Thomas F' Darden

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SUSTAINABLE BROWNFIELD REDEVELOPMENT Green Homes
and Sustainable Communities Conference July 19,
2007
Thomas F. Darden Cherokee 111 East Hargett
Street Raleigh, NC 27601 [phone]
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Introduction to Cherokee
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Cherokee is the Leading Private Investor in
Brownfield Redevelopment

• More than 1.6 billion of
• assets under management
• Acquired more than 520
• properties since 1990

• Wide variety of property types,
• sellers, contaminants and
• regulatory agencies
• More than 250 million will be
• spent on site remediation

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Cherokee Transactions (over 500 properties to
date)
Some points represent more than one property
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Cherokees Sustainability Policy

• Our intent is to create environmentally
  friendly, socially equitable, healthy places with
  broad-based stakeholder input and appeal.
• Conducting our business in a sustainable
  manner enhances the value of our development
  projects and provides us with a competitive
  advantage in the marketplace.- Cherokee
  Sustainability Guidelines

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Why Sustainability?

• Provides access to
• Capital, new funds and opportunities
• Public partnerships (license to operate)
• Reduces risks
• Avoid future regulations (e.g. carbon dioxide)
• Mitigate PR risks via pro-active community
  engagement
• Helps with planning and entitlements (faster,
  better)
• Creates/maintains brand value

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Putting Vision into Action
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Our Business Model is Evolving

• We continue to look for underserved markets
• We are increasingly focused on the environmental
  impact of vertical development
• By layering these strategies, we can support
  public goals and create investment opportunities
  while advancing sustainability

Small Industrial Brownfield Cleanup
Large Infill Brownfield Redevelopment
Influencing Vertical Development
Mixed-Use
Green Building
Transit-Oriented
Community Engagement and Enhancement Beyond Site
Borders
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Cherokee Sites Generate Benefits for the Wider
Community

• Remove issues associated with historic
  contamination
• Help manage growth
• Provide public amenities and targeted community
  investments
• Catalyze additional redevelopment
• Educate public and partners via demonstration
  projects
• Cherokee GreenHome and new corporate headquarters
  inspired our California partners to undertake
  similar efforts

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New Corporate Headquarters, Raleigh, NC

• Retains 60 of the existing building interior
• Reduces water use by 50 and energy use by 25

• Provides 90 of occupants with natural light
  and views to the outdoors
• Utilizes workstations with 82 recycled content

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Selected Cherokee Projects
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Magnolia, Charleston, SC

• 400 acres in the industrial neck of Charleston
• Former phosphate fertilizer capital of the world
  stigma scared off private investment for nearly
  30 years
• City views property as last frontier, key
  redevelopment that will help curb sprawl and help
  alleviate social issues

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Magnolia, Charleston, SC
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Magnolia, Charleston, SC

• Strong partnerships with the City of Charleston
  and other stakeholders
• Master Plan developed through public charrettes
• Focus on incorporating 5 historically isolated
  communities
• Final plan focuses on mixed-use, mixed-density
  with
• 1000 residential units for a variety of income
  levels
• Significant retail and office uses
• 130 acres devoted to parks and public space
• Enhanced wetlands

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Former Gates Rubber Facility, Denver, CO

• 50-acre Gates Rubber factory site with fourteen
  buildings
• High profile infill site with significant
  manufacturing contamination
• Numerous stakeholders
• Extensive re-entitlement and public financing
  required

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Achieving Denvers Community Vision Via
Transit-Oriented Development

• Creates the regions premier
  mixed-use, infill TOD
• Integrates with surrounding neighborhoods
• Affordable housing 10 of for- sale and 20
  of for-rent units
• Incorporates historically significant
  resources

Gates TOD represents a singular opportunity
high density housing, employment ... perfect
blend of uses and access to create a model TOD -
Blueprint Denver Plan
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Cherokee Denver - RTD Station
Denver, Colorado
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Kanawha, Fort Mill, SC

• William McDonough and the Museum of Life and the
  Environment
• 350-acre mixed-use community
• Buildings use 50 less fossil fuel
• Partnering with conventional homebuilders on
  green building

• On-and off-site renewable energy
• Connections to future regional greenway and
  bike/walking trails
• Plans for on-site agriculture

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Cherokee Sites Generate Benefits for the Wider
Community
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The Way Forward From Here
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Lingering Barriers, Limitations and Concerns

• Restrictive codes and planning regulations
• Short- vs. long-term costs/benefits
• Limited pool of innovative developers,
  contractors and service providers
• Market demand for transformative projects
• Our role as investor/land developer vs. builder
• NIMBY-ism and miscommunication with public
• Tenant expectations

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Lessons Learned

• Achieving sustainable redevelopment requires
• Committed partners with shared goals
• A consistent process (exact outcomes will vary
  with site and local conditions/priorities)
• Clear internal vision, definitions and direction
  from Cherokee
• Ongoing education (internal and external)
• Early, frequent communication with all
  stakeholders
• Non-traditional partners
• Creative thinking and hard work
• Mid-course corrections can happen
• Chosen strategies should be synergistic and
  enhance overall project economics

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New Directions and Opportunities

• Going forward, Cherokee will increasingly
• Influence vertical development
• Focus on TOD as a company-wide initiative
• Foster communication and diversity via
  non-traditional partnerships
• Reduce greenhouse gas emissions associated with
  our operations and projects
• Renewable energy feasibility studies for all new
  assets
• Design all buildings on Cherokee sites to meet
  high-performance standards