PRESS RELEASE

08:49 28 February in Press Release by admin

February 28, 2017

CDC Making Big Progress at Tanners Creek Redevelopment Project, Environmental Remediation and Demolition Ahead of Schedule

Tanners-Creek

Lawrenceburg, IN – Commercial Development Company Inc. (CDC), a leading North American commercial real estate and brownfield redevelopment company is making big progress in its efforts to remediate and repurpose the Tanners Creek Power Plant, a retired coal-fired power plant once generating 1000MW in Lawrenceburg, Indiana on the Ohio River.

In Fall of 2016, CDC purchased the plant and real estate assets from Indiana Michigan Power (I&M), a unit of American Electric Power (AEP). During the transaction, CDC affiliate Environmental Liability Transfer, Inc. (ELT) assumed responsibility for environmental liabilities associated with the site.

Since that time CDC has been working to reposition the Tanners Creek power plant and develop a market-ready plan to return the retired energy asset to productive use. CDC believes the site has enormous potential for new development and new job creation for Lawrenceburg as well as the greater Southeast Indiana-Cincinnati region. Since the ownership transfer, CDC has received tremendous support for the future redevelopment of the site from local and state leadership.

Environmental Remediation & Decontamination

EnviroAnalytics Group LLC (EAG), a CDC affiliate company, has been engaged in a series of remediation projects to prepare the site for new development. EAG is currently working with Indiana Department of Environmental Management (IDEM) and executing a remedial action plan which includes but not limited to: environmental surveys and site analysis, coal storage cleanup, the abatement and removal of asbestos containing materials and universal waste, and the capping and/or removal of former coal combustion residual complexes at the site. The majority of these activities are scheduled for completion by the end of 2019, and some scheduled for completion by Q2 2020.

Demolition

Building demolition at Tanners Creek is nearly complete and will be finished by mid- 2018. Activities include the demolition of all existing structures on the property, including the former powerhouse and stacks. Demolition of the site is being completed by Industrial Demolition LLC, an affiliate company created by CDC to provide demolition support for the Company’s many ongoing brownfield reclamation projects.

A date for the felling of the two remaining stacks and one chimney has been set for March 14, 2018, a year ahead of the original timeline. The time of demolition is scheduled for 9:00 AM. Certain safety factors such as high winds could delay the implosion of the structures. It is expected that many members of the community and former employees may have interest in watching the stacks fall, and CDC will provide updates to local media outlets leading up to the event.

The original expected timeline to prepare Tanners Creek for vertical development was 2021. However based on the progress being made by EAG and Industrial Demolition LLC, CDC now expects the site to be ready for development by late 2019. A drone flyover of the site demonstrates the scope of the site and the progress being made: https://youtu.be/lcrbf7dlaRQ

Commercial Development Company, Inc. is committed to the sustainable reuse of materials left behind by the demolition of the Tanners Creek Power Plant – 98% of the plant will be recycled, including concrete from the stacks which will be crushed and reutilized as inert fill materials to backfill and regrade portions of the site.

“I am very pleased with the tremendous progress our team has made at Tanners Creek – the efficiencies and work ethic they have shown throughout the process has shaved years off our original estimates and positioned the site for new opportunities faster than expected.” said Randall Jostes, CEO of Commercial Development Company, Inc.

Redevelopment Timeline:

2015: Indiana Michigan Power (I&M) retires the Tanners Creek Power Plant
2016: CDC purchases Tanners Creek Power Plant and real estate assets; ELT assumes environmental liabilities and post-closure obligations
2017: CDC grants the Ports of Indiana a year-long due diligence period to explore the viability of using the site to build a major inland port along the Ohio River
2018: EAG completes assessment and development of plans to address environmental impact at the site and will finalize remedial action on coal ash storage facilities by late 2018. Industrial Demolition LLC completes demolition, removing all existing structures and prepares the site for new development
2019: The site will be regraded and repurposed for a port-related development on the 725-acre site; main ash pond capped

Tremendous Opportunity for New Development

In October 2017, CDC entered into an agreement with the Ports of Indiana (POI) to transfer ownership of the property with an anticipated closing date of December 2018. POI is currently determining the logistical viability of developing the state’s fourth inland port at this location by conducting due diligence activities. CDC has further committed that POI will have the exclusive opportunity to investigate the site for port development through 2018.

In a press announcement dated October 24, 2017, Rich Cooper, CEO for the Ports of Indiana stated, “We have identified the retired Lawrenceburg power plant as a potential site for future port development and we could not have gotten to this point without the support and assistance from AEP and CDC. CDC has tremendous experience with redevelopment and remediation projects, which coupled with our team’s maritime and logistical expertise, creates a unique opportunity to pursue development of a port at this location. It’s too early to say what can be constructed here, but we’re excited to have the exclusive right to further investigate this site with CDC. We’ve already had inquiries from companies that may have interest in locating or shipping products at this site, which is definitely encouraging for future development.”

“Pursuing the development of a new port in southeast Indiana will help drive growth for our 21^st century agriculture and advanced manufacturing sectors and attract continued business investment to our state,” said Governor Eric Holcomb. “The Ohio River has always provided strategic advantages for this region, and Indiana has a strong record of leveraging our transportation assets into economic strength.”

The idea to build a port at this location is credited to Vice President Mike Pence, former Indiana Governor, who during Indiana’s 2016 State of the State address, encouraged the state to “vigorously explore the building of a fourth port in the far southeastern part of our state, which could unleash enormous economic investment throughout the southeast region of our state.” Source: https://www.indystar.com/story/news/politics/2016/01/12/prepared-speech-gov-mike-pences-2016-state-state-address/78710690/

“The implosion of the stacks at the former AEP plant is yet another step on the road to the realization of Lawrenceburg as the fourth port location,” said Lawrenceburg Mayor Kelly Mollaun. “On behalf of the City of Lawrenceburg, we embrace the progress on what is projected to be an incredible economic driver in the state of Indiana and the entire tri-state region.”

The Tanners Creek power plant is located in Lawrenceburg, IN at the intersection of three Midwest states: Kentucky, Ohio, and Indiana. The site has direct riverfront access to the Ohio River, connections to highway and rail, and is located within close proximity to major hub cities such as Cincinnati, Louisville, Columbus, and Indianapolis. CDC believes theses strategic attributes and logistical infrastructure at this site represent tremendous potential to facilitate large-scale port-related development.

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Media Contact: If you would like more information about this project or Commercial Development Company, Inc., please contact John Kowalik (314) 835-2813; jkowalik@cdcco.com.