Saginaw, Michigan

A Brownfield Success Story, Saginaw, MI

Overview: A 17-acre site was bought in 1890 by Lufkin Rule Company for manufacturing of measuring tapes, rules and precision tools. This facility closed in 1967. Between 1968 through 1995, dry cleaners, machine shops, and chemical storage used the office space in the complex. A massive fire in 1994 damaged approximately half of the buildings. In 1995, the property reverted to the state due to non-payment of taxes. Also in 1995, the EPA spent $150,000 to remove PCB transformers, hazardous waste, and some contaminated soil from the site. The abandoned site included 55 dangerous buildings, three USTs, six ASTs, two large smokestacks, vandalized PCB transformers, asbestos, and numerous other serious environmental issues.

In 1997, the city and state designated the property as a tax-free Renaissance Zone. This tax-free designation, the community’s economic development corporation, Saginaw Future Inc. (SFI), aggressively marketed the site to clients looking for a Saginaw County location.

A German auto-supplier Galladè Technologies, recognized the potential of this brownfield site, and announced on July 10, 1997 that they had selected the former Lufkin Rule complex as their location for their first U.S. plant. However there were major challenges that Galladè had to overcome before redevelopment occur.

1. Timing. Galladè had a contract in which they had to be in production by the end of 1998, but before construction could occur title, demolition, and environmental issues had to be addressed.
2. Scale. The 17-acre site and the numerous multi-story structures, smokestacks, storage tanks, and multiple uses of the structures presented numerous challenges to the environmental professionals.
3. Communication. German decision-makers with legal counsel from New York based attorneys often had difficulty understanding Michigan’s environmental laws as well as state and local clean up financing. Frequent communication with a significant amount of education on the law and the process of different grant programs was the norm.

The redevelopment succeeded only with the collaborative effort of numerous governmental and non-profit agencies all working with Galladè. Organizations involved included: City of Saginaw, Michigan Department of Environmental Quality (DEQ), Malcolm Pirnie, Peerless Environmental, Consumers Renaissance Development Corporation (CRDC), Michigan Jobs Commission (MJC), and Saginaw Future Inc.

Without the tax-free Renaissance Zone program designated by the BRA, this 17-acre property may still be siting idle, but now it is home to Galladè Technologies, which invested a total of $9 million in the buildings and equipment. Galladè currently employs about 30 with plans to employ up to 80 people. An additional 12 acres is also now available for further development. This project represents the largest foreign investment in the City of Saginaw’s Renaissance Zone. The redevelopment of this site has greatly approved the appearance and the economy of the area.