Brownfields Update for the Pacific Northwest

For years, concerns of contamination at the former American Linen building in downtown Boise stymied any development efforts by the Capital City Development Corporation (CCDC), the downtown’s urban renewal agency. CCDC wanted to transform the former industrial/commercial district into a mixed-use redevelopment that would revitalize that portion of downtown.

With the building sitting empty, CCDC reached out to the Idaho Department of Environmental Quality (DEQ). Turning the property around, CCDC argued, would serve as a vehicle for renewal for the district. In 2004, DEQ agreed to fund a property assessment to evaluate the groundwater quality beneath the site.

That was the beginning of a relationship and CCDC’s foothold in the brownfield arena. As cleanup got underway, CCDC was able to attract a developer. David Hale, owner of Hale Development, has big plans for the site, which he has named the Linen District. With the old American Linen building as the district’s anchor, a coffee shop, offices, restaurants and residential space will be added.

His interest in that property was jump-started by the CCDC, Hale says. CCDC’s work to get the Phase I and Phase II assessment work was done, and the property’s no-further-action determination, meant Hale felt he had green light to go ahead with the project without having to deal with the assessment phase.

Working with CCDC has been a great experience, Hale says. The organization introduced him to the potential of brownfields as redevelopment projects. Today, he sees the potential in these sites and isn’t intimidated by them.

In Idaho, this urban renewal agency has been a pioneer when it comes to brownfields redevelopment. In 2004, the agency received a $200,000 brownfield petroleum assessment grant from the Environmental Protection Agency (EPA). It also has applied for a hazardous waste grant. The agency is currently working on assessments for some 10 sites, says Scot Oliver, project manager for CCDC.

An urban renewal agency can play a key role in brownfields redevelopment, says Keith Donahue, brownfields program manager for Idaho’s DEQ. Agencies such as CCDC have a solid understanding of their local communities and a strong interest in their development and growth. They’re able to identify and market these sites in their jurisdictions using their own tools, such as tax increment financing, as well as DEQ or EPA tools. They are able to build relationships with state and federal agencies. And, they are able to request site assessments to help facilitate private transactions at sites where the buyer has plans that fit well into the renewal agency’s master plans. (Private, for-profit parties can’t request assessments.)

Donahue expects to see more urban renewal agencies throughout Idaho following CCDC’s lead. Some already have. “To me, they’re a good fit,” he says.

The Portland Development Commission (PDC) is perhaps the most experienced urban renewal agency in EPA Region 10 when it comes to redeveloping brownfields. Working in brownfields is a natural fit for renewal agencies, agrees Dave Obern, construction services manager for PDC. Over the past 25 years, the PDC has become very sophisticated in these matters, he says.

The PDC consists of 11 renewal areas in Portland. It has a staff of 200 employees and a budget of about $200 million. The PDC is working on up to 160 sites at a time. The majority of that work is funded through tax increment financing, although it does receive some assistance from EPA. The PDC in 2005 won three separate EPA assessment and cleanup grants worth $800,000.

Typically, the PDC acquires a piece of property and then completes the Phase I and Phase II assessments. Remediation may take place. Then the property is offered for sale. “At the end of the day, we are trying to provide a site that’s ready for redevelopment,” Obern says.

By working with a renewal agency, developers know there is a high standard of due diligence, Obern says. They know the renewal agency–through a strong relationship with resources such as a state’s DEQ–has done its best to quantify the risk, if not totally minimize it, he says. (Lending institutions won’t work with a developer unless a site’s issues are quantified.)

In Boise, the CCDC also has been working to educate landowners, developers and the public about brownfields, as well as develop a site inventory. A public forum CCDC held last summer was an opportunity to inform the community of the opportunities available. The EPA grant has been critical in overcoming the perception that a brownfield is a major liability, Oliver says.

As a result, brownfield is no longer such a dirty word in his area, he adds. People have been “coming out of the woodwork” to purchase brownfield sites. Real estate is hot right now, and brownfields are typically in excellent locations. Fewer developers are shying away from this market.

The CCDC’s work in brownfields has led to another significant benefit: a whole new set of partnerships, says Oliver. “This opened up DEQ and EPA partnerships that we hadn’t been involved in before.”