Myth #6: Brownfield properties cannot be redeveloped due to the cost of environmental issues. Reality: There are several factors that can mitigate environmental costs. Post-development value of a brownfield can offset costs related to environmental issues. Federal and state assessment and cleanup grants, and/or low interest loans, obtained most often via public/private partnerships, are commonly and effectively employed to reduce environmental costs. States like Ohio offer incentives wherein properties that obtain a Voluntary Action Program covenant not to sue are eligible for a 10-year tax abatement calculated on the increased value of the land and improvements. The end-user can manage cleanup costs by constructing and maintaining engineering controls in lieu of more expensive contaminant removal or destruction technologies. Remedial costs can also be capped and third-party liability can be addressed through purchase of insurance policies.

One example is the 4000 Red Bank Road redevelopment in Cincinnati, which was successful despite high environmental costs. A former Ford transmission manufacturing plant, the 35-acre property was known to contain significant contamination. However, the owner felt comfortable about proceeding with cleanup in preparation of a property sale due to a number of factors, including the high land value, a Clean Ohio Fund grant to cover the majority of expected assessment and cleanup cost, and a remedial cost cap insurance policy. ...

You need to register to view the rest of the article. Click here to subscribe.