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We asked subscribers to Brownfield News to let us know what programs and policies are working. The responses we received indicate that the Eastern region is leading the way in both programs available and interest in them.
Connecticut Removes Stumbling
Blocks
Developers and municipalities have found that there are two big stumbling blocks
to brownfield redevelopment. First, most developers don’t want the financial,
environmental, legal and regulatory risks associated with it. And second, no
one wants to pay for the detailed site assessments needed before revitalization
can begin.
Connecticut’s Brownfields Redevelopment Authority, a subsidiary of the Connecticut Development Authority, can remove both blocks. Through CBRA, developers get upfront grants for brownfields renewal, at no cost to themselves, to the communities where the properties are located or to taxpayers. Bonds are issued, and the funds are repaid from the increase in tax revenues generated by the improved property.
CBRA also provides Phase I ($3,000) and Phase II ($10,000) site assessment grants for qualified redevelopment projects. Neither the developer nor the community pays to investigate properties with known or suspected contamination.
By John S. Paul and Cynthia Petruzzello, Connecticut Brownfields Redevelopment.
Maryland Statuatory Reform
A 2004 Maryland statutory reform gave certain Maryland localities the authority
to gain access to sites that are being acquired by eminent domain and to perform
environmental site testing prior to acquisition of the property. This process
allows cleanup costs to be fully accounted for in determining fair market value.
Previously, if localities acquired contaminated properties, there was no clear authority to get a handle on cleanup costs. This forced localities to face two equally poor outcomes: paying an inflated “fair market value” (because cleanup costs could not be accounted for), or dropping the acquisition and letting the contaminated property continue to bring down the neighborhood.
The new authority, which went into effect in October 2004, is already being used to assist in the acquisition of three properties in Baltimore City.
By Ev Paull, Baltimore Development Corp .
New Jersey Funding Program
More than $85 million in funding is available in 2005 through New Jersey’s
Hazardous Discharge Site Remediation (HDSR) loan and grant program. The fund
is administered by the New Jersey Economic Development Authority (EDA) in conjunction
with the New Jersey DEP.
It is one of several programs managed by the EDA to help New Jersey municipalities, developers, businesses and community groups accelerate the restoration of brownfield sites and return them to productive use.
Since the program was established well over a decade ago, more than 1,400 projects have received more than $150 million for investigating and remediating contaminated sites.
Under the HDSR fund, municipalities may apply for grants and loans up to $2 million per year for investigation and remedial activities for properties they own or for which they hold a tax sale certificate and have a comprehensive plan or realistic opportunity to develop within a three-year period.
Private parties required to perform remedial activities and individuals who want to conduct such actions voluntarily may qualify for loans up to $1 million per year if they are unable to obtain private funding.
By Glenn Phillips, New Jersey EDA.