The Story of River’s Edge

Turning a Sow’s Ear into a Silk Purse

September 25, 2013

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Introduction

Benefit Conveyance to Tri-City Regional Port District.

Strategically located in the heart of the U.S. on the MS River at America’s Central Port.

Serves Granite City, Madison, and Venice, Illinois.

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Support Center Information

Base offered: 840 acres adjacent to the Port Large industrial and

commercial tracts Access to all Class One

Railroads Access to the Mississippi south

of the last lock and dam (#27) More than 1.7 million sq.ft. of

warehouse/office space

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Opportunity: An Adjacent Army Base is Closed

Vision: Realize the economic reuse potential in the Charles Melvin Price

Support Center closure.

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Opportunity: An Adjacent Army Base is Closed

Support from Illinois Congressional delegation, local Mayors and community leaders to acquire/develop as one integrated property to avoid federal agency cherry picking.

Port became Local Redevelopment Authority.

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River’s Edge Proposed Redevelopment

The Port completed the River’s Edge comprehensive redevelopment plan, proposing industrial, transportation, office, warehouse, residential, recreational and other business mixed-use development.

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River’s Edge Proposed Redevelopment cont.

With the support of the Illinois delegation, especially former Congressman Jerry Costello, Wydra negotiated the terms of the conveyance of the base to the port

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The SPECTRUM Group’s Role

Assisted the Port with: drafting of legislation negotiating the terms of the

conveyance with the Army negotiating the terms of the

quitclaim deed with the U.S. Maritime Administration

requesting funds from OEA obtaining federal grants for

the further expansion of the Port

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How the Conveyance Was Accomplished

The property was conveyed under the terms of the Public Port Facility Conveyance Program administered by the U.S. Maritime Administration (MarAd)

The conveyance has to improve port facility productivity and land access, help develop intermodal transfers of freight/cargo, reduce highway and rail congestion, and reduce air emissions

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How the Conveyance Was Accomplished

The property is transferred to the Port via a quitclaim deed. The key term of the deed is the Port has to maintain the property in perpetuity as a public port facility. If not, the property reverts to the federal government for re-disposal

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Codification of the Transfer in Pub. L. 106-398

Congressman Costello had the transfer put into law Key terms of the conveyance:

“The Secretary of the Army may convey to the Tri-City Regional Port District of Granite City, Illinois…(the Port District) all right, title, and interest of the United States in and to a parcel of real property including any improvements thereon, consisting of approximately 752 acres and known as the Charles Melvin Price Support Center, for the purpose of permitting the Port District to use the parcel for development of a port facility and for other public purposes.”

The conveyance was made without consideration as a public benefit conveyance

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Community Improvements

The first tranche of 545 acres was transferred on April 22, 2002.

Leases were negotiated with all previous government tenants

The 150 units of military housing on the property were refurbished and re-leased to military personnel.

Initial grant funds came from EDA and OEA

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Community Improvements (cont)

The next several years saw a steady growth in Port tenants and community development, including: Opening of a new child-care center and fitness

center Construction of a large asphalt plant by

Owens-Corning and Conoco Phillips Petroleum Expansion of the Port’s FTZ authority A small business incubator

Construction of a million-gallon-a-year ethanol plant by Abengoa Bioenergy of Illinois

Developments by Arizon Companies, a mfr. of air support buildings, and a helicopter hangar for ARCH Air Methods.

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South Harbor and TIGER Grant Funding

The Port received a TIGER funding/grant to build out a new harbor south of Lock #27.

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The Port Grows

The Tri-City Port District (renamed America’s Central Port ) is thriving as a result of the public benefit conveyance and the OEA and TIGER grant funds as well as matching state and local funds

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Successes

Supports over 1450 jobs Has an economic impact on the

community of over $280 million Maintains its commitment to keep the

property as a public port Provides the surrounding community

with jobs and recreational opportunities.

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Conclusion

A lesson for all communities:1. Be creative

2. Think outside the box

3. Have a plan

4. Use your Congressional delegation to help you achieve

your goals.

BEFORE AFTER

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Joan Bondareff

11 CANAL CENTER PLAZA, SUITE 300, ALEXANDRIA, VA 22314703.683.4222 | 571.447.4325 (direct) | WWW.SPECTRUMGRP.COM |

jbondareff@spectrumgrp.com