Reaching a Milestone for an Innovative Seattle Affordable Housing Project

The Maddux is a 200+ unit affordable housing project in Seattle that has been years in the making. After almost five years of work -- the environmental cleanup is essentially complete.

This project, in South Seattle’s Mt. Baker neighborhood, sat unused for decades. The culprit? Petroleum releases from an old gas station and solvent leaks from a former dry cleaner that severely affected soil and groundwater beneath the Site. The contamination issues prevented nearly all potential developers from touching these properties – the cleanup cost and environmental liability, which stretched across many properties, were just too much to manage.

Taking on One of the Most Challenging Sites in the City

Yet, Aspect’ s clients, Mt. Baker Housing Association, along with Perkins Coie, Washington State Department of Ecology (Ecology), and the City of Seattle saw an opportunity to build a new concept to turn brownfields into cleaned-up affordable housing.

Construction Begun with Move-in Anticipated in 2022

The earthworks, building design and construction team includes: Aspect, Beacon Development Group, Mithun, Coughlin Porter Lundeen and many others.

Some reasons why this project has happened:

  • Affordable Housing need in Seattle is great and this project commits to 200+ units near a walkable light rail station and within a mile of downtown Seattle.

  • Ecology provided “seed money” in support of an innovative idea – why not turn these blighted properties that no one would touch into affordable housing? A win for the environment, a win for the neighborhood, a win for housing, a win for transit and connection to downtown.

  • Ecology took the MBHA/Aspect/Perkins Coie innovative idea and created a new ‘Brownfield’ funding program (the Healthy Housing Program) because of this project to help affordable housing agencies develop prime real estate that has been overlooked.

  • But this isn’t all. The properties could liquefy in an earthquake. So, Aspect and the City of Seattle worked to design and permit a first-of-its-kind ‘earthquake proofing’ foundation system to facilitate economical, and safe, redevelopment of the property.

Construction Begun with Move-in Anticipated for 2022

  • The foundation engineering is ongoing as of Spring 2021.

  • The public will soon see the building “coming out of the ground” with anticipated move-in date in 2022 for families in the area.

Check out this ‘Story Map’ of the past 5 years of work to date:

An Alternative Approach for Petroleum-Site Cleanups

With around 3,000 historical leaking underground petroleum storage tanks (USTs) and systems across Washington state, petroleum cleanup is a big issue for business owners, homeowners, and regulators. The traditional leaking UST cleanup process is typically counted in years and often stymied by the lack of available regulatory staff to handle the large volume of sites efficiently. 

To help remedy this, the state’s Pollution Liability Agency (PLIA) created a new cleanup route--the Petroleum Technical Assistance Program (PTAP)--beginning in January 2018. The PTAP program offers applicants the potential of lower cost associated with regulatory oversight and a commitment to faster turnaround times for opinions on their UST sites. Thanks to a 2017 change in state law, PLIA now has the statutory authority to provide technical oversight and write opinions--something only Ecology previously had--on UST sites, thus giving site owners and operators a new alternative to the state’s traditional Voluntary Cleanup Program (VCP) process.

With over a decade of petroleum site cleanup experience, Aspect’s Senior Engineer Eric Marhofer gives a primer on the potential PTAP has for UST owners.

What does the new PTAP Program Mean for Site Owners? 

The nuance of PLIA’s approach is to work more collaboratively with site owners--for example, they plan to hold an intake meeting at the outset upon enrollment to review the site status with the applicant and set achievable milestones. PLIA is looking to provide more certainty upfront, and quicker, more pragmatic opinions and responses throughout the process. The goal is to efficiently move sites toward a “No Further Action” determination and, ultimately, allow the owner to return their site to a business asset instead of a liability. 

Additionally, the PTAP may work more seamlessly for site owners already working in cooperation with PLIA through their Commercial Reinsurance and/or Loan and Grant programs.

There’s a number of PLIA financing and insurance options available to help UST owners and operators move their sites towards closure.

What’s the Process?

PLIA is looking to offer a streamlined application and approval process, a one-time flat fee of $7,500 for service (vs. hourly billing for review and opinions in the VCP), an intake meeting with senior technical staff to review your Site (which does not typically happen in the VCP), and faster turn-around times for written opinions (a goal of 45 days versus 90+ days with Ecology).  

PTAP’s Program begins accepting applications January 2, 2018.

Are there any risks?

Depending on how much regulatory oversight is anticipated, a flat-fee of $7,500 may not make sense for some sites. However, for more complex sites that may need multiple opinions over the life of the investigation and cleanup, that fee will likely represent a good value. 
There are also certain factors site owners will want to consider when determining whether their site qualifies for PTAP. For example, there can be no impacts to sediment or surface water and there can be no co-mingled, non-petroleum contamination. Additionally, sites facing litigation may not qualify. If the site is disqualified for one or more reasons after enrollment in PTAP, it is unclear whether the enrollment fee is refundable.

PTAP eligibility criteria.

PLIA also expects actionable steps to be taken on the part of the applicant/owners to move forward with investigations and cleanups once accepted to the program.  In other words, PLIA will not be a safe harbor for Sites to enroll to avoid Ecology enforcement but not take any actions to investigate or clean up their site.  Sites may be disqualified from the program for inactivity and the enrollment fee may not be refundable.  

Learn more here: http://plia.wa.gov/ptap/ or contact Eric at emarhofer@aspectconsulting.com.