Herkimer IDA extends helping hand for brownfields. What it could mean for redevelopment

HRP Associates Principal, Tom Seguljic, and Herkimer County Industrial Development Agency (IDA) Executive Director, John Piseck, held a public outreach meeting at Herkimer County Community College discussing potential brownfield sites across the Mohawk Valley, including the Remington Arms site.

The IDA has been involved in brownfield projects – conversion of sites with perceived or existing contamination, hindering redevelopment – for the past six years. Upon inception, the organization has accumulated over $2 million in grant funding; $700,000 of which deriving from the Environmental Protection Agency (EPA) for phase assessments.

Seguljic underscored how the Mohawk Valley’s industrial history goes back to the late 1700s. Herkimer was known for gun manufacturing, Syracuse for chemical manufacturing, Amsterdam for carpet manufacturing, and Utica was home to the metals industry.

But, brownfields aren’t just former industrial sites.

“They can be gas stations, dry cleaners, print shops, homes ridden with asbestos, funeral parlors, and garage shops,” Piseck said.

The meeting discussed potential sites under assessment: Charleston Mall, Remington Arms, and the Herkimer Brownfield Opportunity Area (BOA).

Speakers also examined alternative redevelopment ideas, such as the conversion from brownfields into “greenfields.”

Redeveloping brownfields

Poor management practices, like dumping chemicals or landfills, were common practice in the 1990s and Seguljic claims we’re still reaping the repercussions today.

“When the government cracked down on contamination they enacted laws that hindered redevelopment,” he said. “That’s why the Environmental Protection Agency (EPA)’s Brownfields Program has been so crucial; it provides communities funding to identify redevelopment sites and conduct phase one and two environmental assessments.”

Phase one assessments shed insight on a property's environmental history and potential contamination. Phase two assessments involve collecting physical samples and sending them to a laboratory for analysis to determine if the site is contaminated.

Remediation plans are made at the conclusion of the assessments.

“The legwork creates a glide path forward,” argued Seguljic. “Developers are given a comprehensive package detailing the site's history. They are told what cleanup will look like and how much it will all cost. Essentially, they are given a roadmap. From there the community helps shape the vision for what redevelopment will look like.”

Charleston Mall

Located on Turner Street in Utica, the former Charleston Mall property straddles Herkimer and Oneida County lines.

The mall burnt down in August 2020, and, under emergency order, the EPA cleaned up the site. Remediation cost $14 million.

This year, the multi-million lien was lifted. “Now both counties are pushing to make this project a needle mover,” Seguljic said.

Looking ahead, the IDA plans to conduct phase assessments. Piseck has considered forming a limited liability company (LLC) to purchase and clean up the property but has not made a final decision, he said.

Remington Arms

On March 4, the Remington Arms facility in Ilion officially closed its doors.

Piseck and Seguljic recognized the potential of the soon-to-be abandoned industrial facility and pushed the need for preservation “ASAP.”

“Our initial investigation did not find too many red flags,” Piseck acknowledged. “Our biggest fear is that the site gets sold to a firm that excavates its raw goods and walks away. That would leave a 1,100,000 square foot property in awful condition … it would hurt the community, county, and region.”

While the IDA does not own the property, it received a waiver to conduct environmental assessments.

“After 200 years of gun manufacturing you'd think there’d be a lot of contamination,” said Seguljic. “Surprisingly, operations were relatively clean. They used aqueous cleaners and sprayed their metals with powder coated paint. The two remaining questions are: what they did with the sand they shot the lead bullets into and what else was the site used for? That's what further investigations will look into.”

Piseck said the community is adamant to find a solution that “keeps the area vibrant.” He predicted that the 37-acre plot would most likely end up split up into different development.

The IDA considered redeveloping the site as a concert venue, given its size, but with limited access to Route-5S, deemed the option impractical.

Herkimer BOA

The IDA recently received a $200,000 Brownfield Opportunity Area (BOA) Assessment Grant from the Department of State for the Herkimer BOA. Now, it's up to the community to develop a clear vision for next steps, Piseck said.

Seguljic pointed out how there are still issues to be addressed – asbestos ridden properties on Main Street and a  contaminated auto dealership that requires remediation.

“Nonetheless, the Herkimer BOA is a prime example of what a community can do,” he argued.

“With all hands on deck this site has gone from an opportunity zone to a project,” Piseck gleamed. “We’ve already identified 40 Herkimer College alumni, multi-millionaires, that are happy to invest once there’s a solid plan.”

MVEDGE collaboration

Speaking to developers, Seguljic underscored the state tax incentives that exist when tackling a brownfield redevelopment project.

“As a private developer in New York if you work with an identified brownfield site you’re eligible for tax credits," he said. "They can be very good; you can get up to 50% of the cost of remediation. The real home run is what they call the ‘tangible tax credits’ which offers up to 22% of the value of the building.”

The IDA has been working with the team Mohawk Valley EDGE, Piseck said. He invited MVEDGE Vice President of Planning and Development, Christian Mercurio, to speak about the collaboration.

“The EPA assessment grants fit beautifully into the Revolving Loan and Grant funds that we just secured at MVEDGE,” Mercurio said. “If you zoom out and see the bigger picture – a bit farther down the road – then you start to envision how all these grants augment each other. At the end of the day, the whole is greater than the sum of the parts.”

Hypothetically speaking, Mercurio said if a developer had a $200,000 cleanup project MVEDGE could provide a zero-percent interest loan to be repaid down the road.

“We’re going to maximize the grant portion to communities and nonprofits that don’t have the financial resources to front the money,” said Mercurio. “They are often the ones with the vision and the will to see these projects through.”

What about greenfields?

Re-powering is an EPA initiative that encourages renewable energy projects on formerly contaminated lands. After remediation, brownfields, super fence cities or landfills can be transformed into greenfields – areas used for agriculture or landscape design.

Seguljic noted that oftentimes renewable energy developers settle on forested plots of land since most farmlands don’t have access to three-phase transmission lines.

“When we create remedial plans we work with developers who specialize in the conversion of brownfield to greenfields, like AC Power. Siting renewable projects on brownfields presents an opportunity to return an unproductive site to one that provides revenue and clean energy for a community. The less farmland we lose, the better.”

According to Seguljic each of the potential brownfield sites in Herkimer County has access to three-phase transmission lines and could potentially be transformed into a greenfield. He referenced the IDA’s ongoing Warrior Solar Project in Frankfort.

The property is currently undergoing a transition from a brownfield into a solar farm. As part of the NYSERDA NY-Sun Initiative the energy produced on site serves local businesses and residents, as opposed to downstate. The project is projected to wrap up this August, Piseck confirmed.

This article originally appeared on Observer-Dispatch: Herkimer IDA offers assistance with brownfield remediation