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Settling Into Maturity, Looking Good and Feeling Good
Publisher’s Letter
By Robert V. Colangelo
we enter our ninth year of publication it is interesting to see how fast the brownfield industry has matured. Our first few issues focused on a simple and fundamental issue, “What is a brownfield?” Later, our focus shifted to learning how to acquire brownfields as our readers became more savvy. Today, a Google search on brownfields returns 832,000 results.
As the market evolved so has Brownfield News. We have now redesigned the magazine with a brand-new look and improved editorial including greater focus on regional market reports and more insider perspective from industry leaders. These changes have been undertaken with a single intent: to be the best source for brownfield news and information for our readers.
Today, our readers are experienced at profitably developing brownfields and now have the enviable problem of thinking about how to minimize their tax liability — not bad progress in a decade! In this issue we report on a sophisticated tax deferral strategy — 1031 — that allow sellers to reinvest the proceeds from the sale of a property so that they can defer capital gains tax.As manufacturing continues to move offshore in search of cheaper labor, the supply of closed factories and available industrial sites has grown. Many of the sites that have recently come to market are located in smaller cities, making evaluating the highest and best use and redevelopment potential of the properties complicated. These projects often take longer and require financial incentives to redevelop.
So what can you do to create cash flow on a vacant or underutilized property as time ticks away while you prepare to transfer or redevelop it? Our cover story, beginning on page 8, presents a number of ways you can generate incremental rental income that will put a few coins in your pocket as you go through the sometimes-lengthy divestiture process.
As the brownfield market continues to mature, competition among states and communities for grants has become increasingly competitive. EPA grants remain a primary funding source —- on page 16 you can learn how to increase your chances of winning one of the 200 grants that will be awarded in 2005.
We have also launched a new column, “Ask The Expert,” where Todd Davis, an experienced brownfield developer, takes a lighter tone answering readers’ questions. His inaugural column answers whether the “free money” grants provide is worth the time and effort it requires to obtain and administer them.
Many of our readers have asked about New York Attorney General Eliot Spitzer’s investigation of questionable practices within the insurance industry. On page 23 we present some facts on the investigation and its impact.As we enter 2005, we are optimistic that the economy is picking up. The growing brownfield market offers great opportunities to make a profit (for those with specialized knowledge) and to make a difference, by putting blighted properties to productive use, improving the quality of life in our communities. We at Brownfield News will continue to report the news and information that will help you do good as you prosper.
Enjoy the read!
Robert V. Colangelo, Publisher
Robertc@brownfieldnews.com