The Chatter Class: Downturn presents city with East Bank opportunity

Copper prices have dropped through the floor. Aluminum is experiencing the same slump as demand drops for the commodity, a fate drive home last week by Franklin-based Noranda Aluminum when it announced a layoff of 338 people.

Metal prices of all kinds are down as the economy slows and the goliath, metal-sucking economic powerhouse China has slowed.

That means, of course, that the scrap metal business is feeling a heavy-duty pinch as well. Perhaps the slump will curtail some of the theft local legislation two years ago was meant to curb.

But, more importantly, crashing scrap metal prices could mean a renewed opportunity for the city to finally rid the East Bank of PSC Metals.

Surely, the value of that business is diminishing every day as metal prices drop, making acquisition a less pricey proposition than in years past.

Since LP Field opened in 1999, there have been plenty of questions as to why that scrap yard remained. Simply, then-Mayor Phil Bredesen established a politically palatable construction cost for the football stadium that included condemning the property in the footprint. Seizing the scrap yard would have pushed the price too high.

Since then, the city and developers have eyed that property for renewal. It's in the Plan of Nashville as something other than a scrap yard. A subsequent riverfront plan has development there.

A Louisville-based company wanted to put a theme park named Thrillopolis there, an idea that went over like a lead balloon with former Mayor Bill Purcell.

Five years ago, the city had an opportunity to chase the property when the company was weak. It was battling through bankruptcy and on its way to being acquired by billionaire investor Carl Icahn.

There a few folks around town who think that was a missed opportunity for Nashville, one that potentially could have hastened East Bank redevelopment. Thought was given to the idea but obviously nothing ever materialized.

For the most part, though, the property seemed untouchable because, until recently, business was booming with China buying up as much scrap metal as it could to feed its seemingly boundless economy.

Condemning it would have carried a hefty price. The cost seemed more prohibitive given that what many believe is a contaminated site that would require a costly clean up.

In the metals industry, mines have been shut down and business operations scaled back. PSC at some point may have to consider similar action to stay afloat.

If the company gets to that point, ridding itself of property Nashville government officials and developers have eyed for so long could be the graceful exit.

Perhaps Tower Investments, which has an agreement on the land PSC leases, could swoop in and buy it. The developer has been vetting development ideas that include a new minor-league ballpark and associated projects.

A sticking point could be who takes on the risk that the property is contaminated and needs cleaning up.

Mayor Karl Dean's administration is quite interested in the property. And there are officials within Dean's office who are certain the city will obtain the property while he is in office. Whether that will be during his current four-year term or in a presumed next one is a question.

Still, officials went to Chattanooga recently and learned more about how that city dealt with the potential environmental issues related to Roper Corp.'s close plant site along the river. That was eventually turned into a vast park but only after the city took on the clean-up risk. Apparently, there's insurance the city can buy to cover that risk.

Nashville could take similar a course with the PSC site if it could be had at a reasonable price.

For now, PSC Metals publicly appears to be sitting tight and folks hoping the site disappears can only hope.

information from www.nashvillecitypaper.com