BROWNFIELD REDEVELOPMENT

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1 BROWNFIELD REDEVELOPMENT Stephen R. Collins, EVP Commercial Development Company, Inc. MEDFA Annual Conference Kansas City, MO -- October 8, 2015

2 Presentation Overview CDC approach to Public Private Partnerships Create Vison based on highest and best use Fully consider market realities Do not request public funds ELT approach achieve Regulatory Closure Fund Remedial Trust or Buy Insurance at closing Enter Voluntary Clean-up Program Difference between Horizontal & Vertical Development: Evraz Steel Mill Claymont, DE 1 MSF 425 Acres ASARCO Smelting Perth Amboy, NJ 250,000 SF 70 Acres General Motors West Mifflin, PA 1,000,000 SF 72 Acres Manchester / Former Quarry Des Peres, MO 28 Acres

3 CDC / ELT Value Proposition Begin with the end in mind Steven Covey Highest & Best Use Analysis: Location, Location, Location Identify Development Constraints: demolish buildings, remediate environmental, grade rough topo, rezone, build roads and utilities Market to Users: Engage local brokers Redevelop: Transform Brownfields into productive re-use Outcomes: Revitalization, Job Growth, & Taxable Properties

4 Pricing Methodology: Rasher-Colangelo Formula CDC Offer = (FMV) (IC+EL+I+CC+X+R+P) where: Offer CDC Price FMV Fair Market Value of Assets IC Investigative Costs EL Assumed Environmental Liabilities I Insurance CC Carry Costs X Contingency R Repositioning Costs P Profit

5 Evraz Steel Claymont, Delaware Bought 1,000,000 SF on 425 Acres in Oct Prepared: Concept Plan and video showing Highest & Best Uses Uses: Office, Retail, Transit Center, Industrial, & Rail-Truck Logistics Center Process: Presentations to elected officials & public Marketing: Brokers & businesses community Voluntary Clean-up Program (VCP): DE-DNREC Status: Three buyers and many prospects

6 Concept Plan for First State Crossing

7 ASARCO: 70 Acres in Perth Amboy, NJ

8 ASARCO: 70 Acres in Perth Amboy, NJ Bought 250,000 SF on 70 Acres in 2009 Conditions: 20 tenants & Many Environmental Issues Voluntary Clean-up Program (VCP): thru NJ-DEP LRSP Program Tenant Relocation & Demolition: Underway Plan: Build 1,000,000 SF Industrial with a vertical development partner Process: Present Plan to Perth Amboy Redevelopment Agency Status: Selected as Designated Developer by PARA in July 2015 Construction: April 2017

9 eport I & II Plan -- 2,350,000 SF -- 6 Buildings 2014 Today is a new day in Perth Amboy. This sustainable project will carry our city into a successful future. -- Wilda Diaz, Mayor of Perth Amboy 2017

PA-DEP Voluntary Clean-up Program (VCP): ACT 2 Remedial Activities Included: Demolish

10 General Motors: 1 Million SF Brownfield in PA Bought 1,000,000 SF on 72 Acres in 2009 Environmental: Hydrocarbons, Solvents, & PCBs from 60+ years of heavy manufacturing. PA-DEP Voluntary Clean-up Program (VCP): ACT 2 Remedial Activities Included: Demolish structures Recycle scrap steel Abate environmental hazardous Backfill with clean fill Reuse: Sold to Pull-A-Part

to commercial use by making a multi-million dollar investment and

11 General Motors: 1 Million SF Brownfield in PA We are extremely gratified Pull-A-Part chose a Brownfield to redevelop and return to commercial use by making a multi-million dollar investment and creating good jobs in our community. -- Chris Kelly, Mayor of West Mifflin

12 Des Peres Quarry Remedial Activity:» 180 foot deep rock quarry» CDC imported 6,250,000 cubic yards of Clean Fill» Rezoned by St. Louis County for Mixed-Use development

13 Des Peres Quarry 2016 New Construction Underway:» Luxury Apartment Complex (254 units)» Assisted Living Complex (60 units)» Hotel Development (210 unit)» Class-A Retail / Office

14 Advantages of CDC Approrach Buy Brownfields -- without Public Funding Fully Fund Remedial Trust -- to Guarantee Clean-up Return Brownfields to Tax Rolls using Private Funds Highest & Best Use based on Market Realities Engage Brokers and Business Community Limit Public Agencies to Zoning and Infrastructure Improvements Quicker Results with Less Public Funding

15 CDC Group of Companies Cash Buyer Quick Close Oversee Redevelopment Assume Environmental Liabilities Guarantee Regulatory Closure Unique Financing Strategies Manage Environmental Remediation In-House Boots on the Ground Environmental Consulting

16 Questions? Stephen R. Collins CCIM Executive Vice President Phone: Cell:

ACT 381 BROWNFIELD PLAN

ACT 381 BROWNFIELD PLAN PROJECT NAME PROJECT ADDRESS County, City, Township Brownfield Redevelopment Authority Date Prepared by Approved by the Brownfield Redevelopment Authority on [enter date approved]