HomeMy WebLinkAbout06/10/2008 06 Establish the Yakima Revenue Development Area for the Washington State LIFT ProgramBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of Tune 10, 2008
ITEM TITLE: Public Hearing and consideration of an ordinance to establish the Yakima
Revenue Development Area for the Washington State Local Infrastructure
Financing Tool (LIFT) program.
SUBMITTED BY: William R. Cook, Director
Department of Community and Economic Development
CONTACT PERSON/TELEPHONE: Michael A. Morales, Deputy Director CED
575 -3533
SUMMARY EXPLANATION:
LOCAL INFRASTRUCTURE FINANCINT TOOL (LIFT) PROGRAM BACKGROUND
The Department of Community and Economic Development is preparing an application for state
funding through the Local Infrastructure Financing Tool (LIFT) program, due June 30, 2008. LIFT
funds would be used to finance public infrastructure needed to accelerate redevelopment of the former
Boise Cascade/ Yakima Resources sawmill and plywood plant, and surrounding areas of public and
private property.
The LIFT program is a form of tax increment financing that allows cities to finance infrastructure
projects by using the increase of state local sales and property tax revenue related to a specific
development area to pay debt service. LIFT funding can only be generated from a designated
"Revenue Development Area" (RDA), and can only be used to support debt service for public
infrastructure within the adopted RDA. The city is required to designate the RDA by ordinance
prior to the LIFT application, and must hold a public hearing on the proposed ordinance.
CONTINUED ON NEXT PAGE
Resolution _Ordinance X Contract _Other (Specify) Public Hearing_
Funding Source
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Approve Ordinance
COMMITTEE RECOMMENDATION: Economic Development Committee recommends
® approval
COUNCIL ACTION:
1 — June !, 2008
The maximum state contribution is $1 million per year, subject to the actual revenue generated
within the RDA, and must be matched dollar for dollar by the city. The economic analysis'of
the RDA demonstrates that the City could receive the maximum state contribution, but the
amount of LIFT and local revenue allocated to the project will not be determined until 2011,
following the initial base measurement year (2009), and the initial year of substantial economic
activity (2010)..
. PROPOSED YAKIMA RDA
The proposed Yakima RDA consists of 556 acres of private and public property. The primary
development area consists of approximately 224 acres, nearly all of which is the former Boise
Cascade /Yakima Resources sawmill and plywood plant. Four smaller parcels that are
included in the RDA are the vacant Jeld -Wen plant, the former Trail Wagons building
(currently rented as an indoor soccer facility), a Pacific Power utility station, and one owner
occupied, single family residence. The publicly owned acreage consists of Interstate 82 from
the US 12 Interchange through the Yakima Avenue Interchange, along with the Yakima
Greenway, and portions of city street rights of way. The western and southern boundaries of
the RDA is almost completely controlled by the sawmill site, while the Northern and Eastern
boundaries are publicly held property (city limits on the east). The southern boundary is a
combination of public and private land. A map outlining the proposed RDA is attached to the
proposed Ordinance, which also lists the specific parcels included in the RDA.
ESTIMATED COST OF YAKIMA RDA PUBLIC IMPROVEMENTS
Planning level cost estimates were prepared by JUB Engineers and McKay Sposito to
determine the costs associated with making primary infrastructure improvements within the
Yakima RDA, Per the requirements of the LIFT application, these cost estimates are based on
2008 construction costs and included estimates for planning, survey and design.
RDA Public Road System $30,847;'125
Includes Fair Avenue Roundabout connector,
Utilities (water, sewer, stormwater),
Site preparation, streets, trails, sidewalks
Interstate 82 Interchange Improvements $19,642,334
Includes land acquisition, site preparation,
Rail crossings, signalization.
Total Estimated of Public Improvements $50,489,459
Although these projects are anticipated and proposed for the LIFT application, the final
determination of project selection and level of investment within the RDA will be
determined by the City Council after the designation.
•
2 — June 5, 2008
•
ECONOMIC IMPACTS OF THE YAKIMA RDA
The LIFT application requires that each RDA demonstrate its economic impact and likelihood
of success. In order to ensure that the same methodology was used to calculate the impacts of
all RDA's, the state provided strict guidelines for applicants to use in their analysis. The
modeling used to determine the economic impacts of the Yakima RDA followed these
stringent requirements, and in doing so, a number of key assumptions were made:
• Total site acreage for development
• Building square footages of commercial, residential, office and light industrial
development
• Total estimated costs of for site and building development
• Total estimated costs for public infrastructure improvements within the RDA
• Total projected construction and long -term employment
The results of this analysis are summarized below:
Total acreage
224
Total cost of infrastructure improvements, including
buildings
$308,977,419
Total acres of park and open s ace
21
Total acres of commercial development
172
Totalsquare feet of commercial development
2,252,923
Total number of units
171
Total permanent jobs
3,901
Total construction jobs
1,152
Total annual state and local sales tax revenue
$20,105,247
Total annual state and local property tax revenue
$6,351,092
Total gross property value
$508,285,782
Again, the economic impact analysis was prepared in the context of LIFT application ,
requirements. It is anticipated that these numbers will be reexamined and heavily discounted
for the purpose of bond underwriting.
REQUESTED ACTION AND NEXT STEPS
The. Council Economic Development Committee and staff recommend approval of the
attached Yakima RDA Ordinance. This ordinance does not create any financial obligations for
the city, and is only for the purpose of establishing an eligible area for the State Department of
Revenue to measure economic activity, and for the city to use LIFT funds for infrastructure
improvements.
Following adoption, the ordinance will be submitted to the State DOR and the County
Treasurer. CTED /CERB will review applications and make final decisions in September. No
further action is required until the city is notified of its award status. Selection and design of
public projects will not occur until late 2009.
3 — June 5, 2008
d) The City will enter into a contract with a private developer(s) relating to
the Yakima RDA;
e) Private development is anticipated to occur within the Yakima RDA, as a
result of the public improvements, which will be consistent with the
countywide planning policy adopted by Yakima County under RCW
36.70A.210 and the City's comprehensive plan and development
regulations adopted.under Chapter 36.70A RCW;
f) The local infrastructure financing with respect to the Yakima RDA is not
expected to be used for the sole purpose of relocating a business from
outside the RDA but within Washington State, into the RDA, and the
Yakima RDA will improve the viability of business development within the
Yakima RDA;
g) The Public Improvements are reasonably likely to (1) increase private
residential and commercial investment within the Yakima RDA; (2)
increase employment within the Yakima RDA; and (3) generate, over the
period of time that local option sales and use taxes will be imposed under
RCW 82.14.475, state excise tax allocation revenues and state property
tax allocation revenues (as defined in the Act) derived from the Yakima
RDA that are equal to or greater than the respective state contributions
made under the Act; and
h) The local infrastructure financing will be used only in the Yakima RDA,.
which is an area deemed by the City to be in need of economic
development or redevelopment and is within the City's boundaries.
Section 8. Findings Required by RCW 39.102.080 of the Act. Pursuant to
RCW 39.102.080, the estimated impact of the Yakima RDA on small business and low
income housing, and the mitigation plan relating thereto, is attached as Attachment D is
hereby adopted.
Section 9. General Authorization. The City Manager and other appropriate
City officers designated by the City Manager are each hereby authorized and directed to
do such things'as may be necessary and appropriate in order to cant' out the terms and
provisions of, and complete the transactions contemplated by this ordinance, including
without limitation all actions necessary to apply for prompt approval by the CERB, of the
Yakima RDA and the use of Local Infrastructure Financing under Chapter 39.102 RCW.
Section 10. Section Headings or Captions. The section headings or captions
of this ordinance are for convenience of reference only, and shall not be used to resolve
any question of interpretation of this ordinance.
Section 11. Severability. If any one or more of the covenants or agreements
provided in this ordinance to be performed on the part of the City shall be declared by
any court of competent jurisdiction to be contrary to law, then such covenant or
covenants, agreement or agreements, shall be null and void and shall be deemed
•
C�
ORDINANCE NO. 2008-28
An Ordinance creating the Yakima Revenue Development Area pursuant to Chapter 39.102
RCW (Local Infrastructure Financing Tool Program)
WHEREAS, Chapter 39.102 RCW, (Chapter 181, Laws of 2006, as amended by Chapter
229, Laws of 2007, (collectively the "Act ") provides that a sponsoring local government may
create and adopt a Revenue Development Area (RDA) within which certain specified public
improvements may be financed through the allocation of various property and excise taxes, as set
forth in the Act; and
WHEREAS, subject to approval by the Community Economic Revitalization Board
( "CERB ") of the Washington State Department of Community, Trade and Economic
Development ( "CTED "), the Act provides the City of Yakima ( "City ") with the opportunity to
demonstrate the benefits of the Local Infrastructure Financing Tool ( "LIFT "), a limited form of
tax increment financing; and
WHEREAS, in order to create an RDA, a. sponsoring local government must adopt an
ordinance consistent with the requirements RCW 39.102.090; and
WHEREAS, the proposed RDA includes the former Yakima Sawmill and Plywood Plant
and contiguous parcels that include Interstate 82, the Yakima Greenway, and other parcels
deemed 'necessary to provide for transportation and public utilities necessary to redevelop the
RDA; and
WHEREAS, the proposed RDA consists of the following private and public owned
parcels more specifically illustrated in the RDA site map in Attachment A:
19.132022025
19132022024
19131733402
19131733401
19131733403
19131841002
19131811002
19130741001
19130743002
1913.0731002
19130732407
19130723002
.18131214006
18131241001
19131821003
19131812001
19131824420
19131824001
19131824402
19131831453
19131831461
19131831539 .'
19131831510
19132022403
19131842400
19131842401
19131842404
19131843539..
19131842003
19131844023
19131843002
19131843003
19131843006
19131844022
19131841001
19131842001
WHEREAS, the taxable real property within the RDA boundaries .doe,s not. exceed 'one
billion dollars at the time of RDA designation; and
WHEREAS, the average assessed value per square foot of taxable land within the RDA
boundaries; _as of January 1, 2008, does not exceed $70 at the time of RDA designation; and
WHEREAS, the proposed RDA is less than 25 percent of the total assessed value of the
taxable real property within the boundaries of the City of Yakima; and
WHEREAS, redeveloping the former Yakima Sawmill and Plywood Plant site and
surrounding area will provide numerous benefits for all of Yakima County and to the region.
These benefits include: (1) promoting mixed -use redevelopment that will help generate new
family -wage jobs: (2) providing an area for both housing and business development to occur in a
manner that helps preserve the County's limited supply of agricultural and natural resource lands;
(3) facilitating remediation of environmental contamination within the site to a standard suitable
for mixed -use redevelopment; (4) creating a productive, environmentally - conscious community
with opportunities for recreation, education, shopping, living, working and entertainment; and (5)
facilitate the creation of valuable public recreational and educational resources, including
improved access to the Yakima Greenway, the Yakima River and wetlands; and
WHEREAS; the public improvements proposed for funding by LIFT, more specifically
described in Attachment B, include roadway system and freeway interchange improvements,
utilities (water, sewer, storm water), site preparation, engineering, planning and survey work; and
are estimated.to cost $50,489,459, with approximately $25,000,000 to be financed by LIFT; and
WHEREAS, a Revenue. Development Area would provide significant assistance in
carrying out the cooperative redevelopment of this site; and
WHEREAS, the Act requires the City to create a revenue development area, subject to
provisions of the Act, to qualify for a state contribution up to a total amount of one million dollars
per year; and
WHEREAS, the City Council determines that 2009 should be used as the base year from
which to measure the incremental future taxes for purposes of the Act; and
WHEREAS, prior to passage of this ordinance, the City Council held a public hearing on
June 10, 2008, notice of which was published in the Yakima Herald Republic, the legal
newspaper of general circulation within the proposed RDA, at least ten days before the public
hearing, and notice of which was posted in at least six conspicuous public places located in the
proposed revenue development area; and
WHEREAS, notice of the public hearing was sent by United States mail to the property
owners, `community -based organizations, and business enterprises listed on Attachment D,
incorporated herein by reference, such notices being sent at least thirty days prior to the public
hearing; and
WHEREAS, a copy of the proposed form of this ordinance was delivered to the
Washington State Community Economic Revitalization Board and to the Washington Department
of Revenue; and
WHEREAS, the City Council heard testimony at the public hearing and carefully
considered the comments and opinions presented; and
WHEREAS, the City Council finds that this Ordinance complies with the Actand that
the creation and adoption of a Revenue Development Area as described herein and illustrated in
Attachment A is in the best interest of the City of Yakima and its citizens;
NOW, THEREFORE, THE CITY OF YAKIMA DOES ORDAIN:
Sectiori 1. Incorporation of Recitals and Attachments. The recitals set forth above
are incorporated herein by reference as if set forth in this section in full. All attachments to this
ordinance are incorporated herein by reference.
Section 2. Description of Public Improvements. The public improvements
currently estimated to be made in the Yakima RDA are described in Attachment B ( "Public
Improvements "). This list does not imply City Council approval of any specific projects at this
time. City Council will consider and finalize the list of approved public improvements as part of
the development agreement between the City and the private developer(s) of the Yakima RDA.
Section 3. Description of Boundaries. The City Council adopts the boundaries of
the Yakima RDA as described herein and depicted in Attachment A.
Section 4. Estimates of Costs. As further described in Attachment B, the current
estimated cost of the Public Improvements is approximately $50 million in 2008 dollars, and the
current estimated portion of this cost to be financed by local infrastructure financing, including
LIFT State funding and local government LIFT contributions consistent with the Act, is $25
million to be received over 25 years.
Section 5. Time of Tax and Revenue Collection. The estimated time during which
local excise tax allocation revenues, local property tax allocation revenues, and other revenues,
from local public sources are to be used as part of the local infrastructure financing for the
Yakima RDA is 25 years (2011 — 2036).
Section 6. Date for Commencement of use of Revenues. The City's use of local
excise tax allocation revenues and local property tax allocation revenues with respect to the
Yakima RDA is anticipated to commence on January 1, 2011.
Section 7. Findings Required by RCW 39.102.070 of the Act. The City Council
finds and determines that the conditions of RCW 39.102.070 are met with respect to the Yakima
RDA. Specifically, the City Council finds and determines that:
a) No funds will be used to finance, design, acquire, construct, equip, operate,
maintain, remodel, repair, or reequip public facilities funded
with taxes collected under RCW 82.14.048;
b) The Public Improvements are projects that are or will be identified within the .
capital facilities, utilities, housing, or transportation elements of the City's
comprehensive plan under Chapter 36.70A RCW or are historic preservation
projects under RCW 39.89.020;
c) The Public Improvements are expected to encourage private development within
the RDA and to increase the fair market value of real property within Yakima
RDA;
d) The City will enter into a contract with a private developer(s) relating to the
Yakima RDA;
e) Private development is anticipated to occur within the Yakima RDA, as a result
of the public improvements, which will be consistent with the countywide
planning policy adopted by Yakima County under RCW 36.70A.210 and the
City's comprehensive plan and development regulations adopted under Chapter
36.70A RCW;
f) The local infrastructure financing with respect to the Yakima RDA is not
expected to be used for the sole purpose of relocating a business from outside the
RDA but within Washington State, into the RDA, and the Yakima RDA will
improve the viability of business development within the Yakima RDA;
g) The Public Improvements are reasonably likely to (1) increase private residential
and commercial investment within the Yakima RDA; (2) increase employment
within the Yakima RDA; and (3) generate, over the period of time that local
option sales and use taxes will be imposed under RCW 82.14.475, state excise
tax allocation revenues and state property tax allocation revenues (as defined in
the Act) derived from the Yakima RDA that are equal to or greater than the
respective state contributions made under the Act; and
h) The local infrastructure financing will be used only in the Yakima RDA, which is
an area deemed by the City to be in need of economic development or
redevelopment and is within the City's boundaries.
i) The public improvements proposed to be financed with LIFT and local
funds are reasonably likely to improve the viability of any existing
communities that are based on mixed -use development within the RDA.
j) LIFT and local financing of the proposed infrastructure improvements will
improve the viability of existing business entities within the RDA.
Section 8. Findings Required by RCW 39.102.080 of the Act. Pursuant to RCW
39.102.080, the estimated impact of the Yakima RDA on small business and low income housing,
and the mitigation plan relating thereto, is attached as Attachment D is hereby adopted..
Section 9. General Authorization. The City Manager and other appropriate City
officers designated by the City Manager are each hereby authorized and directed to do such,
things as may be necessary and appropriate in order to carry out the terms and provisions of, and
complete the transactions contemplated by this ordinance, including without limitation all actions
necessary to apply for prompt approval by the CERB, of the Yakima RDA and the use of Local
Infrastructure Financing under Chapter 39.102 RCW.
Section 10. Section Headings or Captions. The section headings or captions of this
ordinance are for convenience of reference only, and shall not be used to resolve any question of
interpretation of this ordinance.
Section 11. Severability. If any one or more of the covenants or agreements
provided in this ordinance to be performed on the part of the City shall be declared by any court
of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or
agreements, shall be null and void and shall be deemed separable from the remaining covenants
and agreements in this ordinance and shall in no way affect the validity of the other provisions of
this ordinance.
Section 12. Ratification of Prior Acts. All acts taken pursuant to the authority of this
ordinance but prior to its effective date are ratified and confirmed.
Section 13. Authority to Correct Scrivener's Errors. The City Clerk and the codifiers
of this Ordinance are authorized to make necessary corrections to this Ordinance including, but
not limited to, the correction of scrivener's clerical errors, references, ordinance numbering,
section/subsection numbers and any references thereto.
Section 14. This Ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
Dated this 10th Day of June, 2008
/s/ David Edler
DAVID EDLER, MAYOR
ATTEST:
/s/ Deborah Moore
DEBORAH MOORE, CITY CLERK
0 YAKIMA REVENUE DEVELOPMENT AREA
ORDINANCE
ATTACHMENT B
ESTIMATED COST OF PUBLIC IMPROVEMENTS
RDA Public Road System $30,847,125
Includes Fair Avenue Roundabout connector,
Utilities (water, sewer, stormwater),
Site preparation, streets, trails, sidewalks
Interstate 82 Interchange Improvements $19,642,334
Includes land acquisition, site preparation,
Rail crossings, signalization.
Total Estimated Cost
Of Public Improvements $50,489,459
•
•
YAKIMA RDA ORDINANCE
ATTACHMENT C
LIST OF PARTIES RECEVING NOTIFICATION OF PUBLIC HEARING
Jeld Wen, Inc .
Yakima County
Real Estate Division
Public Works Department .
3250 Lakeport Blvd.
128 North Second Street
Klamath Falls, OR 97601
Yakima, WA 98901
Gene Lizotte
GERD
215 North Tenth Street
Yakima Soccer Arena Corp.
Yakima, WA 98901
1005 East Lincoln Avenue
Yakima, WA 98901
Wiley Mt., Inc.
Boise Cascade Corp.
Leelynn, Inc.
Real Estate Division
P.O. Box 518
P.O. Box 50
Creswell, OR 97426
Boise, ID 83728
BNSF Railway
Chinook Business Park, LLC
Seattle Land Sales Office
1901 North Fourth Street
200 West Mercer Street Suite 502
Yakima, WA 98901
Seattle, WA 98119
Yakima Greenway Foundation
Pacific Power
111 South 18"' Street
Real. Estate Division
Yakima, WA 98901
825 NE Multnomah
Portland, OR 97232
Don Whitehouse
Shawn Montee Timber Company
Regional Administrator
P.O. Box 1329
WSDOT — South Central Washington
Post Falls, ID 83877
P.O. Box 12560
Yakima, WA 98909
Prime Hay
Lynne Kittelson
P.O. Box 1767
NE Yakima Neighborhood Assoc
Yakima, WA 98907
305 North Ninth Street
Yakima, WA 9890.1
Greater Yakima Chamber of Commerce
New Vision
P.O. Box 1490
P.O. Box 1387
Yakima, WA 98907
Yakima, WA 98907
•
•
•
Yakima RDA Ordinance
ATTACHMENT D
Low - Income Housing and Small Business Impact Analysis and Mitigation Plan
The LIFT program requires the City of Yakima to estimate the impact the proposed RDA
may have on low- income housing and small businesses located within the boundaries of
the RDA, and develop a mitigation plan to address any impacts. The following
information is offered in fulfillment of this requirement.
Low Income Housing Within the RDA
The city's housing inventory indicates that there is one housing unit within the proposed
RDA. The unit is owner occupied, and the owner has received notice of their location
within the proposed RDA. The city. does not believe that this will constitute a.
displacement of a low- income housing unit. The city recognizes the importance of an
adequate supply of low- income housing throughout the city and, where possible, the
city's partnerships with non profit agencies will continue to add to the supply of low
income housing units with the City of Yakima, Accordingly, the city has not developed a
mitigation plan for housing within the RDA.
Impact on Housing Price Mix
While redevelopment will not directly impact existing housing stock within' the RDA, as
there is only one unit, the redevelopment of property within the RDA is likely to improve
property values in the vicinity of the RDA. Strategically located between the downtown
and the RDA, the older homes of the northeast Yakima neighborhood could become
more attractive to families as a central location to work, recreation and shopping. While
there is also the potential for redevelopment of areas around the RDA to other uses, the
RDA itself has a 10 year property absorption rate due to its size. Therefore, it is not
possible to determine the amount of such conversion that could be attributable to
redevelopment within the RDA until such time as the entire RDA is redeveloped. In
addition, this type of redevelopment in the vicinity of the RDA is likely to occur
incrementally as land values generally increase in Yakima, with or without the RDA or
sawmill redevelopment.
Small businesses within the Yakima RDA
It is reasonable to assume that many small businesses will be positively impacted by the
creation of the RDA and the subsequent development within the area. Although the
overall impact is expected to be positive, the three small businesses located within the
RDA may be at risk of eventual displacement. The three small businesses within the
RDA are: Yakima Soccer Arena Corporation, Prime Hay, and Shawn Montee Timber
Company. The businesses employ fewer than five people.
Due to the transitional nature of the RDA, all three businesses have been operating
under short term leases (month to month) for property and /or buildings. Prime Hay and
® Montee Timber are operating on property formerly occupied by sawmill operations, with
the understanding that redevelopment of the site would lead to termination of their.
agreement. The Yakima Soccer Arena is in its first year of business, leasing the building
that was formerly used by the now defunct Trail Wagons RV company, owned by
Chinook Business Park. Chinook Business Park has been involved in the development
of the RDA, and the project fits with the development strategy of adjacent properties also
under the same ownership, but not within the RDA. The owner has indicated interest in
moving the soccer building and selling other property in order to assist the project in
moving forward.
Mitigation Plan for Small Business Within Yakima RDA
In an effort to minimize to those small businesses that may be negatively affected by the
RDA, the City of Yakima is committed to providing services to small businesses, as
outlined in the following mitigation plan:
• Economic development officials will meet with any interested business owners to
evaluate possible means of support.
• When requested and where possible, interested businesses owners will be
referred to those who have access to an inventory of other available commercial
property within the city.
• The city will continue with its support of the Greater Yakima Chamber of
Commerce, Small Business Development Center, and Yakima.County
Development Association and possible other agencies that support small.
businesses.
• The city will determine the needs of the businesses potentially impacted and
assist as appropriate with support for additional marketing resources, broadcast
communications to chamber members to alert them to changes in status of the
business impacted, etc.
• The city will assure ongoing physical access to existing businesses during the
redevelopment activities.
• The city will provide public notices and other information regarding
redevelopment activities.
• The city will work with property owners to create a land use plan for the RDA that
allows for a complementary mix of land uses that will further enhance the value
of ht a area properties.
11
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M e4 Distributed at
Business Meeting
Yakima RDA Ordinance
June 10, 2008
Correction & Addition:
Section 7. Findings Required by RCW 39.102.070 of the Act. The City Council finds and
determines that the conditions of RCW 39.102.070 are met with respect to the Yakima RDA.
Specifically, the City Council finds and determines that:
a. — h. language to remain as proposed
ADD:
i. the public improvements proposed to be financed with LIFT and local funds are
reasonably likely to improve the viability of any existing communities that are
based on mixed -use development within the RDA.
j. LIFT and local financing of the proposed infrastructure improvements will improve
the viability of existing business entities within the RDA.
END
Distributed at
- /c,
Business Meeting
Public Hearing Comment
Yakima cite Council meeting. June 10, 2008
By James T. Dodge Sr. M.D.
Subject: I support the ordinance to establish a Yakima revenue development area (RDA)
[In the interest of time limitation, the bracketed paragraphs Xyould not be included in my oral' comments;
unless the council should request otherwise]
The Honorable Mavor David Edler, the men and women of the Yakima city Council and fellow residents.
My name is James T. Dodge Sr. a resident of the cite of Yakima for 41 years. I- support of the ordinance
to establish the Yakima Revenue Development Area (RDA). This is as a required step to apply for state
funding through the Local Infrastructure Financing Tool (LIFT) program. I have no financial interest or
investments in the proposed area. My interest is to promote and support the sustainable redevelopment of
downtown Yakima in this city that I love.
The proposed area consists of 556 acres of private and public property of which approximately 224 acres
is mostly the former Boise Cascade/Yakima Resources sawmill and plywood plant. I commend the
Department of Community and Economic Development by including language on page 2, paragraph 2 of
the ordinance that sets forth some of the anticipated benefits of the Revenue Development Area. To
paraphrase that paragraph: 1) Promote mixed -use redevelopment that will help generate new family wage
jobs. 2) Provide an area for both housing and business development to occur in a manner that helps
preserve the county's limited supply of agricultural and natural resource lands. 3) Facilitate remediation
of environmental contamination. 4) Create a productive, environmentally - conscious community with
opportunities for recreation, education, shopping, living, working and entertainment. And 5) Facilitate the
creation of valuable public recreational and educational resources, including improved access to the
Yakima Greenway, the Yakima River and wetlands.
However, concerns appear in the table on page 2 of the introduction to the ordinance. 1) The table lists
only commercial development. There is no mention of the square feet allocated to residential, office and
light industrial development. 2) The table lists total of 2 l acres allocated to parks and open space. This
comprises less than 4% of the Revenue Development Area and less than 10% of the former Boise
Cascade site. Cliff Moughtin in his book URBAN DESIGN Green Dimensions states. "Typically open
spaces take up about one third of the urban areas." Then he discusses a tern "green networks." Green
networks have multiple uses and values in urban areas that go beyond the early ideas that they are
important simply for recreation and for beauty. They also address the needs of wildlife, flood control,
improved water quality, outdoor education, community cohesion, local transport and many other urban
infrastructure needs. These and other functions place green networks firmly in the field of sustainable
development. Indeed they epitomize the integration of economic, environmental and social factors which
underpins the concept of a "sustainable development."
Before entering into a contract with private developers, I suggest that the Citv of Yakima develop its o%\n
vision of a redevelopment that would not only improve the viability of business within the development
area. but also recognize the importance of and plan for the inclusion of high densitv housing within the
development area. Migration to the suburbs and development of suburban shopping malls caused ".core
rot'' for cities across the nation including Yakima. I do not believe that building another shopping mall
next to downtown Yakima Nyill enhance the rehabilitation of the downtown district. What Yakima needs
is people living in and near downtown. They should live within an ease commute of their employment,
purchase their provisions for daily life in local shops and contribute their vitality to the city center. But
people will not move to the city center unless they wish to live there. Provision of an attractive
Public hearing comment by James Dodge. June 10, 2008 Page 1 of 2.
alternative to the suburbs is the wav to attract residents to the city center. The proposed redevelopment
area has the potential for doing just that. I encourage the Cite of Yakima to commission its own
development plan from a firm expert in sustainable urban design.
[For example the Cite Council should consider a firm such as Mithi n of Seattle. They developed the
award - winning, "Lloyd Crossing Sustainable Urban Design Plan and Catalyst Project — Portland,
Oregon." The key goals of that plan were to transform an underused inner -city neighborhood into a
vibrant. attractive and highly desirable place to live and work- accommodating a fivefold increase in the
areas population and built space: and restoring the echo' system to mimic the behavior of a pristine
forest. The jury that made the award stated, "A brilliant technical analysis of urban echo' systems...
Ecological analysis provided a unique perspective which we hope will be more broadly adopted in future
urban design and planning..." (I also have no investment in Mithiin and my son, Erik, no longer works
there.)]
[A forward- looking vision for the Development Area would be to create energy independent
neighborhood" based on a combination of green design, passive and active solar, low- pressure
hydroelectric power generation, geothermal heating and geothermal electrical power generation. I suggest
that the city of Yakima consider contracting with the Washington State University Energy Program,
which is a division of the Department of Engineering, to study the feasibility of incorporating these
technologies into the design of the Development Area]
[Development of an aquatic center is aA current subject of interest in the city of Yakima. During the past
two years. Sonja and I visited four towns in the Italian and Austrian Alps that have aquatic centers. These
are not just summer play areas for children. They operate your- around and include Olympic size
competition pools and thermal pools. They employ geothermal heating for the aquatic center and
associated hotel. Some of these centers also generate geothermal electricity that powers the entire
operation. If the taxation method were approved for financing an aquatic center, it would be reasonable to
offer those facilities free to residents of the taxation areas. The hotels that operate in cooperation with
these facilities have spas with sauna. Turkish steam bath and Jacuzzi. Hotel guests have free access to all
of these facilities and the aquatics center. The wellness and or rehabilitation programs cost extra.]
[I developed a PowerPoint presentation titled. THE MILL POND NEIGHBORHOOD: An historic
centerpiece where human needs and wildlife needs are in balance. with a unique environment inspired by
Annecy," The Venice of France." I would be honored to make this presentation to any persons who would
like to consider sharing my vision for the fiiture of the former Boise Cascade mill site.)
Yakima will have only one opportunity in our life -time to "get it right' for the redevelopment of the
former Boise Cascade mill site.
Thant: you for allowing me to speak for,the adoption of this ordinance.
Public hearing comment by James Dodge. June 10, 2008 Page 2 of 2.
CONTENTS:
Geothermal BPA PovverPoint.pdf
Geothermal SUnLIMAM M.pdf
[V1ana f;in0 (' plater in d1e WOSLpLIf
MILL POND NEIGHBORHOOD 080605. pptx
MILL POND NEIGHBORHOOD 080605. comix1 ible ppt
Small Geothci -mal Power Plants.pdf
(anus T. Dodge Sr., M.D.
2205 k'\10St Chestnut Avenue
Yakima, 11'A 08902 -3744
jimdodgeskis(Icli -Lei-,net
THE
An historic centerpiece where human
needs and wildlife needs are in balance,
with a unique environment inspired by
Annecy, "The Venice of France."
jLme 5, 2 2008 � NEIGHBORHOOD
BAD BLUMAU (STYRIA, AUSTRIA)
THE SUCCESS STORY OF COMBINED USE OF
GEOTHERMAL ENERGY
Johann Goldbrunner
Geoteam Ges.rn.b.H., A -8200 Gleisdorf, Weizerstraile 19, Austria
goldbrunner @geoteam.at
INTRODUCTION
The main geothermal resources of Austria (area
83,858 km', 8.05 million inhabitants in 2002, capital city
Vienna) are in the sedimentary basins bordering the Eastern
Alps (Styrian Basin, Upper Austrian Ivlolasse Basin, Vienna
Basin; Figure 1). In the 1977 -2004 period, a total of 63
geothermal wells with a cumulative length of some 100 km
have been drilled (Goldbrunner, 2005). A high'percentage of
these wells were intended for balneological use (thermal spas,
curing, leisure resorts, hotels). The development of spas had
an enormous economic impact especially in the Styrian Basin
in SE-Austria, where eight new spas were built between 1977
and 2004. Approximately 3.5 million guests visit the thermal
spas per year (Hoenig, 2005). One of these spas, Bad
Blumau, is an example for successful combination of the use
of geothermal heat for power generation, district heating and
direct use of the water for swimming and treatments.
"4
U�wv,/1uyQ±en ltclgv_x_Basn � r
411 + . ++ �.►
♦ +.+ —
+
Eaaie nti +
Figure I. Geothermal areas in Austria.
BAD BLUMAU GEOTHERMAL PROJECT
Geological Background
Bad Blumau is situated in the Styrian Basin which is
a sub -basin of the Pannonian Basin separated in the
subsurface and locally also at the surface by a swell zone,
called the Burgenland swell. In contrast to the Pannonian
Basin, no economically exploitable hydrocarbon resources
have been detected in the Styrian Basin so far. The
exploration drillings and seismic surveys of the hydrocarbon
industry are the basis for the geothermal exploration.
The Stvrian Basin is a Miocene extensional basin.
Due to heat flow values of up to 95 mW /ml, temperatures of
more than 100 °C are encountered at depth of 2,000 m. In
the structurally higher parts, convective heat flow leads to
local anomalies. The basement of the basin is composed of
high -grade metamorphic crystalline rocks and
anchimetamorphic Paleozoic phyllites and carbonate rocks of
the Austroalpine nappe. The carbonate rocks (limestones and
dolomites of mainly Devonian age) form an important deep
aquifer which is suitable for the use of geothermal energy.
The mainly clastic tertiary basin fill consists of sediments of
Carpathian to Upper Miocene age with a maximum thickness
of 2,900 m. Aquifers bearing thermal waters are in the
Badenian and Sarmatian sequence and consist mainly of sand
and sandstones with different clay and silt contents. As the
transmissivities of the Miocene aquifers are one to two orders
of magnitude lower than those in the Paleozoic carbonate
rocks, they are exploited only for balneological use.
The success story of Austrian Spas in the second half
of the 20th century has started in the Styrian Basin. In the
period 1977 -2004, 26 geothermal wells with a cumulated
depth of 40.7 km were driI led here. More than 80% have been
intended for balneology. Since 1977, eight new spas have
been established in the region which until then had been
dominated by agriculture.
Project History of Bad Blumau
The geothermal project of Bad Blumau had its origin
in the hydrocarbon exploratory drilling Blumau 1. It explored
a regionally developed normal fault with a throw of more than
1,000 m, thus separating the Paleozoic sequence (Figure 2).
Blumau 1, situated in the uplifted part of the throw came into
Paleozoic phyllites at a depth of 1,708 m without encountering
carbonate rocks. After side track operation, the deviated
drilling Blumau la ran parallel to the fault and reached
fractured Paleozoic carbonate rocks at a measured depth of
2,664 m (2,583 m TVD). Due to fracturing, heavy mud losses
occurred which forced drilling to be stopped at a depth of
3,046 m. According to mining regulations the bore had to be
closed by setting cement plugs. Work over operations were
performed in 1989 and resulted in a one month overflow test.
A flow rate of 17 L/s at a temperature of approximately 100 °C
was encountered. Hydrochemical investigations showed a
sodium - bicarbonate - chloride -water type with a TDS of
17.4 g/L. Degassing of CO, at the wellhead led to massive
precipitation of carbonates. Due to a high organic content, a
light red color of the water was observed.
The promising results of the well Blumau Thermal 1 a
stimulated plans for geothermal and balneological use of the
resource. Geological and technical planning had to consider
the establishment of a geothermal doublet and the drilling of
GHC BULLETIN, JUNE 2005 27
SSEIN Slaw SEINNE
a+�+.%r,�.tx+ci c��.yttL }o iecax+cn+
._ tcila -aJ 2 cc�
INNE
STYRtA SLCVENUA
SSW I 'NNW I ESE
r�
,aLaaa+Vr�t+a xG uraEl
AN
Figure 1. Geological profile.
a separate well intended for balneological use. The latter had
to tap water with a mineralization much lower than of the well
Blumau I without post volcanic CO, (Goldbrunner, 1993).
Well Blumau 3 which was intended for balneological
use reached an end depth of 1,200 m. By single tests of
perforated intervals of the 9 -5/8" cemented casing productive
intervals (sandy gravels) in the Sarmatian were determined in
the section between 960 and 630 m. The hydrochemistry and
the stable isotope content of the tested intervals differ only
slightly thus proofing a uniform hydraulic system over a
section of more than 300 m. The well was completed with
stainless steel WWL- filters and a gravel pack (casing inside
gravel pack). The hydrochemical composition of the water is
presented in Table 1. Maximum temperature at well head is
47 °C; artesian flow rate is 1.5 Us (shut -in pressure at well
head is 0.2 MPa), production tests with pump were performed
at a flow rate of 8 Us and a drawdown of 130 m. The
transmissivity of the aquifer is 5.4 x 10 -1 m'' /s.
Geothermal Cascade
The 250 -kW geothermal project at Bad Blumau is the
first geothermal project developed in Austria by the private
sector following the deregulation of the electricity industry in
this country. What makes the project unique besides its
private ownership structure is its ability to generate electrical
power and district heating for the Rogner Bad Blumau Hotel
& Spa by using a low - temperature geothermal resource.
Installed in the record time of less than a week, the air - cooled
ORMATa Energy Converter (OEC) CHP module has been in
commercial operation since July 2001. With an annual
availability exceeding 99 %, between October 2001 and
December 2002, the plant delivered 1,560,000 kWh to the
local grid. The geothermal CRP module utilizes brine at
— 110 °C, available from a 300 -m deep production well.
Exiting the OEC unit at a temperature of —85 °C, the brine is
then fed into the district heating system, providing heat for the
Rogner Bad Blumau Hotel & Spa. The geothermal brine is
returned from the district heating system and injected into a
3000 -m depth reinjection well. The system is a pollution -free,
unattended operating power generation module, which has
avoided more than 1 100 kg of CO, emissions over its first
operating year (Legmann, 2003).
The thermal water of Blumau 3 is used for the pools
in the spa (total area 2,500 mz). The spa and some outdoor
pools are shown in Figure 3. Due to the favorable mineral-
ization water treatment measures can be kept at a minimum.
Production rate for the spa is 1.5 L/s and can be provided by
the artesian overflow.
Table 1. Hydrochemical and Isotopic Composition of Thermal Water of the Well Bad Blumau 3 and Blumau 2
(Ionic coneentrnfinn in /h -
Well
Depth of aquifer (m)
Bad Blumau 3
Bad Blumau 2
Sample date
630-960
2'368 — 2'84'
Temperature ( °C)
1996
47
2003
Sodium (Na')
345.9
110
'129
Potassium (K')
3.3
Magnesium (Mg")
2.8
6.4
Calcium (Ca")
2.8
31.7
Chloride (CI-)
39.9
3,634
Iodine (1-)
0.1
2.5
Sulfate (SO,- -)
12.8
508
Bicarbonate (HCO,-)
883.5
7 834
Sum
Water type
1,291
17,942
Free COZ(g/L)
Na -HCO,
Na- CI -HCO,
Deuterium (d %o SMOW)
0. 3
<0.005
15.1
Oxygen-18 d %o SMOW
-10.2
57 5
-7.97
28 GHC BULLETIN, JUNE 2005
Figure 3. Bad Blumau. Spa and outdoor pools.
For heating the spa complex and the hotels the
establishment of a geothermal doublet comprising the existing
well Blumau Ia and a new well named "Blumau 2" was
launched. This well was designed as a vertical well 2,300 m
(at surface) apart from well Blumau Ia. Blumau 2 reached the
Palaeozoic dolomites at a depth of 2,360 m and encountered
fractured dolomites to its end depth of 2,843 m. Due to heavy
mud losses, the section in the carbonate rocks (bit diameter 5-
7/8") was drilled with water. The fracturing is caused by an
antithetic fault which was passed at a depth of 2,368 m by the
drilling. Top of the Palaeozoic dolomites is 222 m higher at
Blumau 2 than in Blumau 1a. The horizontal difference
between the two borings is 1,800 m at the top of the dolomite
due to the deviation of well Blumau I a.
Long -term outflow tests showed a maximum over-
flow rate as high as 80 L/s at a temperature of 1 IO °C which
makes Blumau the hottest thermal water well in Austria.
Artesian flow is caused by degassing. The gas /water ratio was
found to be high as 9:1, the gas phase being dominated by CO,
(CO, =97 %). The hydrochemical composition of the water is
similar to Blumau l a. Production logs involving density
measurements showed that degassing started at a depth of 560
m and became dominating at 300 m.
The precipitation of carbonates was overcome by
adding polyphosphate at a depth of 500 m. The poly-
phosphate results in complexation of calcium, thus preventing
the development of CaCO}. Maximum admissible artesian
flow is 30 L/s showing stable hydrochemical conditions.
The thermal energy is used for heating the spa
complex and the hotels (1,000 beds) since the year 2000. In
2001, an air cooled ORC turbine was installed having a net
output of 180 kW of electrical power (Figure 4). As the next
step, the use of the CO, gas, was realized at the end of 2002.
The capacity is 1.5 t/h liquid CO, (Figure 5).
The latest development is the outdoor pool named
"Vulkania" (area 1,000 ml). For this pool, water from the well
Blumau 2 is directly used (flow rate 0.5 -1.2 L /s). The
temperature of the outdoor pool is kept stable by heating the
overflow water from the pool by geothermal energy of well
Blumau 2.
Figure 5. Installation for cleaning and drying CO,
gas produced front well Blumau 2.
Water is re- injected in the former hydrocarbon well
Blumau 1 a; the maximum re- injection pressure is in the order
of 0.7 MPa, minimum re- injection temperature is 50 °C.
Thermal output of the Blumau geothermal cascade
can be summarized as follows:
The spa was a purely private investment of €55
million (S66 million). The project was backed up by the
Styrian Government by investing €20 million (S24 million)
for the deep drillings and the improvement of the local and
regional infrastructure (road construction, drinking water
supply, sewage system, village restoration). The overnight
stays in the region increased from 2,200 in 1995, to 37,490 in
2003 (without thermal resort), and 340 jobs in the thermal
GHC BULLETIN, JUNE 2005 29
Installed Thermal
Capacity
Heated Ob'ect /installation
CNIWO
Thermal equivalent power generation (ORC)
2.5
assuming 10% efficiency
Space heating (spa centre, hotels)
3.5
Outdoor pool
1.5
Direct use (pools, water from Blumau 2 & 3)
0.1
Total
7.6
The spa was a purely private investment of €55
million (S66 million). The project was backed up by the
Styrian Government by investing €20 million (S24 million)
for the deep drillings and the improvement of the local and
regional infrastructure (road construction, drinking water
supply, sewage system, village restoration). The overnight
stays in the region increased from 2,200 in 1995, to 37,490 in
2003 (without thermal resort), and 340 jobs in the thermal
GHC BULLETIN, JUNE 2005 29
Figure 6. Bhintau geothermal project: (1) ORC, (2) CO: -gas, and (3) district /seating.
resort hotel and 170 jobs in regional services have been
created (Hoenig, 2005).
A schematic of the Bad Blumau project is shown in
Figure 6.
REFERENCES
Goldbrunner, J., 1993. "Geological and Technical Design of
the Geothermal Project Blumau, Styria."
Unpublished report to Stvrian Government (1993).
Goldbrunner, J., 2005. "State, Possible Future Developments
in and Barrieres to the Exploration and Exploitation
of Geothermal Energy in Austria -- Country Update."
Proceedings World Geothermal Congress 2005,
Antalya Turkey, pp. 24 -29.
30
Hoenig, H., 2005. "Geothermal Resources as a Promoter of
Regional Development, The Success Story of the
Styrian Volcanic Region." Proceedings World
Geothermal Congress 2005, Antalya Turekey, pp.
24 -29.
Legmann, Hilel, 2003. "The Bad Blumau Geothermal
Project: A Low - Temperature, Sustainable and
Environmentally Benign Power Plant," Geothermics,
Vol. 31, No. 4/6. Aug/Dec 2003, Pergamon.
GHC BULLETIN, JUNE 2005
INTEGRATING SMALL POWER PLANTS
INTO DIRECT -USE PROJECTS
Dr. R. Gordon Bloomquist, Ph.D.,
Washington State University Energy Program
INTRODUCTION
Although generation of power from geothermal
energy with small "wellhead generators" (i.e., units <5MWe)
is not new, the past few years have seen an increased interest,
application and research into this technology (see GHC
Bulletin, Vol. 20, No. 2, 1999). As a result, there has been a
considerable amount of work done on various working fluids
including various Freon, organic fluids (e.g., propane,
isobutene, etc.), ammonia, and interest and research into low -
temperature flash is also on the rise.
Some existing units have now seen over 20 years of
operation and although most earlier units were put online as
stand alone plants, or as the first step in demonstrating the
viability of a field prior to build out, recent work has been
directed toward the development of combined heat and power
projects that couple power production with direct -use
applications. Recent projects in Austria, including the Rogner
Hotel and Spa Eco -Resort in Bluman (Figure 1) and the
geothermal district heating project in Altheim (Schochet and
Legmann, 2002; Gaia 2002) are excellent examples of
integrated projects designed to both provide power and supply
space heating (see article in this Bulletin).
Figure 1. Series 250 ORMAT Energy Converter
Power Unit at Bad Blrunau (Schochet &
Legnrann, 2002).
One of the most interesting recent developments in
the use of small wellhead -type generation is the coupling of
such systems to agribusiness (e.g., agriculture crop dehy-
dration, alcohol distillation, greenhouses and aquaculture).
HISTORY
The advent of small power plants dates to the very
beginning of geothermal power production. The first plant
dates back to 1904-when Prince Piero Ginori Conti first used
geothermal energy to power 10 -kWe reciprocating engine to
drive a small generator in order to provide lighting to his boric
acid factory in Larderello, Italy (Lund, 2004).
The first commercially produced geothermal power
was also generated at Larderello; when in 1914, a 250 -kWe
unit began providing power to the cities of Volterra and
Pomaronce.
In the early- 1900s, the first small geothermal power
plant in the United States went online at The Geysers in
northern California, This 35 -kWe unit provided power to the
local resort, and a few, if any, could imagine at the time that
The Geysers geothermal field would someday be the largest
producer of geothermal power in the world..
In 1967, an experimental binary power plant was
commissioned at Paratunka, Kamchatka, Russia (Lund and
Boyd, 1999). This small 680 -kWe power plant used 81 °C
(178 °F) geothermal water and although it is considered to be
one of the earliest binary power plants, it is interesting to note
that the first commercial geothermal power plant at Larderello
were also, in fact, binary -type plants. At Larderello, the
geothermal steam was used to evaporate clean water to power
steam turbines; thus, avoiding the corrosion effects related to
the use of the geothermal steam directly (DiPippo, 1999).
By the early -to -mid 1980s, small binary plants had
been demonstrated to be economically viable in a number of
locations and by the mid-1990s, commercial plants were
located throughout the western U.S., and throughout much of
the world. Small flash plants have also proved their
commercial viability and can be found in such diverse
countries as Iceland, Mexico, Japan, Portugal (Azores) and
Ethiopia to name but a few (Lund and Boyd, 1999).
TECHNOLOGIES
The vast majority of small geothermal power plants
are either binary or flash; although, some are a hybrid of both,
and even dry steam has been used in at least one application.
Both flash steam and binary technologies have their own
proponents, and each has its own set of advantages and
disadvantages.
Flash Steam Plants
In a flash steam plant (either single or double flash),
the two -phase flo%v from the well is directed to a steam
separator; where, the steam is separated from the water phase
and directed to the inlet to the turbine. The water phase is
either used for heat input to a binary system in a direct -use
application, or injected directly back into the reservoir (Figure
2).
GHC BULLETIN,_ JUNE 2005
♦ on evaporatively enhanced air cooling is ongoing (Sullivan,
T/G cr 2001) and could result in efficiency improvements of 5% or
more during summer periods.
cs
�I� BCV WP CP a
iw
Figure 2. Simplified flow diagram for a single flash
geothermal power plant (DiPippo, 1999).
The steam, after passing through the turbine, exits
into the condenser; where, it is cooled via water from the
cooling tower. Historically, flash has been employed where
resource temperatures are in excess of approximately 150 °C
(300oF); however, studies completed by Barber Nichols Inc.
of Arvada, Colorado (Forsha, 1994) would seem to.indicate
that flash technology could be employed at temperatures as
low as 120 °C (250 °C) or less, and at a cost significantly lower
than that of a similarly sized binary plant. Cost savings are
attributable to cost differences in the heat addition and heat
rejection systems of the two competing technologies.
Examples of small flash plants can be found in, for example,
Japan and Guadalupe.
In Japan, a small flash facility was installed at the
Kirishima International Hotel in Beppu, Kyusha in 1983. The
I00 -kWe non - condensing unit operates on the output of two
production wells and has an inlet temperature of 127 °C
(261 °F) at 2.45 bar (35.5 psi). Electricity is used for base load
in the hotel and provides 30 -60% of the load depending upon
season and time of day. Hot water from the separator is used
for outdoor bathing, space heating and cooling, domestic hot
water heating of a sauna bath , and for two indoor baths (Lund
and Boyd, 1999).
On the Island of Guadalupe, the Bouillante
geothermal flash condensing power plant was put online in
1986 with the plant being modernized and several
improvements made in 1995 and 1996 (Correia, et al., 1998).
Improvements included installation of three automated
controllers to monitor all plant activity and manage
operations. The plant is a double - flash plant based on a
geothermal resource of approximately 200 °C (392 °F). Steam
pressure from the two separators are six and one bar (87 and
15 psi), respectively. Cooling is through the use of seawater
in a direct - contact heat exchanger.
Binary Plants
In a binary plant (Figure 3), the thermal energy of the
geothermal fluid is transferred to a secondary working fluid
via a heat exchanger to use in a conventional Rankine Cycle,
or alternatively Kalina Cycle (Figure 4). The vaporized
working fluid (e.g., isopentane, propane, Freon or ammonia)
drives the turbine before being condensed and returned to the
heat exchanger in a closed loop. Cooling is generally
provided through the use of air coolers; although, some work
GHC BULLETIN, JUNE 2005
Figure 3. Simplified flow diagram for a basic, binary
geothermal power plant (DiPippo, 1999).
Figure 4. Simplified flow .diagram for a Kalina
binary geothermal power plant (DiPippo,
1999).
Examples of small binary plants are found, for
example, in the United States and Austria. The Wineagle and
Amedee power plants are located near the shore of Honey
Lake in northern California. Th e Wineagle power plant went
online in 1985, and consists of two binary units of total gross
output of 750 -kWe and a net output of 600 -kWe. The
Amedee plant is composed of two units of one -MWe each and
has a net output of 1.5 MWe. Resource temperatures are
relatively low, 110 °C (230 °F) at Wineagle and 104 °C (219 °F)
at the Amedee plant, and flow rates are 63 L/s (1000 gpm) and
202 L/s (3200 gpm), respectively. The plants were designed
to operate on Freon 114, but since then, the Wineagle plant
has been converted to operate on isobutene (Nichols, 2003).
Both plants have operated with an availability of over 90%
and a capacity factor that has at times exceeded 100% of name
plate. The plants are fully automated and are designed to
operate unmanned and to go through a self -start procedure if
tripped off line due to a transmission line failure. The plants
can be monitored and started remotely if required.
The Altheim, Austria binary plant is a 1 -MWe net
output facility designed to operate on 86 L/s (1360 gpm) of
106 °C (223 °F) geothermal water. The plant is water cooled.
The plant uses a special high molecular mass organic
compound as the working fluid. According to Gaia (2002),
the working fluid is non - flammable, non - corrosive and has no
ozone depletion activity. The turbine uses variable geometry
nozzles that were specifically designed to maintain high
efficiency at partial load, and the nozzles variable geometry
allows the turbine to be adapted to meet various geothermal
and cooling water flow rates. The unit includes a
programmable logic controller that allows for remote
monitoring and control, with the only exception being during
startup. The outlet temperature of the geothermal fluid from
the unit is 70 °C (158 °F) and is used to provide heat to the
Altheim district heating system.
GEOTHERMAL POWER GENERATION AND
AGRIBUSINESS INDUSTRIES
The development of agribusiness /power projects has
become one of the fastest growing areas of interest for low -
temperature geothermal development (i.e., <1 50'C [300 °F]).
As early as the beginning of the 1980s, however, the first
agribusiness /power plant project was initiated in Nevada at
Wabusca. The project consists of an alcohol distillation plant
and two small <I -MWe, Organic Rankine Cycle generators.
Cooling was provided through the use of spray cooling pond.
Unfortunately, the alcohol distillation facility was shut down
shortly after it went into production due to a lack of feed
stock. The power plant has continued in operation, and
despite the premature demise of the distillation plant, proved
the viability of the concept.
In the spring of 2000, the National Renewable
Energy Laboratory (NREL) issued a request for the
construction of small -scale (300 -kWe to l -MWe) geothermal
power projects and five projects were selected for funding. Of
these, three have reached agreements with NREL and projects
are going through preliminary stages of design. The purpose
of the program is to better establish the economic viability of
small power plants through documentation of capital cost,
system performance, and operation and maintenance
requirements over a three -year test period in different regions.
of the United States. All three of the projects incorporate
power production into already existing agriculture facilities.
The three projects are Empire Energy in Empire, Nevada;
Milgro - Newcastle in Newcastle, Utah and AmeriCulture
near Cotton City, New Mexico (Kutscher, 2001).
AmeriCulture
The AmeriCulture project involves the design,
installation, operation and monitoring of a 1.42 -MWe gross
(abt. l -MWe net) water - cooled Kalina Cycle geothermal
power plant using ammonia -water as the working fluid. The
project is located near Cotton City, New lklexico, south of
Lordsburg.
The plant (Figure 5) will supply electricity to the
AmeriCulture fish hatchery. Geothermal fluid will be pro-
vided from an existing 120 -m (400 -ft) production well
producing approximately 63.1 L/s (1000 gpm) of
approximately 115 -120nC (240 - 250 °F) brine from the
Lightning Dock geothermal resource. The "waste heat" from
the, power plant will be used to heat tanks used for the rearing
of tilapia for sale to aquaculture farms that raise the tilapia for
market. The estimated cost of the project is $3,370,000
( Kutcher, 2001).
Brine in
Boiler
HE -7
.4 - - --
Brine out
Ainq Water Out
ondeneer
Figure 5. Energy /Atrreri Culture Kalina Cycle
schematic (Kutscher, 2001).
Figure 6. Milgro- Newcastle low - pressure flash
systeur schematic (Kutscher, 2001).
Milgro- Newcastle
The Milgro - Newcastle project is located some 240
km (150 miles) northeast of Las Vegas, Nevada, in Newcastle,
Utah. The plant (Figure 6) is being designed as a low -
pressure flash plant based on the estimated 135 °C (275 °F)
geothermal resource widely available in the Escalante Valley.
The l4vlWe dross plant will deliver approximately 705 Me
net to the Nlilgro nursery. The separated brine at about 92.5nC
(198.5 °F) will provide heat to the greenhouse complex at the
Milgro nursery. The estimated total cost of the project is
52,550,000 and includes ,5400,000 for well development
(Kutscher, 2001).
GHC BULLETIN, JUNE 2005
Empire Energy
The Empire project began in 1987 as a small power
project built as a partnership between ORMAT and
Constellation Energy. The initial project was based on an
approximately 130nC+ (266 °F +) resource and generated about
3.6 MWe (Figure 7).
Figure 7. Binary power plant in Empire, Nevada.
In 1994, Empire Farms built an onion and garlic
dehydration plant (Figure 8). The dehydration plant is
capable of drying approximately 40,000 tons of product per
year. In 1997, Empire Energy, a subsidiary of Empire Farms
took over the initial power plant and wells drilled for the
dehydration plant began supplying the power plant in addition
to meeting the requirements for dehydration.
Figure 8. Onion and garlic dehydration plant.
The new wells produced geothermal fluids at
approximately 147 °C (297 °F) from between 500 -650 m (1640-
2130 ft) depth.
The proposed new facility (Figure 9) is being
designed to use water cascaded from the dehydration plant at
about 120 °C (250 °F) flow of approximately 75 L/s (1190
gPm).
The plant is being designed to produce a minimum
of 1.2 MWe for sale to Empire Foods, L.L.C. The plant
had originally been designed to demonstrate the benefits of
GHC BULLETIN, JUNE 2005
HP LP
Vapor V.
shah — "l
Power Turbine
Alr- Cooled
Condenser
Feed
Pump
Geothermal Vaporizer 1 I I Pump
Inlet Preheater Power
Geothermal
Outlet
Figure 9. Empire Energy binary -cycle system
schematic (Kutscher, 2001).
evaporatively enhanced dry cooling, but because this has
already been successfully demonstrated at a plant in California
(Sullivan, 2001), the decision was made to revise the design
to incorporate variable concentrations of mixed working fluids
to best achieve optimum operational efficiency. and to use
water cooling (Green, 2003).
The estimated total cost of the project was initially
$2,555,000 (Kutscher, 2001). This cost is at present being
recalculated, taking into account the modification in design
noted above. This will be an extremely interesting project to
follow, as unlike the design of most agribusiness /power plant
projects, the Empire project will use water cascaded from the
dehydration plant rather than using the highest temperature
resource for power production (i.e., a bottoming cycle).
SUMMARY
The integration of power production and agribusiness
projects can significantly improve the economic viability of
using lower temperature geothermal fluids and can result in a
much higher overall "fuel use efficiency" than can be achieved
with stand -alone power or direct -use projects. Validation of
the economic, performance, and operation and maintenance
requirements of these facilities should be a major step in
encouraging the replication of such projects worldwide.
NOMENCLATURE FOR PLANT FLOW DIAGRAMS
(Figures 2, 3 and 4)
6CV - ball check valve
C - condenser
CP - condensate pump
CS - cyclone separator
CSV - control and stop valve
CT - cooling tower
CW - cooling water
CWP - cooling water pump
E - evaporator
F - flasher
FF - final filter
IP - injection pump
IW - injection wells
M - make -up water
MR - moisture remover
P - well pump
PH - preheater
S - silencer
SE /C - steam ejector /condenser
SH - superheater
SP - steam piping
SR - sand remover
T/G = turbine /generator
TV - throttle valve
WP - water piping
WV - wellhead valves
ACKNOWLEDGMENT
This paper is a edited version of a paper presented at
the European Geothermal Conference 2003 in Szeged,
Hungary, May 2003.
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6 GHC BULLETIN, JUNE 2005