Brownfields: A Comprehensive Guide to Redeveloping Contaminated Property

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American Bar Association, 2002 - Political Science - 1077 pages
This is a solution-orientated look at the environmental and economic challenges of redeveloping contaminated property. It includes an analysis of the federal brownfields legislation. It should help the reader: find funding sources for redevelopment; and interpret federal and state laws.
 

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This book is PACKED with extraordinarily helpful information and is truly comprehensive. The book gives a detailed overview of the entire process for redeveloping brownfields, and detailed procedural information covering every state where a project may be located. From my perspective, the book provides an invaluable guide for anyone looking to undertake a brownfield project. Highly reccomended! I understand f.y.i. it is the American Bar Association's Best Selling Book. 

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Contents

Defining the Brownfields Problem
3
What Is a Brownfield?
5
Why Are Brownfields Demanding Attention?
6
How Did the Brownfields Issue Evolve to a Crisis State?
7
Barriers to Brownfields Redevelopment
9
Bringing Down the Barriers
13
Overview of Federal and State Law Governing Brownfields Cleanups
15
Cleanup of Brownfields under Federal or Parallel State Laws
17
Conclusion
573
Indiana
578
Participation in the Voluntary Remediation Program
579
Lender and Fiduciary Liability Protection
580
Cleanup Standards
581
The Mechanics of the Voluntary Remediation Program
582
Public Involvement
583
Costs and Cost Recovery
584

Federal and State Reforms for Brownfields Redevelopment
25
Conclusion
29
Federal Brownfields Initiative
43
Government Coordination
47
USEPAs CommunityAssistance and Local Partnership Programs
50
Legal Business Financial and Political Issues Associated with Redeveloping Contaminated Property
55
Doing the Brownfields Deal
57
Evaluating the Environment Surrounding the Deal
59
The Outline of the Deal The Purchase Agreement
60
Environmental LiabilityDefining Exposure
63
Investigating the Target Site
65
Do the Deal
66
Acquisition Considerations for Brownfields Properties
68
Evaluating the Risk of a Brownfields Opportunity
72
Brownfields Investment Strategy
76
To Invest or NOT to Invest
77
Valuing Brownfields
78
Estimating Value of Clean Property
79
Stigma
85
Rent
90
Conclusion
94
Creative Financing of Brownfields Sites
96
Characterizing Brownfield Investment Opportunities
97
Steps in Brownfield Redevelopment
98
Obtaining Funds for Project Development
100
The Real Value of Gap Pluggers
104
Ongoing Cash Flow Issues
105
Timing Is Everything
106
Conclusion
115
Brownfields Sites Removing Lender Concerns as a Barrier to Redevelopment
116
Lender Concerns Regarding Brownfield Sites
117
Federal Initiatives That Limit Lender Liability and Other Concerns
118
Federal Legislative Reform
120
State Approaches to Limiting Lender Liability
121
State Environmental Cleanup Statutes
122
The General Benefits to Lenders of State Voluntary Cleanup Programs
126
Insuring Against Liability
127
Conclusion
128
The Deductibility of Environmental Remediation Costs
131
The Case Law
132
The Services Rulings
136
Observations
142
Tax Incentives
144
Calculation of Actual Tax Savings
147
Building Consensus for the Project
149
The Role of Public Relations
150
The Direct Approach
151
The Media
153
An Ongoing Process
154
Environmental Insurance in the Brownfields Transaction
155
Applicability of Environmental Insurance to Brownfield Projects
156
Insurance Underwriting Risks for Environmentally Impacted Properties
157
The Underwriting Process
158
Appropriate Coverage and the Insurance Contract
159
The Cost and Value of Environmental Insurance
161
Limitations to Available Insurance
162
A Comment on the State of the EnvironmentalInsurance Market
163
Environmental Insurance in Brownfield Transactions Issues and Answers
165
Environmental InsuranceGenerally
166
Types of Coverage
167
The Anatomy of an Environmental Insurance Policy
168
General Issues
173
Conclusion
174
Using Old Insurance Policies as Weapons
175
Making a Claim under Old Commercial General Liability Policies
176
Coverage under CGL Policies
177
Coverage under Automobile Policies
178
Coverage under PersonalInjury Section of the CGL
179
Accident Versus Occurrence Policies
180
How Much Coverage Can You Get?
184
Good Approaches in Negotiating Settlements with Insurance Companies
186
Institutional Controls
192
Definition of Institutional Controls
193
Examples of Institutional Controls
194
Implementation Considerations
206
Conclusion
210
Hiring the Right Laboratory
214
Selecting the Appropriate Laboratory
215
Selecting the Appropriate Analytical Tests
217
Insurance Contracts and Confidentiality
218
Data Validation Certifications and Prices
219
Comfort Levels and Responsiveness
220
Community Building through Brownfields Redevelopment
221
Rebuilding Communities through Brownfields Redevelopment
223
The Need for a Community Brownfields Strategy
224
Limited Resources
225
Costs and Benefits
226
Educator Broker Facilitator
227
The New Market Frontier Unlocking Community Capitalism through Brownfields Redevelopment
229
Brownfields Redevelopment Promotes Livable Communities
230
Keys to the Process
232
Magnets Communities and Stakeholders
235
Strategy and Branding
236
Role of the Architect
238
Conclusion
241
Community Participation in Brownfields Redevelopment
243
A Historical Grounding
244
Community Concerns
245
Current Methods of Participation
249
Conclusion
251
The Process of Sustainable Brownfields Redevelopment
254
Developing the ASTM Standard Guide
256
Conclusion
262
Scientific Concepts Used to Address Contaminated Property
263
The Science of Brownfields
265
Phases of Contamination
268
Site Investigation Process
271
Determining Remedial Alternatives for the Property
273
Established Protocols in the Ohio VAP
277
The Context of the Cleanup Standards
278
Conclusion
279
The Role of Risk Assessment in Redeveloping Brownfields Sites
281
What Is Risk?
284
The Rise of Environmental Risk Assessment
286
The Risk Assessment Process
287
Risk Assessment and the Creation of Brownfields
291
Risk Assessment and the Elimination of Brownfields
294
Pitfalls and Promises in Risk Assessment for Brownfields
298
Case Studies in Improving Risk Assessments for Brownfields
318
Conclusion
321
RiskBased Decision Making for Corrective Action
327
The Traditional Corrective Action Process
328
The Paradigm Shift
330
Implementing the Paradigm Shift
331
RiskBased Decision Making
332
The ASTM Standard Guide for RiskBased Corrective Action
334
Conclusion
339
Risk Assessment A Physicians Introduction
343
Epidemiology and Study Design
345
Conclusion
346
Remediation Strategies for Brownfields Redevelopment
348
General Remedial Strategy
349
RiskBased Cleanups
351
Soil Remediation
352
Groundwater Remediation
355
Nonaqueous Phase Liquid Removal
357
Conclusion
358
State Voluntary Cleanup Programs
359
Alabama
361
Summary of Major Provisions
362
Participation in the Voluntary Cleanup Program
363
Liability Protection
365
Program Mechanics
366
Cleanup Standards
367
RiskBased Corrective Action
369
Institutional Controls
370
Financial Incentives Under the Voluntary Cleanup Program
371
Alaska
375
Benefits
376
Site Characterization Requirements
377
Further Actions Required
378
Arizona
382
Summary of Major Provisions of the Voluntary Programs
383
Memorandum of Agreement
386
Liability Protection
387
Obtaining and Releasing a Restrictive Covenant on Property with Contamination That Has Been Addressed
389
The Mechanics of Participating in the Voluntary Remediation Program
390
Cost Recovery
392
Conclusion
393
Arkansas
396
Memorandum of Agreement
397
Liability Protection Lenders Trustees and Fiduciaries
398
Financial Incentives
399
Cleanup Standards
400
The Mechanics of Participating in the Arkansas Brownfields Program
402
Remedy Failure or Ineffectiveness
404
Conclusion
405
California
409
Voluntary Cleanup Program
410
Additional Measures to Facilitate Brownfields Redevelopment
419
Conclusion
429
Brownfield Redevelopment The Canadian Context
443
Benefits to Brownfields Redevelopment
444
Liability
446
Standards for Cleanup
448
Provinces
450
Municipalities
459
Conclusion
461
Table of Statutes
469
Colorado
472
Participation in the Program
473
Memorandum of Agreement
474
Protections Granted by the Colorado Program
476
Cleanup Standards
477
Enforceability of Voluntary Cleanup Plans
480
Conclusion
481
Connecticut
485
Eligibility for Connecticuts Brownfields Programs
486
Memorandum of Agreement
488
Liability Protection for Brownfields Volunteers
489
Financial Incentives
490
Cleanup Standards
491
The Mechanics of Participating in Connecticuts Brownfields Initiatives
492
Liability Protection for Lenders
495
Admission of Liability
496
Conclusion
497
Delaware
502
VCP
505
Cost Recovery and Financial Assistance
508
Conclusion
510
The District of Columbia
515
Conclusion
520
Florida
522
Brownfield Site Rehabilitation Agreement
523
Cleanup Criteria and the Remediation Process
524
Liability Protection
525
Memorandum of Agreement
526
Recent Changes
527
Land Use and Institutional Control Issues
528
Georgia
534
Redevelopment Act
536
Hazardous Site Response Act
538
Conclusion
539
Idaho
545
Key Attraction of the Program Is the Ability to Provide Certainty to a Purchaser or Lender
546
The VRP Requires Applicants to Pay IDEQs Costs
548
The Act Sets Specific Procedures for Project Approval
549
Once the Project Is Completed the Owner Receives Protection from Subsequent Enforcement Actions
550
The VRP Codifies Strong Lender Liability Protections
551
The Tax Commission Component of the VRP Provides a SevenYear FiftyPercent Property Tax Exemption on the Increase in Land Value
552
Website
554
Illinois
560
The Mechanics of Program Participation
566
Memorandum of Understanding
570
Cost Recovery
571
The 1989 Program
572
Conclusion
585
Iowa
588
Participation in the Land Recycling Program
589
Miscellaneous Provisions and Deficiencies
595
Conclusion
597
Kentucky
601
Implementation of Kentuckys Brownfields Legislation
603
NFR Letters
604
Conclusion
606
Maine
609
Cleanup Standards
612
Liability Protection under the Program
614
Financial Incentives under the Program
617
Practical Programming
619
Conclusion
620
Maryland
625
The Voluntary Cleanup Program
626
Lenders Trustees and Fiduciaries
629
The Brownfields Revitalization Incentive Program
630
Memorandum of Agreement with EPA
631
Massachusetts
634
Understanding the Massachusetts Superfund Statute
635
Understanding the Massachusetts Contingency Plan
639
CovenantsNottoSue
646
Conclusion
648
Michigan
653
Brownfields Financial Incentives
654
Liability Reform
661
Change in Liability Structure
662
Special Liability Protection for Lenders and Others
663
Other Special Exemptions
664
Incorporation of Land UseBased Criteria
665
Coordination of Other Legal Requirements
666
Due Care Reasonable Precaution and Exacerbation of Existing Contamination
667
Conclusion
668
Qualified Local Governmental Units under PA 146 of 2000
682
Minnesota
683
Eligibility for the VIC Program
685
Memorandum of Agreement
687
Financial Incentives
688
Cleanup Standards
689
Confidentiality Consultants and Fees
690
Mechanics of Participating in the VIC Program
691
Cost Recovery
692
Conclusion
694
Mississippi
698
Memorandum of Agreement
699
Financial Incentives
702
Certified Professionals and Laboratories
703
Fees
704
Conclusion
705
Missouri
708
Eligibility for Programs
709
Memorandum of Agreement
710
Financial Incentives
712
Cleanup Standards
713
Conclusion
715
Montana
718
Memorandum of Agreement
719
Financial Incentives
720
Cleanup Standards
721
Cost Recovery and Contribution under CECRA
722
Nebraska
725
Participation in the Program
726
Sites Ineligible for the Program
727
Financial Incentives under the Program
728
Cost Recovery
729
New Hampshire
733
Participation in the Program
734
Liability Protection
735
Financial Incentives under the Brownfields Program
736
Certified Professionals and Laboratories
738
Withdrawal from Program
740
DefensesExemptions from Liability
741
New Jersey
746
Eligibility
747
Confidentiality
748
Financial Incentives
750
Technical Regulations
753
Cleanup Standards
754
NoFurtherAction Letters and CovenantsNottoSue
755
Developer Incentives
756
Recovery from Third Parties
757
Recommendations for Brownfields Redevelopment in New Jersey
758
New Mexico
765
Participation in the Voluntary Remediation Program
766
Financial Incentives under the Voluntary Remediation Program
768
Participating in the New Mexico Voluntary Remediation Program
771
Status of Program
773
New York
775
Summary of Major Provisions of the NYVCP
776
Liability Protection
777
Financial Incentives
778
Cleanup Standards
779
Mechanics of Participating in the NYVCP
780
Institutional Controls Disclosure of Audit Information and Penalties
781
Other New York State Programs Promoting Brownfield Remediation
782
Conclusion
783
North Carolina
787
Summary of Major Provisions
788
Participation in the Brownfields Program
789
Brownfields Agreement
790
Notice of Intent to Develop a Brownfield Property and Summary of the Notice of Intent
792
LandUse Restrictions
793
Liability Protection
795
Financial Incentives
797
Remediation Standards
798
Fees and the North Carolina Brownfields Property
799
Other North Carolina Programs Available for Brownfield Sites
800
North Dakota
807
Ohio
808
Participation in the Voluntary Action Program
809
Memorandum of Agreement
810
Liability Protection
811
Cleanup Standards
812
Certified Professionals and Laboratories
814
Recording of the NFA Letter and Covenant
816
Civil and Criminal Penalties
817
Conclusion
819
Oklahoma
824
Memorandum of Agreement
825
Financial Incentives
826
The Mechanics of Participating in the Oklahoma Brownfields Program
827
Conclusion
831
Oregon
835
Summary of Major Provisions
836
Participation in Oregon Brownfields Programs
837
Prospective Purchaser Agreements
840
Financial Incentives
843
Cost Recovery
844
Conclusion
846
Pennsylvania
850
Summary of Major Provisions
851
Eligible Persons
853
Procedures for Performing Act 2 Cleanups
855
Liability Protection
856
Financial Assistance
857
Guidance and RegulationsBuyerSeller Agreements
858
Recent Brownfields Initiatives
860
Practical Program Experience
863
Rhode Island
872
Major Provisions of the Rhode Island Brownfields Program
873
Private Cost Recovery
877
Lender Liability Protections
880
Conclusion
881
South Carolina
887
Participation in the Voluntary Cleanup Program
888
The Voluntary Cleanup Contract
889
Liability Protection
890
Memorandum of Agreement
891
Termination of the Contract
893
South Dakota
897
IncentivesAssurances
898
Tennessee
900
Summary of Major Provisions
901
Eligibility for the Voluntary Action Program
902
LenderLiability Protection
903
Benefits for Participants in the Program
904
Participating in the Voluntary Action Program
905
Conclusion
906
Texas
909
Protection from Enforcement
910
Liability Protection
911
Participation in the Voluntary Cleanup Program
912
Fees
913
Innocent Landowner Protection
914
Cost Recovery
915
Practical Program Experience
917
Utah
922
Eligibility for the Utah Voluntary Cleanup Program
923
Voluntary Cleanup Agreement
924
Permits
925
Cleanup Standards
926
Release from Liability
927
Coordination with EPA
928
Conclusion
929
Vermont
933
Application and Eligibility Determination
935
Site Investigation and Site Remediation
936
Corrective Action Plan Cap
938
Liability Protection
939
Additional Obligations of the Program Participant
941
Practical Experience with the Program
942
Conclusion
943
Virginia
948
Eligibility for the VRP
949
Memorandum of Agreement
950
Cleanup Standards
951
Mechanics of Participating in the VRP
952
Practical Program Experience
955
Washington
959
Independent Cleanups under the VCP
960
Memorandum of Agreement
961
Financial Incentives
963
Risk Assessments
966
Institutional Controls
967
Mechanics of Participating in Washingtons ProspectivePurchaser Program
968
Cost Recovery
969
Conclusion
970
West Virginia
974
Eligibility for the Voluntary Action Program
975
Liability Protection
976
Criminal Penalties
978
Mechanics of Participating in the West Virginia Voluntary Action Program
979
Special Provisions under the Act Applicable to Brownfield Sites
980
Practical Experience with Program
981
Conclusion
982
Wisconsin
985
Cleanup LiabilityThe Wisconsin Spill Statute
986
Liability Protection
988
Soil Cleanup Standards
995
New Funding Sources for Contaminated Property
998
Memorandum of Agreement
999
Conclusion
1000
Wyoming
1006
Applicability and Eligible Sites
1007
Application and Initial Public Participation Requirement
1008
Cleanup Standards and Remedy Selection
1009
The Remedy Agreement with WDEQ
1011
CovenantNottoSue Certificate of Completion and NoFurtherAction Letters
1013
Taking Advantage of the New Program
1017
Conclusion
1018
ABOUT THE EDITOR
1023
ABOUT THE CONTRIBUTORS
1025
INDEX
1059
Copyright

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Page xlvii - ... all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice in an effort to minimize liability.

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