Brownfields Development

The new “Brownfields” federal legislation (Brownfields Revitalization and Environmental Restoration Act of 2001) was signed into law by President Bush on January 11, 2002. This law authorizes the USEPA to award grants to states for the purpose of establishing programs designed to respond to releases of hazardous substances. In addition to establishing response programs, these grants can be converted as loans for remediation of Brownfields sites.

Under the new law, a prospective purchaser will not be liable for onsite contamination found after the purchase (provided the purchaser did not cause the impact nor was it discovered during the pre-purchase environmental assessment process). Additionally, purchasers of property contiguous to a contaminated site are also exempt from liability provided that they meet certain conditions (e.g., cooperating with cleanup operations). Even if a site is contaminated, the EPA cannot recover additional response costs from or impose additional liabilities on the new owner if the contamination is remediated under a state or local response program.

These changes in the law make an environmental assessment prior to the purchase of property absolutely necessary. The assessment can evaluate diminution of real estate value associated with environmental impacts and determine overall project viability.

The development of the “Neighborhood Park Project” was one such example where C2 REM acting as owners representative was instrumental in the site redevelopment from conception to the ultimate completion.