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Reuse Plan – Savanna Depot September 2018

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Reuse Plan – Savanna Depot September 2018 FINAL Jo Carroll Depot Local Redevelopment Authority Reuse Plan – Savanna Depot September 2018 Prepared for Jo-Carrol Local Redevelopment Authority 18901 B Street Savanna, IL 61074 Prepared by RKG Associates, Inc. (subconsultant to Weston Solutions, Inc.) In conjunction with Jeffrey Donohoe Associates LLC This study was prepared under contract with the Jo Carroll Local Redevelopment Authority, with financial support from the Office of Economic Adjustment, Department of Defense. The content reflects the views of the LRA and does not necessarily reflect the views of the Office of Economic Adjustment. September 2018 FINAL TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................................. 1 1 INTRODUCTION ................................................................................................................................ 3 1.1 Purpose .................................................................................................... 3 1.2 History of the Site ................................................................................... 3 1.3 Current Situation .................................................................................... 5 1.4 Development Progress ......................................................................... 11 2 EXISTING CONDITIONS ................................................................................................................ 19 2.1 Socioeconomics ..................................................................................... 19 2.2 Infrastructure ......................................................................................... 33 3 ENVIRONMENTAL .......................................................................................................................... 45 3.1 Summary of Army BRAC Environmental Restoration Program .... 46 3.2 Regulatory Overview ........................................................................... 49 3.3 Cleanup/Exit Strategy .......................................................................... 57 4 OPPORTUNITIES & CONSTRAINTS .......................................................................................... 67 4.1 Introduction ........................................................................................... 67 5 MARKET ASSESSMENT ................................................................................................................. 77 6 LAND DEVELOPMENT PLAN ....................................................................................................... 81 6.1 Land Use Configuration ...................................................................... 81 6.2 Potential for Additional Land – Fish 5 ............................................... 82 6.3 Discourage Residential Uses ............................................................... 82 7 IMPLEMENTATION STRATEGIES .............................................................................................. 83 7.1 Liquidate Remaining Land .................................................................. 83 7.2 Solicit Master Developer ...................................................................... 84 7.3 Aggressively Market to a Rail/Port Operator/User .......................... 85 7.4 Combine/Transfer LRA to Port Authority ......................................... 85 7.5 Move County Line ................................................................................ 86 7.6 Status Quo .............................................................................................. 86 7.7 Summary ................................................................................................ 87 7.8 LRA Sunset Analysis ............................................................................ 87 8 RECOMMENDATIONS ................................................................................................................... 89 8.1 Short Term (2018-2019) ........................................................................ 89 8.2 Intermediate Term (3-5 years) ............................................................. 90 8.3 Longer Term .......................................................................................... 90 9 APPENDICES ...................................................................................................................................... 91 A - Infrastructure Maps ............................................................................................................................................... 91 B - Environmental Maps ............................................................................................................................................. 91 C - Environmental Status Tables ................................................................................................................................ 91 September 2018 FINAL Executive Summary 1 Executive Summary The Jo Carroll Depot Local Redevelopment Authority has been actively engaged in redeveloping the former Savanna Army Depot for nearly 20 years. Since being designated by the US Army, the LRA has worked to create jobs and expand the tax base within Carroll and Jo Daviess counties by attracting users to the extensive facilities located on the more than 3,000 acres available for civilian reuse. Over the years, the LRA has succeeded in selling off or leasing much of the property, including the nearly 70 miles of railroad track that serve the Depot, as well as many of the former Army buildings. The site currently has approximately 18 owners/tenants employing more than 100 people across a wide variety of businesses. Because of the environmental condition of the property, the Army has not transfered title to the LRA for approximately two-thirds of the 3,000+ acres. The LRA currently retains approximately 403 acres including 255 acres that have transferred (from the Army) and 148 that have not yet been transferred. The LRA has sold or leased 1,702 acres to others, land that has not yet transferred. It is anticipated that the Army will complete its cleanup program and release the remaining land over the next few years. This Reuse Plan was developed to guide the LRA over the next few years as it transfers the remaining property to other entities, and to eventually sunset as an economic development organization. The report that follows includes a detailed update on the existing conditions including socioeconomic indicators for the region and the Depot’s infrastructure that supports development. An extensive Environmental chapter provides an in-depth analysis of the existing conditions and the future steps necessary for the Army to transfer, and the LRA and subsequent users to redevelop. A discussion of the opportunities for growth and the constraints facing the Depot follows. The Reuse Plan concludes with a series of Implementation Strategies and Recommendations for short and longer-term actions on behalf of the LRA to complete its mission. Foremost among these are the following: • Undertake an evaluation of the Fish 5 parcel to determine whether the LRA should seek to acquire the property from the Army. Evaluate necessary capital investments, and how access to the property will be developed, as well as what key regulatory and environmental hurdles may need to be overcome to utilize the property. Do not sell or transfer (other than by short term lease) any additional LRA property until disposition of USFWS parcel 5 has been finalized. Identify, negotiate with, and transfer Fish 5 property to a port developer or the Port Authority, if the decision is made for the LRA to acquire the Fish 5 parcel. • Begin a dialogue with the two major property owners, Riverport Railroad and Midwest 3PL, regarding planning for the future and alternative development September 2018 FINAL 2 Updated Reuse Plan – Savanna Army Depot scenarios. Attempt to set up a meeting with the Riverport Railroad owners regarding their long-term goals and aspirations for the property. • Aggressively market the property to BNSF as a logistics, operation and/or maintenance location. Working through the Regional BNSF Economic Development Manager, meet with BNSF real estate, economic development and system planning staff to promote the property and determine whether BNSF is interested in the property and under what terms and conditions. • Determine whether a Request for Proposals (RFP) for a Master Developer to take over marketing and development of the LRA’s remaining property is desirable for the LRA, and if so, develop an RFP for distribution to interested parties. Conduct an “Industry Day” to familiarize potential bidders with the property and the opportunities available at Savanna Depot Park. • Look into consolidating the existing Port Authority and Jo-Carroll LRA leadership to streamline management of redevelopment efforts, and to bring the Port Authority’s additional governmental powers to the Savanna Depot Park. Identify additional grant sources to support barge development. • Continue to work with the State of Illinois and the Treasury Department to have the Depot nominated as an Opportunity Zone. • Enter into Early Transfer discussions with the Army to expedite property transfer of remaining property and USFWS parcel 5, as applicable. Longer term recommendations are for the LRA to dispose of the remaining property through direct sale or auction and to sunset the organization. Implementing these recommendations will take
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