HomeMy WebLinkAboutBulkStorageFeasibilityStudyFINAL-ExecSumm_201404281033384180Town of Nantucket Feasibility Study: Bulk Storage Facility
Nantucket Island
Executive Summary S-1 Prepared by Vanasse Hangen Brustlin, Inc. - 01/22/14
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Executive Summary
A feasibility study was conducted to identify opportunities and constraints associated with
locating a new bulk fuel storage facility (tank farm) at an industrially zoned site near the
Nantucket Memorial Airport. Fuel is currently stored in bulk at a privately owned tank farm
on the waterfront in downtown Nantucket, affecting aesthetics at the harbor and presenting
safety and environmental risks. A tank farm on New South Road near the Airport would
minimize these existing and potential impacts. The study concluded that eliminating the
downtown bulk storage facility would bring benefits to public safety, traffic congestion, and
the environment, that relocating the facility to the Industrial Area is feasible, and that the plan
should be advanced by the Town.
The study evaluated the existing fuel management system on Nantucket Island and identified
three components of the system that affect its efficiency: transporting fuel to the island,
storing fuel on the island, and delivering fuel to customers. The proposed new bulk storage
facility would eliminate one of the two methods currently used to transport fuel to the island:
barge transport would be eliminated completely, in favor of tanker truck transport via
commercial ferry. This would allow fuel for the proposed new tank farm to be transported
there from the Steamship Wharf, but would increase tanker truck shipments on the
commercial ferry service. Space availability on the ferries is currently constrained and a long
term plan is needed for expanded service.
Most of the fuel stored at the downtown tank farm is delivered to customers by local delivery
trucks, but some is piped directly to the Nantucket Boat Basin Marina for sale to boaters. The
marina does not currently have its own storage tanks. Given that Nantucket is an island, fuel
should be available in the harbor, so relocating the downtown tank farm would require
installing storage tanks at the marina. Other local fuel delivery requirements would be largely
unchanged, although fuel truck routes would be altered as described below.
Relocating the bulk storage facility from downtown to near the Airport would shift some
truck traffic from being concentrated downtown to a broader distribution, initially following a
designated truck route to the new facility and then using the island road network to deliver
fuel to customers. Although some intersections along the designated truck route are
constrained, the minor improvements recommended at four of the intersections are relatively
inexpensive and would substantively improve public safety by managing traffic more
effectively than is currently accomplished. The estimated cost for the minor improvements is
$6,000 to $12,000. More significant improvements may also be considered at two additional
intersections; these improvements are estimated to cost $75,000 to $150,000.
Town of Nantucket Feasibility Study: Bulk Storage Facility
Nantucket Island
Executive Summary S-2 Prepared by Vanasse Hangen Brustlin, Inc. - 01/22/14
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The designated truck route and the proposed tank farm site were evaluated to determine if
environmental resources are present that would constrain the use or development of the road s
and property. Although protected environmental resources such as wetlands, rare species
habitat, and water resources are present, the project is not expected to adversely impact these
resources. Further, environmental permitting requirements for the facility are not expected to
be onerous.
A conceptual design for a new bulk storage facility was developed as part of this study. The
estimated capital cost for the new facility is $6.7 million. Although the site identified for the
new facility is approximately 9 acres, an appropriately sized facility could be accommodated
on 6 acres, leaving the balance of the site for other industrial uses.
Constructing and operating the new tank farm could be accomplished under several different
scenarios. The Town owns the Industrial Area site, and would like to induce a private party to
use the site for the tank farm. The Town and a private party could enter into a contractual
arrangement under three possible approaches: build and lease to an operator, land lease, or
land sale. Based on conversations with the Selectmen, a strong preference seems to be for sale
of the land.
Once a final decision has been made on the structure of the land transfer, the Town will likely
seek bids from interested parties. Expected payment to the Town would vary depending on
how the transaction was structured. If a land sale, the Town may wish to impose deed
restrictions to keep the land use for fuel storage, and to retain a right of first refusal on a
future land sale. These restrictions would offer long term benefits to the Town but would be
expected to lower the value.
Although there are a number of decisions that need to be made, the prospects for the tank
farm to be relocated away from the downtown waterfront, a long time goal of the Town’s,
have never been better.