Brownfields Update for the Pacific Northwest

Whether it’s their sometimes literal murkiness or simply the presence of their oh-so-descriptive name, undertaking business dealings related to brownfields can often feel like wading into a quagmire. Yet with the launch of the 1995 EPA Brownfields Program which promotes brownfields development and decreases the liability risks associated with them, brownfields are increasingly becoming attractive sites to buy. The key to doing so successfully lies in understanding the issues involved in their exchange.

Selling a Brownfield
Those who own a brownfield who are not planning to develop the property themselves should seriously consider selling it. Under the right circumstances, the sale of a brownfield can be profitable for the property owner, and positive for the surrounding community. If you’re thinking about selling a brownfield, here are three important issues to take into account:

• Understand the nature and extent of your contamination.Some contaminants are easier to clean up than others and make your property more or less viable as real estate. Knowing the nature and extent of contamination will help you structure your deal.
• Consider your location. Is the surrounding area close to a labor force, an urban hub, a good view or a mass transit system? As with most real estate, these factors play into the economic viability—and appeal—of your property.
• Determine whether you should clean it up or leave that to the buyer. Obviously the cost and effort to clean up your land can be significant, but it can also increase the resale value of your property. However, keep in mind that with brownfields the ultimate use for the property often determines the type of cleanup required. So doing a formal assessment of the land and cleaning it up without knowing who the buyer is, or what they’ll do with it, might not make sense. You need to balance the cost of cleanup with the increase value and improved marketability. The states offer voluntary cleanup programs to help you through this process.

Buying a Brownfield
So you’re shopping around for some land to develop and the prices are high. Have you considered a brownfield? A brownfield can be more affordable than raw land, and less expensive to develop. These properties are usually part of an existing infrastructure with access to desirable locations such as cities centers. A brownfield might be eligible for financial incentives such as tax programs or financial assistance too. If you’re thinking about buying a brownfield, here are five important issues to take into account:

• Know how you intend to use the land. The ultimate use for the land determines what type of brownfield will work and what type of cleanup is required.
• Research your options. Information about brownfields for sale is becoming increasingly available through specialized real estate companies and regional or local databases. Check with your state or local brownfields coordinator for resources. (See the list below.)
• Determine your ROI. A thorough site investigation will assess the costs and risks involved in purchasing a brownfield. Check with your state to see if they offer release of liability to prospective purchasers. Weigh these along with the often huge potential benefits from the redevelopment to determine if you have a workable business plan…and if the project is bankable.
• Seek funding. Grants, tax credits, and other incentives are available on a federal level through the Small Business Liability Relief and Brownfields Revitalization Act as well as on state and local levels. Check with your state or the EPA for more information.
• Cleanup, redevelop and showcase your project. Bear in mind that cleanup and redevelopment might require time and patience. But when you’re done, don’t forget to showcase your success within the community!

The purchase and sale of brownfields can definitely be a win-win situation for those willing to undertake such a project, not to mention being a win for the environment. The key is not to be overwhelmed by the prospect. Follow the steps above, do your research, and seek help from the resources in your region that have devoted themselves to making these exchanges possible.

Your EPA Region 10 Brownfields Resources:
Alaska: www.dec.state.ak.us/spar/csp/brownfields.htm
Idaho: www.deq.idaho.gov/Applications/Brownfields
Oregon: www.deq.state.or.us/wmc/cleanup/brn0.htm
Washington: www.cted.wa.gov/brownfields
EPA: http://www.epa.gov/brownfields/