Image courtesy of JLL

The sale of the 100-acre ExxonMobil fuel storage facility in Everett is progressing as a proposed environmental cleanup could clear the way for a multi-million-square-foot redevelopment.

Boston-based developer The Davis Cos. is seeking approval from Massachusetts environmental regulators of an agreement that would release it from liability in exchange for a removal of contaminated soil and groundwater.

The Davis Cos. will redevelop the site as multifamily housing and a wide range of commercial uses ranging from manufacturing to life sciences, retail, office space and a hotel, according to the filing.

Anticipating the imminent sale, Everett officials have hired outside legal counsel and land-use consultants to draw up a master plan for the property, Director of Planning and Development Matthew Lattanzi said today.

“The specifics of what this new zoning district will look like are not yet determined, as we are in the very beginning stages of planning right now,” Lattanzi said in an email.

Boston-based Conservation Law Foundation sued ExxonMobil in 2016, seeking to force a cleanup of the site and warning of oil spills threatening the Mystic River in severe flooding.

In August 2022, Davis Cos. executives presented preliminary plans to the Everett City Council for a 4.2 million-square-foot redevelopment including housing, research labs and retail space, but the acquisition has been delayed.

The property is located in an industrial section of Everett that’s been the epicenter of the city’s development activity in recent years. The properties off Beacham Street are located just north of the Constellation Energy power plant property, where the Kraft Group is seeking to build a professional soccer stadium for the New England Revolution.

Everett officials envision the Lower Broadway area near the Mystic River as part of a new “destination district” that replaces the legacy heavy industrial uses with hotels, concert halls and retail space overlooking a cleaned-up waterfront.

The potential acquisition comes as Conservation Law Foundation nears a settlement of a lawsuit it filed against ExxonMobil in 2016 seeking a cleanup of the tank farm property.

A refinery began operations in 1921, and the property has been used for storage of gasoline, diesel, jet fuel and heavy fuel oil since 1964. The lawsuit claims that ExxonMobil has failed to put in place safeguards protecting the Mystic River from oil spills during severe flooding.

CLF and ExxonMobil have reached an agreement in principle to settle the lawsuit, according to a Nov. 13 filing in U.S. District Court in Boston.

“We are optimistic that after decades of industrial pollution and increasing threats from climate change, there is a cleaner future for this property,” CLF said in a statement today. “This site will require effective clean up and climate change protections in order to become a beneficial community resource. CLF is staying vigilant to ensure that any redevelopment is safe, climate change ready and community-centered.”

A purchase-and-sale agreement between The Davis Cos. and ExxonMobil expired in 2022, according to published reports. But the developer is now seeking approval under Massachusetts Brownfields Covenant program, which releases property owners from legal claims during an environmental cleanup.

Under the proposed agreement submitted to the Massachusetts Environmental Policy Act office, The Davis Cos. will assume responsibility for the cleanup, which “will be completed in multiple phases and will likely take several years.” If the application is approved, Davis Cos. would be released from liability from claims by the state of Massachusetts and third parties.

Davis Cos. did not immediately respond to a request for comment.

Two other major developments are proposed in the neighborhood, subject to state and local approvals.

Wynn Resorts is seeking Massachusetts Gaming Commission approval for a 142,000-square-foot East of Broadway project including sports betting and poker rooms, a nightclub and 979-seat theater across Broadway from the main casino.

Redevelopment of the 43-acre power plant site, acquired by Wynn Resorts last year, as a soccer stadium hinges upon lifting of state designated port area that requires uses of the property for marine dependent uses.

Removal of the property from the designated port area is proposed in a supplemental budget under review by the state Legislature. But Boston Mayor Michelle Wu objected to Boston’s exclusion from a community benefits agreement between the Kraft Group and the city of Everett.