode Hall and Massey Hall. All were
made from shale and clay extracted from the quarry and manufactured at the Don

Valley Brickworks.

2. Size of Parcels

0 Location: 550 Bayview Avenue, on the west side, just north of the Bloor
Street Bridge

Site Area: 16.4 Hectares/ 40.7 acres

Zoning: Public Open Space

Total Number Of Buildings: 15

Total Floor Space: Approximately 250,000 square feet

 

Figure 2. 1 Previous Site

3. Character of the New Structure

This site doesn’t have any new structures; previous buildings were used for

redevelopment.

4. Surrounding Neighborhoods

Don Valley Brickworks is located in a suburban area of the city of Toronto. The

surrounding areas of the Brickworks Site are parks and river areas.

38

5. Accessibility

0 Parking: Approximately 300 cars, 9 buses

0 Transportation and Access: 200 m north of Don Valley Parkway’s
Bloor Street exit, which allows car access from the Bayview
Extension. There is walking trail access to Rosedale and Moore Park.

NO public transportation to the Site. The nearest subway station is
Castle Frank.

6. Infrastructure

Most infrastructures already existed. However, clean up was required because of
the brownfield status of the site and the plans to redevelop the site into a public

space.

7. Number of Jobs Created from New Development

When the Don Valley site was redeveloped, many jobs were created, but the
details of the jobs created are not available. Evergreen Foundation is mainly

operated with volunteers.

8. Nature of the Partnerships that Initiated Redevelopment

This project addresses a range of social and environmental challenges. It will
help charitable, non-profit organizations and socially conscious private enterprises
working on these issues expand their reach and impact by providing an innovative

program and office space at very competitive rates.

Cities need places that inspire, captivate our imaginations and build natural,
social, and economic capital as well. Toronto needs such places. As cities
grapple with a range of challenges (poor air and water quality, degraded natural
environments, deteriorating public infrastructure) they must also create places that
Offer solutions. Solutions need the strength of diverse partners, the energy of our
collective creativity, and the tremendous potential Of volunteers. Toronto needs

real, practical solutions to make it a more vibrant, livable city.

39

As public concerns over environmental quality continue, our increasingly fast-
paced lifestyles and the lack of meaningfirl community life continue to rise, the
need for health, environmental and cultural organizations to take a greater
collaborative approach to tackling problems becomes more pronounced.
Evergreen has recognized the tremendous opportunities for developing an
innovative mixed-use program facility modeled on the themes of nature, cultural
and community for organizations that have a strong experiential focus to their
mission delivery. These opportunities are greatly enhanced by its location at the
Don Valley Brickworks.

Because of the above reasons, the city of Toronto decided to redevelop the
Brickworks Site, and following the organizations helped the redevelopment
project.

Toronto and Region Conservation (TRCA)
Bridgepoint Health

Gardiner Museum of Ceramic Art

Jamie Kennedy Kitchens

Health Knowledge Lab, Centre for Effective Practice, University of
Toronto

Health Knowledge Works

Outward Bound Canada

ReCreate, ReUse Centre for the Creative Arts
Toronto District School Board (TDSB)
YMCA of Greater Toronto

After the redevelopment project, the 16.5-hectare land became publicly owned
and was designated a Natural and Industrial Heritage Site. The restoration of the
Brickworks began in 1995, led by the City of Toronto and the Metropolitan
Toronto and Region Conservation Authority. Planting began in 1997 and the site

was Officially opened as a park in the fall of that year.

9. Cost of Redevelopment

The remediation cost Of Don Valley project was $80,000 (U .8. Currency) and the
capital cost was $500,000. About 45 percent of capital is from the Toronto and
Region Conservation (TRCA) and the city of Toronto provided 5 percent of the

40

capital. The remaining 50 percent of the capital was donated by individuals, and
the EVERGREEN Foundation. Also, some organizations in the community
helped the redevelopment plan with funds and volunteers. Currently, the
EVERGREEN Foundation is launching a $30 million dollar capital campaign.

10. Economic Impacts and Implementation

Don Valley Brickworks doesn’t pursue economic benefit but the improvement of
citizen’s welfare. Don Valley Brickworks comprises industrial buildings

representing the history of Brickworks, and surrounding park land.

Don Valley Brickworks provides the following programs:

EveLgreen Gardens: a 100,000 square feet native plant nursery and market
garden. Using urban-Sized demonstration gardens, the nursery will teach home
gardeners how to create naturalized, pesticide-free gardens, educating them about
ecological landscaping and supplying them with the tools and materials to
improve their gardening Skills. Plants propagated at Evergreen Gardens will be

sold to gardeners along with environmentally appropriate garden supplies.

 

Figure 3. 1 Nursery

Restayrant and ‘Café on the Green’: serves organic regional and local produce
including food grown in demonstration gardens on-site. Food preparation and the

sharing of meals will be treated with respect as demonstrated in the growing ‘slow

41

— food’ movement. An organic farmers’ market will be Offered throughout the

spring, summer, and fall.

Cultural Classes: children’s art programs, ceramic classes, and a sculpture

garden.

 

Figure 4. 1 Pottery

Youth Leadership: summer camp programs on site such as woodworking studies,
skills training for youth, the hiring of at-risk youth at Evergreen Gardens; and
urban-based leadership programming. Other programs include children’s
teaching gardens, food growing gardens, heritage, geological and environmental
tours, demonstration gardens and a training venue for teachers, parents and

community organizers.

Winter Activities: outdoor ice-skating and hockey.

42

 

 

 

 

Figure 5. llce Hockey

Health and Wellness: program offered as occupational therapy for long-term care

patients. This program engages patients in gardening, food growing, ceramic

programs.

DUISBURG, GERMANY: NORTH LANDSCAPE PARK

The Duisburg North Landscape Park is located in the northern part of Duisburg,
Germany. The former site was 20 Hectares. The city of Duisburg has 515,000 residents
and lies at the edge Of the conurbation on the Rhine and Ruhr — consisting of 17 cities —
with more than 5 million residents. For more than 20 years the city Of Duisburg has been
undergoing profound structural change; more than 120,000 jobs were lost due to the
shrinkage of the coal and steel industry. The redevelopment Of Duisburg North
Landscape Park Project started in 1989 within the context of the “IBA Emscher Park
1989 — 1999”. This international building exhibition was held in 1998 and led by the

state government (Land of North Rhine: Westphalia) as an attempt to take a different path

43

for the development of the region with a legacy of contaminated land and a redundant

workforce.86

1. Previous Uses

The Duisburg North Landscape Park was a site of iron works including pits as
well as a coking plant of the company, Thyssen. Industrial use of the site was
abandoned in several steps between 1965 (coking plant) and 1984 (blast-firmace
plant).

2. Size of Parcel: 2 million square meters (494 acres, over 200 hectares).
3. Character Of the New Structure

The concept of the redevelopment project, which was proposed by the landscape
architecture Professor, Peter Latz, was not to demolish the most important Old
plants, but to integrate them in the new park layout. There are intensively usable
open spaces, trend sport areas laid out especially for juveniles, and natural retreat
areas for many rare species of animals and plants. In addition, the buildings in the
park were redeveloped for new uses. For example, the Old administration
building is used as a hotel and the blast furnace was converted to an open-air

theater.

4. Surrounding Neighborhoods

100,000 people were living in north Duisburg situated between two densely
populated areas of the city.

5. Accessibility: Not Available
6. Infrastructure: Not Available

7. Number of jobs created from new development: Approximately 300.87

 

8" Ingrid Helsing Almaas, Regenerating the Ruhr — IBA Emscher Park project for the regeneration of
Germany’s Ruhr region, 1999.

44

8. Nature of the Partnership that initiated redevelopment:

The Duisburg brownfield redevelopment project was implemented in the context
of the International Building Exhibition, Emscher Park 1989 — 1999, a
collaboration Of IBA (International Bauaustellung), IG Nordpark, Society for
industrial Culture and the Parks Department of Duisberg City Council, and
Thyssen Entsorgungstechnik, a waste technology company.

9. Cost Of redevelopment

The cost of redevelopment was DM 100 million (about 58.5 million dollars). The
IBA administered no project funds of its own. All project fiinds came from
existing public and private funding available through regional, national and inter —

European subsidy programs.88

10. Economic Impact

The Duisburg brownfield redevelopment project achieved significant cost savings
with overall expenditure of DM 100 million (approx. 58.5 million dollars). The
potential demolition costs, without remediation of contaminated soils and re-

design, were estimated at approximately DM 80 (approx.100 million).

1 1. Implications

Psychological Impacts

Even if there is scientifically well-founded knowledge about contaminated site
safeguarding, it is obviously not sufficient to completely overcome the
psychological barrier, the “fear” of potential hazards at a revitalized Old location.
Also, there was a considerable obstacle to obtaining positive acceptance Of

revitalization because of the image of the Site, which included not only the fear of

 

‘7 Martin Linne, Workshop Report, Experience of reactivating measures in the city of Duisburg, National
Brownfields Conference (Chicago), 2001.
38 See Supra note 44.

45

potential physical hazards at the contaminated site, but also the emotional impact

of the lost jobs.

Legal Impacts

It was difficult to identify who was legally responsible for contamination. The
actual time of the pollution was not sufficiently clarified due to the ownership
changes of the contaminated site. After the enactment of the Federal Soil
Protection Act as of January 1999, the seller of the Site was to be made liable for
all contamination of the site to the extent that they knew or had known about it at
the point Of sale. In addition, there were no generally applicable criteria for the
treatment standards for different reuses. This made the actual local marketing
difficult.

Flexible Planning

The selected design concept was achieved through an unusual planning process.
The innovative decision could have been made easier for the city with more
related contents and financial support within the scope of the International
Construction Exhibition Emscher Park starting in 1989.89

Communication and Participation Impacts

The experience of the city of Duisburg shows two things. First, it shows great
importance to qualify a project idea in advance of a public discussion to the extent
that a rational presentation is made possible and second, its intense public debates
about costs and benefits of the project. These steps are crucial if financial

involvement of the public is linked with the project implementation.90

Social and Cultural Impacts

 

8" See supra note 45.

9° Ibid.

46

Duisburg North presents itself as a successful combination Of ecological, Open
space, sports and leisure aspects. Today, the Duisburg North Landscape Park has

developed into one of the most important cultural performance venues.91

Other Unique Physical Elements

The night-time illumination of the blast — furnace works was designed by
Johnathan Park, a lighting designer from London who worked for Pink Floyd.
This element of the project led to an incredibly positive change with regard to the

public consciousness Of the park. The light art caused international attention and
turned out to be the image highlight Of the park.

 

Figure 6. 1 Previous Site

 

9' Ibid.

47

 

Figure 7. 1 Current Site: Blast Furnace Converted into a Open Air Theatre

48

JEONGSEON CASINO RESORT IN KOREA
1. Previous Use:

The previous use of the site was a former coal mine area located in Baewoosan,
Gohan-up, Jeongseon-Kun, Kangwon-do, which is east of Korea.

2. Size of Parcels: 6,611 square meters
3. Character of the New Structures:

This project was aimed to provide an international casino resort for both Korean
citizens and tourists that would Operate as a family resort with year-around
facilities suited to meet various requirements for people from all walks of life. It
is an eco-friendly resort where visitors can relish the scenic beauty in a remote
mountain area, as they relax with the natural surroundings. The cultural resort
provides visitors the opportunity to experience many cultural wonders and enjoy
themselves with festivities and Special events all day long.92 Today, only the

hotel casino is Operating; other facilities are under construction.

4. Surrounding Neighborhoods: This area is secluded and surrounded by many
mountains.

5. Accessibility: Due to the location of the site, transportation is challenging.

6. Infrastructure: Not Available

7. Number of Jobs Created from New Development: This project employed
about 2,000 residents whom make up 50% of total employees.

8. Nature of the Partnerships that Initiated Redevelopment:

The project was spearheaded by a new corporation, Kwangon Land, which was
founded by the government and private partnerships. The public sector invested

51 percent and private sector, 49 percent into the investment fund.93

 

92 http://www.kangwoncasino.com

93 Ibid.

49

9. Cost of Redevelopment

First, private and public sector invested 17 million dollars (US Currency) to build
a small casino. They will invest an additional 1 billion dollars to construct more

infrastructures, such as roads to improve accessibility.

10. Economic Impacts

This project is also making an effort to foster local businesses by giving them
contracts for janitorial work or road management (estimated to be worth 18.5
million dollars annually). Moreover, it supplemented local municipalities’
financial needs through payment of local taxes and a development fund for closed
coalmine areas. From 2000 to 2002, this project gave the local government 20.5
million dollars in taxes and invested 57.6 million dollars for the closed coalmine

areas.

1 1. Implications

This project was developed to stimulate the recovery of the distressed local
economy in closed coalmine areas. AS a result of the coal consumption and a
change of government coalmine policies, most of the coalmines in Kwangwon-do
have closed since 1989.94 Consequently, the living conditions and social base
facilities have deteriorated in those abandoned mine areas. The government has
gone over various alternatives to revitalize the depressed local economy.
However, because the area was in a remote place surrounded by the mountains
and transportation was inconvenient and costly, it was diffith to induce
manufacturing industries to locate here. The government concluded to develop a
comprehensive tourism resort complex making the best use of the land in that
location. However, it remained that transportation conditions and the decline in
the coal industry hindered public access. The project was not expected to be a

success, SO the area needed a new concept to compete with other resorts such as a

 

9" http://user.chollian.net

50

golf resort or a ski and coast resort. The government concluded that a casino

resort for domestic citizens as well as tourists was best.95

The success factors Of this project could be classified two aspects:
0 Unique as compared to all other resorts in Korea in spite Of low
accessibility. A hotel casino is a completely new type of development in
Korea, and
0 Strong support from various organizations. The government vigorously
backed this project with enacting a special legislation, which enabled the

domestic citizens to enter the hotel casino.

This project also Offers a Gambling Clinic Center, which is designed for the prevention of

addictions to gambling and treatment of addicts.

 

9’ Ibid.

51

 

Figure 8. 1 Previous Site: Coal Mine

 

Figure 9. 1 Current Site: Casino and Hotel

52

APPLICABLE CRITERIA

The criteria below were derived from an examination of each case study after

comparing the current use of the site with its previous use and its potential for

redevelopment. The six criteria can help planners determine an appropriate site for

Cultural Industrial Site Redevelopment.

HIGHLY VISIBLE

WITH

DEPRESSING

AFFECT

Case

Case

Case

1

Figure 10. l

CULTURAL REUSE CRITERIA

UNIQUE m L, PUBLICIPRNATE
CULTURAL USE : m: _ SECTOR
POTENTIAL ”Iii-5"‘5'i't‘i LEADERSHIP FOR
_ .3 £~ REUSEOFTHE
'3 " ' ' SITE
x x x
x X x
X X X

POTENTIAL TO
ST IMULATE
OTHER
DEVELOPMENT

First, the depressing aflect the current structure has on its surrounding community is

a very important component. In relation to other structures in its surrounding community

the applicable site should have been highly visible and so influential that its operations

had a significant effect on the aesthetics and economic development Of the entire

surrounding community. For example, in case study #1, the Brickworks industrial site,

was one of Canada’s pre-eminent brickyards. It was used for centuries as a source of

53

clay and became one of Toronto’s Oldest industrial sites. Canada depended on
Brickworks for its clay products than any other plant to build prestigious buildings.
When it became a brownfield, because its surrounding community was only parks and
river areas, the surrounding affect was not necessarily aesthetic, but mostly economic.
As a result of its history and economic affect on the community, the redevelopment was
successful in improving the social effects of the region.

Second, unique cultural use potential is very much dependent on its relationship to
surrounding communities. The structure and its use should reflect and connect the
surrounding communities and preserve the historic structure of the site. For example, the
Duisburg North Landscape Park was a site of iron works. It is located between two
densely populated areas in the city. The redevelopment reflects urban characteristics and
preserved the current structures by integrating them into a new building park layout.

Third, the unique structure provides the Opportunity for a unique cultural reuse. The
Brickworks site reuse is an innovative mixed-use program facility focusing on the themes
of nature, culture and community for organizations that share in the vision for
incorporating culture in communities. Also, the Duisburg North Landscape Park is now
one of the most important cultural performance venues. For instance, it has nighttime
illumination of the blast-fiIrnace which is the image highlight of the park.

Fourth, public/private leadership is essential for the success of redevelopment.
Leadership provides guidance for decision makers regarding community concerns of
social equity, environmental quality and economic development and the cost for cleanup
of the brownfield site. The Brickworks project addressed a range of social and

environmental concerns and helped charitable and private organizations expand their

54

influence in the community through pioneering programs with the goal to improve citizen
welfare. The redevelopment costs were divided among the regional and local
government authorities, private individuals, and private foundations that assisted in
cleanup and redevelopment. The collaboration of these major stake holders presented
social equity in the decision making process, which guaranteed a successful result.
Lastly, the stimulation of other development is a key factor in the economic
expectation from investors. The potential for further development is highly dependent on
the location of the site and its accessibility to surrounding communities. While the
Cultural Industrial Conversion site should be the focal point of development the
surrounding business community should benefit from the target service area of the
applicable site. All future development success depends on stable accessibility hoping to
capture business from the anchor business produced in the community. In other words,
further economic development should grow fiom the increased community investment.
For example, the Brickworks project is highly accessible to communities by car, bike and
pedestrian traffic. Future businesses will consider this an economic opportunity. Most
likely future businesses will take advantage of the accessible target service area the
redevelopment has created. Today, Office Space is provided for new businesses and
current investors at competitive rates. On the other hand, the Jeongseon Casino Resort
although surrounded by mountains making the accessibility challenging, future
development has and will have to stem directly from the success of the casino and
through partnerships with the casino. Through public and private partnerships the casino

has created more jobs in the community.

55

APPLICABLE SITE: MICHIGAN CENTRAL RAILROAD STATION (MCS)
The Michigan Central Railroad Station was selected as a potential site because of its
historic value, Visibility, location, and cultural reuse potential. The criteria derived from
the case studies are applied to this site to determine whether the potential for a Cultural

Industrial Site Conversion redevelopment project exist.

HISTORY

The MCS is located on the southwest side of downtown Detroit just off Michigan
Avenue between Mexican Town and Corktown. The station was built in 1913 and
abandoned in 1988, seventy-five years after it was opened. “The MCS is particularly
noteworthy for its Beaux Arts design, and its historical significance. For more than half a
century, the station was the hub at which commuting and adventure began and ended
across the Northern Transportation Corridor. Gradually that ended with the consolidation
and closing of many train lines, a result Of air travel's popularity and America's increasing
Obsession with the automobile.”96 “For the first half of the 20th century, before airline
travel was common, the Michigan Central Railroad Terminal was the starting point for
most immigrants coming to Detroit. The immigrant shown in figure 3, fresh from Ellis
Island, arrived as many had before him; alone and with little but what he could carry on

his back”97 (See Figure 11.1).

 

9" www.ferestenphoto.com
97 www.mether.wayne.edu

56

 

Figure 11. 1 Immigrant arriving at MCS, c. 1912 98

Today, this building stands as eighteen stories of dilapidation and “as a reminder
of a flourishing pre-renaissance era of Detroit from the early twentieth century.”99
Unfortunately today, it fits right in the dilapidated neighborhood in which it is located.
“At the time it was constructed, it was one of the largest and tallest buildings in the
world.”100 “On January 6, 1988, at 11:40 am, the train number 353 left Detroit’s
Michigan Central Station headed for Chicago. It was the last passenger train to depart

from Michigan Central Station.”101

 

9" www.detroityes.com

99 http://members.tripod.com
'00 Supra note 98.

'0' Ibid.

57

SCALE

The MCS was described as a very beautiful unique building that commanded the

attention of the surrounding community.

“The MCS was designed by the renowned architects that also designed
the Grand Central Station in New York City; the MCS is 500,000
square feet and consists of a 3 story train station with an 18 story Office
tower. The building contained 7,000 tons of structural steel, 125,000
cubic feet of stone, and 7 million bricks.”102 “The tower section
provided thirteen floors Of office space. The top five floors never had
the interiors completed. The railroad itself used most of the office
space for its own business. Behind the station were eleven tracks with
covered platforms. In addition to the eleven passenger train tracks,
there were seven more tracks for staging freight trains using the
tunnel.”103 “As one would enter off Roosevelt Park, they would enter
a 54.5 feet tall waiting room modeled after a roman bath, stretches
the length of the building and is decorated with Guastavino arches,
columns, and three arched 21 by 40 feet windows flanked by four
smaller windows. Beyond the waiting room, you could buy your ticket
from one of the many ornate ticket counters, or walk down the 28 feet

tall arcade to visit a newsstand, drugstore, cigar shop, or
barbershop.”104

What was once described above as a reflection of the pre-renaissance era is,

today as an eye sore for its surrounding community and the city of Detroit.

 

"’2 Ibid.

'03 user.mc.net/~louisvm/depoT/det-mc/det-mc.htm
'04 Supra note 64.

58

 

Figure 12. l MCS Compared to Nearby Buildings'05

CRITERIA APPLIED TO MICHIGAN CENTRAL STATION

DEPRESSING AFFECT ON SURROUNDING COMMUNITY REGION

Michigan Central Station (MCS) is located at on the southwest side of Detroit just
off Michigan Avenue between Mexican Town and Corktown. Due to its massive size in
relation to other buildings in the surrounding neighborhood the MCS is highly visible
from the major street, Michigan Avenue, and the Ambassador Bridge. Similarly to the
case studies, the MCS was a great resource to the community for many years and
established an inseparable connection to the city of Detroit. Today, an eye sore, the MCS
is a large decaying, dilapidated building. Its affects have spilled over unto the immediate

surrounding neighborhoods that included small businesses and office buildings.

 

"’5 www.forgottendetroit.com

59

Businesses that once thrived as a result of their prime location near to the MCS,

experienced ill affects as a result of its abandonment in 1988.

UNIQUE CULTURAL REUSE POTENTIAL

MC S has tremendous potential for a unique cultural reuse. It is located between
Mexicantown and Corktown; two vibrant thriving cultural communities.

“Mexicantown is a neighborhood located one block north of the Ambassador
Bridge. It is Detroit's small, but thriving Hispanic community with a few very popular
eateries and shops along the neighborhood's main strip and the east and west sides of the
interstate 75 service drive.”106 It is a great place to find authentic Mexican cuisine. “This
community has had a thriving economy in recent years, evidenced my new housing,
increased businesses, and a forthcoming Mexicantown Welcome Center?'07

Furthermore, Mexicantown has its own community development corporation.

The mission of the Mexicantown Community Development Corporation (MCDC) is “to
foster economic development in the Hispanic community of Southwest Detroit, as a
means of eliminating blight, creating skilled positions for residents Of the neighborhood,
and providing Opportunities of small business development by local entrepreneurs.
MCDC is a not-for-profit, Michigan, 501(c)(3) corporation in which its board of directors
consists of residents, business owners and community and business development
experts?”08

“MCDC was formed in 1989. Its goals and programs include promoting

Mexicantown restaurants, shopping, and its cultural district to audiences across

 

'06 Supra note 61.
“’7 Ibid.
'08 www.mexicantown.org

60

southeastern Michigan It offers cultural programs and activities that educate and
enrich the lives of residents of the neighborhood and the southeast Michigan region
Physical improvements and maintenance in the Mexicantown district include parks and
streetscapes; entrepreneurial training and incubation to increase the economic self-
sufficiency of neighborhood resident’s reuse of vacant land and development of the
Mexicantown International Welcome Center and Mercado.”109
Corktown, Detroit’s oldest surviving neighborhood and center for Irish culture
and history, has its own Community Development Corporation as well, the Greater
Corktown Development Corporation (GCDC). “The Primary Mission of the Greater
Corktown Development Corporation, a community-based housing development
organization since 1976, is to facilitate the redevelopment of a diverse, vibrant and
affordable urban village in the Greater Corktown area . .. Corktown’s main thoroughfare
is Michigan Avenue, which is also the sites of the annual St/ Patrick’s Day Parade.”110
Corktown and Mexicantown have collaborated through a Greenlink program that

will develop greenway linkages connecting the Greater Corktown and
Mexicantown/Hubbard Communities to Detroit’s West Riverfront.

These communities, fronting on the Detroit River, are bounded by West

Grand Boulevard on the West, Martin Luther King Boulevard on the

North, and the Lodge Freeway on the east. This project is an integral

part of a riverfront greenway plan that extends along the Detroit River

from Belle Isle to Riverside Park. It is part of a far-reaching greenway

system, now under development, extending into Monroe County along

the Detroit River and to the western suburbs along the Rouge River.

Ultimately, seven Southeastern Michigan counties will be

interconnected by this greenway network. This program “will

facilitate enhanced public access to and along the Detroit River through
and from the Greater Corktown and Mexicantown/Hubbard

 

'09 Supra note 106.
"° Ibid.

61

Communities.”l 1‘ “The unique aspect of this project is that it links two
significant multi-cultural neighborhoods within Detroit to one purpose.
It will be a tremendous step toward accelerating the revitalization of
these communities, [building cooperative relationship needed to
facilitate sustainable development] and strengthening the viability of
the area as a place to work, live and play.”1 '2

The environmental potential is related to the cleanup of the site through
remediation. Currently, the MCS is not targeted for a CDBG grant; however, as
mentioned previously in this text, there are a number of federal and state initiatives
available for assistance with cleaning up the site, such as the CDBG, Superfund Trust
Fund, Project Grants, Industrial Development, Tax Increment Financing, and other tax
incentives.

The surrounding cultural communities, through their community development
corporations along with the city and state have already demonstrated their willingness to
work together to promote a vibrant and healthy community.

There have been redevelopment and restoration projects in other cities that provide
support for a MCS redevelopment project. Studies have shown that America's historic rail
stations have driven economic development and community revitalization while serving a
larger need in regional development throughout the United States. In some cases,

rehabilitating these stations has restored a form of transportation to the areas they once

served. ' '3

 

' " www.corktowndetroit.org

”2 Ibid.

”3 Ibid. South Boston acquired $450 million from the US. Federal Transit Administration to redevelop
underground bus rapid transit stations adjacent to their World Trade Center, a new Convention Center and
the new courthouse. Additionally, in 1991 Congress made the rehabilitation of historic transportation
facilities eligible for transportation enhancement firnding. Money is included for improved pedestrian
access, landscaping, public art, and nearby streetscape improvements.

62

UNIQUE STRUCTURE

The unique structure is ideal for creative reuse that focuses on community. The
historic nature of the building displays an existing rich and unique design. There is
ample amount of Open space in front and adjacent to the building, that Should be kept as
open space. The front of the building is complimented by a U shape driveway that is
accessible from Michigan Avenue. The building sits back at the bottom of the U Shape,
which allows the building to command the attention of all the passerbyers.

The station's most distinctive architectural feature was the office tower rising
above the station, which actually housed Offices. The lower floors had marble lined
corridors while the upper floors were bare and the top floor was never finished.
Architecturally this mass was joined to the station with a band or pilasters running around
the upper floors. A massive basement level provided facilities for baggage and mail.l ‘4

The building options range from focusing on preserving the history of the
building, such as a museum, or reflecting the culture of the surrounding communities

through a business incubator that incorporates a community welcome center.

 

”4 Supra note 104.

63

 

Figure 13. r MCS'l5

POTENTIAL To STIMULATE OTHER DEVELOPMENT
The potential to stimulate other development is high. Its location Off a major
thoroughfare, close to Interstate 75 service drive and the Ambassador Bridge is a
tremendous asset. Its location provides accessibility, which will be increased “with the
current planning efforts of the Corktown and Mexicantown/Hubbard communities to
enhanced public access to and along the Detroit River through and from these
communities.”l '6 “It is possible that the redevelopment of [MCS] could be a vehicle

that creates jobs in areas outside of the downtown core Of Detroit.” ”7

 

”5 Kavanaugh, Kelli 3., Detroit '3 Michigan Central Station, (Chicago: Arcadia Publishing, 2001).
”6 Supra note 1 10.
”7 www.thedetroiter.com

64

PUBLIC AND PRIVATE LEADERSHIP FOR THE REUSE OF THE SITE
The surrounding cultural commrmities in corporation with the city and state have
already recognized the need for redevelopment and economic development through their
effort in implementing other initiatives to recreate a viable community.

“Control Terminals Inc., a part of businessman Manuel Moroun's CenTra Inc.
trucking and a transportation company, acquired the 18-story depot in the mid-19905.”1 '8
“Throughout the 19905 to date, the building remained wide Open to trespassers, and
during that time vandals seized the Opportunity and stole items of value such as brass
fixtures, plaster, and copper wiring. In the late 19905, the building owner erected a razor
wire fence and proposed an international trade processing center that never
materialized.”l ‘9 (See Figure 14.1). “In 2004, Detroit Mayor, Kwame Kilpatrick,
planned to use the building as Detroit's police headquarters, but no other activity has
occurred?”20

Although a few proposals for different uses for the MCS have been introduced,
they were to no avail. The Cultural Industrial Site Conversion model will incorporate the
best elements of the old community and the fresh new qualities the present community

has to offer. Redevelopment of this site will reestablish the MCS’s historical presence

and its impact on the surrounding business community.

 

”8 Jennifer Dixon, “Decaying Depot May Get a Tenant: Michigan Central Talks Serious, Detroit City
Council is Hopeful,” Detroit Free Press, 2 January 2002.

"9 www.5nweb.com

'20 Supra note 1 16.

65

 

Figure 14. 1 MCS Surrounded by It Razor Wire Fencem

FINDINGS & RECOMMENDATIONS

FINDINGS
The MCS site fits within determinations from the analysis of an applicable
site for the Cultural Industrial Site Conversion Model. The MCS has rich history, a very

unique structure, and its surrounding communities are abounding with culture.

RECOMMENDATIONS
Afier examining the research and case studies, it seems very plausible to reuse
selected abandoned industrial sites for Cultural Industrial Site Conversions (CISC). The
criteria should be used to assess an appropriate site for CISC model. The state and local

governments should consider implementing a pilot project funding specifically for the

 

121 Supra note 98.

66

reuse of abandoned industrial sites with cultural and/or historical character. In order for
the model to be successful recreational and cultural use should be the target activity;
however, stakeholders should be required to make valid arguments showing whether the
recreational use will contribute to further economic investment and public benefits
beyond the project.

Keys to the success Of this pilot program will be the selection of two to three sites
in Michigan that can demonstrate the viability of this reuse concept. Criteria for the
selection of these sites should include:

02° The potential for private sector redevelopment is low due to site size or cost of

cleanup;

v The site has a unique cultural or historical, environment, and recreational
potential;

0.0 The site is highly visible and thus has a depressing affect on the surrounding
community or region;

0.0 The site has unique structures that lend themselves to creative reuse;

0.0 The site has the potential, when reused, to stimulate other development within
the adjoining community; and

0.0 There are capable and effective public and private organizations to provide
leadership and support for the reuse of the site.

Based on my analysis and findings above, I recommend that this site to be considered as

a pilot project for the Cultural Industrial Site Conversion Model.

67

CONCLUSION

The goal of the Cultural Industrial Site Conversion model is to promote
sustainable development, enhance communities’ assets to attract further economic
investment and provide a sense of place for surrounding communities.

The criteria established in this study should be used as a reference for planners in
locating applicable sites for the Cultural Industrial Site Conversion model. The criteria
applied shows that a community that lend themselves to this model should include
depressed urban communities with a considerable presence of diversity and culture.

Depressed communities are not hard to identify; however, I must address some
indicators that planners must look for to identify communities specifically for the CISC
model. Depressed communities are identified by number of abandoned buildings, the
income levels of community residents, crime levels, real estate property values, and state
unemployment rates.

Diversity includes presence of a variety of ethnic groups (Non-English Speaking
groups) and a mixture of cultural activities and places, which include but are not limited
to museums, theatres, ethnic restaurants and shops. In other words, communities that
embrace the differences in ethnicity and culture and provide an array of mechanisms that
reflect community support are applicable.

This assessment tool is unique in that it applies to specific structures that may be
considered for the Cultural Industrial Site Conversion model. Some may think that this
tool will not contribute to redevelopment Of urban cities because Of its specifications. It

is quite the opposite; this tool doesn’t focus on quantity of redevelopment, but the quality

68

of redevelopment and its potential to promote economic development and interrelated

communities.

69

ANNOTATED BIBLIOGRAPHY

CENSUS/GOVERNMENTAL SOURCES

1. US. Department of Labor, Bureau of Labor Statistics (l990-2000a).

2. The Michigan Department Of Environmental Quality (DEQ), received as US
Environmental Protection Agency USTFields Pilot Grant, which performs
investigative and remedial actions at four locations in the City of Detroit where
the unknown environmental issues have heretofore prevented redevelopment from

taking place.

3. Governor’s Land Use Council, Executive Council was established by Governor
Granholm to address issues concerning sprawl. The council of 25 members

submitted a report with 150 recommendations to combat sprawl.

SECONDARY SOURCES

4. Abby Bussel (1998). Post-industrial proposition: Eric Owen Moss reactivates an
Old warehouse in Culver City, California, for an entertainment media company,
Interior Design.

5. John W. Chapman (1999). Parth Corporation Liability Under CERCLA: An
Analysis of the Supreme Court’s Failures and Fortunes in its Decision in United
States v. Bestfoods, Journal of Land Use & Environmental Law. (The
stakeholders in the redevelopment of industrial sites are concerned with potential
liability; this is a barrier to redevelopment. This article is relevant to my

research because it explains ways to avoid liability and avoidance is not an

70

10.

11.

12.

13.

Option how to approach liability. In an eflort to hide from liability, many
corporations set up subsidiary corporations to own the facilities that present a
risk of releasing hazardous substances. Consequently, to reach the assets of the
parent corporation the plaintifl must pierce the corporate veil or use some
alternative theory of liability to reach the assets of the parent corporation. The
issue of parent corporations' liability for the environmental violations of their
subsidiary corporations has intensified lately.)

Bethany Costello (2001). Brownfields in RI. described as fallow sites for
development, Providence Business News.

Julie Fields (1997). Clifton Plans To Seize Two Industrial Sites; Redevelopment

Zone Would Allow For Housing, Stores, The record (Bergen County, NJ).

Richard Haag (1971). Gas Works Park in Seattle, University of Washington.

Millard Johnson (2002). Location consultants: site selection specialists have

answers to questions you hadn ’t even thought to ask, Plants Sites & Parks.

D.S. Card and RH. Kummler, Hazardous Waste Management Program, Michigan
Brownfield Regulatory Review.

Sarah Latta (2003). Brownfield Redevelopment Strategic Actions.

Sandy Li (2004). HK Ferry ’s land bank swells with conversion plans The firm
spends $536 million on premiums to enable redevelopment of industrial site, Asia
Africa Intelligence Wire.

B. Linsey (2004). Industrial site taken by Investa, Australasian Business

Intelligence.

71

I4.

15.

16.

17.

18.

Arthur Lubow (1999). Swimming In The Gas Tank Gardening In The Ore
Banker. In Duisburg, Germany, Peter Latz Has Turned Blighted Factory Ruins
Into A Great Urban Park By Leaving The Blight And Ruins Intact, New York
Times. (T his case study is evaluated for its character of the site. The method of
analysis includes evaluating this case study.)

Joseph J. Maraziti Jr.; Kim Kearney (2002). Funding help for the redevelopment
agenda: the Redevelopment Bond Financing Law helps cities, towns and older
suburbs at revitalization projects, New Jersey Law Journal.

Todd S. Davis and Kevin D. Margolis with a preface by Vice President Al Gore,
BROWNFIELDS: A COMPREHENSIVE GUIDE TO REDEVELOPING
CONTAMINATED PROPERTY, Section of Natural Resources, Energy, and
Environmental Law American Bar Association: 1997, Pp. 703. (As the New
Millennium approaches, we are faced with evidence of a new era of
environmental programs meant to revitalize urban areas by returning idled and
contaminated properties to productive land uses, with the vision of sparking, like
aflame, economic growth, new jobs, and hope in once economically depressed
communities.)

Marsha Stopa (1997). ‘Brownfields’ legislation can help in redeveloping old
industrial sites, Crain’s Detroit Business.

Use of Belief Function in Brownfield Infrastructure Redevelopment Decision
Making, J. Urban Plng. and Devel., Volume 127, Issue 3, pp. 126-143 (September
2001). (This source addresses the barriers of brownfield development and how

critical decision —making is to combat uncertainty during the process.)

72

19. Assessing Extra-jurisdictional and Area wide Impacts of Clustered Brownfield
Developments, J. Urban Plng. and Devel., Volume 129, Issue 1, pp. 27-44 (March
2003). (This source furthers the discussion Of Federal initiatives in the I990s that
reduced legal liabilities associated with brownfields and provided incentives for
development initiatives. This paper uses a modified impact analysis approach,
synthesized from regional transportation modeling and site impact analysis tools,
to assess the extra-jurisdictional and Area wide impacts of clustered Brownfield
Developments.)

20. Clean It and They Will Come? Defining Successful Brownfield Development, J.
Urban Plng. and Devel., Volume 130, Issue 2, pp. 101-108 (June 2004). (This
source touches on the environmental impacts fiom abandoned industrial sites and
remediation Of properties. It addresses the programs that limit environmental
liability and allow for risk-based cleanup standards.)

21. J. Urban Plng. and Devel., Volume I30, Issue 2, pp. 109-116 (June 2004).
Brownfield Development: Tools for Stewardship. (In this research, we have
collected data from 75 brownfields in the United States, analyzed the data to be
able to distinguish "successfitl"fi'om "not-so-successful" sites, and developed a
logit model that may be used to estimate the probability of development outcomes.
Much Of the brownfield literature focuses on anecdote and qualitative
descriptions of experiences. )

22. Coming Clean, Framework of Environmental and Economic Development

Concerns, n.d. (This source relates to the social economic impacts of the remnants

73

of inactive brownfields in communities.) Several brownfields measures floating
around house, Senate, Hazardous Waste Superfund Week, 2004 v26.

23. Brownfields bill introduced in Senate may encourage economic development,
Brownfield Redevelopment Assistance Act Of2003, Hazardous Waste Superfund
Week, 2003 v25.

24. Brownfield Economic Development Initiative, Hazardous Waste Superfund Week,
2004 v26.

25. Kara Sissell (1997). Buildings on Brownfields, Chemical Week.

26. Margaret Tally-Seijn (2002), Ins and outs of evaluating browfields, Plants Sites &
Parks.

27. Minn. : MPCA completes five-year review, Hazardous Superfund Week, May 3,
2004 v26.

28. EPA Settlement, Hazardous Waste Superfund Week, June 16 2003, v25.

CASE STUDIES

29. Christopher A. De Sousa (2000). Turning brownfields into green space in the City
of Toronto, Department Of Geography, University of Wisconsin-Milwaukee,
2002. (This case study is evaluated for its financial resources. The method Of my
analysis includes evaluating this case study.)

30. Tom Hundley, England ’3 NewCastIe-Gateshead port rubs Off the gritty dust Of its
past discovers it can sparkle, Tribune Foreign Correspondent, 2004. (The method
of my analysis includes evaluating this case study.)

31. Christopher Petkanas, Rocky Mountain Institute, A Colorado Think Tank Devotes

Itself T 0 All Things Green, Environmental Design. (This case study is evaluated

74

for a greening policy and the alternatives and potential of an industrial site. The
method of my analysis includes evaluating this case study.)

32. Gas Works Park in Seattle. (This case study gives an example Of the impacts of
industrial site redevelopment. The method of my analysis includes evaluating this
case study.)

33. Alan Gordan, California Brownfields: Neglected, Abandoned and Ignored,
March 1998.

34. Ingrid Helsing Almaas, Regenerating the Ruhr — IBA Emscher Park project for
the regeneration of Germany’s Ruhr region, 1999.

35. Jennifer Dixon, Decaying Depot May Get a Tenant: Michigan Central talks
Serious, Detroit City Council is Hopeful, Detroit Free Press 1/2/2002.

PRIMARY SOURCES

36. A. Donati C. Rossi and CA. Brebbia (2004). Brownfields Sites II.

37. Betancur & McCormick, 1985.

38. Joe Lorenz and Tom Mignery. Urban revitalization requires local groups to learn
to identify brownfield sites and understand the liability and environmental
concerns, Brownfield Remediation, Environmental Protection Magazine.

39. Stanback & Knight, 1976.

40. Joan Fitzgerald & Nancy Green Leigh (2002). Economic Revitalization: Cases
and Strategies for Cities and Suburbs. This book Oflered an alternative
perspective for cities to keep their industrial market, which provides a large tax
base for their communities. The lack of industrial retention contributed to the

loss Of manufacturing.

75

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76

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\N~'\N'\\'.\yaslli11 gtoncd u/rcscar‘cIII/Showcase.

 

VHVVVAVIleCdlii.Org.

 

77

 

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