Brownfields Redevelopment View Brownfield Properties as Opportunities not Challenges

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Brownfields (Re)developmentView Brownfield
Properties as Opportunities not Challenges
Think inward and up !!!

• NEW North Sustainability Committee Feb 6, 2009
• Annette Weissbach, WDNR Remediation
  Redevelopment Program

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What are Brownfields?

• Brownfields are abandoned, idle or underused
  commercial or industrial properties, where the
  expansion or redevelopment is hindered by real or
  perceived contamination.
• In Wisconsin, there are an estimated 10,000
  brownfields, of which 1,500 are believed to be
  tax delinquent.

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DNR Site Assessment Grants

• 722 site assessments and investigations
• Removal of 479 storage tanks
• Demolished 529 structures
• 1,400 acres back into productive use
• Nine rounds since 2000
• 13.3 million awarded
• 398 grants, 187 communities
• Local governments leveraged more than 20M in
  matching funds

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DNR Brownfields Green Space Public Facilities
Grant

• For Local Governments
• Pays for Environmental Remediation
• Projects must have long-term public benefit
  including
• green space
• recreation area
• use by a local government

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WI Commerce Brownfields Grant Program

• 7 Million annually, 14 for the biennium
• For businesses, local governments, or non profits
  
• To promote environmental cleanup and economic
  development
• Competitive application process
• For remediation and redevelopment costs
• Can be used for LUST sites with PECFA for
  cleanup

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WI Commerce Brownfields Grant Program

• 1998-2006, 150 projects awarded grants
• 55 million awarded (2 to 1 oversubscribed)
• Many funded first through DNR SAG grants
• After cleanups completed
• cleanup of environment
• increase in tax value
• thousands of jobs created

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EPA Brownfields grants (Nationwide)

• Since 1995, EPA has awarded 1,911 brownfields
  grants totally more than 595M. This has helped
• Assess more than 11,779 properties.
• Leverage more than 11 billion in brownfields
  cleanup and redevelopment funding from the
  private and public sectors.
• Generate more than 48,238 jobs.

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Tax Incentives

• TIFs, ER TIFS
• Counties (and city of Milwaukee) may cancel back
  taxes or assign property directly to new owner if
  purchaser agrees to cleanup
• Community Development Zone Tax Credits,
• Enterprise Development Zones, New Market Tax
  Credits, Ag Development Zone Tax Credits
• Federal Brownfields Tax Deductions

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Liability Incentives

• Local Governments
• Voluntary Cleanups site (VPLE)
• Off-site Contamination
• Lenders
• Parties Leasing Property
• Liability Clarification Letters
• (exempt by statute or fee related)

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Local Governments

• Not responsible to investigate or cleanup
  properties acquired through specific means listed
  in law (e.g. foreclosure, escheat, etc.)
• Provides assurance so local government can take
  title to property without fear
• If local government intends to use or redevelop
  property, they are required to work with DNR to
  address public health and safety threats

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Green Development

• From 1982 to 1997, Wisconsin converted a total of
  670 square miles of undeveloped, mostly high
  quality agricultural land into paved
  developments.
• This amount is equivalent to an entire county the
  size of Adams, Buffalo, or Eau Claire being
  developed every fifteen years.

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Brownfields Redevelopment

• Benefits a community by
• Increasing local tax base
• Facilitating new job growth
• Utilizing existing infrastructure
• Taking development pressure off undeveloped land
• Preventing sprawl
• Decreasing suburban air pollution
• Reducing habitat destruction

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Redevelopment of brownfields to preserve
Greenfields

• In typical US cities
• 4.5 acres of greenfield land required to
  accommodate the same development as 1 acre of
  brownfield (Deason et al. 2001)
• 2005 Wisconsin Waterfront Revitalization
  Conference
• Christopher De Sousa, M.Sc.Pl, Ph.D
• Assistant Professor, Dept. of Geography Urban
  Studies
• University of Wisconsin-Milwaukee

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Environmental Health Benefits of Brownfields
Redevelopment

• Health and safety
• Site assessment and cleanup minimizes a
  propertys risk to human health and the natural
  environment
• Transportation
• The external costs imposed by those living and
  working on brownfield sites are significantly
  lower than by those living on greenfields
• 2002 Toronto Study by DeSousa
• 26,960/acre/yr. less for residents
• 7,760/acre/yr. less for industrial employees

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Economic Benefits of Brownfields Redevelopment
(DeSousa, 2005)

• US Conference of Mayors 2003
• 74 cities report 83,041 new jobs
• 45 cities report 90 million in local tax revenue
  thus far
• Milwaukee County
• 127 projects (1995 2000)
• 5,580,019 in redevelopment per project (76
  projects)
• 80 jobs produced/retained per project (56
  projects)
• City of Milwaukee
• 1 of City investment leveraged 57 in Private
  investment (64 projects)
• Five residential projects along the Milwaukee
  River worth over 204,000,000

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Draft proposed focus of a NEW North Brownfields
Committee

• Develop action plan increase brownfields
  redevelopment awareness to NEW North members
• Make a greater connection between environment
  protection, quality of life, and economic
  redevelopment. (e.g. blighted, vacant properties
  make people uncomfortable and afraid)
• Under the NEW North Umbrella provide outreach
  and education to bankers and realtors, etc.-
  Dispel the myths of redeveloping brownfields

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Draft proposed focus of a NEW North Brownfields
Committee

• Add more Brownfields redevelopment info on NEW
  North website
• Add another key initiative to NEW North that
  would encourage regional land use e.g.,
• in-fill development,
• brownfields redevelopment, and
• preserving open space and farmland on edges and
  exurbs.
• Find ways to make the financial case that
  green-field development is much more costly in
  the long run.

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Wisconsins Brownfield Program

• Wisconsin is to be commended for the
  comprehensive approach it has developed to
  address the many challenges of brownfield reuse,
  in both large cities and small towns. The state
  is a national leader in terms of its focused and
  effective support of local brownfield efforts,
  offering a rich array of incentives and technical
  assistance to support the full cycle of
  brownfield revitalization, from assessment and
  cleanup through redevelopment.
• Charles Bartsch, Vice President, ICF
• former Director of Brownfield Studies,
  Northeast-Midwest Institute, Washington, D.C.
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