November 20, 2017
Commercial Development Company, Inc.to Purchase the Retired Brayton Point Power Station, Plans Restoration and Redevelopment
Somerset, MA – Commercial Development Company Inc. (CDC), a leading North American commercial real estate and brownfield redevelopment company today announced plans to purchase the retired Brayton Point Power Station from Dynegy Inc. As part of the transaction, CDC will assume responsibility for legacy environmental liabilities associated with the site. CDC and Dynegy are currently under contract to transfer ownership of the site, following a final due diligence period with closing anticipated by mid-December.
CDC plans to invest significant resources to reposition the 307-acre retired power plant and develop a market-ready plan to transform the former energy asset for post-coal utilization. CDC has received tremendous support for this ownership transfer and for the future redevelopment of the site from local and state leadership.
“Dynegy went to great lengths to choose a buyer who would not only provide fair market value for the real estate assets, but also have the vision and expertise to repurpose the site for new development activity,” said Randall Jostes, CEO of CDC. “We commend Dynegy for their proactive approach to ensure that the site would not sit idle and become a source of local blight and economic decay.”
CDC will now engage in a robust repositioning process which will dramatically transform the waterfront property. Immediately following the ownership transfer, activity is expected to include asbestos abatement, environmental remediation and restoration, and demolition of most of the coal-related infrastructure on site.
“Our team understands the historical and economic significance behind this project and we are pleased to lead the redevelopment process. We have been very impressed with Somerset’s pro-growth leadership and look forward to working with them to help create new opportunities,” said Randall Jostes.
Potential for Offshore Wind Energy Port Development
The 307-acre site at Brayton Point could represent a unique opportunity to advance the offshore wind energy sector due to its pre-existing access to the regional transmission grid. Additionally, the site boasts close proximity to proposed offshore wind tracts, deep water port potential, and access to a highly skilled workforce in the New England area.
The Massachusetts Clean Energy Center recently identified Brayton Point as a potential site for the development of an industrial wind port to support the new wind energy diversification legislation. The development of offshore wind will require sites capable of component manufacturing, staging, operations, and maintenance.
“Multiple factors attracted us to this site, of greatest interest was the potential for renewable energy development. Today the site is non-operational, however we are confident that once the site is repositioned, the unique attributes will attract investors from multiple sectors,” said Mr. Jostes.
Throughout the remediation process, CDC will be engaged in a global marketing campaign to find appropriate end users for this location.
Experience in Coal Power Plant Retirement
As market factors in the energy sector have shifted away from fossil fuel generation, CDC has purchased multiple retired energy assets for the purposes of environmental reclamation and redevelopment. Other notable coal projects include power plants previously owned by American Electric Power (AEP), DTE Energy, Indiana & Michigan Power, and others.
“CDC actively seeks to purchase brownfield real estate assets in all energy and industrial sectors – and has acquired an accumulative portfolio of over 300 environmentally-impacted sites throughout North America. Our acquisition strategy provides win-win solutions for sellers and communities: fair market value for distressed real estate and a fully-funded plan to return the brownfield site to productive reuse,” said Doug Willett, Executive Vice President at CDC.
About the Plant
Built in 1957 and commissioned in 1963, the Brayton Point Power Station was the largest coal-fired generating station in New England, and the last coal-fired power station in Massachusetts to provide power to the regional grid. At its peak, Brayton Point had a capacity of 1,600 MW and employed over 250 full time staff. The plant boasted four generation units providing electricity to 1.5 million homes using coal, natural gas, and oil over the course of its operations.
After over five decades of use, the Brayton Point Power Station was decommissioned in May 2017. A purchase agreement and reclamation plan proposed by CDC will now enable the site to be repositioned for new development. CDC believes its remediation efforts will spark new post-coal utilization for the site and surrounding areas.
In January 2018, CDC will be hosting a town hall meeting in Somerset to introduce themselves to the community and answer questions regarding this project and potential development activity. Details will be announced in the weeks to come.
About Commercial Development Company, Inc.
Commercial Development Company, Inc. (CDC) is a privately-held, diversified real estate acquisition and development firm whose principal competency lies within the acquisition, repositioning, and redevelopment of underutilized, distressed or environmentally-challenged properties. CDC has purchased and developed over 50-million-square feet under roof located on over 300 sites throughout the United States and Canada. For more information, visit www.cdcco.com.
If you would like more information about Commercial Development Company, Inc., please contact John Kowalik (314) 835-2813; email@example.com.