brownfields roi · 2018-09-26 · brownfields cycle older industrial properties are placed at a...
TRANSCRIPT
Brownfields ROI: Risk, Opportunity, and Impact
Patrick Kirby, Director
Brownfields Assistance Center at West Virginia University
@
Overview
Brownfields Background
Risk: Liability, All Appropriate Inquiry
Opportunity: Federal, State and other resources
Impact: Jobs, Redevelopment, Success
SUPERFUND - 1980
Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA)
enacted in 1980
Brownfields-1990s
Early 1990s courts decisions led to an increase concern
about liability associated with “brownfield” deals
Example—A manufacturer wants to purchase a former
industrial space for expansion and the site has
contamination that is not an imminent threat from a
previous user
Capital Investment runs screaming from the brownfield
market
Brownfields Cycle
Older industrial properties are placed
at a considerable disadvantage in the real
estate market.
A property owner abandons it for any number of reasons.
Vacant facilities deteriorate and are vandalized further
reducing value
Untended pollution may worsen and spread, further
diminishing the property value and adding to its
cleanup cost
The site becomes an unwanted legal, regulatory, and financial burden on the
community and its taxpayers.
Brownfield Definition
“Real Properties, the expansion, redevelopment or reuse of which
may be complicated by the presence or potential presence of a
hazardous substance, pollutant or contaminant”
Practical impact of this definition –
Includes all types of sites, in cities, small towns,
everywhere
Abandoned factories, strip shopping centers, gas stations, mining sites,
grocery stores, foundries, power plants, old apartment buildings,
orchards, etc.
Formal estimates indicate 450,000+ brownfield sites
With gas station/LUST sites included, figure could top one
million properties
What Are Brownfields?
Is my project a Brownfield?
Brownfield Hazardous Materials Include:
ASBESTOS
MOLD
LEAD-BASED PAINT
West Virginia Brownfields Assistance Centers
Northern WV Brownfields Assistance Center at WVU
Southern WV Brownfields Assistance Center at Marshall University
The West Virginia Brownfields Assistance Centers were created in 2005 by the West Virginia Legislature to promote economic development and environmental and public health protection through innovative redevelopment of brownfield sites.
wvbadbuildings.org
Services
The Brownfields Centers facilitate the redevelopment of brownfields properties by assisting local governments, economic development organizations, community non-profits and private developers with:
Identification ofredevelopment opportunities
Engagement of communitystakeholders
Technical assistance to overcomeproject barriers
Obtaining project resources andleveraging funds
wvbadbuildings.org
@
Liability: Due Diligence
Due Diligence before EVERY
commercial real estate transaction
Why Perform a Phase I Assessment
under “All Appropriate Inquiry?
What A Phase I Won’t Determine
Phase I / All Appropriate Inquiry
Assessment Requirements
Why Perform a
Phase I Assessment
A Phase I assessment answers the following two questions:
1. Is there a possibility, based on historical and/current facts and observations, that the site in question has environmental impacts from on-site source(s) and/or off-site source(s)?
2. What types, if any, of environmental impacts are most likely to be associated with the site?
Why Perform a Phase I
Assessment
1. Current and past property uses and occupancies
2. Current and past uses of “hazardous” substances
3. Waste management and disposal activities
4. Current and past corrective actions and/or response activities associated with hazardous substance releases
5. Engineering/Institutional controls/Land use covenants
6. Environmental conditions on properties adjoining or located near the subject property that may have resulted in adversely affecting the property
What A Phase 1 Won’t Do
No sampling is performed, so
no contamination levels are
known, nor the extent of
contamination
Potentially responsible parties
are identified, but may not
give complete details of any
given party
Doesn’t establish any
significant level of risk or
cleanup cost associated with
the property
Opportunity: $ and resources
Like any real estate deal, brownfield projectsneed to answer 3 key $$$ questions –
How Much Does it Cost
What is the Risk
How Long will it Take
BUILD ACT of 2018
EPA Brownfnields
FY19 Assessment and Cleanup
Grant Competition Timeline
21
Guidelines Issued
(Anticipated)
October 2018
Proposals/Requests Due 60 Days Later
(Anticipated before
Christmas)
Announcement of Awards May/June 2019
Grant Funds Available October 1, 2019
Other Items of Note
Small, Rural & Disadvantaged Communities:
Allows U.S. EPA to provide $1.5 million annually for grants, up to $20,000, to
brownfields support to small, rural and disadvantaged communities
Allows States to use their EPA funding to assist small, rural and disadvantaged
communities
“Small” = Less than 15,000 population; “Disadvantaged” = Annual median household
income <80% of statewide median household income
Waterfront Brownfields & Clean Energy Projects: Directs EPA to add criteria
for evaluating grant applications to support brownfield projects on waterfronts
and in floodplains, and to support brownfield projects involving renewable
energy, energy efficiency, district energy, and combined heat and power
projects
EPA Brownfield Grants
Brownfields Grant Fact Sheet Search
Search Criteria:
Grant Type(s): Assessment, Revolving Loan Fund, Cleanup
Award Year(s): 2017, 2016, 2015
Grant Recipient Name EPA Region State/Territory Grant Type Announce Year (FY) Hazardous Funding Petroleum Funding
Bath, Town of 3 WV Cleanup 2017 $100,000.00 $0.00
Brooke-Hancock Regional Planning and
Development Council 3 WV Assessment 2017 $395,000.00 $205,000.00
Business Development Corporation of the
Northern Panhandle 3 WV Cleanup 2015 $600,000.00 $0.00
Business Development Corporation of the
Northern Panhandle 3 WV Assessment,Cleanup 2016 $553,500.00 $205,000.00
Huntington, City of 3 WV Assessment 2015 $200,000.00 $200,000.00
Martinsburg, City of 3 WV Assessment 2015 $200,000.00 $200,000.00
Thomas, City of 3 WV Cleanup 2016 $200,000.00 $0.00
Thomas, City of 3 WV Assessment 2017 $200,000.00 $0.00
Upshur County Commission 3 WV Cleanup 2017 $200,000.00 $0.00
Vienna, City of 3 WV Cleanup 2017 $200,000.00 $0.00
Wayne County Economic Development
Authority Inc. 3 WV Cleanup 2016 $200,000.00 $0.00
West Virginia Department of
Environmental Protection 3 WV Assessment 2015 $200,000.00 $0.00
West Virginia Department of
Environmental Protection 3 WV Revolving Loan Fund 2016 $660,000.00 $160,000.00
West Virginia Department of
Environmental Protection 3 WV Assessment 2017 $200,000.00 $100,000.00
Technical Assistance to Brownfields (TAB)
Program
24
• Free Planning, Environmental and Economic Development
expertise
• Directly to local governments, non-profits,
and tribal communities
• Webinars, workshops, resource roadmaps & E-Tools
TAB Assistance Providers
New Jersey Institute of Technology (NJIT)—EPA Regions 1, 3, & 4
Colette Santasieri | 973-642-4165 | [email protected]| www.njit.edu/tab
Kansas State University (KSU)—EPA Regions 5, 6, 7, 8, & all for Tribes
Blase Leven | 785-532-0780 | [email protected] | www.ksutab.org
Center for Creative Land Recycling (CCLR)—EPA Regions 2, 9 & 10
Sarah Sieloff | 415-398-1080 | [email protected] | www.cclr.org
25
Bellows College
Identifying Project Needs
Finding a Foundation
Engaging the Foundation
Making the Fit
Applying for Support
Maximizing Success
Free resources
The Foundation Center
www.foundationcenter.org
Chronicle of Philanthropy
www.philanthropy.com
Other Grant Ideas: Foundation Funding
State Voluntary Cleanup Programs
Allow Potentially Responsible Parties
to clean up sites on voluntary basis
Provide incentives for clean up:
Expedited review process
Flexibility in cleanup levels and
methods
Release from state liability
Possible release from federal liability
Financial assistance
Takeaways
Risk: Always do a Phase 1 (maximum 180 days)
before closing on any commercial real estate
deal
Opportunity: There are resources to help on your
current projects and potential to gain additional
work/clients
Impact: Health, Economic, Visual, Mental
You Got this!
Patrick Kirby
304.293.4267
304.216.4267
www.wvbrownfields.org