A SITE ASSESSMENT STUDY ON POTENTIAL LAND USE OPTIONS AT THE SALEM HARBOR POWER STATION SITE JANUARY 2012 PREPARED FOR THE CITY OF SALEM BY: Jacobs 343 Congress Street Boston, Massachusetts 02210 617.242.9222 Sasaki Associates 64 Pleasant Street Watertown, Massachusetts 02472 617.926.3300 LaCapra Associates One Washington Mall 9th Floor Boston, Massachusetts 02108 617.778.5515 Robert Charles Lesser Co. 7200 Wisconsin Avenue 7th Floor Bethesda, Maryland 20814 214.644.1300 JANUARY 2012 ACKNOWLEDGEMENTS The consultant team would like to recognize the following participants for their contributions during this study which was funded by a grant from the Massachusetts Clean Energy Center. City of Salem Kimberley Driscoll, Mayor Jason Silva, Chief Administrative Aide Lynn Duncan, Director, Department of Planning & Community Development (DPCD) Frank Taormina, Staff Planner/Harbor Coordinator, DPCD Kathleen Winn, Deputy Director, DPCD Captain Bill McHugh, Harbormaster Stakeholders State Senator Fred Berry State Representative John Keenan Charles Payson, District Director for US Congressman John Tierney Joanne McBrien, Massachusetts Department of Energy Resources Richard Chalpin, Massachusetts Department of Environmental Protection James Bowen, Massachusetts Clean Energy Center Robert McCarthy, City Councilor Ward 1 Lamont Beaudette, Dominion Energy at Salem Harbor Station Malia Griffin, Dominion Energy at Salem Harbor Station James Smith, Dominion Energy at Salem Harbor Station Cynthia Carr, Derby Street Neighborhood Association Fred Atkins, Harbor Plan Implementation Committee (HPIC) Barbara Warren, Salem Sound Coastwatch & HPIC Patricia Gozemba, Salem Alliance for the Environment (SAFE) Marjorie Kelly, SAFE Jeffrey Barz-Snell, Renewable Energy Task Force & SAFE William Luster, North Shore Alliance for Economic Development Additionally, the consultant team would like to thank the citizens of Salem and other attendees who participated at the public meetings. Furthermore, the consultant team would like to acknowledge the following organizations for their cooperation during this study: Bentley Elementary School Dominion Energy New England, Inc. National Grid Salem Five Bank South Essex Sewerage District TABLE OF CONTENTS 1 INTRODUCTION 9 2 A BRIEF HISTORY 13 3 SALEM HARBOR POWER STATION 17 4 NEW ENGLAND ELECTRIC POWER MARKET 23 5 CONSTRAINTS, AMENITIES AND ADVANTAGES 35 6 MARKET ANALYSIS 55 7 PUBLIC RECOMMENDATIONS & COMMENTS 79 8 REDEVELOPMENT 83 9 CONCLUSIONS 101 The results of the study are intended to ensure that the City of Salem will have the ability to accurately plan its finances and understand what potential economic development options exist... INTRODUCTION In 2010 the City of Salem issued a Request for Proposals (RFP) for “Consulting Services for a Site Assessment Study on Potential Land Use Options at the Salem Harbor Power Station Site”. The Study was funded by a grant from the Massachusetts Clean Energy Center. As stated in the RFP, the City’s goal 1was to study re-use options and the potential and timing for permanent shut down of the power station. The results of the study are intended to ensure that the City of Salem will have the ability to accurately plan its finances and understand what potential economic development options exist. INTRODUCTION 9 The RFP requested that the scope of the study be divided into the five distinct The selected consultant team includes the following firms: tasks outlined below: Jacobs ■ Task 1 – Background and Definition of Current Conditions 343 Congress Street Overall Project Management ● Relevant Examples of Reuse of Power Generating Sites Boston, Massachusetts 02210 Energy & Power Consultant ● Range of Costs to Position the Site for New Development 617.242.9222 ● Basic Project Related Data Collection ● Existing Conditions Assessment Sasaki Associates 64 Pleasant Street Master Planning ■ Task 2 – Evaluate Possible Necessity of Current and Future Power Watertown, Massachusetts 02472 Plant Operations 617.926.3300 ● Short and Long Term Regional Power Demands ● Investment Required for Regulatory Compliance LaCapra Associates One Washington Mall New England Energy ■ Task 3 – Alternate Uses and Approaches 9th Floor Market Analysis ● Identify Potential Alternative Uses Boston, Massachusetts 02108 ● Options for Economic Reuse Consideration 617.778.5515 ● Summary of Stakeholders and Key Challenges for Each Option ● Economic Benefits of Alternative Schemes Robert Charles Lesser Co. 7200 Wisconsin Avenue Economic / Market ■ Task 4 – Draft and Final Report 7th Floor Analysis ● Draft Report including Recommendations and Executive Summary Bethesda, Maryland 20814 ● Review Findings with Stakeholders 214.644.1300 ● Final Report / Presentations / Conclusions ■ Task 5 – Final Presentation and Report CITY OF ● Up to Two Public Meetings to Present Conclusions DOMINION SALEM ENERGY The consultant team selected by the City was required to have knowledge of the New England energy market, engineering and cost estimating experience relative to utility scale power generating facilities, an understanding and ability to assess the commercial real estate market in New England and planning capability to frame a vision for future development on the site. ENERGY & POWER CONSULTING PROJECT MANAGEMENT MASTER PLANNERS Facilities Assessment TEAM Master Planning Cost for Regulatory Compliance Master Plan – Alternative Uses Cost to Prepare Site for Development Infrastructure / Sustainable Site Design ENERGY MARKET ANALYSIS LaCapra RCLCO. ECONOMIC/MARKET ANALYSIS Review Current Economic Trends Economic / Market Analysis and Power Demands of the Region Potential Alternative Uses Evaluate Short and Long Term Need for Facility Economic Modeling 10 The Consultant Team suggested that the five tasks be addressed within a ■ Regulatory constraints phased approach to the project. Distinct project phases included: ● Massachusetts General Laws Chapter 91 ● Coastal Zone Management - Designated Port Area (DPA) ■ Goal Setting ■ Analysis ■ Market conditions impacting development ■ Development Options ● Viable uses ■ Conclusions ● Absorption Together with the City, an approach to the project was mapped and an overall ■ Vision schedule established. ● Reuse options ● Tax and community benefits Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Over the course of the project, five workshops were held with a stakeholder DRAFT & GOAL BACKGROUND/ANALYSIS DEVELOPMENT OPTIONS FINAL group identified by the City. Two public meetings were held at the Bentley SETTING REPORT School – the first in June of 2011, the second in October. At the first meeting the consultant team described overall project background collected and 1 2 3 4 5 preliminary site analysis. Also at that meeting, specific comments/preferences WORKSHOP WORKSHOP WORKSHOP WORKSHOP WORKSHOP were solicited from members of the community who attended. At the second public presentation, an overall summary of conclusions was discussed. A 1 2 presentation was also made to the Derby Street Neighborhood Association PUBLIC MEETING PUBLIC MEETING in June. Proposed Project Schedule While this Study has been commissioned by the City of Salem, they do not Circumstances changed in May of 2011 when Dominion announced that own the Power Station site – which remains the property of Dominion Energy it would take the entire Salem Harbor Power Station out of service as of New England LLC, a subsidiary of Dominion Resources, Inc. of Richmond, June 1, 2014. Virginia. The City’s goal is to understand the site and regulatory constraints that will effect redevelopment, identify land use opportunities based upon market At that point, the consultant team’s focus shifted from determining the role analysis and a potential overall framework for achievable redevelopment. The of the Salem Harbor Power Station in the New England energy market and City can then potentially help generate interest in the redevelopment and work speculation about the time frame for the eventual decommissioning of the at the State and local level to assist and influence – perhaps both financially plant, to a focus on a new list of priorities which included: and from a regulatory perspective - future redevelopment initiatives. ■ Costs ● Clean up of the site While this Study includes analysis of a new natural gas fired power station, ● Demolition of the power station structures renewable energy and a long list of potential commercial and industrial uses, the consultant team has no bias towards any of the potential uses outlined. ■ Potential for new power generating sources The team has sought only to describe what is possible so that there can be ● Natural gas informed participation by the community in the market’s response to this key ● Renewable energy solutions such as wind or solar / photovoltaics real estate parcel on Salem Harbor. INTRODUCTION 11 As the quadricentennial of the founding of Salem approaches it is interesting to consider that throughout its history, this waterfront has not only contributed significantly to Salem’s identity — it has had an important and varying role in serving the New England region as a whole... A BRIEF HISTORY Portions of the following section are based upon information taken from the following sources: Salem Patch, Part 1: Before the Power Plant, Jerome Curley, May 12, 2011 Salem Patch, Part II: Salem Harbor Power Station in the Last Century, Jerome Curley, May 16, 2011 The Tide Rises, The Tide Falls - Three Centuries of Salem Waterfront, Madelyn Holmes, 1982 When Roger Conant landed