Liability Concerns in Brownfields Redevelopment: A Case Study
The BrownfieldsThe Brownfields Redevelopment Process · Definition & OverviewDefinition & Overview...
Transcript of The BrownfieldsThe Brownfields Redevelopment Process · Definition & OverviewDefinition & Overview...
The BrownfieldsThe Brownfields Redevelopment Process
• Background & History• Development Processp• Due Diligence• Collaboration & Clean up
Ignacio Dayrit ▪ Center for Creative Land Recycling (CCLR) ▪ www.cclr.org
The BrownfieldsThe Brownfields Redevelopment Process
CCLR Program AreasCCLR Program Areas• Technical Assistance to
Community Developers• Training for Redevelopment
SpecialistsCommunity Developers• Policy & Legislative
Research
Specialists• www.cclr.org
• Resource Center• Media Gallery
2
Definition & OverviewDefinition & Overview
• EPA definition - “real property, the expansion, redevelopment, or reuse of which may be
li t d b th t ti lcomplicated by the presence or potential presence of “toxic substances””– Estimated 1,200,000 sites nationwide, ,– Examples: most vacant or underutilized industrial or
commercial property such as gas stations, landfills, transferred military sites, manufacturing, office, etc.
3
y , g, ,
How the problem evolved?• Love Canal• Unintended Effect of
Environmental LawsEnvironmental Laws• Joint and Several Liability• Enforcement Policies Targeting g g
Lenders• Lender Liability Laws
I f th S i f• Ignorance of the Science of Contamination
• Local area-wide concernsoca a ea de co ce s
Brownfields Stigma♦ Cost uncertainty -- What will I have to pay? …and when?
♦ Legal uncertainty – Will I be responsible for contamination I did not g ycause? Do I really want to buy this property? What does AAI mean?
♦ Regulatory uncertainty -- What will they want, and when will they want it?want it?
♦ Financing uncertainty -- Will anybody finance my project?
♦ Time uncertainty How long before I can really build?♦ Time uncertainty -- How long before I can really build?
♦ Community uncertainty – Will the City like my proposal? Will there be NIMBY, density and other Infill issues?
5
, y
Cost UncertaintyCost Uncertainty
Ph I• Phase I– AAI, Records search, interviews, inspections– $5,000-$10,000
• Phase II– Sample collection & analysis – soil, groundwater,
vapor– Compare samples with “remediation goals”– $20,000 - $000,000’s depending on size/complexity
• Other Studies– Feasibility Study, Risk Assessment, Sampling Plans,
Cleanup Plans, Workplans, etc• Cleanup
6
p– $10 / sf > + + + + + +
Regulatory UncertaintyRegulatory Uncertainty
U S EPA• U.S. EPA• Hawaii Department of Health• County Health
7
Periods of Collaboration & Cooperation• 1st Generation:1980’s to early1990’s
– States enact Superfund-like cleanup laws– Command & Control from Regulatory Agencies– Command & Control from Regulatory Agencies– Horror stories create often unfounded fears related
to contaminationd• 2nd Generation: Mid-1990’s to 2000’s
– Realization of unintended consequence of strict liability & heavy handed regulationy y g
– States enact Voluntary Cleanup Programs– Client-based, regulators hands-off
P i t S t l d d l t– Private Sector-led redevelopment
Evolution cont’d…
• 3rd Generation: 2005>>– Collaboration WITH State Agencies & Local g
Government– Community-led redevelopment– 3-E’s: Economy, Environment, Equity3 E s: Economy, Environment, Equity – Solving multiple community goals– Leveraging Resources
Connection with climate change: HUD/DOT/EPA– Connection with climate change: HUD/DOT/EPA Sustainable Communities Partnership
Components of a Brownfields Program
♦ Community: obtain City leadership, convene stakeholders, address concerns, incorporate plans
♦ Technical: collect and analyze good information
♦ Regulatory: coordination, screening criteria, i t l l d i iti t t iassistance, legal and acquisition strategies
♦ Financial: site assessment and remediation assistance loans and grantsassistance – loans and grants
Seed funding and assistance to local government and communities are available through various programs.
10
Rule-of-Thumb Steps in a Brownfields Redevelopment Project
• Determine Nature & Extent Contamination
• Partnership among Community, City, Regulators & DeveloperRegulators & Developer
• Incorporate land use in cleanup designI t th d l t• Incorporate other development strategies
Remediation ConsiderationsRemediation ConsiderationsBeforeBefore• Due Diligence (AAI Phase I, Phase II, etc.)• Stakeholders & roles• Public access access to affected soil and waterPublic access, access to affected soil and water,
activities• Planning - design, acquisition, finance, etc.• Myths & strategies for soil, vapor and watery g , p• Liability & assurance• Various ownerships, site control• CostsDuring• Remediation impacts: Dust, noise, run-off, etc.After• Recording, maintenance & enforcement
Remediation StrategiesRemediation Strategies
• For Soil, Groundwater & Vapor• Remove and disposeRemove and dispose• Limit exposure
U t l• Use controls• Engineering & institutional• In-Situ & Ex-Situ Treatment
– Chemical, Physical or Biologic treatmentC e ca , ys ca o o og c ea e
Application Submittal
I iti l St dN Si ifi t I t P t ti l Scoping
Workshops
Initial Study
Exempt Projects
No Significant Impact
Draft
Potential Impact
Scoping Meeting
D ft jDraft Document
Public Review
Draft Document
Public Review
Environmental/ Pl i
(days/weeks) Public Review (days/weeks)
Public Comment M ti
Project Community Meetings
/ Planning Process
MeetingPublic Notice
Decision by Board or D i i b C ilDecision by Board or Commission
Public Hearing
Decision by Council
Public Hearing by Recommending Body
Appeal to Council
g y
Public Hearing before Council
Application Submittal
Environmental Process
Administrative Review
Project C it
Approved or Conditional
Use
Public Noticing
Community Meetings
Zoning g
Zoning Officer
Zoning Process(varies by City)
Appeal to City Council/ Planning Board
Public Hearing &
(varies by City)
Council/Zoning/GPAAmendment
Public Hearing &Recommendations
Application Submittal
Administrative Review
Dev’t Agrmnt /
NEPA & Zoning Process hearings and
public meetingsNegotiations between
Developer, agency and/or CouncilAgrmnt /
Owner P ti i ti
Public NoticingParticipation
ProcessNoticing
(varies by City) Redevelopment Authority Public
Hearing &Recommendations f A l d
City Council Public Hearing &
Recommendations for Approval and for Approval and
Fundingfor Approval and
Funding
Cleanup
Phase IZoning
Environmental
Continuing
Risk Analysis
pAlternatives
Phase II
M
Development Agreement
Continuing Obligations
B fi ld
Safeenough?
More Sampling &
Studies Meetings
Brownfields ProcessOK
(varies by City)
Other Funding & Project Approval Considerations
• Regional authority• TransportationTransportation• Housing
P k• Parks• Flood plain• Air Board• Special districts etcSpecial districts, etc.
Federal & State FundingFederal & State Funding
S i bl C i i P hi • Hawaii Brownfields • Sustainable Communities Partnership:– Environmental Protection Agency (EPA)– Housing & Urban Development (HUD)
• Hawaii Brownfields Program• State 128 fundsg p ( )
– Transportation• Economic Development Admin. (EDA)
State 128 funds• Hawaii Brownfields
Cleanup Revolving • Energy• Agriculture (USDA)• Other Federal Funds
gLoan Fund (HBCRLF)
• Other Federal Funds
Many require demonstration of public supportMany require demonstration of public support
Lessons LearnedLessons Learned
• Brownfields projects are real estate projects with a haz mat twistp j
• If possible, have a reuse plan• Don't overreact to contamination• Don t overreact to contamination• Speak to regulators early• Expect & encourage collaboration
Ignacio Dayrit ▪ Center for Creative Land Recycling (CCLR) ▪ www.cclr.org