M E M O R A N D U M


TO: Gahanna City Council
Rebecca Stinchcomb, Mayor
FROM: Sadicka D. White, Director of Development
DATE: January 7, 2004
RE: Report to Council Monday, January 12, 2004


(The following is the excerpt from the above report that pertains to Columbus Steel Drum.)

Application for Clean Ohio - Columbus Steel Drum

The Department of Development and City Attorney have been working with legal counsel representing Sydney Blatt, owner of the land and facilities at 1185 Blatt Boulevard, and Duke Realty Corporation for several months to facilitate a closure, cleanup and redevelopment plan for the Columbus Steel Drum property located at 1185 Blatt Boulevard. Duke has entered into a purchase contract with Sydney Blatt.

One of the stipulations of the purchase contract is that the tenant, Franklin Steel Drum, must cease and desist operations at the subject property by July 2004.

A second condition of the purchase contract is that a partnership between the City of Gahanna and Duke Realty be formed to proceed with a site wide remediation under the Voluntary Action Program as set forth by the Ohio EPA Director.

In order to proceed with the proposed remediation site assessments, Phase I & II and site development plans are required to apply ultimately to the Clean Ohio Brownfield Fund. Only public entities can apply for Clean Ohio funds, thereby necessitating this private/public partnership. Duke is requesting from the City of Gahanna a public involvement of $300,000, per the attached economic development agreement and VAP Phase I & II Risk Assessment estimate. An award of our application to the USEPA for $800,000 for brownfield Remediation Grant Funds may offset a portion of this request. Duke has agreed to pay approximately $450,000 in development costs, per the summary of projected expenses, prior to application submittal to the Clean Ohio Fund for the 2004 allocation.

The City of Gahanna will benefit from this partnership because --
  1. the existing drum reconditioning operations are permanently ceased,
  2. the entire site, not just the individual units subject to the 1992 Order, will be remediated, as well as off-site releases,
  3. any proposed new use of the property will not involve drum reconditioning or heavy manufacturing, which might generate air or surface water releases off-site,
  4. demolition/remediation/construction would begin on an expedited schedule in 2005,
  5. a new use of the property will be compatible with current land use and promotes future development in the area,
  6. it will decrease the burden on the public services of Gahanna and itís neighbors including code enforcement, fire, and police,
  7. the creation of new jobs and general revenues, and
  8. it will assist us in the promoting and marketing our remaining industrial sites as well as retaining existing businesses.
Included in your packets is a copy of the economic development agreement reviewed by Tom Weber, the cost estimate and project timeline for the VAP Phase I/II, Risk Assessment and Clean Ohio Fund Application, a summary of projected expenses for Duke Realty Corporation and detailed project schedule.

I am respectfully requesting Council authorize the Mayor to enter into an economic development agreement with Duke Realty Corporation and appropriate $300,000 for the Clean Ohio Fund Application and subsequent technical assessments.