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Application for Redevelopment Subrecipient Planning Grant at 3400 Jackson StreetCity of Dubuque City Council Meeting Consent Items # 14. Copyrighted October 18, 2021 ITEM TITLE: Application for Redevelopment Subrecipient Planning Grant at 3400 Jackson Street SUMMARY: City Manager recommending approval to apply for a Brownfields Planning Grant from East Central Intergovernmental Association (ECIA) in order to create a vision for the former Flexsteel I ndustries site at 3400 Jackson Street. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Type Application for EPA Brownfield Planning Grant for 3400 City Manager Memo Jackson Street-MVM Memo Staff Memo Staff Memo Application Supporting Documentation THE CITY OF Dubuque DUB TEE All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Application for Redevelopment Subrecipient Planning Grant at 3400 Jackson Street DATE: October 12, 2021 Economic Development Director Jill Connors requests City Council approval to apply for a Brownfields Planning Grant from East Central Intergovernmental Association (ECIA) in order to create a vision for the former Flexsteel Industries site at 3400 Jackson Street. ECIA has received a brownfields grant from the EPA to conduct brownfields remediation efforts. One qualifying activity under that grant is planning. As an interested party in the redevelopment of the portion of Dubuque's north end that includes 3400 Jackson Street, the City of Dubuque is an eligible applicant for a planning grant. The City is not required to own the property in order to apply — it only need be an interested party. The current property owner, Flexsteel Industries, is supportive of the application as written. With the use of this grant, ECIA will hire Blackstone Environmental to conduct two focus groups (the North End Neighborhood Association and a group of nearby businesses, some of which have already verbally expressed interest and support of the proposed planning efforts) as well as a public input session. Blackstone Environmental will study several of the City's current planning documents (the Imagine Dubuque Comprehensive Plan, Climate Action Plan, Equitable Poverty Reduction & Prevention Plan, Arts & Culture Master Plan, and the Iowa Finance Authority's most recent Housing Study) before gathering public input on proposed uses for the area. The purpose of having Blackstone Environmental review and synthesize the goals of these plans is to inform the conversations that will be held in focus groups and a public meeting. Having input sessions grounded in information already provided by our residents will help make for a solid vision that our community has indicated are priorities for them. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director 2 THE CITY OF E Masterpiece on the Mississippi Dubuque Economic Development Department 1300 Main Street All-AmericaCiity Dubuque, Iowa 52001-4763 fvtll["JVtL i T7(: fJ iY'L9= Office (563) 589-4393 I I TTY (563) 690-6678 ® http://www.cityofdubuque.org 2007-2012.2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Application for Redevelopment Subrecipient Planning Grant at 3400 Jackson Street DATE: October 8, 2021 INTRODUCTION This memorandum requests approval to apply for a Brownfields Planning Grant from East Central Intergovernmental Association (ECIA) in order to create a vision for the former Flexsteel Industries site at 3400 Jackson Street. BACKGROUND In 2017, Flexsteel Industries constructed a new facility in the Dubuque Industrial Center on Seippel Road to modernize and expand their operations. The buildings on their 3400 Jackson location were subsequently taken down, leaving a 43-acre site with bare ground and concrete slabs which are currently surrounded with construction fencing. The area is ripe for visioning in order to take a holistic approach to redeveloping the area as opposed to a piecemeal approach to the land use. DISCUSSION ECIA has received a brownfields grant from the EPA to conduct brownfields remediation efforts. One qualifying activity under that grant is planning. As an interested party in the redevelopment of the portion of Dubuque's north end that includes 3400 Jackson Street, the City of Dubuque is an eligible applicant for a planning grant. The City is not required to own the property in order to apply — it only need be an interested party. The current property owner, Flexsteel Industries, is supportive of the application as written. With the use of this grant, ECIA will hire Blackstone Environmental to conduct two focus groups (the North End Neighborhood Association and a group of nearby businesses, some of which have already verbally expressed interest and support of the proposed planning efforts) as well as a public input session. Blackstone Environmental will study several of the City's current planning documents (the Imagine Dubuque Comprehensive Plan, Climate Action Plan, Equitable Poverty Reduction & Prevention Plan, Arts & Culture Master Plan, and the Iowa Finance Authority's most recent Housing Study) before gathering public input on proposed uses for the area. The purpose of having Blackstone Environmental review and synthesize the goals of these plans is to inform the conversations that will be held in focus groups and a public meeting. Having input sessions grounded in information already provided by our residents will help make for a solid vision that our community has indicated are priorities for them. RECOMMENDATION/ ACTION STEP I respectfully request City Council approval to apply for this EPA brownfields planning grant to be administered through ECIA. 2 _Ir ECIA Brownfields Coalition ECIA �` Application for Brownfields Services Section 1: Applicant Information 1. Type of applicant: 0 Municipality ❑ Non -Profit ❑ Area development ❑ County ❑ 28E Organization corporation (non-profit) 2. Applicant Contact Information Name: City of Dubuque Address: 50 W. 131" Street Contact Name: Jill Connors Phone: 563-564-5686 Email: jilconno@cityofdubuque.org 3. Non -Profits Only: Local government contact who can demonstrate support for this project Organization Name: Contact Name: Phone: Email: In completing this form, I, the authorized undersigned agree to the following: 0 1 agree to provide all applicable information to properly identify the property of interest. 0 1 have obtained or will assist in obtaining a signed access agreement by the legal owner of the property of interest. 0 I will provide truthful and timely responses to inquiries made by ECIA about the property of interest. Printed Name of Authorized Signer (Applicant): Michael C. V illi en Title: City Manager Signature: Date: October 18, 2021 Printed Nam of Authorized Representative of Local Government (if not applicant): Title: Signature: Date: Section 2: Services Requested 1. Please select what services you would like to receive (check all that apply): Services provided at each site will be capped at $40,000. A Phase 1 generally costs $2,500-$3,500, while Phase Its can range anywhere from $8,000 - $30,000 depending on the complexity and size of the site. ❑ Phase I — site environmental history review ❑Phase II — soil/groundwater testing ❑Asbestos Inspection Survey ❑ Lead -Based Paint Testing —for building renovation, not demolition ❑ Air Quality/Vapor Testing — testing for potential vapors from contamination ❑ Clean-up Planning — recommendations for cleanup alternatives based on sampling results 0 Planning — activities including site reuse assessment and vision, land use assessment, market study, infrastructure evaluation, resource roadmap, evaluation of market viability ECIABC Application for Brownfields Services Page 1 1 Section 3: Site Information 1. Site Location Name of Site (if applicable): Former Flexsteel Industries Site Address(es): 3400 Jackson St. City: Dubuque County: Dubuque Parcel ID(s): 1011426002, 101142603, 1011426004, 1011427004, 1013101001,and 1014230001 Size (acres): 43 2. Ownership: Is the applicant the property owner? ❑ Yes ❑x No What is the date the property was acquired by its current owner? 1982 How was the property acquired? ❑ Foreclosure on tax redemption ❑ Condemnation of Nuisance/Abandoned Property ❑ Eminent domain ❑x Direct purchase or donation ❑ Quit Claim Deed ❑ Other: Was Phase I or other due diligence conducted prior to acquisition? ❑ Yes ❑ No Current Owner Information Owner (Individual or Organization): Flexsteel Industries, Inc. Contact Person (if Organization): Derek Schmidt Phone: 563-542-8584 1 Email: dschmidt@flexsteel.com 3. Most Recent Past Owner (if known): Owner (Individual or Organization): Contact Person (if Organization): Address: 4. Is the property currently vacant? ❑x Yes ❑ No 5. Known Current or Past Use (check all that apply) ❑x Industrial ❑ Public Facility ❑ Other ❑ Commercial ❑ Vacant (no structures) ❑ Residential ❑ Abandoned (with structures) What is the current condition and use of the property? Please be as descriptive as possible indicating structural soundness and condition of buildings and whether the property is currently utilized in any way. All buildings have been demo'd and removed off -site. Concrete slabs remain. Portions of the property are currently used by a neighboring business for semi -trailer parking. 6. What have been the past uses on the property? (Please be as specific as possible including approximate dates of operation of each use and business names) Prior to 1911, the site was part of a railyard and shops owned by the Chicago Great Western Railway. A locomotive house, water tower, pump house, turntable, and 500-gallon fuel oil tank were located on the west side of the tracks on the east portion of the site. Brunswick-Balke- Collender reportedly acquired the site west of the turn table and locomotive house in 1911 and began construction of a 225,000 square foot factory. The facility was originally used to ECIABC Application for Brownfields Services Page 1 2 manufacture bar fixtures and began making phonograph and radio cabinets after 1914. Warner Brothers Pictures acquired the site in 1930 and expanded operations under the name Brunswick Radio Corporation to include manufacture of radios, phonographs and loudspeakers. The plant was closed in 1931. In 1936, Northome Furniture, aka Flexsteel Industries, moved into the buildings formerly operated by the Brunswick Victrola Company. In 1972, Flexsteel expanded its operations to 715,000 square feet, doubling the size of the metal division which manufactured the Flexsteel spring and recliner, convertible bedding fixtures, and motor home bucket seats. Flexsteel acquired the site in 1982, including the remnants of the Chicago Great Western Railroad property to the east. Aerial photographs and topographic maps indicate extensive filling of the north portion of the site prior to the 1990s. The new warehouse addition was constructed to the east of the main building by 1999. From 1999 through 2019, the site remained relatively unchanged. Flexsteel ceased operations and relocated to a new facility in 2019.All the Site buildings, except for two, have been demolished and the Site is currently vacant land. 7. What impact has this site had on the community? (e.g. contributed to blight, public health hazard close to schools or residences, no interest in redevelopment because of condition, lost taxes, etc.)? The site had been the location of several industries for over a century — providing jobs for adjoining neighborhoods. In 2017, Flexsteel Industries constructed a new state-of-the-art building in Dubuque's Industrial Center on the west end of town and moved its operations to that location. Buildings on the 3400 Jackson site were then demo'd. The site currently sits idle with a large chain link fence surrounding it — a blight for neighbors and passersby. 8. Are there plans for redevelopment or is there an interested buyer for the property? Describe plans including timeline, and site reuse plans. The current owner has allowed a neighboring business to park semi -trailers there. But I don't know whether there has been a land sale. A northern portion of the property has been donated to the County. 9. What will the anticipated community benefit be as a result of the redevelopment project? Describe. The hope is that a use can be found for the property that benefits the community based on residents' input. Whether that be housing, retail, mixed -use, recreational, or other. 10. Is the property located in a designated urban revitalization district or in a priority area designated by city through Comprehensive Plan. If yes, include copy of plan. ❑x Yes ❑ No "Attachments for Question #10. The property is located in the Peru Road Urban Renewal District, which was adopted by City Council in 2018. The plan's objectives are to provide opportunities, incentives, and sites to promote new and existing economic development (commercial and industrial) and to promote blight remediation. Details can be found in the attached plan. Dubuque's comprehensive plan, "Imagine Dubuque 2037: A Call to Action", was adopted in 2017 following a year of community engagement that gathered over 12,500 ideas from more than 6,000 residents and stakeholders. The plan serves as a policy guide for the community's physical, social, and economic development. The objectives of the urban renewal plan align with Dubuque residents' vision for our community. The plan can be found here — https://www.citvofdubugue.org/2432/Imagine-Dubuque Section 4: Environmental Information 1. Is this owner likely to give access to the property for testing? ❑x Yes ❑ No ❑ Maybe ECIABC Application for Brownfields Services Page 13 2. Has there been previous environmental testing at the site? ❑x Yes Please provide information on the date of testing, findings and any recommendations for further testing. You may attach previous environmental assessment reports or executive summaries. • A January 24, 1995 Report on Discovery of Petroleum Hydrocarbons by IIW Engineers and Surveyors (IIW). A geotechnical investigation was conducted east of the main building in the former railroad yard prior to construction of a shipping warehouse. During the investigation, soil samples were collected for laboratory analysis and diesel fuel was reported at concentrations below the current SWS. The planned warehouse was relocated to the north to avoid excavations in impacted soil. In a March 20, 1995 letter, IDNR indicated it would not require further investigation or remediation for the petroleum impacts. • A Resource Conservation and Recovery Act (RCRA) Final Site Sampling Visit Report dated January 13, 2011 by Booz/Allen/Hamilton documented soil and groundwater samples that were collected from a lacquer thinner disposal area and from two spill control tanks associated with a drum storage area. Soil and groundwater samples were analyzed for volatile organic compounds (VOCs) and RCRA metals, and concentrations were reportedly below United States Environmental Protection Agency (EPA) risk thresholds. • A Phase I Environmental Site Assessment (ESA) was completed by Roberts Environmental Services, LLC for Barnes & Thornburg LLP dated October 18, 2016. The Phase I ESA identified up to 16 USTs that may have been located at the site; seven were reportedly removed in 1990. A gasoline release was reported during removal of one of the USTs, and subsequent investigations confirmed benzene in groundwater at concentrations above the SWS. Other concerns identified in the 2016 Phase I ESA include historical manufacturing activities, fill and stained/discolored soil, floor drains, catch basins, pits, sumps, drywells, an oil/water separator, hydraulic oil usage, and transformers. • A March 6, 2017 Phase II ESA report was prepared by HR Green to evaluate the RECs identified in the 2016 Phase I ESA. Soil samples were collected for laboratory analysis from fifteen soil borings and a soil pile and groundwater samples were collected from eight locations. VOCs, semi -volatile organic compounds (SVOCs), RCRA 8 metals, and total extractable hydrocarbons (TEHs) were detected in soil and groundwater samples. The report suggested that elevated contaminant concentrations in soils in the areas sampled would pose an unacceptable cumulative exposure risk to site residents, site workers, and construction workers. Additionally, elevated concentrations reported for groundwater would also pose an unacceptable risk. • The IDNR issued a letter dated April 11, 2017 following their review of the HR Green Phase II ESA. The IDNR indicated that "a potentially hazardous condition has been identified as defined by Iowa Administrative Code 567 Chapter 131." The IDNR agreed with the conclusions and recommendations in the report for a more complete assessment of the environmental conditions at the site, a site -specific health and safety plan to guide future construction and address potential exposure to contaminated soil, and implementation of appropriate engineering remedies or institutional controls. • EPA Region 7 issued a letter on July 24, 2018 following review of information and documents on the IDNR Contaminated Sites database and discussions with the IDNR Project Manager. The EPA stated that the facility should be required to join the LRP and follow the requirements of Chapter 137 of the Iowa Code. Investigation and cleanup of the Flexsteel facility under this program will satisfy corrective action obligations under the federal RCRA. If the facility declines to join the LRP, or joins but subsequently ECIABC Application for Brownfields Services Page 14 leaves the Land Recycling Program, the EPA would consider reestablishing its oversight of this facility at that time. • A second Phase I ESA was completed by Terracon Consultants, Inc. (Terracon) dated May 3, 2019. Concerns identified in the 2019 Phase I ESA were similar to the concerns identified in the 2016 Phase I ESA report. Additional findings included solvent use at the site for at least 33 years, presence of at least eight USTs (five uninvestigated with unknown locations), diesel fuel impacts to soil and groundwater, presence of VOCs, SVOCs, RCRA 8 metals, and TEHs in soil and groundwater collected during previous investigations. Multiple areas of stained concrete, hardwood flooring, and soil were identified. • A Site Assessment Work Plan dated May 3, 2019 was prepared by Terracon and submitted to the IDNR for review. The Work Plan detailed proposed soil and groundwater sampling at the site to further assess for impacts and define previously identified impacts. The IDNR approved the Work Plan in a letter dated June 21, 2019. • A Site Assessment Report dated December 15, 2020 was completed by Blackstone that documented investigation activities at the Site. Soil, groundwater, surface water, and sediment samples were collected at the Site in 2019. The site assessment identified waste oil, VOCs, PAHs, lead, cadmium, and arsenic at concentrations above their respective SWS in soil and groundwater. ❑ No What are the suspected contaminants based on past/current uses? (e.g. Hazardous, petroleum, asbestos, lead, solvents, etc.) For any additional questions regarding this application please contact: Dawn Danielson, ECIA Brownfields Project Manager at ddanielson@ecia.org or 563.690.5772. ECIABC Application for Brownfields Services Page 1 5