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Asarco

PROJECT Project Title: Asarco
NominationDate: 1/27/2012 2:10 PM
Local Government: Adams County
Cooperating Government: City and County of Denver, Denver Urban Renewal Authority, Adams County Economic Development, Denver
Summary:
Adams County and the City and County of Denver are working jointly with EFG Brownfield Partners on the remediation and redevelopment of the former Globe Plant in the Globeville neighborhood, where operations included smelting and refining such metals as gold, silver, lead, bismuth oxide, copper, arsenic trioxide, zinc and cadmium from 1886 until September, 2006. This site presents a number of significant challenges to redevelopment including well established soil and groundwater contamination, as well as the mere fact that it straddles the border between Adams County and Denver, adding complexity to redevelopment and regulatory oversight. The two governments came together in an unprecedented partnership to successfully modify state law regarding urban renewal in 2007. This change allowed the two governments to adopt a joint urban renewal plan for the site in 2011, with a unique and creative package of financing tools including a HUD Section 108 loan of up to $10,000,000 from Adams County and a CDBG grant of $750,000 from the City and County of Denver. The result is a 78-acre urban infill site that is prime for remediation and redevelopment, and the expected creation of up to 1,000 jobs and 1,000,000 square feet of commercial / industrial space.
Problem:
This site is an extremely challenging redevelopment site for many reasons. The property totals 78-acres and 80% of the site is within Adams County while 20% of the site is within Denver. As a result, a shared vision for the property is necessary, and collaboration and cooperation between the two governments and the private sector are vital to the success of the project. The Property was owned by ASARCO, LLC, aka the American Smelting and Refining Company (ASARCO), from 1901 until 2009 when the Property was transferred to the ASARCO Multi-State Custodial Trust as a result of bankruptcy proceedings. Clean up funds that were set aside as part of the bankruptcy are held and controlled by the trust. Although there is a dedicated fund set aside for remediation, these costs cannot be used for redevelopment of the site. For redevelopment to be successful, additional and creative financing mechanisms are necessary. This need for unique set of financing strategies calls for immense levels of multi-jurisdictional cooperation from many agencies within the City and County of Denver and Adams County, including but not limited to Adams County Economic Development, the Denver Urban Renewal Authority, Adams County Community Development, the Denver Office of Economic Development, Adams County Planning and Development, Denver Community Planning and Development, and many others. The Parties worked together during the 2007-2008 legislative session to cause the passage of Senate Bill 158, which authorized an urban renewal authority and a city to include unincorporated territory into an urban renewal area. Prior to the passage of this legislation, urban renewal was not available to properties within unincorporated areas of Counties. In addition to the unique level of intergovernmental coordination that this project requires, private sector investment and participation also is necessary to execute the remediation plan and the actual redevelopment of the site. This project is a prime example of a public and private sector partnership, as well and regional cooperation and intergovernmental coordination as supported by Metro Vision 2035.
Description:
This property has a large number of existing buildings and equipment that need to be decommissioned and demolished as part of the redevelopment plan. Once the remediation is complete, the site will be ready for construction of a large commercial / industrial employment center with 1,000 or more jobs expected on site. As a prime infill site within the urban core of the metro area, redevelopment of this site as a job center will increase the Metro area’s regional employment density. Creation of jobs within the urban core has many benefits, including reduced demand for new infrastructure and reduction of Vehicle Miles Traveled (VMT). Additionally, Metro Vision supports compact development and redevelopment of underutilized sites such as this one, as it helps to reduce water demand within the region. The remediation plan for this property includes the remediation of contaminated groundwater on site, which is consistent with Metro Vision’s goals to ensure clean water and a balanced, healthy, ecological community. The 78-acre site is located with a very urban area of both Denver and Adams County. The property has been dormant since the Globe Plant closed in 2006 and without redevelopment this site is producing only marginal property tax revenues for the two jurisdictions. Metro Vision encourages redevelopment of infill parcels that are undeveloped or vacant, in part, to support the economic health of the communities in which they are situated. The portion of the property within Adams County has already been designated within the County’s Urban Growth Area. Finally, this project is a tremendous example of the great work that can be accomplished through regional cooperation of communities that set aside individual objectives to achieve a common goal. Both Denver and Adams County recognize the importance of redeveloping this site. This common goal has been the driving force in establishing the creation of an urban renewal area for the project, securing a HUD Section 108 loan in the amount of $10 million, and awarding the project with a $750,000 Community Development Block Grant. The communities signed a Memorandum of Understanding in 2010 that outlined the communities’ common desire to work cooperatively facilitate the remediation and redevelopment of this site. Adams County and the City and County of Denver both adopted the Globeville Commercial Urban Redevelopment Plan in 2011 to guide the redevelopment process for this property.
Modification Details:
This project originated in 2004 with discussions between EFG Brownfield Partners, Denver and Adams County. The parties worked through several alternative solutions before identifying the ultimate course of action. Together, Adams County and the City and County of Denver lobbied the state legislature in 2007 to modify urban renewal law to allow unincorporated areas to be included in urban renewal areas. This change to state law provided a viable option for redevelopment of this high priority site within the metro area.

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