The Present: Brownfields in the New Economy
As things are in the present it is difficult to get brownfields are often mixed bags when it comes to looking at the advantages and disadvantages. Usually the fact that they have anything wrong makes them very difficult to sell, because of the fact that in America it is so easy for companies and people to buy "greenfields", sites that are unadulterated in any way. Brownfields have the disadvantages of having the added cost of clean up, and sometimes their plot sizes are outdated for the present economy. These qualities can make brownfields difficult to sell, but there are some advantages that make their development worth while.
Brownfield developers are justified in developing them because in many cases the brownfields are located in parts of town that were very prized as a good locale, sometimes within blocks of the central business district. Plus the company that moves into a site that used to be a brownfield has the advantage of good will that is built between the community and that business because people see the development in a spot that had been vacant for years. Often times it can lead to free publicity in the local newspaper, or on the local TV stations.
The sale of land for business use, whether greenfield or brownfield, does not happen spontaneously. In many cases they must be advertised to find buyers, and for that reason comminutes such as the Quad Cities have created organizations to help sell to potential customers. Organizations such the Quad Cities Development Group and the Bi-State Regional Commission are beneficial in attempting to bring the businesses back to the area. While speaking to Steve Aims of the Quad Cities Development Group we found that brownfields have another strike against them because they are not available right away, something that businesses consider one of the basic factors when selecting property.
Because of the great difficulty that is associated with brownfield development, and in an effort to help combat widespread use of valuable greenfield lands, the Environmental Protection Agency has implemented various benefits to companies that take advantage of brownfield redevelopment. Among these are such things as:
Determination of Viable Clean-Up Standards: In making standards somewhat lower, the EPA has made it more economically feasible for many more companies to clean up brownfields for their use. This allows for clean up of contamination at lower standards than would be otherwise required, unless the contaminants are hazardous, or the land will be used for housing. There are several tests for contamination, but one of the first and often times most beneficial is simply to smell it—does it stink, or doesn’t it?
Give Power to States: Offer states the power to determine their own standards for clean up, and to rank their brownfields according to need of clean up and redevelopment. This aids in getting certain sites usable again and potentially may keep some industries from building on greefields.
Implement Risk-Based Corrective Action as an Option: This offers companies the option to proceed immediately with clean up, or go through the state’s program of standards. This allows for the company to move ahead with projects if so desired, as some state standards programs can be very time consuming.
Protecting Against Liability for Third-Party Claims: By doing so, this allows new owners of brownfields to be protected from lawsuits, and could alleviate potential concerns of lenders when deciding loan action for the properties. However, they cannot be totally protected from issues related to the site. So, the EPA is trying to take as many steps as possible to try to dispel the perceived concerns.
Utilizing Available Federal Financial Incentives: The EPA gives out $15,000,000 per year to identify and characterize contamination at brownfield sites and $25,000,000 per year to help remediate brownfield sites. Grants are also leveraged by funds from other organizations, and the EPA hands and additional $25,000,000 to the states to help create or improve voluntary clean up programs.
As evidenced here, the EPA is very committed to helping companies to get started in developing former brownfields, and companies can often find help from both the state and federal level.
The reason that cities long for redevelopment of their brownfields and vacant land is that it is good for their economy, and aides in the aesthetics of the city. A raise in the tax base, among other factors, contribute to the general good in the city, as well as increased employment for workers who might otherwise remain on or go on welfare. New residents will potentially be drawn to the town because of the low taxes, or the good schools, or the amenities offered because of a large corporation or company. Redevelopment in downtown locations will aid in bring people back to the downtown, perhaps a place few have visited in many years. Overall however, redevelopment of these sites offers high quality land and prime location to the company that wants to relocate.
