From left during Wednesday’s land transfer ceremony are U.S. Rep. Chuck Fleischmann; Mark Whitney, manager of DOE’s Oak Ridge Office of Environmental Management; Lawrence Young, CROET president and CEO; and David Klaus, DOE’s deputy undersecretary for management and performance.
Roughly 25 acres of land that once housed a machine shop and supporting buildings at Heritage Center has been transferred to an economic development organization that finds new uses for former federal property.
The property transfer from the U.S. Department of Energy to the Community Reuse Organization of East Tennessee was celebrated in a Wednesday afternoon ceremony. It’s the 12th transfer from DOE to CROET, and the two dozen acres were signed over to CROET for private-sector use.
Among the speakers at Wednesday’s ceremony were U.S. Rep. Chuck Fleischmann, a Republican whose district includes Oak Ridge, and David Klaus, DOE’s deputy undersecretary for management and performance.
“The reindustrialization program in Oak Ridge has not only been an economic development catalyst for the region, it is saving tax payers millions of dollars as the federal government transfers underutilized assets to the private sector,†Fleischmann said.
The transfers of the parcels, officially known as ED-11 and ED-12, have been in the works for at least a few years. Lawrence Young, CROET president and chief executive officer, said there will some infrastructure improvements to make the property ready for development. Part of the property once housed Building 1401, an old machine shop that has now been demolished.
Young said Heritage Center was essentially at a point where no property was readily available for development, so the transfer of a large, flat piece of land provides a new opportunity for economic development. It completes the transfers in the center of the site. The rest are on the periphery, he said.
The 1,200-acre Heritage Center is the former K-25 site in west Oak Ridge. Heritage Center is now part of the East Tennessee Technology Park, which also includes the nearby Horizon Center.
“The transformation that has taken place at ETTP over the last two decades is astounding, and it shows what commitment and collaboration can accomplish,†Young said. “When you look at the two reuse initiatives at ETTP, Oak Ridge has benefitted by more than $100 million worth of capital investment and more than 1,000 jobs.â€
So far, a press release said, eight of the properties transferred to CROET have been sold or optioned to private industry, saving DOE nearly $6.5 million while providing an increase of more than $60,000 in annual tax revenue to the City of Oak Ridge. Also, more than 200 acres of underused DOE property has been transferred to CROET and redeveloped with more than 100,000 square feet of new construction.
“Today’s transfer confirms the progress of our Environmental Management program,†said Mark Whitney, manager of the Oak Ridge Office of Environmental Management at the Department of Energy. “Our cleanup at the site is preparing land and facilities for transfer and creating opportunities that will benefit the region’s economy.
Officials at Wednesday’s ceremony said more than 700 acres have been transferred to CROET, and CROET has invested $7 million. Horizon Center was transferred to the Oak Ridge Industrial Development Board to provide more streamlined service for private sector companies looking to locate in the park, a press release said. CROET conveyed 500 acres to the IDB there, Young said.
“This community knows how to do deindustrialization,” said Whitney, who started in Oak Ridge close to two years ago and has accepted a new job at DOE headquarters in Washington, D.C.
Young said CROET has sold five buildings that it received in transfers and now controls about 50 acres. Next steps include developing the sites that it has, trying to get them into the private sector, and acquiring the property that once housed the K-33 Building, which was demolished with Recovery Act money. The final phase of that demolition project at the northwest side of Heritage Center wrapped up in July 2012. K-33 was a 1.4 million-square-foot gaseous diffusion plant built in 1954, and it enriched uranium until 1985.
For more information about CROET, visit www.CROET.com or call (865) 482-9890.
Walter K Hyatt says
This is a good thing, IF they can get some private sector, manufacturing oriented type businesses in that can hire people for good wages. The K-25 site has a lot of potential, as it had 70 years ago, when it was initially selected by the government. I would like to see it developed, including the airstrip that was proposed several years ago, (is that still on the table?). WIth CNS coming into Y-12 and managing both Y-12 and Pantex, it would seem they could help with the airstrip, since they will have people flying back and forth from Pantex and in the long run, it would be cheaper than buying plane tickets all the time. It would also help as a draw for private industry on that site.
johnhuotari says
Walter,
As far as I know, the proposed airport is still on the table. I did a story on it in September. Here are a few key facts from that story: 1) The airport could feature a 5,000-foot runway, accommodate all but the largest business jets, and cost between $35 million and $45 million. 2) Construction at the site is possible around 2017 to 2018. 3) The airport would be built at the front of Heritage Center, the former K-25 site, and the runway would parallel Highway 58. You can see this story for more information: http://oakridgetoday.com/2013/09/10/new-airport-west-oak-ridge-feature-small-business-jets-5000-foot-runway/
Regarding Heritage Center itself, during last week’s ceremony, Lawrence Young said CROET wants a multidisciplinary industrial park there.
Gov. Haslam touted the site in March, saying the K-25 site has 2,000 flat acres with infrastructure already in place, including roads and rails, and it’s three miles from Interstate 40 and seven miles from Oak Ridge National Laboratory, which is the U.S. Department of Energy’s largest science and energy laboratory. You can see that story here: http://oakridgetoday.com/2014/03/28/k-25-large-flat-close-ornl-interstates-good-economic-development.
The governor said Tennessee has had success in recruiting transportation and auto manufacturing companies to the state and companies in those industries would seem to be logical prospects for Heritage Center, but he left the door open to other industries as well, including anything related to the research being done at ORNL. Young mentioned the carbon fiber industry as one possible type of industry. As you may know, there is already a carbon fiber facility at the nearby Horizon Center.