View
1
Download
0
Category
Preview:
Citation preview
Brownfields:Recycling Real Estate
The presence of pollutants or
contaminants (Real or Perceived)
may complicate your ability to use,
reuse, or transact your property
Brownfields
A Market Issue
• Automotive Services
• Dry Cleaners
• Metal Plating and Fabrication
• Wood Products/Processing
• Industrial/Commercial Districts (aggregation of small sites)
• Dumps & Landfills
• Ag related facilities
What does a Brownfield look like?
Why Do We Care?
• Private return on investment
• Public return on investment
• Community benefits from public
and private investment
Community Benefits of Infill
Preserves land resources
Reduces public infrastructure & service costs
Reduce vehicle miles travelled
Update obsolete buildings
Improve Economic stability
Increase public safety
Incorporate energy efficient building
Install water-wise landscaping; reduce runoff
and improve drainage management
Reduce heat island effects
Clean polluted sites
Business growth and job creation
Increased tax base
Economic stability
Increase overall property values
Encourage infill vs. sprawl
(Reduce infrastructure costs/Service areas)
Public Investment Opportunities
Renovate
Redesign
Redevelop
Clear Environmental Stigma
Private Investment Opportunities
Thomas Plating
Total City Tax Revenues $2,424
Total County Tax Revenues $4,834
School District Tax Revenue $14,677
New Employment 5
Annual Payroll $100,000
Developer Cash-on-Cash 27%
Blight removed
Business-ready building created
New business and jobs for the
community
Business development goodwill
Bottom Line Benefits
Redevelopment that bolsters downtown
Large Sites
Proximity to downtown brings daytime population
Possible historic interest
Industrial Legacy
• Legacy – processing water; waste disposal
• Could be open space amenity for business; Community
• Could be central feature for business park development
• Recreation related industry opportunities
Riverfront Industrial Legacy
•Downtown revitalization opportunities
•Gaps on Main Street
•Underutilized Sites
•Underutilized Corners
•Assemblage Opportunities
•High Historic Potential
Downtown Legacy
Gateway Building
Dairy
King
Auto Service/Gas
Petro Plume
Site Layout
Before
Dairy
King
Auto Service/Gas
Petro Plume Retail/Office
Redevelopment
Site Layout
Petro Plume Retail/Office
Remediation Hut
Redevelopment &
Remediation System
Site Layout
Economic Benefits
Blight removal
Now small business incubator,
offices
New businesses 15
New employment 32
New payroll $1.1. million
Public Investment
Land acquisition
Street improvements
Fee waivers
Financial modeling
Public Rate of Return
Investment $550,000
Direct Revenue 2.2%
Direct/Indirect Revenue 10.0%
Fiscal Impacts
City sales tax revenue: $12,200
County sales tax revenue: $2,400
Property Tax Increment $35,000
HAZARDOUS WASTE?
• Most often a by-product of a manufacturing,
commercial, or industrial processes – material
left after products are made or equipment is
serviced
• Household garbage can include hazardous
wastes such as old batteries, bug spray cans,
and paint thinner.
What is Hazardous Waste?
> A CORROSIVE MATERIAL can wear away
(corrode) or destroy a substance.
> An IGNITABLE MATERIAL can burst into flames
easily and poses a fire hazard.
> A REACTIVE MATERIAL can explode or create
poisonous gas when combined with other
chemicals.
> TOXIC MATERIALS OR SUBSTANCES can
poison people and other life.
Types of Hazardous Waste
Contamination Pathways
How Do Toxins Affect Us?
Exposure: Coming into contact with a substance
DermalInhalation
Ingestion
Hazardous
Substance
How to Quantify the Problem?
• Phase I Assessment− Non-intrusive/No Sampling
− Is there a concern?
− What and where?
• Phase II Assessment− Sampling/Lab testing
− Confirms if there is a concern
− What and how much
− Risk Analysis (pathways/populations)
How to Fix the Problem?
• Cleanup plan− Engineering solution
− Cost estimates
− Voluntary Cleanup
• Cleanup− Implement cleanup plan
− Regulatory closure
Financial Gaps
& Gap Funding
Standard Real Estate Investment
Market Studies & Due Diligence
Equity
Debt & Financing Costs
Capital Improvements
Time & Coordination
Brownfields Development Hurdles
Environmental Assessment & Engineering Studies
Cleanup Costs
Added Capital Costs
Liability Management
Extended timeline
Brownfields Lender Hurdles
Qualifying the Collateral
Qualifying the Borrower
Liability in Foreclosure
Value as Real Estate Owned
Limited Ability to Lend on Cleanup
• Brownfields Site Assessments
• Brownfields Cleanup Grants
• Brownfields Tax Incentives
• Cleanup Revolving Loan Funds
• Underground Storage Tank Fund & Petroleum Redevelopment Funds
• Voluntary Cleanup Program
• Technical Assistance Available – Sonoran Brownfields Partnership
GRANTS, LOANS & TOOLS
Aging Housing Stock
Early- and mid-20th
century homes
‒ Inadequate utilities & code upgrades
‒ Inadequate room count
‒ Inadequate plumbing
‒ Difficult senior access
Housing construction:
‒ Scrape
‒ Renovate
Gold Hill Mesa
Former Gold Mill Site
Housing Construction:
‒ Single-story, ranch and
multi-family town homes
‒ 850 units at build out
‒ 1,500sf to 2,000sf, 3-bed
‒ Formerly barren land
Landfill/Dump
Former burn & fill
Housing construction:
‒ Neighborhood Park
‒ Building site ready for 54 units
‒ Market rate attainable housing planned
Clandestine Drug Lab
Meth lab
Scrape to foundation
Complete rebuild
Blight removal & upgrade
Durango Discovery Museum
•Former power plant
• Now children’s museum & tourist
destination
General Iron Works
Manzanola Train Depot
Oak Creek – Water Treatment Site
Now Ice Hockey Rink
Creede, CO
Mock-up of
Mineral
County
Fairgrounds
Lorenzo Park
Jesse SilversteinSenior Advisor, Colorado Brownfields Partnership
&
Senior Economist, Development Research Partners
303-991-0074
jesse@DevelopmentResearch.net
DevelopmentResearch.net
Recommended