Carol Hazard covers the redevelopment of the former Rentokil woodpreserving site at the northwest corner of Parham Road and Ackley Avenue in Henrico County. County records do not show a transfer of the property as of yet, so it’s unclear exactly which portions of the property are included in the redevelopment. POD 78-07 is available for public viewing on the Henrico County website. The POD indicates that 12 office/warehouse buildings are to be constructed on a 12.197-acre site, with a GBA not to exceed 110,000 square feet. The RTD article focuses primarily on the Leadership in Energy and Environmental Design (LEED) aspect of the proposed development, which basicall means that the buildings will be constructed to strict environmental standards. Perhaps this is an attempt to offset the potential marketability of the project due to the Superfund site across the street. Whatever the reason, kudos to Empire Development of Virginia Beach for tackling the site and the superior design controls.
Background
Portions of the property (which totals roughly 37 acres) were used as a creosote wood treatment facility between 1956 and 1990. Chemicals and compounds used to preserve wood included mineral spirits, No. 2 fuel oil, chromium zinc arsenate, copper chromated arsenate, creosote, pentachlorophenol, xylene, and fire retardant. Contamination of the area occurred through the drip-drying process whereby freshly treated wood dripped into the soil in the open areas of the site. Furthermore, in 1976-1977, approximately 1,100 to 1,400 pounds of copper chromated arsenate were dumped into a pit in the northeast portion of the site. A summary time line for the site is as follows:
1956 - The first wood treatment structure was installed.
1989 - The site was placed on the EPA’s National Priorities List.
1990 - All wood treatment operations ceased.
1998 - Remediation commenced (removal and off-site storage of contaminated soils and construction of concrete containment structures)
1999 - Remediation was completed at an estimated cost of $10,907,000.
2003 - A 5-year review was completed, giving the site a relatively satisfactory status.
2008 - A 10-year review is scheduled.
Much of the Rentokil property must remain undisturbed indefinitely, as illustrated in the conceptual plan in the RTD article (print version only). Without knowing the details of the sale of the property, I applaud the developer for rolling the dice on what may or may not be risky project due to environmental issues. It seems though, that in this day and age, and in our market, even the nastiest enviromental issues are actually non-issues. Maybe you’ve heard of a little development under construction in Henrico’s East End…White Oak Village? The former Lucent Technologies site was used for storage of chlorinated solvents until 1989 which contaminated the groundwater. In 1991, the EPA issued a Record of Decision requiring a groundwater remediation system which has been operational since 1995. The property was sold to Viasystems Technologies Corporation in 1996, but Lucent (later called Agere Systems, Inc.) retained all remediation responsibility. There reportedly was little interest in the site after cleanup began. As we all are aware, the site is now under construction with one of Richmond’s most abitious mixed-use developments - White Oak Village.
On a final note, I have spoken with numerous developers, lenders, and business owners about the impact (on value) to real estate in proximity to contaminated sites. The overwhelming response is that it isn’t an issue. I realize that anecdotal evidence is a poor tool in deciding the feasibility of a development. In the Richmond MSA though, there isn’t exactly a large amount of real estate activity around contaminated sites from which to glean useful analytical information. So if you’re considering buying one of these proposed “green” office/warehouse buildings in Henrico, you should think more about the positive aspects of the project: Henrico County business-friendly environment, LEED construction standards, convenient access, etc., and less about the history of the surrounding property.
