in the business of building your community

Department of Economic and Community Development

Peter Simmons and Brian DillonOffice of Brownfield Remediation and Development - Office of Responsible Development

In the Business of Building Your Community

www.ctbrownfields.gov

http://www.ct.gov/ecd/site/default.asp

Brownfield Challenges

Brownfields are real estate projects with a

“clean-up” component• More complex• Need Predictability• Smart growth in a small state

ORD - OBRD www.ctbrownfields.gov


Who Do You Call? DECD

DEP

EPA DPH

CDA


http://www.ct.gov/dep/site/default.asp

http://www.ct.gov/dph

http://www.epa.gov/


To develop and implement strategies that:

Attract and retain business

Revitalize neighborhoods

Ensure quality housing

Foster responsible growth

DECD Mission



DECD Mission


• Discretionary Financial Assistance and Technical Support to support municipalities, businesses and organizations, such as…

• Economic Development• Municipal Development Program, formerly known as “Industrial Parks”• Infrastructure Development• Manufacturer’s Assistance Act (MAA)/CDA Collaboration

• Community Development• HUD Small Cities Program• Urban Act/Small Town Economic Assistance Program (STEAP)

• Housing Development• HOME• FLEX• CHFA Collaboration

• Brownfields Redevelopment


Responsible Growth (RG) is economic, social and environmental development that incorporates land use and resources in ways that enhance the long-term quality of life for current and future generations of Connecticut residents. Responsible growth supports a vibrant and resilient economy, preserves natural resources, and maximizes previous investments in existing infrastructure while preserving distinctive landscapes, historic structures, landmarks, and villages. Brownfields are a big part of responsible growth strategies.

Definitions



• BLUF: the balance between our growth and conservation needs

• The “nutshell”• Focus efforts where previous investment has occurred• Brownfield reuse• In-fill development (allow higher densities land use)• Integrated Transportation: improve public transit• Mixed use development• Regional Collaboration

Responsible Growth



• July 2009 DECD Reorganization consolidated OBRD with ORD

• OBRD is lead agency (one stop) for assistance - financial & technical

• Return brownfield properties to productive use• Promote responsible growth principles• Strengthen public-private partnerships by

providing solutions, timely resources, and expertise

OBRD



Real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous waste substance, pollutant, or contaminant

US: 600,000 6,000 (1%) Superfund NPL CT: ≈ 13,000 18 Superfund NPL, 3 done

EPA Definition of Brownfields



OBRD Funding Programs



• Urban Sites Remedial Action Program• Special Contaminated Property Remediation & Insurance Fund• Dry Cleaning Establishment Remediation Fund• EPA RLFs - Hartford & Statewide• EPA Site Assessment Program• Urban & Industrial Site Reinvest. Tax Credit• Municipal Brownfield Pilots• Regional Brownfield Redevelopment Loan Fund• Abandoned Brownfield Program




Urban Site Remedial Action Program (USRAP)

Seed Capital: DEP may pursue PRP Available for projects in Distressed Municipalities DECD/DEP Program Investigation, remediation Available funds: $2,000,000 (bond capacity)




Special Contaminated Properties Remediation and Insurance Fund (SCPRIF)

Short-term Loans Municipalities, Businesses, Individuals Investigation, remediation, demolition Available funds: $486,000






Dry Cleaning Establishment Remediation Fund

• Administered by DECD under CGS. 12-263m • Provides up to $300,000 for the remediation of active sites• All funding is provided by the State Dry Cleaning Surcharge• Operators must be current on all state filings DRS, DOL etc.• Program is currently over-subscribed with a backlog of over

30 applications pending review by DECD• DECD is working with DEP to prioritize sites for funding.• DECD expects to have another application round in late

2010


EPA Revolving Loan Fund

Loans/Grants to municipalities and businesses Remediation Available funds

• Hazardous - $833,000

• Petroleum - $35,000




EPA Site Assessment Grants

Sites recommended by Municipalities Investigation prior to cleanup and reuse Available funds

• Hazardous - $200,000

• Petroleum - $200,000




Municipal Pilot Program – $2.25M

• 5 Awards in October 2008(2) Cities with population > 100,000

• Stamford – Harbor Point Project, 80 acre mixed use• Waterbury – Cherry St. Industrial Park, Bender Plumbing expansion

(1) Small City with population 50,000 – 100,000• Norwalk – Norwalk Train Station, mixed use TOD

(1) Town with population under 50,000• Redding – Georgetown Development, 51 acre, mixed use

(1) Selected by the Commissioner any size • Shelton – former Axton Cross site – to be privately developed

• October 2009: $2.25M approved for new funding round • Fifteen applications received – 5 will be chosen• Currently being processed




New for 2009/2010

1. Regional Brownfield Loan Program2. Abandoned Brownfield Clean Up Program3. Changes to Floodplain Management Requirements






Regional Brownfield Loan Program – $2.5M

• Approved by Bond Commission October 30th, 2009• New targeted statewide brownfield redevelopment

loan program• Loans to assist returning brownfield sites to

productive use• Loan proceeds will revolve to provide assistance to

additional sites• Applications accepted on an ongoing basis


Legislative Actions/Updates



Clarified LEP involvement in Milestone Requirements

• 2 yr requirement to document investigation of site is complete

• 3 yr requirement to document remediation of the site has been initiated (submit cleanup plan)

• Milestone documents must be approved in writing by LEP

2007-Transfer Act Amended



• Major Categories of the Act– Floodplain Management– Transfer Act (exemptions, cost recovery & new

requirements)– Municipal Liability Relief– Abandoned Brownfields Cleanup Program– Expansion of the Voluntary Program

2009 Brownfield bill (PA 09-235)



• Transfer Act – complete cleanup

• Encourage Municipalities to take control– Reduce fear of getting stuck w/ cleanup liability

• Voluntary Cleanup – open it to anyone

• Abandoned Brownfields – progress at the worst first

2009 Brownfield Bill Themes



Municipalities - New Exemptions:

• exemption for certain municipal “transfers,” 22a-134(1)(B)

• formerly just for tax foreclosure

• Now enhanced to include:– Acquisition by eminent domain process– Subsequent transfer if to innocent new owner who

remediates under Voluntary Cleanup law (22a-133x)

2009 - Transfer Act



• “Municipality” includes related entities – Economic Development Agency or entity under

CGS chapter 130 or 132– Nonprofit economic development corporation

formed to promote common good of a muni• funded directly or by in-kind services of a muni,

– nonstock corp or LLC controlled/established by a muni, econ development agency or entity under CGS chapter 130 or 132

2009 - Transfer Act (cont’d)



• Transfers after 10/1/09– 8 year requirement– achieve Final Verification or Interim Verification

• New “Interim Verification”– Soil: achieve soil cleanup standards/remedies– Groundwater: if don’t achieve stds by 8 yrs, at least

• ensure no exposures,

• have GW remedy in operation,

• LEP approved O&M plan must be implemented

Transfer Act – New Requirements



• Remediation Grants from DECD: no additional liability if Muni is innocent party (32-9ee)

• Investigation: Municipality will not incur liability for cleanup by entering property for investigation (22a-133dd)

• Muni not liable to owner or 3rd party for existing pollution muni didn’t create or negligently or recklessly exacerbate (22a-133dd)

Municipal Liability Relief


• 2009 law, Administered by DECD, consults DEP • Available for White Knight redevelopers• Abandoned (since 1999) Brownfields• Need significant economic benefits• White Knight must cleanup on-site & stop

migration off the site• White Knight not responsible for off-site cleanup

Abandoned Brownfield Cleanup Program


• For Non-responsible parties – certainty for a completed remediation, no future surprises

• 22a-133aa is transferable, discretionary, has many protections, and costs 3% of property value – Brownfields: Covenants can be approved early in

investigation phase!

– free for municipalities; other parties can schedule payments over time!

• 22a-133bb: non-transferable, less protections, free

Covenants Not to Sue


• Innocent Land Owners will not be liable for State actions taken to contain, remove or mitigate a spill

• Innocent Land Owners will not be liable for any order of the Commissioner to abate or remediate a spill or discharge (which order was issued on or before August 1990)

• Innocent Land Owners are defined in CGS §22a-452d

State Liability Relief


Third-party liability is limited for non-responsible parties that own a contaminated property and investigate and remediate such properties

CGS § 22a-133ee– No owner shall be liable for any costs or damages to any person

other than this state, any other state or the federal government, with respect to any pollution or source of pollution on or emanating from such owner's real property that occurred or existed prior to such owner taking title to such property

Third Party Liability Relief


• An Act concerning state funding of affordable housing located in a five-hundred-year flood plain.

• Three exceptions to prohibition against construction/rehabilitation of affordable housing at or below 500-year flood plain:

1. DECD’s current affordable housing appeals list;

2. Adaptive reuse of existing structures; and

3. Demolition of existing structures and new low/mod income housing.

• Projects can be undertaken only after certification that there will be no significant flood impacts and risks.

2010 New Legislation - SB 302


• An Act concerning remediation accounts of dry cleaning establishments and regulated activity on sites undergoing remedial action.

• Permission to conduct a regulated activity in an aquifer protection area where hazardous waste is being cleaned, as long as certain criteria are satisfied

• Owners of sites formerly occupied by a dry cleaning establishment are eligible for grants from the dry cleaning establishment remediation account provided certain criteria are satisfied.

2010 New Legislation – PA 10-86 (HB 5119)


• An Act concerning brownfield remediation liability

• Expands scope of brownfield programs.

• Allows funds from USRAP and SCPRIF to be used for other newer BF programs.

• Ability to fix assessment on contaminated properties before remediation.

• Forgiveness of back taxes on contaminated property slated for clean up under a state-approved plan.

• Permission with conditions for regulated activities on municipally-owned sites undergoing remediation in aquifer protection areas.

• Establishes 11-member working group to examine brownfield issues - report findings by January 15, 2011.

2010 New Legislation – (HB 5436)


Office of Brownfield Remediation and Development www.ctbrownfields.gov




OBRD -DECD Contact

•Peter Simmons •Executive Director, Office of Responsible Development

•(860) 270-8149

•Brian Dillon•Program Manager, OBRD, Office of Responsible Development

•(860) 270-8156




in the business of building your community

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