BROWNFIELD REDEVELOPMENT

Stephen R. Collins, EVPCommercial Development Company, Inc.

MEDFA Annual ConferenceKansas City, MO -- October 8, 2015

Presentation Overview

CDC approach to Public–Private Partnerships

Create Vison based on highest and best use Fully consider market realities Do not request public funds

ELT approach achieve Regulatory Closure

Fund Remedial Trust or Buy Insurance at closing Enter Voluntary Clean-up Program

Difference between Horizontal & Vertical Development:

Evraz Steel Mill – Claymont, DE – 1 MSF – 425 Acres

ASARCO Smelting – Perth Amboy, NJ – 250,000 SF – 70 Acres

General Motors – West Mifflin, PA – 1,000,000 SF – 72 Acres

Manchester / 270 -- Former Quarry – Des Peres, MO – 28 Acres

CDC / ELT Value Proposition

“Begin with the end in mind” – Steven Covey

Highest & Best Use Analysis: Location, Location, Location

Identify Development Constraints: demolish buildings, remediate environmental, grade rough topo, rezone, build roads and utilities

Market to Users: Engage local brokers

Redevelop: Transform Brownfields into productive re-use

Outcomes: Revitalization, Job Growth, & Taxable Properties

CDC Offer = (FMV) – (IC+EL+I+CC+X+R+P) where:

Offer CDC Price

FMV Fair Market Value of AssetsIC Investigative CostsEL Assumed Environmental Liabilities I InsuranceCC Carry CostsX ContingencyR Repositioning CostsP Profit

Pricing Methodology: Rasher-Colangelo Formula

Evraz Steel – Claymont, Delaware

Bought 1,000,000 SF on 425 Acres in Oct. 2014

Prepared: Concept Plan and video showing Highest & Best Uses

Uses: Office, Retail, Transit Center, Industrial, & Rail-Truck Logistics Center

Process: Presentations to elected officials & public

Marketing: Brokers & businesses community

Voluntary Clean-up Program (VCP): DE-DNREC

Status: Three buyers and many prospects

Concept Plan for First State Crossing

ASARCO: 70 Acres in Perth Amboy, NJ

ASARCO: 70 Acres in Perth Amboy, NJ

Bought 250,000 SF on 70 Acres in 2009

Conditions: 20 tenants & Many Environmental Issues

Voluntary Clean-up Program (VCP): thru NJ-DEP LRSP Program

Tenant Relocation & Demolition: Underway

Plan: Build 1,000,000 SF Industrial with a vertical development partner

Process: Present Plan to Perth Amboy Redevelopment Agency

Status: Selected as ‘Designated Developer’ by PARA in July 2015

Construction: April 2017

ePort I & II Plan -- 2,350,000 SF -- 6 Buildings

2014

2017

“Today is a new day in Perth Amboy. This sustainable project will carry our city into a successful future.”

-- Wilda Diaz, Mayor of Perth Amboy

General Motors: 1 Million SF Brownfield in PA

Bought 1,000,000 SF on 72 Acres in 2009

Environmental: Hydrocarbons, Solvents, & PCBs from 60+ years of heavy manufacturing.

PA-DEP Voluntary Clean-up Program (VCP): ACT 2

Remedial Activities Included: Demolish structures Recycle scrap steel Abate environmental hazardous Backfill with clean fill

Reuse: Sold to Pull-A-Part

General Motors: 1 Million SF Brownfield in PA

“We are extremely gratified Pull-A-Part chose a Brownfield to redevelop and return to commercial use by making a multi-million dollar investment and creating good jobs in our community.”

-- Chris Kelly, Mayor of West Mifflin

Des Peres Quarry

Remedial Activity:

» 180 foot deep rock quarry

» CDC imported 6,250,000 cubic yards of Clean Fill

» Rezoned by St. Louis County for Mixed-Use development

1994 2014

Des Peres Quarry

2016 New Construction Underway:

» Luxury Apartment Complex (254 units)

» Assisted Living Complex (60 units)

» Hotel Development (210 unit)

» Class-A Retail / Office

Advantages of CDC Approrach

Buy Brownfields -- without Public Funding

Fully Fund Remedial Trust -- to Guarantee Clean-up

Return Brownfields to Tax Rolls – using Private Funds

Highest & Best Use – based on Market Realities

Engage Brokers and Business Community

Limit Public Agencies to Zoning and Infrastructure Improvements

Quicker Results with Less Public Funding

CDC Group of Companies

Cash Buyer Quick Close Oversee Redevelopment

Assume Environmental Liabilities Guarantee Regulatory Closure Unique Financing Strategies

Manage Environmental Remediation In-House “Boots on the Ground” Environmental Consulting

Questions?

Stephen R. Collins CCIMExecutive Vice President

Phone: 314-835-2835 Cell: 314-504-4001

Email: scollins@cdcco.com