CASE STUDIES OF 13 SUCCESSFUL BROWNFIELD PROJECTS

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CASE STUDIES OF 13 SUCCESSFUL BROWNFIELD PROJECTS
ROBERT A . SIMONS
ENV/PDD 551/442
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WHY BROWNFIELDS HAVE NOT BEEN REDEVELOPED

• STIGMA
• CLEAN UP COSTS ARE SEVERAL PER SF OF LAND FOR
  MANAGEABLE PROBLEMS
• EXCESSIVE UNCERTAINTY AND RISK
• FOR DEVELOPERS
• FOR LENDERS
• HEAVY STICK IN GOVERNMENT REGULATION

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WHY BROWNFIELDS HAVE NOT BEEN REDEVELOPED (Cont.)

• GRIDLOCK IN FINANCING
• RISK CANT BE QUANTIFIED
• TOO MANY FIELDS/DISCIPLINES, AND FEW PEOPLE CAN
  BRIDGE THE LANGUAGE AND CULTURE GAPS
• LIMITED DEMAND FOR BROWNFIELDS, AND POOR LAND
  PRICES

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NEW US BROWNFIELD INITIATIVES

• EASIER TO KEEP COSTS DOWN
• COORDINATION BETWEEN GOVERNMENT AGENCIES
• CLOSURE LETTERS AT MANY LEVELS (NFA, CNTS, MOU)
• LIABILITY EXEMPTION FOR LENDERS
• INVESTIGATION AND REMEDIATION FUNDING FOR WORTHY
  PROJECTS

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THE 13 BROWNFIELD REDEVELOPEMNT CASE STUDIES

• 5 US STATES, NZ AND UK
• ALL SUCCESSFUL
• VARIETY OF PRODUCT TYPE, SIZE AND REGULATORY
  VENUES
• CASE STUDY ANALYSIS PATTERN MATCHING
• INDUCTIVE LEARNING
• PRESENT BACKGROUND INFORMATION, REMEDIATION,
  FINANCE, STRATEGY

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CONCLUSIONS AND PATTERNS

• MORE SUBSIDY WHERE LAND PRICES ARE LOW
• 15-20 TYPICAL PUBLIC SUBSIDY
• MORE SUBSIDY WHERE LAND USE IS LESS INTENSE
• REMEDIATION IS ABOUT 10 OF COSTS, 4-5 PER LAND
  SQUARE FOOT
• FINANCING AT LOWER LOAN TO VALUE RATIOS
• NEED INDEMNIFICATION OR LOAN GUARANTEE