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November 17, 2008

Study probes life after power plant

By Tom Dalton

SALEM — A local citizens' group that would like to see Salem Harbor Station closed has commissioned a study that tries to answer the obvious follow-up question: What could replace the power plant that would provide the same economic benefits to the city?

One possible vision of life after Salem Harbor Station is a sprawling waterfront development with new homes, an apartment complex, a hotel, retail shops, an office park and a city-owned marina, according to the report commissioned by A Vision for Salem.

On Wednesday night, the consultants who did the study, The Brattle Group of Cambridge, will discuss the findings at a public meeting at the Salem Visitor Center. Representatives from two environmental organizations also will speak.

The Brattle Group did the 16-page economic report with the goal of offering a development option that could provide the same revenue the coal- and oil-fired plant generates for the city.

That's a tall order. Salem Harbor Station is the city's largest taxpayer. Last fiscal year, it paid the city $4.75 million — $3.5 million in taxes and a one-time "community donation" of $1.25 million.

The study concluded that this new mixed-use development could produce more money and jobs than the power plant: $5.6 million in taxes and revenues after a few years, and about 600 jobs. The power plant has about 150 employees.

Mayor Kim Driscoll was given a copy of the report, but The Salem News was not able to reach her for comment.

"This is a study that shows the possibilities, but there are so many possibilities," said Lisa Abbate, the Salem resident who founded A Vision for Salem.

"It's really about what could be there that could generate revenue for Salem in the event the plant closed due to its age and safety concerns. ..." she said. "It's really about what would Salem do if it closed."

Although A Vision for Salem opposes the plant's continued operation, the study isn't about the environmental or safety issues that have dogged the plant for several years.

"I wanted to be really positive and look at what Salem could do," said Abbate, a writer and editor.

Abbate said she wanted to offer a realistic option that provides taxes and other revenues for the city, as well as jobs.

"I wanted to make sure Salem could provide jobs for people," she said. "This study shows there could be plenty of jobs — way more than the 147 who work there now."

The study assumes that, in the event of a plant closing, the costly cleanup of the polluted site, which likely would run into the millions of dollars, would be the responsibility of the owner and built into the sale price.

It also assumes that, as a result of the new development, tourism to the city "could double," which would generate more income for Salem.

The study does not assess possible political and community reactions. This development is being proposed at a site near Salem Willows, a neighborhood that has fought much smaller projects.

The "plausible scenario" detailed by The Brattle Group calls for 180 single-family homes, a 4-acre retail development, a 4-acre office park, an apartment complex similar to the 266-unit Jefferson at Salem Station, a 110-slip marina and a 200-room hotel.

At the end of the report, the consultant suggests other possible options for the site, including a large office park, a cruise ship terminal, a maritime museum and a casino.

The study was done, Abbate said, not to provide a solution or definitive answer, but to get residents thinking about life after Salem Harbor Station.

"We wanted to raise awareness of what the possibilities could be, and the Brattle report is an example of one possibility. We see this as the beginning of a dialogue about vision and possibilities."

For its part, Salem Harbor Station officials have repeatedly said that they have no plans to close or sell the power plant. In fact, plant owner Dominion announced this year that it plans to keep operating in Salem "for years to come."

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