Dallas Brownfields Program Spurs Neighborhood Revitalization

Like many large cities, Dallas experienced marked population growth in the early 1990s, expanding by 17 percent, or 686,000 residents. Most of the growth occurred on the city's fringes and in the surrounding suburbs. This growth drew businesses and residents from downtown, leaving many properties vacant. To stem the migration from downtown and redirect development toward declining areas, the city adopted the Dallas Plan, which emphasized promoting economic development, preserving the city's neighborhoods, and encouraging private redevelopment of vacant sites in west and south Dallas--two of the city's poorest areas.

The city faced significant obstacles in its quest to spur redevelopment. Many of the vacant and abandoned sites had been used for landfills, warehousing, and a variety of industries. Some contained hazardous materials that could slow down a project and add significant costs for cleanup and construction delays. For this reason many developers were hesitant to initiate projects.

To address the developers' concerns, the city made brownfields redevelopment an integral part of its downtown revitalization strategy and created the Dallas Brownfields Program (DBP). The program began with a $200,000 Assessment Pilot grant awarded in October 1995 from the U.S. Environmental Protection Agency (EPA). DBP educates developers and the public about the benefits of reclaiming brownfields. Staff members also pinpoint potential hazards through environmental site assessments (ESAs) and facilitate property redevelopment by connecting developers with the needed city, state, and federal resources for cleanup.

Redevelopment - North of Dallas

Dallas' brownfields strategies are paying off across the city. DBP has helped spur redevelopment of 24 brownfield sites, which leveraged over $900 million in private and public investment. The EPA has also designated the city as a brownfield showcase city.

Victory Park, a project of Hillwood Development Corporation, is a master-planned urban development with upscale retail shops, restaurants, modern office space, residential units, hotels and signature entertainment venues, including the American Airlines Center and the new W Hotel.

When thousands of fans jam the American Airlines (AA) Center, they probably do not know the origins of their sparkling new civic showcase. The arena is located on the site of a former Dallas Electric Company generating plant, built in 1890.

The City of Dallas formed a public/private partnership with Hillwood Development Corporation, a Ross Perot Jr. company, to create the project. Scientists evaluating the 63.3 acre site found a variety of problems. There were excess heavy metals in the fill material and railroad truck ballasts, and hydrocarbons tainted the soil and groundwater. Estimated cleanup costs ranged from $2 to $3 million.

Hillwood financed the environmental investigation and cleanup, and the City provided $125 million for public infrastructure. When it opened in July 2001, the $425 million facility was featured in Time Magazine, and the site has drawn national recognition by winning the EPA Phoenix Award. The Phoenix Awards™, Recognition for Excellence in Brownfield Redevelopment, are widely recognized as the outstanding award for achievement of excellence in brownfields redevelopment.

Jefferson North End, an 11 acre, 540-unit multi-family residential complex, was constructed adjacent to the AA center. Buildings were razed in the 1970's, leaving the property vacant for more than 20 years. The site housed a gas station, a metal finishing operation, battery manufacturing, automotive repair, and paint and varnish manufacturing. Environmental concerns included lead, volatile organic compounds and petroleum hydrocarbons in soil. Groundwater contamination had naturally attenuated. Two developers purchased the site from FDIC and excavated soil to clean up the property.

The W Hotel will be the first W Hotel in Texas and the first W Residences product in the United States. The W Dallas Victory Hotel & Residences will encompass two towers rising from a single base with ground-floor retail. The project will feature 251 hotel rooms, 144 condominium units, a two-story living room lobby, a signature restaurant, an outpost of Las Vegas' renowned Ghostbar nightclub, a 5,000-square-foot Bliss spa and a 16th floor infinity pool and fitness facility overlooking Dallas.

Redevelopment - South of Downtown Dallas

The Cedars is a district in South Dallas. It is adjacent to downtown, east of the Trinity River and west of Fair Park and Expo Park. It was originally developed in the 1870s with moderately-priced homes, but by the late 1800s the neighborhood had become one of the premier destinations in Dallas, with stately Victorian homes belonging to wealthy businessmen, lawyers, and politicians dotting the streets. By the early 1900s, however, light industry and growing population pressures had begun to change the neighborhood, and most of the city's wealthiest began to move further north to neighborhoods northeast of downtown. In the 1960s, virtually all of the remaining homes were destroyed by the city for highway projects. Today, only a handful of the neighborhood's original homes survive, none in restored condition, and the area is now characterized by light industry and many low-income residences built in later years.

The area has recently experienced the beginnings of an urban transformation with new townhomes, apartments, developments, and public-serving facilities, such as the DART Cedars Station, the South Side on Lamar loft/retail development, the Dallas Police Headquarters, and entertainment venues.

The South Side on Lamar project, just south of downtown, is another example of the impact brownfield redevelopment is having on Dallas and its neighborhoods. The Sears, Roebuck Catalog Merchandise Center, which was built in phases starting in 1912 and ending in 1915, closed in 1993. The closing of the 17.5-acre facility, with its six buildings totaling 1.4 million square feet, emphasized the decline of the surrounding Cedar neighborhood.

Matthews Southwest, a regional developer, looked beyond the neighborhood's decay and saw opportunity. The site's historic character and proximity to the downtown convention center and two of Dallas's light-rail train stations made the property a great location for mixed-use redevelopment. The developer also knew there were several financing options available because of the property's location in a historic district and a federally-designated Enterprise Community and State Empowerment Zone.

The developer slated the main nine-floor building for 455 residential lofts with commercial and retail uses on the main floor. DBP funded an Environmental Site Assessment (ESA) to identify potential hazards on the property. The walkthrough of the site, photographs, a search of federal and state regulatory databases, and other local historical data identified lead-based paint and asbestos that could be easily mitigated during the development process.

Development of the lofts began in 1999 with the first units being occupied in July 2000. The project appears to be a success. The residential occupancy rate is 85 percent, and there is continuing development on the site. Restaurants and other entertainment facilities are being added. There are also plans to transform one of the smaller warehouses into a hotel.

This former brownfields site has provided a new police headquarters for the City of Dallas, providing the lasting tenant security for Matthews Southwest to continue its revitalization of the Cedars neighborhood.

Understanding that tenant security was crucial to the successful revitalization of the Cedars neighborhood, Matthews Southwest donated the former Sears Automotive Store site to the City of Dallas for construction of the new police headquarters. The Environmental Protection Agency provided funding for the U.S. Army Corps of Engineers to conduct Phase I and Phase II environmental site assessments. Surprisingly, few environmental concerns were encountered. There was no groundwater contamination, and containers of uncharacterized materials stored in the building were disposed of properly. Although hydrocarbon soil contamination was present, concentrations were below applicable regulatory standards. Asbestos-containing materials (ACMs) present were abated in accordance with regulatory standards.

The $58.9 million project was funded with general obligation bonds approved by the voters in both 1995 and 1998 bond elections. There were many opportunities for community input throughout the process. The community was supportive and voted to appropriate $47 million in bond funds for the new police headquarters. The 2000 budget was approved including $11.9 million in Certificates of Obligation.

The City of Dallas adopted a leadership role as an implementer of sustainable development by incorporating sustainable features into the building design, making the Jack Evans Police Headquarters the first green building constructed in Dallas. With the incorporation of approximately 60 sustainable features included in the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED), the City of Dallas anticipates the highest "gold" rating for the Jack Evans Police Headquarters.

The City's commitment to construct the police headquarters building in the Cedars neighborhood was a major step in providing a helping hand to a struggling neighborhood just two blocks south of the downtown area. The City of Dallas continues to demonstrate its leadership as a Brownfields Showcase Community by establishing a sustainable building policy, working with federal partners, and revitalizing a brownfield site to serve as a national showcase.

Future Redevelopment

On May 12, EPA, the City of Dallas, and Matthews Southwest celebrated the award of an additional $200,000 brownfield grant to the city by conducting a ceremonial groundbreaking for the new Belleview-Lamar Condominiums. Belleview-Lamar Condo development will create 390 condominium units in four phases and invest $63 million in the future. The development is located near the Southside on Lamar development and the Jack Evans Police Headquarters, and is adjacent to the DART Cedars light-rail station.

EPA Region 6 Press Release for the grant announcement.

Dallas Brownfield Program (DBP) is beginning its eighth year of providing assistance to property owners and developers, the regulatory community, and citizens. The success of the program is due to effective partnerships. From the beginning, DBP worked with the Environmental Protection Agency Region 6 to develop an award-winning program and the Texas Commission on Environmental Quality to develop a Memorandum of Agreement and site prioritization criteria. These partnerships have expanded as a result of the City's selection as one of the first 16 Brownfields Showcase Communities in March 1998.

Matthews Southwest is a full-service development company headquartered in Dallas. Since 1988, this dynamic and growth-driven company has acquired, built and managed single and multi-tenant corporate office, institutional and industrial developments throughout the United States, Mexico and Canada. From conception to completion, Matthews Southwest brings together financial resources and an experienced management team to form profitable partnerships focused on creating projects of lasting excellence.

Environmental Protection Agency, created in 1970, is responsible for protecting human health and the environment. The national Brownfields Program is the first EPA Program to take a multi-media approach to protecting health and the environment. It encourages returning America's estimated 450,000 problem properties to productive community use. Since the beginning of the brownfields program, EPA has awarded 883 assessment grants totaling $225.4 million, 202 revolving loan fund grants totaling $186.7 million, and 238 cleanup grants totaling $42.7 million. The Program continues to be a model for successful collaboration with states, community based organizations, impacted neighborhoods and private industry.

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