Re: [CPEO-BIF] Dunedin and Tarpon Springs, Florida

First a clarification is in order. The columnist refers to the EPA Brownfields Program as "offering tax incentives, grant funds, low-interest loans and employee training for developers willing to build in areas designated a brownfield." This particular laundry list of incentives for sites located in a designated Brownfield Area is correct; however, the government entity offering them is the State of Florida, not EPA.

That said, the larger point the columnist makes is spot on and underscores what has historically been a steep learning curve - and persistent source of resistance - in Florida for both private sector and public sector actors thinking about putting a toe in the Brownfields arena. More specifically, although environmental professionals here have long been promoting the Florida Brownfields Program as an effective way to, in the words of the columnist, "spark a new wave of economic redevelopment" and "eliminat[e] urban blight in commercial and industrial areas," inexperienced local governments and developers cite the fear that a "Brownfields label" would lead to further market dysfunction as a principal basis for staying on the sidelines.

While there has been no empirical study of whether and, if so, precisely how and to what extent properties that have been formally designated a Brownfield in Florida (i) suffer some measure of diminution in value, (ii) have a more difficult time obtaining financing (or financing at market rates), or (iii) are marginalized or rejected by end-users, the weight of experience among Brownfield practitioners throughout the state strongly suggests exactly the opposite. What the marketplace has actually taught us since enactment of Florida's Brownfields Program in 1997 is this: The Brownfields designation accelerates the recycling of contaminated property and turbocharges a project's ability to attract any combination of equity, debit, investors, residents, and tenants. The designation and the processes that follow provide a level of comfort and assurance that state and local environmental regulators will be institutionally invested in the project, that local government officials will utilize all of the planning and economic tools and resources at their disposal, that credentialed and serious legal and engineering professionals will be engaged, that the cleanup will proceed on a smart and predictable schedule, that development and construction will be subject to innovative and cutting-edge design methodologies, and that the risk of exposure to be liability will be managed in a sophisticated and effective manner.

The line in the column that resonates most deeply - "A bit of stigma over a designation no one will remember should not deter these cities from getting hundreds of thousands of dollars in redevelopment funds" - also rings extraordinarily true, notwithstanding the issue that some observers take with the notion that the designation creates even "a bit of stigma." If there is stigma, it's in the underlying contamination or perception of contamination (among other criteria) that triggers the eligibility for designation in the first instance. The designation, on the other hand, is the delivery vehicle for the financial and regulatory incentives, the private capital, and the expedited permitting (among other benefits) that create the initial catalyzing effect and launch a project towards rehabilitation and reuse. In short, the designation is neither manifestation nor exacerbation of market dysfunction; rather, it's a swift first step towards prompt environmental cleanup and successful economic revitalization.

Finally, yes, local governments should, as the columnist concludes, "act quickly" to get their fair share of federal and state grant programs and other economic incentives because the marketplace in Florida has also taught this lesson: Private capital chases the flow of public funds, and the powerful leveraging effect created by the combination of public and private money is the single greatest factor in establishing the feasibility of a Brownfields redevelopment project.

-M

Michael R. Goldstein, Esq.
Akerman Senterfitt
One Southeast Third Avenue, 28th Floor
Miami, FL 33131
Direct Line: 305.982.5570
Direct Facsimile: 305.349.4787
Mobile Phone: 305.962.7669
michael.goldstein@akerman.com

"Recycle, Reuse, and Restore Environmentally Impacted Properties: Rebuild Your Community One Brownfield at a Time"

Michael R. Goldstein, Esq.
Akerman Senterfitt
One Southeast Third Avenue, 28th Floor
Miami, FL 33131
Direct Line: 305.982.5570
Direct Facsimile: 305.349.4787
Mobile Phone: 305.962.7669
michael.goldstein@akerman.com

"Recycle, Reuse, and Restore Environmentally Impacted Properties: Rebuild Your Community One Brownfield at a Time"

From: brownfields-bounces@lists.cpeo.org [mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Lenny Siegel
Sent: Tuesday, September 08, 2009 5:13 PM
To: Brownfields Internet Forum
Subject: [CPEO-BIF] Dunedin and Tarpon Springs, Florida

What's a little contamination among friends?

COLUMN BY MARK SCHANTZ
SUNCOAST NEWS (FL)
September 5, 2009

What's a little contamination among friends, especially when it means millions of federal tax stimulus dollars being available to local governments and area developers?

Cities like Largo and Clearwater have already utilized the Environmental Protection Agency's Brownfields Redevelopment Grant Program to revitalize their depressed areas, by providing economic incentives to developers and business owners. These grant funds can spark a new wave of economic redevelopment eliminating urban blight in commercial and industrial areas. It can help property owners repair and redevelop buildings.

The Dunedin City Commission is considering declaring its downtown community redevelopment district and other parts of its city a brownfield. The designation would be a great fit in Tarpon Springs, which badly needs to attract developers and spark economic redevelopment downtown, at the Sponge Docks and along the Pinellas Avenue corridor.

...

For the entire column, see
http://suncoastpinellas.tbo.com/content/2009/sep/05/pi-whats-a-little-contamination-among-friends/

--

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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