It’s Like a Box of Chocolates

By Todd S. Davis, Esq.

Dear Todd,

I need to pick a team for a large brownfield development project, but I am totally baffled by the marketing in the industry. I have heard pitches from several environmental consulting firms saying they can do my development and from developers saying they can bring in the right consultants. Any advice on how to choose the right company for my project?

I.M. Confused
Los Angeles, Calif.

Dear Mr. Confused,

Easy. Because I am usually the tallest person in the room, I universally recommend that height be the main criterion in selecting your brownfield professional. “Height?” you say.  “Isn’t that a bit arbitrary?” Maybe. But at least it offers a clear measure in what is becoming an increasingly murky marketplace. However, at the risk of being labeled self-serving, let me offer a brief overview of the criteria (other than height) that may be helpful in making your selection.

What Kind of Shrimp Do You Want?

When I was trying to think of how to describe how complicated the variety of choices in the brownfield redevelopment marketplace has become for a person in your position, one of my all-time favorite movies was playing in the background: “Forrest Gump.” Then it hit me. SHRIMP!

Do you remember when Bubba tells Forrest (in his wonderful southern drawl) that he knows everything about the shrimpin’ business? “You know Forrest, there’s sautéed shrimp, stir-fried shrimp, deep-fried shrimp, barbecued shrimp, shrimp gumbo, shrimp burger, pepper shrimp, lemon shrimp, hunan shrimp, curry shrimp...” You get the point!

Essentially, marketing in the brownfield development marketplace has created a seemingly similar variety of choices. Therefore, if you are hungry for a bit of direction, let me offer a couple of clarifying points.

What Is Your Goal?

First, determine the endpoint of your engagement. Easier said than done — there are many shades of gray in this evaluation. So, let’s describe the bookends. At one end, there are well-investigated brownfield sites, with remediation and development costs already quantified, and budgets sufficient to perform the work. At this extreme, one may want the property simply remediated for a sum certain. If there is already an end-user in mind, using a consultant or contractor that can offer remediation for a fixed price, backed by insurance or another acceptable financial guarantee is probably the best bet.

At the other end are the large, complicated brownfield sites with little information available and no specific end-users in mind. Further complicating matters is the desire to share financial risk along the way with the brownfield acquirers. In these cases, an experienced brownfield developer is undoubtedly the best bet.

Are They or Aren’t They?

While there are many ways to put together the right brownfield team, I assure you that traditional developers are NOT brownfield developers. They typically do not have the same level of risk tolerance, patience or creativity in dealing with brownfield issues that brownfield developers employ routinely.

Another caution — environmental consulting firms are also NOT brownfield developers, even if they spice up their marketing pitches to seem like they are. For that matter, you may not need a brownfield developer if all you really require is an innovative approach to remediating a brownfield site. Many sophisticated consulting firms can deliver these environmental engineering solutions.

Hopefully, these basic suggestions will at least better frame the choice before you. In any event, since the diets of most people involved in the stressful choices associated with brownfield development include a daily dose of antacid, whatever dish of brownfield professionals you choose for your engagement shouldn’t give you too much heartburn. BFN

Todd S. Davis, Esq. is the CEO of Hemisphere Development LLC in Cleveland. He is also the author of Brownfields: A Comprehensive Guide to Redeveloping Contaminated Property.