New York State Builders Association

http://www.NYSBA.com

Position Paper Distributed at Legislative Conference, March 11, 2003:

BROWNFIELD REDEVELOPMENT

NYSBA POLICY/BACKGROUND:

What are Brownfields?

The term "Brownfields" is used to describe the abandoned lots and buildings that were once used for industrial and commercial purposes.  Because they are either contaminated or believed to be so, they do not invite redevelopment, but instead feed urban decay and threaten public health.

Where are Brownfields?

Brownfield sites are everywhere.  They can include everything from the vacant lot in a residential area to a superfund site.  They may be former businesses, factories, gas stations, and even residential sites where underground tanks have leaked or where toxics have accumulated over time.

Why do Brownfields exist?

Investors and developers shy away from brownfield sites for fear they may be held liable for contamination they didn't cause.  Instead, many prefer to build on undeveloped land known as greenfields, which do not involve cleanup costs or liability risks.

How many Brownfields sites are there?

There are about 450,000 brownfield sites in the U.S., tens of thousands in New York State and over 6,000 brownfields in New York City.

Why are Brownfields a problem?

Many brownfield sites were thriving businesses that were a source of local jobs and community pride.  Now they are sources of neighborhood blight that are robbing communities of the chance to share in the nation's economic vitality.  A plethora of brownfields left as is help drive the consumption of open space.

What can be done?

New York is the only industrialized state that has not enacted brownfields legislation.  We need to pass a law that would encourage and facilitate the cleanup and reuse of contaminated property.  Cities and towns cannot overcome the obstacles to brownfield site cleanup and redevelopment without the help of a thoughtful state program.

STATUS:

The Governor has introduced a bill as part of the budget this year, S.1410/A.2110 (part AA).  In 2002, President Bush signed into law important brownfields legislation that provides significant new funding and important liability protections, by NY is not positioned to compete for these funds, nor take advantage of the new federal liability reforms.  The State's hazardous waste Superfund program is now bankrupt, and to date, the brownfields issue has been linked with the refinancing of the Superfund.

Prospects for finally achieving a brownfields program in NY are fairly good.  There is increased pressure from:

• The State's bankrupt Superfund;

• The economic drain of thousands of idle brownfields in NY and the economic impacts of the 9/11 terrorist attacks; and

• The weak position of the State to compete for new federal dollars and private investment.

KEY POINTS:

There is tremendous overlap among diverse stakeholders on the need for a clear, consistent brownfields program that encourages private investment and voluntary cleanup.  Brownfields redevelopment promotes urban renewal, improves the environment and gives communities more options for growing smart.  Brownfields redevelopment is one of the key points in the state's homebuilders' Smart Growth strategy.

• NY needs a comprehensive brownfields program in order to compete for new federal brownfields dollars ($250 million annually through 2006).

• Petroleum sites -- old gas stations and auto repair properties -- are pervasive in NY.  The federal law does not resolve liability on petroleum sites, and consequently, tens of thousands of sites will remain unable to attract private investment, unless liability protection is provided in NYS law.

• Consistent, protective, achievable cleanup standards based on the use of a property are needed.  Despite the rhetoric, there are currently no cleanup standards for voluntary cleanups in NY.  Very few properties will be redeveloped if developers must continue to negotiate the cleanup standards site-by-site.

• Streamlined administrative procedures are needed because private investment requires a definable exit strategy and schedule.

• Tax credits and low cost loans are needed to bridge the gap between brownfields and greenfields development.

ACTION NEEDED:  Urge legislators to come together and negotiate a brownfields program that includes the Key Points above.  In general, here is how the Governor's legislation addresses our needs as well as comments on the 2002 position of the legislature on the issue.

• The Governor's bill contains provisions for the establishment of a comprehensive program and consistent cleanup standards.  It is unclear if this bill would adequately address liability concerns on petroleum sites.  The Governor's bill falls short on provisions to streamline the program; and in the crafting of a program that would position NY to effectively compete for federal dollars and private investment.

• A 2002 bill by Assemblyman Lopez and Senator Marcellino (the Brownfields Coalition bill) had contained provisions addressing all the Key Points above.

• The 2002 official Assembly leadership position falls short on all Key Points, except that a separate Lopez bill (A.9203) contains provisions that would effectively position NY's localities to compete for federal dollars.

• A separate Marcellino bill in 2002, also known as the Business Council bill, contained provisions that adequately address all the Key Points.

All these 2002 state legislature strategies are being reviewed by Senate and Assembly leadership to come up with a 2003 position on Brownfields and Superfund.
 

DEVELOPMENT / LAND USE / ENVIRONMENTAL INITIATIVES