Federal loan brings employment hope to Wisconsin brownfields

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Editors note: This is part of a series of stories about innovative ways of recycling abandoned urban land in the Great Lakes region.

By Justin Spiro

RACINE, Wisc. – A sign on the fence says, “Keep Out.”

The citizens of Racine heed the warning. Nearly 20 acres of lost hope is unvisited by the locals.

They once made large machine parts here, serving a booming manufacturing industry. Today it just sits, a reminder of jobs lost and a town in economic distress.

Wisconsin has identified brownfields as a significant problem. Racine is taking a lead in fixing them.

Last May, the Environmental Protection Agency awarded the city a $1 million grant. It capitalizes a revolving loan fund to clean up contaminated land to prepare it for development.  Developers can borrow from the fund; repayments will be used to fund more brownfield development.

The clean up is intended to not only improve the environment by eliminating brownfield sites, but to improve the local economy by attracting business.

“It is imperative to give (business owners) a clean site to work with,” said Racine Mayor John Dickert. “A contaminated site is an immediate turn-off.”

Part of a national effort

The grant is a result of the Small Business Liability Relief and Brownfields Revitalization Act of 2002. The Act deploys the EPA to various projects throughout the country to clean and revitalize brownfield sites.

John Zamanigan of the EPA is optimistic.

“Contaminated land will be cleaned and that is great,” said Zamanigan. “But even the non-environmentalists might appreciate the new sites creating job opportunities.”

About 20 short-term cleaning and construction jobs will be created by the project, Zamanigan said. In the long-term, the number of potential jobs created is immeasurable.

“There are over 300 brownfield sites in Racine,” said Zamanigan. “If those were cleared, just think of the available land for new business.”

Lousy economy, joblessness fuels redevelopment programs

Why did it take so long for Wisconsin to make tangible changes addressing the brownfield problem? Zamanigan said the economy is a factor.

“The reason this project gained steam was the economy,” said Zamanigan. “It was an easier sell when the job creation factor was introduced.”

The creation of new jobs is particularly appealing in Racine. The town’s unemployment rate is slightly above 16 percent, the second worst in the state.

Job creation may be the motivation for cleanup, but some Racine citizens are taking a wait-and-see approach.

Skeptics unconvinced

“I lean toward the side of pessimism,” said Sierra Johnston, 26, a resident of Racine. “Until I actually hear about someone making a living off (the project), I am withholding praise.”

Johnston is not alone.

“One million dollars sounds like a lot,” said Erich Cann, 37, another Racine resident. “But that money is barely going to scratch the surface.”

Cann works in construction and says he is familiar with the costs of similar projects.

“Just clearing the structures of a few (brownfields) is going to take a big investment,” said Cann. “Then you are faced with decontamination of the site.”

Cann acknowledges he is unaware of the details of each site, though it does not change his opinion.

“All I know is that $1 million is grossly insufficient given the issue,” said Cann. “But I suppose we had to start somewhere.”

Local officials hope $1 million is just the start

No one from the city of Racine or EPA has claimed the $1 million will fix the brownfield problem in the town. There is hope the project will find success on a smaller stage, perhaps leading to additional grant money.

“This is a crucial first step in the process,” said Dickert. “I am excited to track our progression.”

The timeline for tangible progression of the project is still evolving. The EPA is hoping to see significant progress by 2012. The initial plan was for the city to open new, green energy manufacturing plants in place of the brownfields. They have backed off that commitment, instead leaving open the possibility for all types of new development.

“This is a tribute to the great work being done by our staff,” said Dickert. “To secure so much money for Racine says a lot about our effort and focus.”

Time will tell if the grant proves successful. Residents hope to discard the, “Keep Out” sign on the fence.

To them, a new sign reading, “Yes, We Are Open” would look much better.

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