Commercial Development Company Inc. (CDC), a St. Louis-based commercial real estate and brownfield redevelopment company, formally announced the acquisition of a 425-acre, former steel mill in Claymont from steel manufacturer Evraz.
The deal was first reported in November by media outlets that were invited to a meeting on the project. Financial terms were not immediately disclosed.
CDC and Environmental Liability Transfer, Inc. (ELT), an affiliate of CDC, have assumed responsibility for legacy environmental liabilities associated with the site and its former operators.
For nearly a century, this facility was home to steel making operations for rail, infrastructure and other industrial applications. The industry has been disappearing in the region. Earlier, the massive Sparrows Point complex in Baltimore was demolished.
Evraz acquired the property in 2007 for more than half a billion dollars and continued operations until 2013 when it closed its doors due to economic reasons. Prior to the closing, Evraz was looking at the possible sale of surplus property.
Due to contamination issues, an environmental liability transfer and remediation plan proposed by CDC has enabled Evraz the ability to sell surplus real estate and also transfer legacy environmental liabilities, CDC.
EnviroAnalytics Group (EAG), another CDC affiliate company, will now commence a series of remediation projects, including: soil and groundwater remediation, environmental monitoring, and oversight of contamination abatement and demolition of existing structures. The expected timeline for completion is two years. EAG is working with the Delaware Department of Environmental Resources and Environmental Control (DENREC), to finalize the remedial plan under the state’s voluntary cleanup program. Following remediation and demolition, this currently blighted industrial site will be positioned for new vertical development purposes.
Throughout the remediation process, CDC will be performing land studies, market assessments, and meeting with community stakeholders to determine the highest and best use for this site going forward.
The property is near the Delaware River, has access to direct rail service and is adjacent to I-95 and I-495.
According to a release, CDC considers the former steel manufacturing plant an excellent prospective site for a variety of development purposes.
“We consider the Evraz site in Claymont a tremendous opportunity for new development, and we are very excited to see the economic and environmental benefits this transaction brings to the Claymont-Philadelphia area” said Tim Smith, vice president of business development at Environmental Liability Transfer, Inc. “Our acquisition and environmental liability assumption of this strategically-located site is the first step toward repurposing this property and moving it back into productive use.”
