[CPEO-BIF] Gowanus Canal, Brooklyn, New York listing

["Schnapf, Lawrence" <Lawrence.Schnapf@srz.com>]

I suppose that if the contamination was not previously known, listing
could stigmatize a property. And it is true that all things being equal
(which is a big "if"), a developer or purchaser would prefer to pay more
for a clean site than a "dirty" site. 

However, in many cases it is well known to local business community that
a site has environmental problems so I don't think listing per se would
necessarily stigmatize a site. 
Indeed, I've seen many cases where the listing was actually a benefit
because people now know it will be getting some attention and cleanup.

The concern about potential stigmatization and cleanup costs is a reason
why parties to a deal often are able to manipulate the archaic CERCLA
reporting obligations, and negotiate terms that prevent a purchaser from
reporting or investigating historical contamination. So while the
contamination goes unreported, it might also migrate and then become an
NPL site because the contamination was not addressed earlier. 

In my view, property with unreported contamination is being over-valued.
If a site gets disclosed or listed,and its value gets depressed maybe
that is just the site finding its appropriate valuation. 

As Justice Brandeis once said "Sunshine is the best disinfectant".

Larry   

-----Original Message-----
From: brownfields-bounces@lists.cpeo.org
[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Trilling, Barry
Sent: Friday, April 24, 2009 10:57 AM
To: lsiegel@cpeo.org; Brownfields Internet Forum
Subject: Re: [CPEO-BIF] Gowanus Canal, Brooklyn, New York listing

Lenny:  I disagree that listing on the NPL does not further stigmatize a
contaminated site. Furher, adding a site on the NPL does not assure that
it will be cleaned up any more thoroughly, and almost certainly not as
promptly as if not on the NPL.  Isn't the solution that the cleanup risk
for intended use should be adequately protective?  If so, then listing
should not be a factor.  Further stigmatization results in needless
delay and cost with no additional benefit.

Barry J. Trilling
 W I G G I N  A N D  D A N A

-----Original Message-----
From: brownfields-bounces@lists.cpeo.org
[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Lenny Siegel
Sent: Friday, April 24, 2009 9:49 AM
To: Brownfields Internet Forum
Subject: Re: [CPEO-BIF] Gowanus Canal, Brooklyn, New York listing

I believe the Times article about the proposed Superfund listing of the
Gowanus Canal raises a key issue about the future of environmental
cleanup, and I would urge members of this list to respond to my
comments.

In my "Brownfields 101" presentations, I describe the two basic models
of cleanup: Superfund, in which remediation is funded by responsible
parties or the government, and Brownfields, in which cleanup is funded
from the income generated by the future use. Both have their place.

I - and most of the community activists with which I work - have been
discouraged by the trend, over the last decade, to address
Superfund-caliber sites as Brownfields. When sites that pose the
greatest threat to public health and the environment are treated as
Brownfields, there is a tendency to leave contamination in place. While
usually this provides short-term protection, it may lead to unacceptable
risks in the long run.

I assume, based upon the findings of both the New York Department of
Conservation and U.S. EPA Region 2, that the Gowanus Canal is indeed a
Superfund-caliber site. The city of New York and the developers it is
working with claim that placing the site on the Superfund National
Priorities List (NPL) will make it difficult to develop property because
of the stigma associated with Superfund.

I believe the opposite. The stigma exists because of the contamination.
Unless knowledge of that site is hidden improperly, the act of listing
and the associated additional environmental responses may actually
reduce the stigma of building on and occupying the property. Sweeping
environmental problems under the rug, foundation, or building is likely
to create future exposure risks and/or litigation from inadequately
protected site occupants.

No doubt adding a site to the NPL creates a hiccough in the process, as
new rules and regulators are brought to bear on the site. But if indeed
a site, because of the level of contamination, likelihood of pathways,
and presence of receptors qualifies for Superfund listing, then the
public deserves the protection that Superfund oversight provides.

Lenny

--


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org



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