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Home My WebLink About3.a. RCP Eco-Green Business ParkEXECUTIVE SUMMARY Port Authority Meeting Date: May 5, 2015 AGENDA SECTION: AGENDA ITEM: RCP Eco-Green Business Park New Business PREPARED BY: AGENDA NO. Kim Lindquist, Deputy Director3.a. ATTACHMENTS: APPROVED BY: Project Presentation ddj RECOMMENDED ACTION: Presentation ISSUE As part of the Resilient Communities Program, a group of students worked on assessing the feasibility of an eco-green business park in Rosemount, potentially in UMore. The students were tasked with trying to define what an eco-green park could mean, where there might be relevant examples, and what is economically feasible in Rosemount. Students who worked on this project will be available to make a th presentation at the special Port Authority meeting on May 5. RECOMMENDATION Information only. Rosemount Eco- Green Business Park Feasibility Study Elise Maxwell Mark Foley Joe Braman Josh Sopeth Ryan Marty Carlson Ventures Enterprise: May 2015 Agenda Primary Research SummaryPrimary Research Summary Industrial Symbiosis OverviewIndustrial Symbiosis Overview Sustainable Development ExamplesSustainable Development Examples Green Development OptionsGreen Development Options RecommendationRecommendation Conclusion & Next StepsConclusion & Next Steps 2 Interviewed Development Experts ContentExpertsAffiliation Ted GonsiorColliers Casey HankinsonRyan Companies Dan MuellerRyan Companies Phil CattanachOpus Peter CarlsonOpus Tom FisherDean of School of Design Martin MeyerMSR Design Dale GlowaPresident of UMORE 3 Interview Summary There are two initial questions developers will ask: -Is it good real estate? -Do businesses want to be there? The first tenant and first development will set the stage for the future. Rosemount should actively seek out the first tenant. From a developer’s point of view, sustainable design requires city incentives. Unless the market requires sustainable development, tax credits and TIF may be required for investments in green features. Rosemount must be clear about their eco-green requirements. Developers avoid projects that are ambiguous. Ambiguity often equals increased costs. On-going infrastructure maintenance costs could be more than the tax income. Rosemount should take a long-term view of new developments. In 30 years will the tax income fund infrastructure maintenance requirements? 4 Industrial Symbiosis Overview Definition:Definition: •The sharing of services, utility, and by-product resources among industries in order to add value, reduce costs and improve the environment. •Industrial symbiosis is a subset of industrial ecology, with a particular focus on material and energy exchange. Examples of EcoExamples of Eco--Industrial Development:Industrial Development:11 Circular Economy •: an industrial economy that is intentionally restorative and allows for biological materials to flow into the environment safely and technical materials to stay contained in the system. Eco-Industrial Network •: involves building relationships between the private sector, government and educational institutions in order to use new and existing resources to improve efficiency, profitability and sustainability. These networks can take many shapes. They can be within a confined physical location, a undefined location or virtual. Networked Eco-Industrial System •: similar to idea of the eco-industrial network, however the system is comprised of macro-level developments with links across various regions. 5 U.S. Industrial Symbiosis Case Studies Berks County EcoBerks County Eco--Industrial Park (Reading, PA):Industrial Park (Reading, PA): 22 •A state/private project converting landfill and power plant waste into energy system for manufacturing. Plant would also use themethane gas produced there as fuel, excess gas could be run through generators to produce electrical power. Water from the landfill’s leachate treatmentplants can be used too, leachate being the runoff from landfilled materials. The project never came to full fruition as the landfill company dealt with legal trouble and was ultimately acquired. •Proposed Projects: First tenant was a plant for a tile-making process that uses fly ash (the residue from coal-fired power plants), as well as low-quality clay and lime –could also use the municipal solid waste incinerator ash. Potential partners may include a wallboard maker or a short-fiber paper mill. •Development Incentives: financing from Pennsylvania Development Financing Authority Cabazon Resource Recovery Park (Indio, CA):Cabazon Resource Recovery Park (Indio, CA): 33 •The Park is a planned mix of ecologically friendly projects that preserve, recycle, or transform waste streams. •Proposed Projects: metals reclamation, biomass (ties, organics, plastics) gasification, used oil refinery, ethanol or methanol facility, green and food waste composting, metals recycling, construction & demolition recycling, reclaimed glass, plastics and rubber molding, organic prawn farming, soil blending and bagging, paper de-inking, steel production, regional materials recovery facility •Development incentives: Streamlined permitting, Minimal limitations, Lower fees, Lower costs, Tax incentives, Rural empowerment zone Shady Side EcoShady Side Eco--Business Park (Shady Side, MD):Business Park (Shady Side, MD): 44 •This symbiotic community was planned as a renovation of an existing facility in an underemployed and under served community. However, this development was never executed. •There were several proposed projects for the location. These businesses included a micro brewery, a fish and shellfish aquaculture, a marine exploration and technology firm, an oil recycling business, an ecologically-designed water reclamation system, solar and renewable energy, and acompost business. •There were no established development incentives. Trenton EcoTrenton Eco--Industrial Complex (Trenton, NJ):Industrial Complex (Trenton, NJ): 44 •This development was intended to be an eco-network with no confined geographic area. This development planned to have a management structure to help facilitate partnerships between dispersed business. We found no evidence that this complex is in existence today. 6 •Development Incentives: New Jersey Urban Enterprise Zone grant, US Economic Development Administration grant, US EPA sustainability grant Denmark Industrial Symbiosis Case Study KalundborgKalundborgEcoEco--Industrial Park Overview:Industrial Park Overview:66 •Industrial symbiosis network in which companies in the region collaborate to use each other's by-products and otherwise share resources. •The collaboration and its environmental implications arose unintentionally through private initiatives, as opposed to government planning, making it a model for private planning of eco-industrial parks. •Current state of waste heat and materials sharing developed over a period of 20 years. Early sharing at Kalundborgtended to involve the sale of waste products without significant pretreatment. •Each further link in the system was negotiated as an independent business deal, and was established only if it was expected to be economically beneficial. •While Kalundborgdoes operate using trades between various firms in the vicinity, it itself is not self- sufficient or contained to the industrial park. There are many trades that occur with companies outside of this park region. KalundborgKalundborgCost and Environmental Savings:Cost and Environmental Savings:6,76,7 •Based on a 2011 study, the interchanges have shown annual savings of up to $15 million, with investments around $78.5 million. The total accumulated savings is estimated around $310 million. •Water Savings: overall water consumption reduced by an estimated 30%, at the power plant alone total consumption reduced by 60%. •Wastes avoided through interchanges annually: •265,000 tons of CO2 emissions •50,000-70,000 tons of fly ash from power station •2,800 tons of sulfur as hydrogen sulfide in flue gas from oil refinery 7 KalundborgEco-Industrial Park 8 "KalundborgEco-Industrial Park Symbiosis Map" by Nagilmer-Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Kalundborg_Eco-Industrial_Park_Symbiosis_Map.jpg#/media/File:Kalundborg_Eco-Industrial_Park_Symbiosis_Map.jpg Comparison of U.S. to Europe Role of the Role of the Economic vs. Economic vs. Government Government Project Project Environment Environment ParticipationParticipation ChampionChampion FactorsFactors U.S. projects valued Majority of U.S. U.S. projects were not the economic factor projects were championed or more than the initiated by the anchored by one local environmental government, who also business, they factors, leading to a participated in and focused solely on misalignment of paid for the initial material and energy incentives.planning costs.exchange. European projects European projects were initiated by the had one strong local European projects business community champion and aimed to improve and then coordinated focused on the both the business and with the government. establishment of environmental Involvement was pollution prevention performance limited to companies with a utility sharing and direct character. stakeholders. The most successful The most successful Stakeholders must value Stakeholders must value Forced development and Forced development and developments occurred developments occurred the environmental impacts the environmental impacts planned parks have planned parks have naturally with one naturally with one for projects to succeed.for projects to succeed.systematically failed.systematically failed. champion at the center. champion at the center. 9 Port of Cape Charles Sustainable Technologies Industrial Park Part of the town’s strategy to blend job creation with environmental protection: •Economy focused on fishing, farming, and food processing •Eco-industrial park intended to create new jobs for residents while limiting environmental footprint 1992: Received a grant from the National Oceanic and Atmospheric Administration to research the ability to balance economic growth and coastal resource protection Hired sustainable development planner: •Created volunteer citizen task force to identify “measurable, achievable tasks that build the economy and preserve the assets on which they depend” •Recommended the creation of a new type of industrial park designed to reduce water and resource use while allowing businesses to take advantage of all the traditional benefits of a park This innovative approach to economic development set Cape Charles apart from its neighbors, provided uniqueness to the community and gave industries a reason to explore the town 10 Port of Cape Charles Sustainable Technologies Industrial Park January of 2000: the first phase of the Cape Charles Sustainable Technologies Industrial Park (STIP) opened: •First industrial park of its kind in the United States •31,000-square-foot manufacturing/office building was complete with solar panels, protected wetlands, low-energy light and water fixtures and native landscaping •Local water resources were protected through an innovative water recycling system which collects used water from each company, recycles it and then redistributes the water back to businesses First few years after opening the park leveraged $8 million from private companies locating within the park and created more than 65 new jobs: •Some businesses have closed, and the county has struggled to replace them •Federal and state officials developed a rigorous list of sustainability criteria for how businesses in the park could operate •These criteria are so stringent that the already small pool of potential green businesses able to locate in the park became even smaller •County officials attribute miscommunication between state and local leaders over who would lead in recruiting businesses to the park as being a major factor in its downturn 11 Great River Energy Efficient Facilities Corporate Headquarters –Maple Grove •The Maple Grove headquarters of Great River Energy is one of the most energy-efficient and sustainable buildings in Minnesota and holds a Platinum LEED Certification. •The building utilizes fluorescent and LED lighting, rooftop solar panels, a wind turbine, geothermal heating and cooling, rainwater capture, and multiple atriums to harvest natural daylight. Energy Recovery Station –Elk River •Great River Energy’s Elk River facility also received LEED Certification for implementing geothermal heating and cooling and efficient lighting systems and using recycled and local materials for construction. 12 Minneapolis Green Homes North Green Homes North is an initiative of the City of Minneapolis to construct 100 energy efficient homes over the next five years to revitalize North Minneapolis neighborhoods Homes will be constructed in accordance with the Minnesota Green Communities Standards or LEED certified and 65% of construction waste will be recycled Energy efficient plumbing, compact fluorescent light bulbs, insulated concrete form foundations, efficient furnaces and water heaters, programmable thermostats, and continuously active ventilation systems 13 Green Option Cost-Benefit Summary High Renewable Energy Insulation (High R-Adaptive Reuse Value Envelope System) Green Roof Greywater Building Tightness Glazing U-Value Impact Site Water Runoff Plumbing Native fixture Landscaping flow rates Transportation Low High Cost 14 Recommendation There does not appear to be a clear market for a distinct, eco-business park. This type of development would either require a mission aligned tenant or tax incentives. You can move the city towards an environmentally progressive strategy by requiring that the next business development include: •Native Landscaping •Sustainable Transportation •Greywater Reuse and Capture 15 Native Landscaping Native grasses and wildflowers can protect soil due to deep root systems, which helps prevent erosion. Areas with diverse perennial native plantings have less water runoff than ground covers composed of one non-native species such as bluegrass. Rain gardens are depressed areas filled with native plants as a way to help water infiltrate into the ground rather than run off into storm sewers. Native plants are adapted to local climate and soil conditions. They need very little watering, mulching, mowing, or protection from frost. They also provide nectar, pollen, and seeds that serve as food for native butterflies, birds, and other animals. air and water quality This improves through a reduction in landscaping machinery and $1,000 pesticide usage while allowing future tenants the ability to realize approximately in savings per acre in maintenance costs. 16 Sustainable Transportation convenient and secure bike Provide storage to make it easy for employees to clean and bike to the building, as well as safe shower and changing facilities . EV charging stations in the parking lot to encourage employee carpooling. 17 GreywaterReuse and Capture Greywater is gently used water from bathroom sinks, showers, tubs, washing machines, and other non-harmful water uses. A commercial system is typically going to collect greywater in a large, temporary tank, filter, disinfect, and pump back to either flush toilets, or supply irrigation for the landscape. Industry Example: •Greywater can account for 30-50% of wash water. A Paul Mitchell company campus saves 400,000 gallons of water annually. •This could represent drastic savings for a light manufacturing tenant that uses water as part of their process. 18 Conclusion & Next Steps •Rosemount could be an attractive location for particular types of light manufacturing businesses 1 •The market likely will not produce an eco-business park without incentives from the city or a specific mission aligned tenant 2 •Industrial Symbiosis is not a likely solution for Rosemount 3 •Start small, attract the first mover, set a precedent, and find key partners invested in the idea of an eco-business park for their own reasons 4 19 References: 1.http://www2.rgu.ac.uk/abs/National%20Industrial%20Symbiosis/R eport%20for%20Databuild%20New.pdf 2.https://news.google.com/newspapers?nid=1955&dat=19981122&i d=lhgiAAAAIBAJ&sjid=NqYFAAAAIBAJ&pg=4152,2165320& hl=en 3.http://wei-mecca.com/cabazon.php 4.http://clinton5.nara.gov/PCSD/Publications/Eco_Workshop.html 5.http://www.symbiosis.dk/en 6.usbcsd.org/documents/action2020/Marian%20Chertow.pptx 7.http://en.wikipedia.org/wiki/Kalundborg_Eco-industrial_Park 8.http://reusegraywater.com/commercial-system/ 9.http://www.dcnr.state.pa.us/cs/groups/public/documents/document/ d_000630.pdf 20