Moderator:

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Moderator Jerome E. Mason, MCR.h, SLCR Panel
Members Knydel Bennett Cherokee Investment
Partners Cynthia Petrozzello Brownfields
Redevelopment,Connecticut Brownfield John Paul
Connecticut Brownfields Redevelopment
Authority Bruce-Sean Reshen CEO, MGP Partners
LLC
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Environmentally Challenged Properties
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Environmentally Challenged Properties

• Moderators Key Learning Points
• Owners no longer needs to clean up all
  contamination on sites they can instead contain
  the contamination using risk-based method to save
  time and money
• Property owners have new obligations and new
  protections when selling contaminated sites
• Under the Brownfields Act of 2001, sellers
  qualify for liability protection provided they
  maintain the integrity of a sites land use and
  engineering controls post-closure
• Sellers can greatly enhance the safety of selling
  contaminated sites by utilizing a neutral third
  party not-for-profit trust to provide for the
  long-term stewardship of such sites

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Environmentally Challenged Properties

• A New Paradigm
• Bruce-Sean Reshen
• Chief Executive Officer
• The MGP Group

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Dig and Haul A Paradigm That Didnt Work

• Rationale Post Love Canal Clean Every
  Scintilla of Dirt
• Result
• Prohibitive Expense
• Technological Impracticability
• Legal Gridlock
• Paralysis of the Cleanup Process
• Impact on Real Estate
• Exacerbation of Community Blight
• Warehousing of Contaminated Properties

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The Dawn of Reality - Risk Based Closure

• The Brownfields Agenda - The Art of Compromise
• Remediation should be based on reuse
• Residential vs. Industrial/Commercial Cleanup
• Development of Multiple Cleanup Standards
• Linkage of Remediation to Redevelopment

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Forever Is A Long Time Post Closure

• Risk Based Closures are not the end of the
  process
• Contamination still remains
• Use of Engineering Controls (ECs) and Land Use
  Controls (LUCs) to Ensure Safety of Site and
  Protection of Human Health
• Focus on Design, Implementation and Maintenance
  of Controls on a Long-Term Basis
• Need to Provide for Reporting to Stakeholders and
  Information Management

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A New Structure for A New Reality

• Risk Based Closure and the Sale of Real Estate
• Need for A New Market Structure to
• Ensure Protection of Human Health
• Provide Market Support for Transactions
• New Market Structure Must
• Engage the Support of All Stakeholders
• Be Economically Feasible
• Provide Long-Term Financial Assurance

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The Role of The Guardian Trust

• The Guardian Trust services
• Inspections of sites and land use records
• Monitoring of sites, land use changes and
  building permits
• Reporting to prescribed stakeholders
• Providing financial assurance for long-term
  stewardship
• Utilizing a comprehensive information management
  system to track the status of LUCs and ECs
• Providing programs for local governments and
  other stakeholders

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Relationship Model
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Key Advantages of The Guardian Trust

• Public/Private partnership allows for ongoing
  public oversight and private management expertise
• Pooling enables most favorable pricing and risk
  sharing for program participants
• Disciplined stewardship and enhanced
  institutional memory
• Physical inspections of property and land use
  records
• Automatic notices to land-use decision makers
• Can interface and support state registries with
  updates
• Funds placed outside reach of political process
• Provides first alert of remedy breach and cure
  confirmation

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Guardianship Services For All Stakeholders

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Implications for Real Estate Transactions

• Risk Based Closures Seen as an Impediment to Real
  Estate Transactions
• Sellers and Buyers Unable to Agree on Long-Term
  Post Closure Costs
• Sellers Did Not Want to Risk Losing Liability
  Protection Benefits of New Brownfields
  Legislation
• Sellers Wanted to Be Able to End Active
  Management of Sites and Focus on Core Business
  Objectives

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Paradise Lost, Paradise Regained

• The Guardian Trust Program Fulfills the Needs of
  Sellers, Buyers, Regulatory Agencies and the
  Public, and Helps Restore Liquidity and Safety to
  the Real Estate Markets for Contaminated
  Properties