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“When are we going to do something about that old closed-down gas station?” .....“Why don’t we get rid of those unsightly industrial factories and put this property to good use?”.....“Our community could be so much nicer if we could clean up that old, abandoned site.” Chances are this has been the conversation of many citizens at one time or another as they traveled past former industrial or commercial sites that once provided services for their community. While fueling cars, manufacturing consumer goods, and developing new technologies served their purposes, these activities may have resulted in the release of hazardous substances into the environment over time.

In the past, these contaminated properties (known as brownfields) typically remained idol, underused, or disregarded for redevelopment in many cities and towns due to the environmental challenges associated with them. These challenges include strict environmental regulations, liability concerns, clean-up considerations, financial obstacles, and a more stringent redevelopment planning process.

“We understand that brownfields carry a perception of high remediation costs and liabilities associated with soil and/or groundwater contamination,” SEH Environmental Lead Al Sunderman said. “However, with federal and state funding available and innovative approaches to cleanup, most brownfields can be mitigated cost effectively, efficiently, and quickly. The benefits are starting to outweigh the costs.”

Benefits of brownfield redevelopment include:

• Reusing sites and existing infrastructure at desirable locations as opposed to building new roads, sewers, water supplies,
  railroads, etc.
  
• Improving environmental quality and human health by removing environmental threats from the property
• Enhancing a community’s aesthetic appearance by removing blighted areas and objects
• Recycling older properties to curtail urban sprawl, which contributes to congestion problems and the loss of open space
• Reinventing an area’s sense of community by including citizens in end-use planning and remedy selection
• Providing new employment opportunities from new businesses occupying the redeveloped area
• Increasing a community’s tax base
  

The lack of developable land in some cities with larger populations has also caused governmental agencies, land developers, potential buyers, and the general public to jointly invest in the brownfield redevelopment process.

“The proper coordination of local, state, and federal governments, private parties, and citizens can lead to a successful brownfield redevelopment project,” Sunderman said. “But, these stakeholders must work together to reach a common redevelopment goal for the use of brownfields and how to approach the funding concerns. And when they do, there’s really a win/win for all.”

For more information, contact Al Sunderman at 800.325.2055.

Photos above are examples of brownfield redevelopment options.

Unconventional Methods for Funding Brownfield Redevelopment

There are a number of state and federal funding options to help redevelop brownfields, but below are a few creative funding options that often go overlooked.Tax Increment Financing (TIF)
TIF districts are often used to fund economic development projects. City officials create a TIF district, and in this district “freeze” the tax revenues created from the newly developed project and earmark these newly created revenues to help fund the project. Because brownfield properties depress an area, redeveloping it will cause an increase in property values and increase a local government’s tax base.
Piggybacking
Piggybacking occurs when a brownfield project can be combined with a larger non-brownfield project, thereby allowing developers or city officials to utilize funding that is not brownfield specific.
Community Development Block Grant (CDBG)
HUD’s Community Development Block Grant offers funds to cities and urban counties and indirectly to smaller communities through the state to revitalize distressed communities.
Development Swap
A developer can be assessed lower taxes or receive special development considerations in exchange for investing in a brownfield.
Land Assembly
Land assembly consists of grouping parcels of land together to minimize the percentage of remediation costs for a developer and/or make a project more feasible. If a local government is able to add other parcels of land together so that the percentage of the total cost dedicated to remediation is smaller, developers may be proned to proceed with a project.