Eyesore or Opportunity? Historic Preservation in a Brownfield

By Sharon Baerny
Photo credit: Richard Kochanuski

Is historic preservation economically feasible in a brownfield? Between cleanup costs and reluctant investors, demolition might seem the only cost-effective measure. The story of Albers Mill illustrates how one city managed to balance three, sometimes competing, causes: preserving a cultural resource, enabling economic opportunities, and cleaning up contamination.

Built in 1904, the decrepit brick eyesore was right in the middle of Tacoma, Washington’s ambitious redevelopment of the Thea Foss Waterway; next door to the bold new Museum of Glass with its soaring metal cone; and within sight of the burgeoning cultural district of the revitalized downtown core. Talk about a sore thumb! However, a committed community, a savvy developer, and an innovative addition saved the building.

Clear-cutting the waterfront
Don Meyers is the executive director of the Thea Foss Waterway Development Authority (FWDA), the agency responsible for redevelopment of the waterway. In 1999, as plans for the redevelopment of the waterfront moved forward, Meyers was convinced the dilapidated structure had to come down. He wasn’t the only one. Even leading developers in the area said it couldn’t be saved, he recalls.

Others wanted to keep the building, including the citizens group Save Albers Mill. People fought not just for the building, but to avoid the removal of all vestiges of the waterfront’s history, says Michael Sullivan of Artifacts Consulting. Sullivan was the historic preservation consultant for the project. He describes the conflict as an urban design debate on the right blend of old and new, a discussion of what makes sense and what’s feasible.

Debate raged not only within the community, but also within the FWDA board. The “constraints of historic preservation” and cost were definitely factors in deciding whether to save or scrap the building, says Meyers. Finally one board member convinced the others to visit a different Albers Mill in Portland, OR that had already been restored. An addition to that building had made seismic upgrades financially feasible. The rest of the FWDA board realized that, with a similar approach, they could save their building.

Finding the funds
Next the FWDA found the right developer, one that could get the financing, preserve the building, and convert it to an economically viable enterprise. That developer was Heritage Properties, an Alaska-based company specializing in restoration of historic buildings that qualify for federal tax credits.

Financing the rehabilitation of an abandoned building in a Superfund site is a risky venture - one traditional lenders don’t want to touch. “Environmentally sensitive sites require a sophisticated lender. Heritage Properties had the experience to find the funding. In fact, it was the skill of Heritage Properties that made the restoration happen," says Meyers.

In seeking investment, Heritage Properties took advantage of two federal tax incentives: a “new markets” tax credit designed to stimulate economic development in low-income areas, and historic preservation tax credits that allow investors to subtract their restoration costs from their property taxes for 10 years.

Parking means cleanup
With the building slated for saving and investment money in place, the environmental concern had to be addressed. As a grain mill, Albers Mill was not a contributor to the environmental mess that developed along the waterway. However, although the building was clean, the soil around it was not. Contamination included PAHs, lead and petroleum hydrocarbons from several underground storage tanks that were once on the property. A parking compromise helped with cleaning up and capping that soil.

The FWDA and Heritage Properties wanted covered parking, but they couldn’t go under the building, and Tacoma’s Master Plan for redevelopment of the waterfront doesn’t allow surface parking. The developer and the city finally compromised on a low-profile carport below street level. Digging for the carport both allowed for semi-covered parking and helped with remediation: Contaminated soil was removed down to the water table where necessary, while other contaminated soil was permanently contained by the pavement.

Blending the old and the new
The carport wasn’t the only compromise. As part of the restoration, an addition was made to the north and west sides of the building, increasing the size by 40%. The five-story building now offers about 21,000 square feet for apartments, and 10,000 square feet of ground floor retail space. Tall ceilings, large wood columns, brick walls, hardwood floors and dramatic window openings were preserved during the rehabilitation, and the building will be placed on the U.S. Register of Historic Places.

“However, the controversial addition didn’t fit with everyone’s idea of historic preservation, but it helped save the building,” says Meyers. To do the required seismic upgrade just within the existing square footage was not financially feasible. Emulating the successful restoration of the Albers Mill in Portland, meant that the cost of the addition was spread out over more square footage.

Despite the modern appearance, the new elements of the building recall its former look and life. Sullivan explains that historic photos showed the mill had sprouted ad hoc additions over time, including sheds and a sheet metal structure that protected grain as it sat ready for loading onto ships. Those photos provided an impetus for the addition, he says, both in placement and in the use of metal. The metal also makes a visual connection to the neighboring Museum of Glass.

The public’s return on investment
Albers Mill is already a success, with Seattle’s William Traver Gallery renting out most of the first floor, and tenants signed up for the apartments. Yet economic development isn’t just about investors getting a return on their investment. In this case, the public is also getting a return.

Selling the building gave the FWDA funds for the section of the public esplanade that will pass in front of Albers Mill. When complete, the esplanade will run 1.5 miles along the Thea Foss Waterway. This public access to the waterfront is a critical component of the city’s Master Plan. “So the full story,” says Meyers, “is that the community got historic preservation, environmental cleanup, and money for the esplanade.”

Historic preservation does honor the past
Although the building sits on a Superfund site, Sullivan points out that not everything that happened on the waterfront fouled the environment. “People worked,” he says. “A lot of honorable, important history happened there.”

Keeping the mill honors the waterfront’s past while adapting to its future. It tells the story of the waterway’s rebirth visually and literally, as the old and new exist side-by-side. It also tells the story of the brownfields balancing act of historic preservation. And this story has a happy ending.

Sharon Baerny is a freelance writer with a special interest in brownfields. You can reach her at sharon@weknowwords.com.

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