Brownfields '97 Partnering For A Greener Tomorrow Brownfields '97 -- Partnering For A Greener Tomorrow
rownheds
Partnering For A Greener Tomorrow
Track Three:
Finance
PURPOSE OF THE TRACK
Finance is an integral component of the brownfields program. Learn where to
find money and how to get it, by exploring tools available to local governments,
environmental banking, investment opportunities, due diligence requirements,
site assessments, the role of foundations and nonprofit organizations, and leveraging
of public financing with private financing. Learn how die private sector views the
cleanup and redevelopment of brownfields and how to attract new businesses to
your community.
Brownfields '97 Partnering For A Greener Tomorrow Brownfields '97 -- Partnering For A Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields'97 Partnering for a Greener Tomorrow
(3A) Closing the Gap: How
Non-Profits Fit in the Brownfields Equation
Thursday, September 4,1997
3:00 p.m. - 5:00 p.m.
Description: There is a gap in service between public- and private-sector support for brownfields. Panelists will
explore the role that non-profit organizations can play in addressing local brownfields needs.
Location: Room 2203
Speakers and Affiliation:
Mr. Keith Welks (Moderator)
Ms. Martha Matsuoka
Ms. Ellyn McKenzie
Dr. Charles W. Powers
Mr. Bruce Rasher
Center for Land Renewal
Urban Habitat Program of Earth Island Institute
Sixteenth Street Community Health Center of Milwaukee,
Wisconsin
Institute for Responsible Management
Consumers Renaissance Development Corporation
MR. KEITH WELKS
[Biography was not available at time of printing. Please refer to conference addendum.]
Ms. MARTHA MATSUOKA
[Biography was not available at time of printing. Please refer to conference addendum.]
Ms. ELLYN MCKENZIE
Ellyn McKenzie is currently assistant director of the Department of Environmental Health at the Sixteenth Street
Community Health Center. The center serves residents of the culturally diverse near the south side of Milwaukee.
Its mission is to provide health care, health education, and social services to individuals who, because of cultural,
financial or language barriers, would be without or have difficulty accessing these services.
Ms. McKenzie has held a number of public policy and communication outreach positions within Wisconsin state,
local government, and the private sector. She directed legislative affairs activities and an issues management
campaign for Zigman, Joseph, and Stephenson, a Milwaukee based public relations firm. She also was lead lobbyist
for the Wisconsin Federation of Cooperatives (WFC) serving WFC members on healthcare, mutual insurance,
housing, and credit union issues. In the mid-1980's, Ms. McKenzie served as Governor Earl's State Senate liaison
and provided staff assistance to the governor on national environmental issues. She served as the governor's staff
representative to the National Governors' Association of Energy and Environment Committee, the Alliance for Acid
Rain Control, and the Center for Clean Air Policy Analysis chaired by Governor Earl. She also served as the
governor's representative to the National Groundwater Policy Forum.
DR. CHARLES W. POWERS
Charles W. Powers, Ph.D. is president of the Institute for Responsible Management, a non-profit organization in New
Brunswick, New Jersey which is focused primarily on charting and facilitating information exchange among the more
than 100 U.S. Environmental Protection Agency (EPA) brownfields pilots. Dr. Powers, who is also a professor of
environmental and community medicine at the University of Medicine and Dentistry of New Jersey, has been
addressing issues related to hazardous waste since 1984. He has created a series of national organizations which
address both technological and social issues related to controversial problems in public health and the environment.
He has been executive director of the Health Effects Institute, president of Clean Sites, Inc. chief environmental
officer and vice president for public policy at Cummins Engine Company and has held faculty appointments at Yale,
Harvard, Tufts, and Princeton universities.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
MR. BRUCE RASHER
Mr. Rasher has more than 20 years' experience as an environmental professional responsible for a variety of
environmental programs, such as air quality, remediation management and due diligence for Consumers Energy, the
nation's fourth largest combined electric and gas utility. He holds the positions of director of brownfields
redevelopment for the utility and vice president, secretary and treasurer of the nonprofit Consumers Renaissance
Development Corporation, and is responsible for providing brownfields education, community assistance and
transaction facilitation services in cooperation with the State of Michigan and the Michigan Municipal League. Mr.
Rasher is also chairman of the Edison Electric Institute's Manufactured Gas Plant Subcommittee. Mr. Rasher has
served as a local elected official for more than 10 years, with experience in community planning, public utilities and
economic development, and is currently serving his second term as the mayor of the City of Marshall, Michigan.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3A: CLOSING THE GAP: HOW
NON-PROFITS FIT IN THE BROWNFIELDS EQUATION
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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U.S. Environmental Protection Agency
Brownfields '97
Partnering for a Greener Tomorrow
September 3-5,1997
Kansas City, Missouri
Brownfields Redevelopment
Tools for Environmental Justice
City of Dallas
Brownfields Program
Involvement Approach
For copies contact:
Beverly Negri
EPA Brownfields Liaison
Telephone- (214) 665-8157
Fax- (214) 665-6660
Reprint permission is given to the U.S. Environmental Protection Agency, and its contractors, to include this paper in
the Brownfields '97 participants binder.
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City of Dallas
Brownfields Program
Community Involvement Approach
Designed to assist citizens and businesses to acquire a comprehensive understanding
of the barriers surrounding the assessment, cleanup, revitalization and reuse of
brownfields.
Encourage community participation in the identification of potential redevelopment
sites.
Assist in determining resolutions for the City's Brownfields challenges and
redevelopment barriers.
Provide neighbors living in the vicinity of a brownfields redevelopment site the
opportunity to understand and comment on the potential environmental cleanup and
planned site reuse.
Reach out to commercial, private, neighborhood and industry in order to educate,
inform, receive feedback and input from Dallas citizens.
Citizen Advisory Focus Groups
Initially, four environmental justice neighborhoods were identified as the target areas
for the initial series of the Citizen Advisory Focus Group meetings. After consultations
with the neighborhood leaders, the target neighborhoods increased in number - six
neighborhoods - and geographic size (see attached map).
The Brownfields Program staff met with several well-known and respected
environmental justice leaders in the City to discuss the strategy for the most inclusive
community participation.
In order to ensure the meeting agendas, dates and locations were determined by the
community members, several minority Spanish-speaking facilitators were hired by the
City to assist in capturing and recording information and ideas generated in all of the
meetings.
In each target neighborhood, a series of two or three meetings involving neighborhood
leaders were held prior to the larger community meetings, for a total of 19 leaders
meetings, in order to determine the specific agenda interests in each community and
the best locations and times for the meetings.
In Phase I, six large community meetings were held in the target communities in areas
across the City.
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City held the Citizen Advisory Focus Group leaders and large neighborhood meetings
to:
- inform the citizens about the Brownfields Program;
- convey information on other City programs that address environmental-economic
neighborhood concerns;
- ask community members to identify potential redevelopment sites in their
neighborhoods;
- collect neighborhood-specific environmental/economic concerns; and
- include the neighborhoods as partners in the Brownfields Program.
After the first phase of meetings, the Brownfields staff compiled an informational
database of the potential redevelopment locations along with a listing of other
environmental concerns raised by the participants.
The Brownfields Staff contacted all of the owners of the community-identified potential
redevelopment sites to discuss the communities reuse suggestions and concerns and
also offer the property owners the assistance and possible incentives of participating in
the Brownfields Program.
In Phase II, the Brownfields Program staff scheduled a second round of large
community meetings and invited all of the original community leaders, meeting
participants and other additional citizens to attend the second round of large
community meetings.
The meetings agendas included the results of the informational database followup, the
results of contacting the owners of the potential redevelopment sites and the next
actions of the Program.
A second series of Citizens Advisory Focus Groups in new target neighborhoods is
tentatively planned for late fall 1997.
City of Dallas Brownfields Forum
Forum participants include environmental liability insurance reps, banking regulators,
mortgage loan officers, environmental lawyers, environmental consultants, business
associations, developers, realtors, Chambers of Commerce, Federal Deposit Insurance
Corporation, Texas Natural Resource Conservation Commission, EPA, Housing and
Urban Development private citizens, environmental justice representatives,
neighborhood associations, private non-profit development associations and
environmental activists.
Forum participants were selected to ensure that the Forum has a wide and diverse
representation as possible.
A majority of the work is accomplished in subcommittees, but all products and
decisions are brought back to the Forum for final approval.
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All Forum meetings are open to the public and anyone may participate.
Site Pre-development Community Meetings
All developers or property owners who participate in the Dallas Brownfields Program
and have sites that are located in, or near, residential neighborhoods are required to
hold neighborhood meetings before they cleanup their sites or start construction.
The pre-development meetings are designed to inform the neighborhoods about the
environmental contamination cleanup and redevelopment planned on the sites.
These meetings give the citizens the opportunity to be aware of what impacts
planned project might have on their community.
control* 1-97:PtfMlEJ:7-2397
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CITIZEN ADVISORY FOCUS GROUPS - Community INVOLVEMENT PROCESS
Advisory focus groups serve three important functions in environmental
management and economic community revitalization:
identifying the stakeholders' and public's interest in environmental
management and economic revitalization in the community; making
diverse views known to decision makers; and incorporating local
concerns in the decision-making process.
Achieving a clean neighborhood environment and robust community involves the
government, the private sector, the people in the community and special interests.
There will be a balance of interests in the membership of any Brownfields advisory
focus group. The groups will include:
private citizens public interest groups public officials representatives of
organizations with economic interest in redevelopment of sites or businesses.
The size of each focus group will be determined on a case-by-case basis by the complexity of
the job to be done and the number of interested people. Time, interest and a pertinent agenda
are the essential ingredients for an advisory focus group that expects to function successfully.
Active efforts will be undertaken to ensure that citizens in the area have been informed
and suggestions for special invitations to potential advisory focus group members are received
from the impacted parties. Activities undertaken by the City to ensure active citizen participation
will include announcements to the news media, written notices to interested organizations,
public appearances and direct contacts.
The responsibility of the advisory focus groups is to "advise". The primary function of the
focus groups is to provide elected and appointed City officials with information and suggestions
for revitalization locations. The advisory focus groups must understand their specific
neighborhood issues and concerns. The groups should provide practical, well thought-out
recommendations. If needed, each focus group should have City provided technical expertise
available at the meetings. Each focus group should have an understanding of local conditions in
their specific community. It is important to remember the advisory focus groups represent the
public. Advisory focus groups must understand and accept their role - they are advisors only
and do not have decision-making authority. The purpose and goals of the Brownfields
Initiative will be explained at each public meeting.
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Organization of Advisory Focus Groups
Meetings will be scheduled as needed and the City will have an agenda for each
meeting. A schedule of meetings will be established across the City's political
boundaries. Technical assistance may be provided if the City believes that a focus
group might desire expert advice from someone other than the City staff.
Recommendations made by the advisory focus groups will be presented to the City
decision-makers. Hardcopy survey forms may be passed out to focus group participants
at the meetings in order to provide written responses and suggestions to the City.
Preparation of various memoranda and short reports presenting the views and
recommendations of the groups will be visible to all parties involved through meetings,
postings, press releases and other efforts.
City responsibilities
The City will:
Ensure adequate advance meeting notices are given to the community and other
interested parties. Identify public interest groups, economic interests and public officials
who are interested in or affected by each specific neighborhood's Brownfields Initiative.
Convene advisory focus groups that are representative of the impacted communities.
Explain to all meeting participants the function and responsibility of the advisory focus
groups. Use "Robert's Rules of Order1 as the bylaws for all meetings. Receive
neighborhood/community suggestions as to the meetings dates of the advisory focus
groups. Attempt to ensure that any community representatives live in the area(s)
impacted. Provide information, technical skills, and staff support to each focus group
meeting. Establish procedures on issues such as when and where written materials will
be made available for advisory focus group participants, how long will participants have to
review materials and how comments will be received by the City. Direct attention to
ensure the advisory focus groups are dealing with the appropriate issues. Select from
each current and future issue, its agenda of work for each separate meeting. This should
be done with a clear understanding from the City as to how the advisory focus groups will
be most helpful.
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Consider carefully the advisory focus groups recommendations and ideas. Transmit the advisory
focus group's recommendations to the decision-making officials. Monitor the recommendations of
advisory focus groups to ensure the recommendations are being given adequate considerations and
follow up. Plan for, if needed, subsequent meetings in selected communities so decisions can be
communicated to the public.
Advisory Focus Group Responsibilities
The Advisory focus groups will:
Be knowledgeable of the specific needs and values of their respective communities.
Observe "Robert's Rules of Order" in all meetings.
Serve as informational links between the community and the City.
Provide the City officials with well-thought out recommendations.
Communicate ideas, views, concerns, desires, etc. from his/her neighborhood and/or businesses to
the City staff.
Encourage constructive communication and understanding among all parties. This give and take will
help to develop:
a mutual respect for various viewpoints;
* a willingness to take considerations into account;
* the abilities to arrive at recommendations that best serve the public interest
while protecting the environment.
Accept the responsibility of representing as clearly and accurately as possible his or her ideas. Listen
carefully to the views of others.
Citizen Focus Groups Meeting Protocol
When the Focus Group meetings are scheduled, a simple protocol will be followed. The City will:
Use local community contacts to help determine best place to hold meetings, ex. local schools or
community centers, YMCA, etc. Have City BF outreach person generate interest before meetings
start by visiting local neighborhood and association meetings, Chambers of Commerce meetings,
PTA Associations, etc. Use neighborhood networks to get word out about meetings. Pass out flyers,
by hand, in impacted neighborhoods, post announcements in local businesses. Have 12/13 local
community Group meetings. Use appropriate City protocol when planning meetings:
all meetings are opened to public;
written notice of the date, hour, place and subject of all meetings shall be given;
minutes shall be taken at all meetings; and
a meeting notice shall be posted in City Hall in a readily accessible place to the public at all times
for at least 72 hours before the meeting.
Use non-City employed facilitator. Keep sign-in list of attendees (include phone numbers). Have
local Council members attend meetings. Explain what the BF Initiative is all about, including BF
Forum role. Have, if possible, several Forum reps available to answer community questions. Ask
meeting participants to think about local BFs, and pass out a prestamped BF survey - survey
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contents name of company, industry, etc. if known address of site and immediate cross streets type
of business name, address & phone number of respondent
Ask for return mailings of survey by 12:00 P.M. one week beyond meeting date.
After Meetings
Compile list of suggested neighborhood BFs and after considering economic viability, add site(s) to
inventory. Take suggestions to Forum for feedback and possible inclusion. Reconvene community
groups for follow up meetings once final inventory decisions are made.
Follow up Meetings
Before follow up meetings start, have BF outreach person generate interest by visiting local
neighborhood and business association meetings, PTA meeting, etc. Contact all participants at first
neighborhood meetings. Use neighborhood networks to get word out about meetings. Pass out
flyers, by hand, in impacted neighborhoods, post announcements in local businesses. Use
appropriate City protocol when planning meetings; a. all meetings are opened to public; b. written
notice of the date, hour, place and subject of all meetings shall be given; c. minutes shall be taken at
all meetings; and d. a meeting notice shall be posted in City Hall in a readily accessible place to the
public at all times for at least 72 hours before the meeting.
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.,,..»-
n n e r-Cl ty~N ews
Dallas' economic development department
will begin series of neighborhood meetings
The City of Dallas Economic Development Department will begin a series of Citizen
Advisory Focus Group meetings in five neighborhoods in south, east and west Dallas
in January 1997 to inform citizens about several of the environmental programs in
place within the City of Dallas and to collect input regarding several environmental
topics.
The Citizen Advisory Focus Group meetings are included as part of the City of
Dallas's Environmental Justice grant from the United States Environmental Protection
Agency (EPA). The goal of the meetings is to open lines of communication between
the City and the community regarding environmental issues and develop methods to
maintain communication among City departments and the community.
The Economic Development Department staff is currently establishing lines of
communication with community leaders in each of the five target neighborhoods to
organize preliminary planning meetings. These preliminary planning meetings will
enable City staff to identify the needs and interest of each neighborhood for the
subsequent Citizen Advisory Focus Group meetings. These preliminary planning
meetings will take place between December 1996 and Feb. 1997. The Citizen
Advisory Focus Group meetings will tentatively take place from Feb. through April 1
997.
A number of environmental programs have been identified and will be presented to
the community leaders, including the City of Dallas Brownfields Program, Healthy
Communities, Recycling, Environmental Health, Water Quality and Household
Hazardous Waste Collection. The community leaders will also assist in the
development of a survey which will be distributed at the Citizen Advisory Focus
Group meetings. They survey will be used to gather citizen input and concerns
regarding environmental programs and services.
A series of five follow-up Citizen Advisory Focus Group meetings will be conducted
in the same neighborhoods from June through September. These meeting will allow
the City staff to report back to the citizens about information obtained from the initial
round of meetings.
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Citizens Advisory Focus Group Neighborhoods
and Brownfields Sites
BROWNFELDS
A. J«fl«*an North End
B. Coniolld«*>d Cutting*
C. Mcgdatn*
D. American P*IM
E. Wboten fcWato
F. C«Wu»
G. Lairy Jofinaofi
Rvcraatton Cantor
a DART SutMtetton
FOCUS GROUP NEIGHBORHOODS
1. Llttto Hmloo
2. WwtDaUa*
4. Ewlng Av*. * CeHntti SL
S. F«» South Dalta.
i. South DtHmt
J. Sundown
K. C«ntom«M Addltton
l_ DallM FIra Station »34
U. Nml Air Station
N. MoComma* BtuH
O. WMtEMte*
TraMng Iratthito
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BROWNFIELD COMMUNITY ACTION PROJECT
SIXTEENTH STREET COMMUNITY HEALTH CENTER
1032 S. Cesar E. Chavez Drive
Milwaukee, Wl 53204
Ph: 414-672-1315 Ext. 372 Fax: 414-672-9190
Contact: Ellyn McKenzie, Environmental Projects Coordinator
Prepared for Distribution by the U.S. Environmental Protection Agency
at the
Brownfields '97 Conference - Kansas City, Missouri September 3-5, 1997
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Brownfield Oversight Community Action Project
Sixteenth Street Community Health Center's Involvement in Brownfield
Redevelopment
Since 1969, the Sixteenth Street Community Health Center (SSCHC), a community
based human service agency, has provided quality, cost-effective health care to clients
who have no other access to services due to the difficult economic, cultural and
linguistic barriers they face. SSCHC focuses on education, prevention and early
intervention and strives to provide people with health education, medical care and other
services on an ongoing basis to help them avoid more severe, chronic health problems.
In addition to medical services, the SSCHC building provides space for other
organizations to provide services such as Milwaukee County Social Services, Legal
Aid, Latino Health Organization and the federal nutrition program for Women, Infants
and Children (WIC). The SSCHC conference room is also available to groups within
the community for special events and meetings. However, the SSCHC is not simply a
building where people come to receive services, but is an anchor and participant in
community affairs. In the name, Sixteenth Street Community Health Center, the
emphasis is on "Community Health" as a primary goal/objective more so than on
"Health Center" as a location for services.
Through this emphasis on the health of the community as a whole, the SSCHC
Department of Environmental Health has become the coordination point for a
Brownfield Oversight Community Action Project. The Brownfield project is built on the
foundation of a comprehensive environmental justice initiative undertaken in 1995
which catalogued environmental hazards in the neighborhood served by the clinic that
could pose a health threat to children. Two Brownfield sites were identified - Try
Chem and 1906 S. 3rd Street - both had boarded up buildings and were covered with
gang symbols and graffiti. The Try Chem property had been the object of an EPA
Emergency Response Action in the late 1980's but remained vacant and tax
delinquent. The 1906 S. 3rd Street site had been acquired by the City of Milwaukee
through tax foreclosure, but extensive contamination was feared and prevented the City
taking steps to redevelop the property.
Advocate/Facilitator - What We Learned
By assuming the role of advocate and facilitator for Brownfield redevelopment, the
SSCHC, City and Wisconsin Department of Natural Resources (WDNR) have learned
about the benefits that can be gained from community based involvement. Additionally,
one of the project sites, the 1906 S. 3rd Street property, has been successfully
redeveloped, allowing a local manufacturing firm to expand operations. The Try-Chem
site continues as a Brownfield, although there is significant local interest in continuing
to improve the property. Following is a brief assessment of the benefits of non-profit
involvement in Brownfield redevelopment and a more specific description of the
properties and the SSCHC role in the process.
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1) There Are Public Health Concerns. There are thousands of properties in the State
of Wisconsin, (hundreds in Milwaukee) which remain vacant because of contamination
from past industrial use. Boarded up, abandoned buildings attract children and gang
activity. Vacant sites are convenient locations for illegal dumping. In the case of the
3rd Street property in our project, over 1000 tons of PCB contaminated soil was
removed from the site and friable asbestos and flammable materials removed from the
building. Despite fencing and warning signs, frequent trespassing occurred on the site.
An important benefit of increased Brownfield redevelopment will be decreased
hazardous exposure for children who play on these sites.
2) Economic Development/Job Creation Brownfield remediation can be an important
part of creating jobs in urban, central city areas, where unemployment is high. The
return of family supporting jobs to this disadvantaged neighborhood would undoubtedly
result in health benefits for community residents. Plus, returning vacant, underutilized
sites to productive use, supports the municipality and the overall health of the
community.
3) Need to Provide Community Residents with Information Particularly in the case
of severely contaminated sites where emergency clean-up work is done, it is important
to provide accurate information to neighborhood residents about any associated health
risks or exposure concerns - associated with the site, or clean up activities. Local
governments, elected officials or municipal health departments can perform this role.
However, government ability to respond quickly to changing developments and
capacity to provide information that is easy to understand in a language other than
English may be limited. A credible community based agency has a number of
advantages in this regard, and can assign priority to this type of outreach activity that
government offices may not be able to do.
4) Community Involvement Necessary for Neighborhood Friendly Development
Providing information about the extent of contamination, explaining the process for
cleaning up the site and discussing potential development options with neighbors or
community residents reaps many rewards. Neighbors are likely to be more supportive
of development and can help guide the process if they are involved in the process from
the beginning. Again, in the case of the 3rd Street property, neighborhood residents
surprised City and Department of Natural Resources personnel by indicating their
strong opposition to the property becoming a park or greenspace. This urban
neighborhood was wary of open unattended spaces and strongly promoted industrial or
commercial activity on the site.
5) Community Involvement Facilitates Marketing of Sites Even if properties
located in urban areas are cleaned up and made ready for development, parcels may
be small and unsuitable for large scale major developments. Expansion of facilities
already operating in the neighborhood is an important market for new development -
and facilities already operating in the neighborhood will of course be an easier sell than
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attracting new development in from areas outside the neighborhood. In central city
urban areas, existing businesses, community based agencies and service providers
have an already established base and are logical entities to expand operations when
sites become available.
The Project
In February of 1996, the SSCHC became a partner with the City of Milwaukee in a
proposal to the WDNR's Brownfield Environmental Assistance Program (BEAP).
Through the BEAP, WDNR was granted authorization from the USEPA to re-program
Superfund dollars to provide technical assistance to municipalities to conduct Phase I
and II Environmental Assessments on Brownfield properties. Eleven municipalities
participated in the 1996 BEAP project. The two sites selected in Milwaukee were
picked in part, because of the SSCHC partnership with the City in the project.
Site Descriptions and Status
1906 S. 3rd Street
The 1906 S. 3rd Street is a former tannery warehouse, that has been used as a
foundry, tannery and for waste and metal reclamation activities as well as for the
storage of 55 gallon drums of unknown substances. The 1.3 acre parcel is located in a
once heavy manufacturing area of Milwaukee. The site posed a health and safety
threat to trespassers and the site had become a favorite site for illegal disposal of other
wastes and debris. Soil at the site was contaminated from past uses and groundwater
contamination was suspected. The property is adjacent to marina development on the
Kinnickinnic River. Located in Census Tract 166, the population of neighborhood
residents is 53% Hispanic, 40% White, 3% Native American and 3% African American.
47% of the population live below the poverty level. In August 1996, the US EPA
conducted an emergency removal of contaminated materials at the site. The cost was
approximately $400,000 with over 100 drums crushed and disposed of, 41 cubic yards
of lead contaminated ash, 6 drums of flammable liquids, 2 drums of organic solids, 8
bags of friable asbestos, 54 trucks of contaminated soil - roughly 1,000 tons removed
from the site. 1,000 tons of clean rock and gravel have been brought in for backfilling.
In large part because an existing structure formed a barrier over much of the site, the
property has been able to be redeveloped. A local manufacturing firm is in the process
of acquiring the property, the building has been extensively remodeled and by the end
of the summer approximately 20 employees will be working at the site. It should be
noted that the owner of this company was willing to proceed with the purchase of the
property, under terms approved by the WDNR, even though contamination remains on
the site. This owner also was able to finance this expansion on his own. These two
barriers to redevelopment might have stymied other prospective purchasers.
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Try Chem
The former Try Chem site was used for paint stripping, electroplating and as a chemical
manufacturing and storage facility for over 100 years. Disposal of hazardous materials
into the sewer system and into an open pit inside the building resulted in the owner of
the property being charged, convicted and jailed for improper disposal of hazardous
substances. Within a block of a residential neighborhood the site was an eyesore, an
attractive nuisance to young children, a magnet for gang activity and a potential health
hazard.
Demographic/socio-economic data for Census Tract 157 where Try Chem is located
indicates approximately 4,000 residents, including more than 500 children under age
five and 1500 children under the age of 18. The population is 75% non-white (63%
Hispanic, 9% Asian, 24% White and 3% African American). 46% of the population is
below the poverty level. In 1987 and 1988 US EPA removed over 50 barrels containing
various hazardous substances and pumped out several plating tanks containing
unidentified liquids and sludge. The Try-Chem building had been fenced off and
boarded up several times, but vandals regularly removed the fencing and frequently
trespassed on the site. The property has a high development potential because of its
location near major highways, other industries and an under-employed population.
Through the Phase I and II process, as groundwater monitoring wells were installed
and soil samples were collected, it became necessary to raze the building on the site.
This demolition, in and of itself, has been a positive step forward from a neighborhood
perspective. There no longer is a boarded up abandoned building as a place for
children and gangs to explore. Staff from the SSCHC Department of Environmental
Health continue to work with the City to attract additional resources to continue work at
Try Chem. A key impediment to re-development of this property are tax liens filed
against the property including a lien for the previous Superfund action.
The Role SSCHC Played
The involvement of SSCHC in this project has added several important dimensions to a
complex process which would be lacking without a link to a community based agency.
1) The SSCHC served and continues to serve as a point of contact for the community
to provide information and answer questions about the contamination and removal
actions on the properties. The SSCHC responded to numerous individual inquiries
from community residents, assisted the City Health Department with door to door
distribution of materials and organized and hosted two public meetings to discuss the
project and provide visibility for the remedial work. SSCHC provided translation
services for these meetings, prepared background materials and provided assistance in
translating question and answer sheets and signs for posting at the properties.
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2) The SSCHC serves as a point of contact for the various state, local and federal
governmental agencies involved in work on these properties. The coordination of
testing activities done by DNR, Division of Health and EPA was greatly enhanced by
having a central location for the transfer of information. Regular meetings with
everyone at the table - government professionals with community residents - have
provided a convenient way to jointly produce timelines which everyone can use and
understand. Further, the SSCHC had the ability to phone and follow-up, or continually
tweak the process to assure that communication occurred between agencies and
individuals working on the property.
3) The SSCHC demonstrated the capacity to recruit and involve additional partners as
well as advocate for additional resources for the project. Even though the BEAP
properties were the object of a new pilot program, the WDNR's work was spread
equally amongst the 12 pilot sites throughout the State. The City had numerous other
priorities to address. SSCHC was able to keep the focus on these properties and
greatly facilitated the process by doing so.
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3B) More Than Just the Money: The Emerging Role of Foundations
Friday, Septembers, 1997
8:00 a.m. -10:00 a.m.
Description: Foundations are beginning to increase their emphasis on communities to include cleanup and
redevelopment of brownfields. Panelists will explore the cutting-edge efforts of foundations in the brownfields
arena.
Location: Room 221OA
Speakers and Affiliation:
Mr. Andrew McElwaine (Moderator)
Mr. George Brewster
Mr. Toby Clark
Ms. Nan Stockholm
Heinz Endowments
California Center for Land Recycling
Clean Sites, Inc.
Self-employed consultant
MR. ANDREW MCELWAINE
Andrew McElwaine is a program officer and Director of Environmental Programs at the Pittsburgh-based Heinz
Endowments. The Endowments are one of the nation's largest philanthropic organizations. Their mission is to
support progress in community development, the arts, education, health, human services and the environment.
Prior to joining the Endowments' staff, Mr. McElwaine served as a staff member at the President's Commission on
Environmental Quality. He was senior environmental counselor at the E. Bruce Harrison Company. He has also
served as director of congressional affairs at the Institute of Scrap Recycling Industries, Inc., directing the legislative
program of the nation's largest recycling organization.
During most of the 1980's, Mr. McElwaine served as a legislative assistant and subcommittee staff director for the
late U.S. Senator John Heinz (R-PA). He assisted the Senator on environmental issues, and served as a staff
member of Project 88, the Senator's landmark environmental policy analyses which proposed to integrate economic
incentives into environmental policy-making.
Mr. McElwaine is a graduate of Duke University with a degree in political science and earned his master's degree at
George Mason University in Fairfax, Virginia. He is pursuing a doctoral degree in environmental policy and history at
Carnegie Mellon University. He serves on the Boards of the Great Lakes Protection Fund, the Pennsylvania
Organization of Watersheds and Rivers, the Consultative Group on Biological Diversity, the Dollar Energy Fund, the
Pennsylvania Wildlife Federation, and the Friends of the National Parks at Gettysburg. He is also a member of
numerous other civic, environmental, and historic organizations. He is a resident of Allegheny County,
Pennsylvania, is married and has two children.
MR. GEORGE BREWSTER
George Brewster is a graduate of Columbia Law School and Bard College. In a twenty-three year career as a real
estate investor and developer, he has been involved in projects as diverse as a 500-acre master-planned community
in North Carolina, a mixed-use waterfront infill development in the Bay Area, a 4,300-unit multi-family nationwide
investment portfolio, the development of a 580,000 square-foot headquarters complex for VISA International,
programming of corporate meeting facilities for Pacific Gas & Electric, and the evaluation, acquisition and asset
management of the $1.2 billion Bell Savings real estate portfolio.
Mr. Brewster was co-founder of BayGroup Property Advisory Services and has served as vice president and director
of real estate of Calmark Asset Management, and vice president of Bankers Mortgage Corporation, as well as
general manager of its development subsidiaries. He is author of The Ecology of Development (Urban Land
Institute, 1996) and numerous articles on alternative development models and the integration of the built and natural
environments. Mr. Brewster is a member of the Environmental Forum and Environmental Council of the Urban Land
Institute and has been executive director of the California Center for Land Recycling since its inception in 1996.
Brownfieldj
Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields'97 Partnering for a Greener Tomorrow
The California Center for Land Recycling (CCLR) was created as a partnership between the Trust for Public Land
and The James Irvine Foundation. Its mission is to encourage and facilitate the reuse and recycling of land and
building resources in already-urbanized areas.
MR. TOBY CLARK
[Biography was not available at time of printing. Please refer to conference addendum.]
Ms. NAN STOCKHOLM
[Biography was not available at time of printing. Please refer to conference addendum.]
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3B: MORE THAN JUST THE MONEY: THE EMERGING ROLE OF
FOUNDATIONS
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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CALIFORNIA
CENTER FOR
LAND
RECYCLING
Sufiomobie Communititi
UPDATE ON THE CALIFORNIA CENTER FOR LAND RECYCLING
JUNE 1997
Staffing
The CCLR staff has grown to seven with the addition of several new members. Clay
Carter has come aboard as a Project Advisor for the Project Learning Program. Sam
Obregon is the Administration Manager, and is responsible for all accounting and
administrative functions. Romany Hall is the Project Associate currently supporting the
Project Learning Program. Isaac Shikuma is the first CCLR Project Intern. EPA
liaison, Bret Moxley, will be staying on for the next two years, as Redevelopment and
Remediation Advisor for the Project Learning Program. Finally, Edith Pepper, formerly
of the Northeast Midwest Institute, joins CCLR for the summer to develop a paper on
the status of Brownfields in California.
Project Learning Program
In February, the Project Learning Program sent its Request for Proposals (RFP) to
approximately 3,000 community development corporations, private developers,
counties, cities and redevelopment agencies, and community organizations throughout
California. The CCLR objectives specified in the RFP were to facilitate specific site
redevelopment, engage in a collaborative learning process, encourage policy reform,
and identify financing strategies. .CCLR will seek to add value to each project and
provide appropriate assistance to the project sponsor in bringing the projects closer to
fruition. CCLR will document its work and the lessons learned with case studies, and
distill tools for use in brownfield redevelopment within California and beyond. CCLR
received 27 proposals from a wide variety of organizations representing a great
diversity of project types from locations throughout California. Two initial projects have
been selected and three to five more will be chosen within the next month.
Information and Outreach Program
The first iteration of the CCLR website is complete and is up and running at
www.tpl.org/tpl/cclr.html. The website contains general information on CCLR, its
three programs,, other James Irvine Foundation grantees, and The Trust for Public
Land. There is an email link to CCLR from the site and a section that highlights our
latest news and activities. Additional links to related organizations will be added, and
information and resources will be expanded as the site undergoes enhancements. Look
for that expanded site later on this year.
CCLR's executive Director has made several presentations on the mission and
programs of CCLR, including an overview of CCLR and redevelopment at the Infill
Development of Contaminated Land conference sponsored by UC Davis and luncheon
presentations at Lambda Alpha and EDAW. CCLR will testify at a Congressional Field
Forum on June 21st and will co-sponsor EPA Brownfields '97 in September, and
"Getting our Communities Back on their Peer in November.
Brw*
The CCLR Working Group has been assembled and has held five working sessions. The
Group isj comprised of members with varied yet complimentary backgrounds, including
representatives from the legal, regulatory, community advocacy and housing, land
conservation, for-profrt development, and environmental consulting.communities.
Program of The Truw for Public Law! 116 Jjlew Montgomery, Suite 524, San Francisco, California 94105,415/495-5660, Fax 415/882-7666
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CALIFORNIA
CENTER FOR CALIFORNIA CENTER FOR LAND RECYCLING
LAND Pact sheet,
RECYCLING
The California Center for Land Recycling (CCLR, or "see-clear) is a new program
of the Trust for Public Land, a private nonprofit land conservation organization
headquartered in San Francisco. CCLR has been awarded a three year, $2
J>luttBna6idCoimtu"unei million grant by the James Irvine Foundation as part of its Sustainable
Communities initiative.
CCLR will work with community based organizations, private developers, lenders
and regulators to encourage and facilitate the redevelopment of brownfield sites
throughout California. Projects selected for involvement will be those whose reuse
is community supported, environmentally responsible and economically feasible.
Brownfield sites are abandoned, idle, or underused land and buildings, most of
which are in urban locations, whose use or redevelopment is impeded by real or
perceived environmental problems. It has been estimated that there are as many
as 500,000 brownfield sites in the U.S., with a current market value of between
$500 and $750 billion. Abandoned and underused sites result in a loss of tax
revenue, jobs, housing and recreational opportunities in the community. Vacant
buildings and lots foster crime, inhibit the development of surrounding parcels, anjd
can pose health risks to the community, adding to the decline of urbanized areas.
Elimination ojf contamination and the prevention of new uses which create pollution
are vital issues of environmental justice.
Uses for brownfield sites include housing, commercial, mixed-use and industrial
projects, as well as-the creation of parks and recreational areas and restoration of
wildlife hab'tat and ooen space. Redevelopment of brownfield sites offers the
opportunity to revitalize neighborhoods and cities through the creation of new
housing and jobsj increased tax base, and improvement in the quality of life. By
making cities safer and more livable, brownfield redevelopment also decreases
pressure for expansion of development into rural "greenfield" areas, helping to
preserve ooen space and habitat around our cities. Barriers to brownfield
redevelopment include long term liability issues for owners, developers and
lenders; uncertain clean-up standards and costs; and a complex and confusing
regulatory environment
The role of CCLR is to facilitate redevelopment of brownfield sites by providing an
integrated package of services tailored to the specific needs of the project,
including advisory and consulting services in feasibility, planning, remediation,
financing, development and project management Beginning in early 1997. CCLR
wilt seleet and develop a number of demonstration sites to prove the feasibility of
this approach. CCLR will develop and work for the Implementation of policies
which encourage brownfield redevelopment, and share its knowledge, experience
and resourjces with public and private sector organizations involved in
redevelopment. Including grantmaking related to specific projects.
A Program of The Tnisc for Public Land 116 New Montgomery, Suite 524. San Francisco, California 94105.415/495-5660, Fax 415/862-7666
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Northeast/Midwest Institute Congressional Field Forum
Testimony by George B. Brewster, Executive Director
California Center for Land Recycling
June 21,1997
Introduction
My name is George Brewster and I am a real estate developer and investor, as
well as an environmentalist. After having been involved in some $2 billion of
projects ranging from single family houses to high rise office buildings, I
concluded that conventional land use and development practices are not only
unprofitable, but also socially and environmentally irresponsible. I joined the
California Center for Land Recycling as its executive director because I am
convinced that a new model for land use and development is
both needed and eminently possible.
The California Center for Land Recycling (CCLR, or "see-clear" for short) is a
non-profit bom in 1996. It was conceived by.The Califomians and The Land
Project, a broad spectrum group of business, public sector, non-profit and
funding organizations concerned with land use policy which is underwritten by
the James Irvine Foundation. The mission of CCLR is to encourage and
facilitate the reuse and recycling of land and buildings in already-urbanized areas
of California, as a long term strategy to conserve land resources and create
sustainable communities which meet the long term needs of the community, the
economy & the environment
The implementation of this strategy is through neighborhood-driven decision-
making, and regional planning policies. Programs include intermediary and
advisory services for site-specific projects; development of information resources
and networks; and the creation of policy reform proposals which will help level
the playing field between brownfield and greenfield development.
Creating the vision and implementing this new approach will require leadership
from the public, private and non-profit sectors. Non-profits such as CCLR and
other organizations can provide a vital link between the public and private
sectors, particularly in light of decreased levels of federal funding and the
devolution of planning and regulatory functions from the federal to the state level.
In recent years there has been a proliferation of NGO's involved in sustainability,
land use and urban revitalization issues, making more resources and capacity
available to forge new collaborations and solutions. At the same time,
1
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philanthropic institutions have more resources available to direct at these issues,
and a growing interest in investing in them. These trends present an
opportunity to refbcus attention on regional planning, statewide growth
management and regulatory reform.
Framing the Brownfields Issue
The Western United States have a somewhat different brownfield problem than
the industrialized Northeast and Midwestern states. Those states are typified by
the large concentrations of obsolete industrial facilities that are the legacy of the
Industrial Age, a time when the West was just being settled. The situation in the
West Is more the result of Manifest Destiny, the nineteenth-century belief that the
U.S. would inevitably expand to the Pacific Coast, and which gave rise to a view
of Western land as a limitless resource, to be conquered and exploited with
impunity.
the West has developed and urbanized rapidly since its settlement, and
especially following the end of WWII. Today 86% of all Westerners live in urban
areas, compared to New York's 80%, and 6 of the 15 fastest growing cities in the
nation are located in the thirteen Western states. The pattern of urbanization in
the West as been one of boom, sprawl, abandonment boomtowns become
sprawling urban areas, leading to the abandonment of downtown cores as
growth moves to the outer fringes of the metropolitan region.
California is in the vanguard of this trend, and Los Angeles has come become for
many the touchstone of what they don't want as their future. The primary
characteristics of Los Angeles, as well as the other Western cities which are
following its pattern, are the consumption of land at rates far greater than the
underlying population growth, and the creation of blighted urban cores
characterized by concentrations of poverty, a shortage of work and educational
opportunities, and high rates of crime and disease. The sprawl pattern of
development, spreading ever outward and leaving hollowed out "donut cities' at
the core, reflects the underlying belief that land in the West is limitless, that it
can be used up and thrown away. It is not only unsustainable, it is also socially
and environmentally irresponsible, leaving in its wake ruptured ..."bonds of
community, compassion, culture and place," according to Mark Sagoff of the
Institute of Philosophy and Public Policy at the University of Maryland.
Brownfialds, in the sense of contaminated and abandoned industrial and
commercial sites, are one by-product of the sprawl pattern of growth. But
deteriorated and abandoned apartment buildings and shops, and garbage-
strewn vacant lots are also by-products of sprawl, it's waste product If you will.
Perhaps the more Inclusive term "urtianflelds" better describes these vast land
resources in close-in locations, with existing infrastructure and services, that are
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today treated as trash but which instead could be recycled and reused.
Recycling land and buildings in already-urbanized locations, in a way which
produces pedestrian-friendly, mixed-use neighborhoods, can meet the need for
quality communities for all income levels, while helping to preserve undeveloped
land outside the urban area.
The biggest obstacle to such a new model of development is the
institutionalization of sprawl during the post-WWII period. While sprawl Is
sometimes referred to as unplanned development, it might be more accurate to
call it subsidized development, because the social, environmental and economic
implications of locating new development at increasing distances from the urban
core are almost completely ignored in its pricing. The result is to "...stimulate
overconsumption of housing in costly-to-serve circumstances, and to subsidize
the more costly locations with less costly ones," according to James Frank (The
Costs of Alternative Development Patterns," Urban Land Institute, 1989).
The planning practices, land use and building codes, governmental incentives
and financing structures which were created to address the needs of post-war
America have ossified into an institutionalized web of incentives for sprawl
development and pose currently-insurmountable barriers to brownfield
development. Although our needs have changed, our policies have remained
frozen.
Obstacles to Brownfield Redevelopment
The obstacles confronting brownfield redevelopment illustrate how a fragmented
approach to legislation and regulation can exacerbate, rather than resolve, the
problem. Those obstacles can be summarized as the four C's: Lack of certainty,
lack of clarity, lack of coordination, and lack of cash. Lack of certainty is
evidenced in permitting processes, entitlements hassels, and cleanup standards.
Lack of clarity runs throughout the regulatory environment, including liability
Issues and overlapping jurisdictions. Lack of coordination between
governmental age'ncies and programs to encourage brownfield development and
discourage greenfield development Is endemic. Lack of cash is reflected by the
almost total absence of meaningful incentives for private sector investment.
The involvement of the private sector is critical in addressing the challenges of
urban revitalization. Healthy economic growth is both a precondition to, and a
fBSMP 8f< sustainable eemmunities. Private investment Is the engine that can
fuel sustainable growth; policies which encourage soetally and environmentally
responsible Investment are as important as public seed capital to leverage
private investment Fortunately, Increased public interest and media attention
has created a growing awareness among business leaders of environmental
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issues, and there are signs of more willingness within the business community to
assume responsibility for leadership in social equity issues.
The role of government should be to provide leadership in implementing new
policies to encourage urban revrtalization, and to provide resources for
communities to help themselves, together with incentives for business to act with
a long term view, in order to balance economic growth with environmental
protection and social equity.
Approaches to overcoming the obstacles must view brownfields in the context of
the larger challenges to urban revitalization, and should:
Be place-based and regional in scope;
Take a long term view of social, economic and environmental needs;
Be holistic in concept and integrated in implementation;
Encourage community-driven decision making and problem solving;
Facilitate public/private collaborations and encourage civic entrepreneurial
creativity;
Help level the playing field between greenfield and brownfield development;
and
Provide economically feasible alternatives to conventional patterns of growth.
Solutions
What we need to do now is to change our thinking, to recognize and deal with
the problems created during the post-war period, and to create new solutions
that address today's problems without creating new problems tomorrow. This
will require system-wide changes in policy and practice. When policy is
understood as a major cause of sprawl, land use reform becomes an appropriate
subject for corrective legislative action.
Some directions for such policy reform are:
Systemic, coordinated reform in policies related to growth, including.land use
regulations, tax structures and financing mechanisms.
Implementation of programs which provide incentives for private sector
investment and development in already-urbanized areas, and which
discourage additional development in greenfield areas.
Reduction of obstacles such as outmoded zoning and building codes,
cumbersome entitlements and permitting procedures, and the regulatory,
liability and financial hurdles faced by BF sites, including:
CERCLA reform to remove Superfund liability for purchasers,
developers and lenders of BF sites, liberalize the VCP program to
eliminate re-openers, and provide for regulatory clarity, certainty and
coordination;
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Federal models for voluntary state growth management programs
based on regional scale, long term planning and which discourage
sprawl and encourage inner city investment; which reform local codes
and zoning to encourage compact, pedestrian-friendly and transit-
oriented development; and which provide for community-based
decision-making processes. Such models must be accompanied by
incentives for state adoption;
ISTEA reauthorization in a form such as the Chafee/Moynihan bill,
which would double CMAQ spending and boost enhancements;
Economic incentives, such as the brownfield tax incentive bill (Senate
bill S.235 and House H.R. 505); and
Banking regulation reform to overcome the practice of "building-
monoculture" imposed by underwriting procedures and portfolio
policies which have the effect of encouraging sprawl development by
not being able to accommodate the greater diversity of project and
financing types in the urban environment.
Conclusion
I urge you to keep the larger picture in mind and to work toward comprehensive
reforms which will encourage reuse of urbanfields of all types to achieve urban
revitalization. It is vital that we create private sector incentives that will be as
effective in overcoming urban decay today, as the incentives created in the
1950's were in stimulating sprawl development
What seems to be needed is a comprehensive Urban Recovery Plan, a Marshall
Plan for the American cities of the 21 * century. Such a plan would provide a
framework and resources at the national, state and local levels to link and
integrate land use, economic development, and conservation planning to
stimulate economic recovery, resource conservation and community-building.
I urge you to think in terms of the whole fabric of our metropolitan areas, and to
see brownfields as part of the urbanfields challenge, as an opportunity to change
the way we accommodate growth and to create a new model for growth and
development, grounded in the principles of stewardship and sustainabilHy which
can meet the needs of the 21" century.
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iwnfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3C) A New Kind of Business: The Cherry Pickers, Packagers, and Deal Makers
Friday, September 5,1997
10:30 a.m. -12:30 p.m.
Description: Take a look at the new types of business engendered by the brownfields movement, including
major property packagers who clean up and sell large parcels, cherry pickers who stick with the prime easy deals,
and innovative venture capitalists.
Location: Room 1203B
Speakers and Affiliation:
The Honorable Elliott P. Laws (Moderator)
Mr. Barry Hersh
Mr. Michael J. Murphy
Mr. Lewis Norry
Ration Boggs, L.L.P.
Dames & Moore/Brookhill
Environmental Strategies Corporation
Norry Management Corp.
THE HONORABLE ELLIOTT P. LAWS
Elliott P. Laws, the former Assistant Administrator for Solid Waste and Emergency Response at the U.S.
Environmental Protection Agency (EPA), is a partner in both the environmental, health and safety, and the public
policy practice groups of Ration Boggs, L.L.P. He specializes in issues relating to economic redevelopment of
contaminated properties, brownfields, environmental policy and legislation. In his position al EPA, Mr. Laws was
responsible for the national solid and hazardous waste management programs, the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA) program, belter known as Superfund, and the national
Brownfields Program, as well as the Agency's underground storage lank and chemical emergency planning and
prevention programs. Prior to his appointment to EPA, Mr. Laws was a partner specializing in environmental law and
legislation, and municipal representation al Ration, Boggs & Blow, focusing primarily on CERCLA, air, water, and
recycling issues.
MR. BARRY HERSH
Mr. Hersh joined Dames & Moore/Brookhill at its inception in May 1996, and he manages site acquisitions and
redevelopments. This joint venture company, between a major engineering firm and a substantial real estate group,
was created to acquire, remediate, and redevelop contaminated properties. The initial focus has been the reuse of
industrial and retail facilities throughout the United States. In March 1997, Dames & Moore/Brookhill completed the
first portfolio acquisition of 24 environmentally-tainted assets in 12 states for $72,000,000.
Mr. Hersh holds a Bachelor of Arts in urban and environmental studies from the City University of New York, and a
master's degree in urban planning from the Wagner School of New York University. He is a member of the
American Institute of Certified Planners, the Urban Land Institute, and NACORE.
MR. MICHAEL J. MURPHY
Mr. Murphy is a co-founder and the chairman and chief executive officer of Environmental Strategies Corporation
(ESC), a full-service environmental consulting firm with headquarters in Reston, Virginia. He also founded and
serves as chief executive officer of Industrial Recovery Capital Holdings Company, a contaminated property
investment, acquisition, remediation and redevelopment firm. He has extensive experience in environmental
consulting and senior corporate and senior corporate management related to environmental programs. He has been
extensively involved in the development of risk analysis, environmental policy, and technical risk assessment
programs. He was formerly appointed to the Expert Advisory Consultation on Environmental Risk Management of
the World Health Organization, European Office, Copenhagen. He testified on waste policy issues before the United
Kingdom (UK) House of Lords Conference to assist in the debate on establishing UK waste policy.
rownficlds '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
Mr. Murphy has assisted numerous clients in the development of strategy in dealing with the Comprehensive
Environmental Response. Compensation, and Liability Act (CERCLA) Superfund liabilities and remedial
investigations and feasibility studies. He has also worked in the application of various scientific disciplines and
procedures in assessing liabilities associated with the merger or acquisition of commercial properties and facilities.
Law firms and investment banking organizations have relied on this approach before the final transfer of assets.
Mr. Murphy was instrumental in developing the procedures used for pollution liability insurance risk assessments for
the insurance industry and has lectured widely on these procedures. Mr. Murphy directs the strategic planning effort
on diverse environmental issues before governmental agencies for representatives of private industry. Mr. Murphy
has served on the boards of directors of private and public companies in the United States.
Mr. Murphy received his Master of Science cum laude in natural sciences from the State University of New York
(Roswell Park Memorial Institute Division) and was awarded a National Institutes of Health predoctoral fellowship
and an American Cancer Society grant. Mr. Murphy received his Bachelor of Science from the State University
College of New York at Buffalo.
MR. LEWIS NORRY
Lewis Norry is president of Norry Management Corp., a third generation family-owned real estate development firm,
specializing in the redevelopment of older industrial properties.
Since joining the company in the mid 1980s, Mr. Norry has successfully directed the Norry Company into the
redevelopment of brownfields propertiesthose impacted by environmental issues such as actual or perceived
pollution.
The company's most notable brownfields project is Western Select Properties, a 1.6 million square-foot former AT&T
manufacturing facility in Indianapolis, Indiana. The Norry Company has redeveloped the property into a multi-tenant
industrial and office complex that is more than 90 percent occupied. Tenants include The Indiana Department of
Environmental Management, whose offices and laboratories are now in this facility.
As a result of the company's involvement in this specialized area of real estate development, Mr. Norry has become
involved in brownfields policy and often speaks for and consults on the economics and marketability of brownfields.
He has spoken to such diverse groups as The Great Lakes Coalition, EPA Region 5, the United Nations
Environmental Programme and the City of Indianapolis. He also serves on the City of Indianapolis Brownfields
Redevelopment Advisory Group.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3D) Location! Contamination? A Model for Real Estate Decision-Making
Wednesday, Septembers, 1997
3:45 p.m. -5:15 p.m.
Description: Let's make a deal! This highly interactive session will demystify the cleanup and redevelopment
decision-making process for office and industrial property and provide a model that can be applied to most private
transactions. Three project proposals will be presented to a simulated board of directors that's you, the
audience! The panelists, an attorney, an engineer and a real estate professional, will present overviews, then
open the discussion for the board, who will vote to select the prime site. Afterwards, check in with bankers on the
panel for more financing ideas.
Location: Room 1202A-B
Speakers and Affiliation:
Mr. Ronnie E. Duncan (Moderator)
Mr. Gregory R. Hansen
Mr. Douglas Skowron
Sevell & Duncan Realty Services, Inc.
Liberty Property Trust
The Galbreath Company
MR. RONNIE E. DUNCAN
Mr. Duncan is a principal and co-founder of Sevell & Duncan Realty Services, Inc., a Boca Raton, Florida-based
regional commercial real estate firm. He today is active in the several regional offices of the firm, especially those
located in Fort Meyers and Port St. Lucie, Florida and Atlanta, Georgia.
Mr. Duncan was formerly director of Florida Development for the Office/Industrial Properties Division of the Edward
J. DeBartolo Corporation. Mr. Duncan was responsible for all facets of the division including land acquisition, design
planning, development and project management, architectural review, construction administration and complete
project marketing and property management of major commercial properties.
Currently, Mr. Duncan is a national director and vice president of public affairs, a national director for the National
Association of Industrial and Office Properties (NAIOP), and vice president of public affairs for the State of Florida
Chapter of NAIOP. He also serves as a member of the NAIOP National Board of Directors and represents all
national members as a part of the Executive Committee.
Mr. Duncan is a member of the Business Advisory Board for Florida Atlantic University and a former member of the
professional teaching faculty of NOVA University, based in Davie, Florida. Mr. Duncan is on the advisory board of
and committed to the enhancement Daily Bread Food Bank of South Florida. He also serves as a member of the
Community Development Board, Morton Plant Mease Hospital and Health Care System.
MR. GREGORY R. HANSEN
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. DOUGLAS J. SKOWRON
Mr. Skowron assembled a development team and proposal responding to a national request for proposal (RFP) and
was selected to develop a 100-acre brownfields site on Pittsburgh's south side. He directed an urban design firm
and redevelopment authority in developing a master plan for mixed-use urban campus including office and research
facilities, flexspace, retail/entertainment, and residential apartments totaling approximately 2 million square feet. He
assisted in assembling a tax-increment financing package to develop structured parking and infrastructure, and he
currently leads a marketing effort to recruit office/light industrial tenants and develop suitable buildings for their use.
Mr. Skowron also serves as consultant on other brownfields projects.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields 97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3D: LOCATION! CONTAMINATION? A MODEL FOR REAL ESTATE
DECISION-MAKING
Brownfiolds 97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Creating a Future for Environmentally
Properties
Analysis of Real Estate
Potential
September 3-5,1997
hx= (jeJbi'eath. Company
JL"*"^^*1 ^i **"""^"""""** ^i ""^"^""" I ""^""""""^r
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The Galbreath Company
Page 1
Location Variables for a Site
Visibility
Labor Force
Adjacent Uses
Transportation Access
Population Density
Traffic Count
Quality & Character of Surrounding
Neighborhoods
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The Galbreath Company
Location Variables, cont...
^Completion of Time 18-24 Months
Labor Market - Availability of Skills
Costs
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The Galbreath Company
Site Issues
Highway Access
v Full Utility
' Topography/Soil Conditions
^ Relatively Free of Environmental Issues
Compatible Surrounding Land Use
v' Proper Zoning
v Controlled Ownership
v Realistic Development Plans
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The Galbreath Company
Industrial/Office
Quick Access to Limited Access Highway
Labor Availability
Airport Hub
Access to Suppliers/Customers
Amenities
* Shopping
> Golf/Recreation
Campus Environment
Large Footprint - 30,000 SF
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The Galbreath Company
Page 5
Retail/Entertainment
High Traffic Volumes
Visibility
Buying Power of Surrounding Neighborhoods
Access/Egress
Residential
Watch for Clean-up Standards
Apartment vs. Single Family
Amenities - Convenience to Shopping
Existing Neighborhood Fabric
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The Galbreath Company
Economic Development Alliance
Building Alliance
*- IDC's, Redevelopment Authorities, CDC's
*~ Give Them Stake in Your Success
^Gain Access to Public Resources
- Pull Market to Your Site
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The Galbreath Company
Economic Development Alliance, cont.
Public Private Partnership
* Private Seed Money to Leverage Public
Infrastructure
^Community Planning & Participation
» Development Agreement
^Rights and Responsibilities
-------
The Galbreath Company
PageS
Sources & Use of Funds
v'Uses
> Site Preparation
> Construction
>- Soft Costs
Sources
>- Cost of Capital
> Loans
> Grants
-------
The Galbreath Company
Market Analysis
^ Supply
* Existing Supply of Space
* Vacancy Rates
* By Type - Flex, Warehouse, Retail
v Demand
^Absorption Rates
* Specific Tenants
* Rent Comparables
^ Sale Comparables
-------
The Galbreath Company
Revenue Projections
Rent Projections
Sales Projections
Lease-Up
Build-Out
Mixed-Use Campus. Whole Greater than
the Sum of the Parts.
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3E) Financing 201: Funding Options for Municipalities and the Private Sector
Wednesday, Septembers, 1997
3:45 p.m. - 5:15 p.m.
Description: An advanced offering for more experienced brownfields practitioners, this session is not for the
novice. Tax increment financing (TIP), general obligation and revenue bonds, and Small Business Administration
financing are among the topics to be discussed. Bring your financing questions!
Location: Room 1203C
Speakers and Affiliation:
Mr. Randy A. Muller (Moderator)
Mr. David R. Campbell
Mr. Michael H. Elam
Ms. Karen H. Lennon
Bank of America
Bank of America
Rudnick & Wolfe
SomerCor 504, Inc.
MR. RANDY A. MULLER
Mr. Muller, as vice president and manager of the Environmental Services Group in Chicago, is responsible for the
ongoing environmental risk management for all commercial lending and trust activities originating in Chicago. The
group reviews all levels of environmental information for fiduciary, pretending and preforeclosure situations in
regards to technical, legal, and regulatory concerns. The portfolio is made up of typically industrial assets located
throughout this country and overseas. Most recently he has spent considerable time working in concert with various
public and private entities to pass legislation and to develop technical and financial methodologies to expedite
redevelopment of potentially contaminated properties (brownfields).
MR. DAVID R. CAMPBELL
Mr. Campbell joined Bank of America's (BofA) public finance group in 1996, where he concentrates his efforts in
expanding the Banks' credit relationships with public entities throughout the Midwest. Prior to this, he served as a
community development leader with both BofA and Comerica Bank. Mr. Campbell also has experience in
commercial lending and single and multi-family housing development. He holds both a Master of Arts in public
policy and a master's degree in business administration from the University of Chicago. His publications include
Communities in Transition, a study of neighborhood redevelopment in Chicago.
MR. MICHAEL H. ELAM
Michael H. Elam is a partner at the law firm of Rudnick & Wolfe, and a chair of Rudnick & Wolfe's Environmental
Practice Group. Mr. Elam is a graduate of Macalester College (B.A., 1976) and Indiana University (J.D., 1980), and
he studied international and environmental law at Universite Libre de Bruxelles in Belgium. His practice spans all
aspects of environmental law, including regulatory counseling and compliance, corporate and real estate
transactions, major litigation and international matters.
Mr. Elam's extensive background at the U.S. Environmental Protection Agency (EPA), spanning ten years, provides
him with valuable experience and insight into resolving clients' complex environmental issues. Prior to becoming an
attorney, Mr. Elam collected and analyzed environmental samples for the State of Indiana and was a physical
scientist for the EPA. His legal experience includes work at both EPA's Washington headquarters as well as its
Region 5 Chicago office.- In Washington, Mr. Elam was the special assistant to the Assistant Administrator for
Enforcement, where he worked on special projects for EPA, the Department of Justice, and Congress. At the EPA's
Region 5 Office of Regional Counsel, he became senior attorney and represented EPA in some of the nation's most
visible and complex environmental litigation. He subsequently became acting deputy regional counsel, responsible
for managing over 80 attorneys providing legal services for all environmental matters in the five-state area of Illinois,
Indiana, Minnesota, Ohio, and Wisconsin.
Mr. Elam is actively involved with environmental matters in all 10 EPA Regions and internationally. He has
significant first-hand experience with investigations and cleanups, as well as risk avoidance, risk allocation and
dispute resolution, including negotiations, alternative dispute resolution, and litigation. Mr. Elam is particularly well
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
known for his work with the use or reuse of "brownfields" (contaminated) property. This includes counseling clients
and participating in governmental policy development with respect to all aspects of acquiring, selling, developing,
lending and leasing of properties or businesses that have environmental issues associated with them, as well as
implementing public private partnerships which require a wide range of diverse talents and disciplines working
together. These projects include current and former petroleum refineries, railroads and steel facilities, as well as
with "volume* transactions, which encompass multiple properties in numerous states, such as current or former
service stations or dry cleaners. Mr. Elam has effectively employed the evolving interest in brownfields to assist in
addressing regulatory, Superfund and natural resource damage claims. Mr. Elam regularly speaks to public and
private groups across the country and internationally concerning all aspects of environmental law.
Ms. KAREN H. LENNON
Karen Lennon is president and founder of SomerCor 504, Inc., a non-profit company certified by the Small Business
Administration to originate 504 program loans in the six-county Chicagoland area. In addition to her SomerCor
duties, Ms. Lennon serves on the Board of Directors of the Chicago chapter of the National Association of Women
Business Owners, as well as the Board of the Economic Development Council of Chicago.
Prior to forming her own company, Ms. Lennon was with a regional bank, purchasing suburban banks for the holding
company and creating venture capital and investment management subsidiaries. Other work experience includes
consulting with Inland Steel Company and serving as in-house counsel for the Illinois Housing Development
Authority.
In addition to her law degree, Ms. Lennon has a Master of Business Administration from the University of Chicago
and a master's degree in mathematics from the University of Illinois.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3E: FINANCING 201: FUNDING OPTIONS FOR MUNICIPALITIES AND THE
PRIVATE SECTOR
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfield Financing
Mythology
A Compendium of Three Years of
Frustration
Randy A. Muller
Bank of America
-------
"I gotta' Brownfield I want
to redevelop."
Do you really "got" it?
Control
Clear Title
County vs. City Control
Eminent Domain and Property Assembly
Reasons for Private Party Reluctance to Sell
(Perpetual Liability vs. Liability Ignorance
vs. Unrealistic Expectations)
-------
"I gotta' Brownfield I want
to redevelop."
(Part II)
Who are You?
A Developer/Speculator
A Going Business Concern
A Municipality
-------
There Must be a Credit
Worthy Entity for the Bank
to Lend to...A Borrower
Who has the Capacity and
the Character to Repay the
Debt.
-------
I "Do" have Control and
Clear Title...Now I need a
Loan.
Not so Fast... What about Site
Characterization - Defining the
Risk/Value ?
-------
Can't I Pay for the
Environmental
Investigation from the
Loan?
Not Likely .. .Let's Look at Different
Types of Loans. First, for Developers
and Going Business Concerns...
-------
Real Estate Secured Loans
The Favorite of Developers and Speculators -
Developing with Someone Else's Money
(Least Commitment to Sustainable
Development)
Limited Typically to 70% of the Unimpacted
Property Value (Deal Killer)
Environmental Due Diligence Must be Done
Prior to Loan Commitment
Must have "Committed" Demand
(Although Changing)
-------
Small Business Loans - 7a
and 504
Either Federal Government Guarantees of 70%
or Relinquished 50% Equity First Lien
Position
As Little as 10 % Down
Long Term Amortization at Attractive Rates
51% Owner Occupied - No Developers or
Speculators, Demand Established
Environmental Due Diligence Must be Done
Prior to Loan Commitment
-------
Asset Based Lending -
Equipment, Inventory
and/or Receivables
Typically Insufficient Inventory or
Receivables If Property is Under Utilized
Existing Equipment Often Contaminated or
Obsolete
Typically Requires Significantly Less
Environmental Due Diligence (Gash Flows
vs. Collateral Value)
Demand Already Established
-------
Now Let's Look at
Municipalities...
-------
General Obligation Bonds
General Credit Strength of the
Municipality is Evaluated Relative to
Likelihood of Repayment
No Environmental Due Diligence
Required by Lender (Municipal Liability
Concerns)
-------
Revenue Bonds
Legislatively Dedicated Municipal Tax
Revenue (i.e.., Special Assessment District)
Provided to Repay the Bond
No Environmental Due Diligence Required
by Lender (Municipal Liability Concerns
-------
Tips for Approaching Your
Lender
Don't Mention the Word "Brownfield"
Identify the Type of Loan You Want, Be
Specific
Identify the Potential Risks, How You
Determined the Extent of the Risks, and
Your Methodology to Mitigate
(Remediation) or Transfer the Risk
Indemnities, Escrows, Insurance, etc..)
-------
Every Redevelopment Risk
(Construction,
Environmental, Socio-
Economic, etc.) Has an
Incremental Cost
Associated with It...
-------
Adequately Defining All
the Risks and the
Incremental Costs
Associated with the
Solutions is the First Step
to Getting Financing...
-------
Making Sure That the
Revenues Sufficiently
Cover the Costs is the
Other.
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3F) Are the Fields Always Greener? A Different Approach for Conservation Organizations
Friday, September 5,1997
10:30 a.m. -12:30 p.m.
Description: Relatively new players in the brownfields scenario are non-profit environmental and conservation
organizations. They can partner with public agencies to acquire, finance, and sometimes remediate brownfields
for mixed use, including public parks and greenways. This panel will feature case studies in some of our largest
cities where green spaces are bringing both economic and environmental benefits to communities.
Location: Room 1205
Speakers and Affiliation:
Ms. Kathy Blaha (Moderator)
Mr. Michael W. Groman
Mr. Tom Hahn
Ms. Joyce Rowley
Trust for Public Land
Pennsylvania Horticultural Society
CorLands
Scenic Hudson, Inc.
Ms. KATHY A. BLAHA
Kathleen Blaha is Vice President for National Programs for the Trust for Public Land (TPL) and currently directing
TPL's Green Cities Initiative, a systematic effort to strengthen urban park and open space programs. In support of
TPL staff working in over twenty cities across the country, Ms. Blaha is working to develop new parks, particularly in
underserved areas, create better management capacity, and create new funding sources.
Ms. Blaha has worked for fourteen years with TPL on real estate transactions and conservation services, first in the
southeast as associate regional manager, then as acting regional manager for the midwest office, relocating to
Washington, D.C. in 1992 to work in national programs to develop an urban initiative for TPL.
Before coming to TPL, Ms. Blaha worked first as a land and water resources planner for the regional Council of
Governments in Raleigh, North Carolina, and later helped to create the Triangle Land Conservancy, a private land
trust in the Raleigh-Durham area of North Carolina.
Ms. Blaha has a Bachelor of Arts in geography from Miami University in Oxford, Ohio (1979) and a master's degree
in regional land use planning from the University of North Carolina at Chapel Hill (1981). She currently sits on the
board of her local land trust, the Severn River Land Trust in Annapolis, Maryland.
MR. MICHAEL W. GROMAN
Mr. Groman manages the Community Greening Department of the Pennsylvania Horticultural Society's "Philadelphia
Green" program. The program promotes urban horticulture by helping community volunteers to plant street trees,
create gardens on vacant lots, and implement various other greening projects throughout the City of Philadelphia.
To date, over 2,000 projects have been established. Mr. Groman oversees the implementation and administration of
the program's various community greening initiatives. He works closely with the Society's vice president to support
overall program planning and development. He also interfaces with city agencies, institutions and other non-profits
to promote community gardening as part of the neighborhood revitalization process. Mr. Groman has been with the
Society for ten years.
Formerly, Mr. Groman was a project manager with BCM Engineers, Inc., providing environmental planning services
to various municipalities in the Philadelphia/South Jersey region. He also worked as a community planner with the
Montgomery County Planning Commission. He received a Bachelor of Science in environmental resource
management from Pennsylvania State University and a master's degree in regional planning from the University of
Pennsylvania.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
MR. TOM HAHN
Thomas Hahn is the executive director of CorLands, the non-profit land acquisition affiliate of Openlands Project.
Based in Chicago, CorLands undertakes a wide variety of real estate transactions aimed at preserving open space
for public use. Since its inception in 1978, CorLands has preserved over 5,000 acres of land with a total value of
$50.000,000. Recent clients of CorLands include the Chicago Park District, the City of Chicago and the Cook
County Forest Preserve District. Mr. Hahn will participate in a panel discussion entitled The Fields Are Always
Greener A Different Approach for Conservation Organizations and will discuss his recent experiences regarding
open space acquisition issues in highly urbanized settings.
Ms. JOYCE ROWLEY
Joyce Rowley is a Land Projects Manager at Scenic Hudson, Inc. in Poughkeepsie, New York, where she has
worked for the past three years. Ms. Rowley received a Bachelor of Science in geology from the University of
Connecticut in 1982 and a master's degree in community planning at the University of Rhode Island in 1991. Prior to
joining Scenic Hudson, she worked in municipal planning for eight years, and, at the U.S. Department of Agriculture
(USDA) Soil Conservation Service for four years. At Scenic Hudson, she spearheads the Urban Initiative program,
working to provide public open space in the built environment.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3F: ARE THE FIELDS ALWAYS GREENER? A DIFFERENT APPROACH
FOR CONSERVATION ORGANIZATIONS
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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CDC's AND THEIR ROLE IN OPEN SPACE MANAGEMENT
A CASE STUDY OF
THE NEW KENSINGTON OPEN SPACE MANAGEMENT SYSTEM
The New Kensington neighborhood is located in eastern North Philadelphia.
This area, encompassing approximately 100 city blocks, contains over 1100
abandoned vacant lots which foster short dumping, vandalism, and crime,
and present an atmosphere of blight and despair. The problems that
abandoned vacant land pose to neighborhoods like New Kensington in
Philadelphia and to other older industrial cities throughout the country are
described in a study produced by the Pennsylvania Horticultural Society in
1995 entitled Urban Vacant Land, Issues and Recommendations.
The New Kensington neighborhood is the site of a model program initiated by
PHS and the City's Office of Housing and Community Development to
establish a neighborhood-based open space management system to address
the growing problem of vacant land. The city will assess its replicability in
other neighborhoods throughout the city. The objective of the program is to
create an effective system for managing and maintaining every vacant parcel
and public open space site in the target area within a 5 year implementation
period. It relies on input and support from the local residents, businesses,
institutions, and city agencies and identifies a neighborhood-based
organization, the New Kensington Community Development Corporation, as
the central facilitator of the system. The program is supported by the City
-------
the central facilitator of the system. The program is supported by the City
Planning Commission, the City Redevelopment Authority, and two City
Council members-one representing the district covering New Kensington and
the other at large. It is funded by the City's Office of Housing and
Community Development.
The objective of the presentation is to describe the 3 strategic elements of
the system:
initiating community greening projects
streamlining the city's Sideyard Program
developing an Open Space Committee
The presentation will also focus on the accomplishments of year 1 of this
innovative program and address current activities with particular emphasis on
the neighborhood garden center project.
For additional information on this program contact:
Michael W. Groman
The Pennsylvania Horticultural Society
100N. 20th Street
5th Floor
Philadelphia, PA 19130-1495
Telephone # (215) 988-8800
Fax #(215) 988-8810
-------
Roles for Land Trusts in the Built Environment
The Fields Are Always Greener: A Different Approach for Conservation Organizations
For additional copies, please contact:
SCENIC Joyce Rowley, AICP
Land Projects Manager
Scenic Hudson, Inc.
9 Vassar Street
Poughkeepsie, NY 12601
Phone: 914.473.4440
Fax: 914.473.2648
e-mail: scenichu@mhv.net
HUDSON
Roles for Land Trusts in the Built Environment
September 1997
-------
Introduction
In the Hudson River Valley, decades of neglect and suburbanization have left
urban waterfronts in disarray: abandoned and often contaminated industrial sites
occupy prime shoreline. Scenic Hudson, a 35-year-old environmental organization
based in Poughkeepsie, is developing an urban initiative program that identifies
riverfront "brownfields" with strategies for acquisition, remediation, and environmentally-
friendly reuse of the most promising sites. In the queue are: transforming an industrial
warehouse and lumberyard in the Village of Irvington into a village park, revitalizing an
abandoned textile mill in Beacon for a mix of passive recreation and commercial use,
and creating a unique "conservation and development template" for the re-use of a
former major oil storage facility and coal yard at the Beacon Waterfront. The outline
below describes the process of working in urban areas from a land conservation
perspective.
Urban Natural Resource Opportunities, Goals and Benefits:
Historically, urban areas have been under served for creation of new parks and
other public amenities. These features are considered luxuries for most cities
struggling to keep pace with everything from crumbling infrastructure to overcrowded
schools, understaffed police forces, housing for the homeless, all at a time when tax
revenues are lowest. Land trusts can fill the gap, can offer staff and resources to help
create new parkland and new partnerships, and perhaps leverage a return to investing
in our cities.
Some of the mutually beneficial opportunities include:
** Protecting special places in the city such as forgotten creeks and wetlands
**- Educating the public and bringing in disenfranchised neighborhoods into the
public planning process
*» Providing public access that otherwise would not be available
*- Making vusual or physical linkages with other conservation areas, and
connecting trails through heritage areas
Urban Land Conservation
Similarities to "normal" land trust work:
-i-
-------
** Conservation tools apply to urban areas. For example, if a pedestrian
easement can be worked into an existing brownfield or adaptive re-use
project, it is much less expensive than fee acquisition but can accomplish
many of the same goals.
*+ Partnerships with other non-profits, municipalities, and state agencies.
**- Fund-raising from support base which is often easier in urban areas.
**- Acquisition requires due diligence: title, survey, phase I environmental audit
Differences:
** Land costs are much greater per acre, parcels are smaller. Some assembly
may be required.
»*- Closing and associated costs are higher too: attorney fees, title search,
survey tend to be higher due to complexity of the history of the site.
» Environmental audit costs to be anywhere up to 10x higher.
*- Transaction likely to be more complex - need indemnifications, detailed
environmental clean-up agreements.
** With public partners, the transaction may fall into public domain, eliminating
some of the confidentiality of terms.
>* Expect to do a lot of explaining. For example: What's a land trust? Why can't
we pave to the edge of the creek? What about taxes? While these questions
may arise in any area, the level of environmental education needed is much
greater. For example, while we can explain why a stream corridor buffer is
needed, the response is often, "But we're in an urban area, and we like a
'hard edge' at the riverfront" or "historically, that's how it's always been done"
Remember, the attempt to bring a natural edge to an area that has been
urbanized for anywhere up to 200 years will take extra effort.
Organizational Questions to Ask:
*< Financially, can we do it? Acquisition and due diligence are 2-3 times the cost
of non-urban sites.
** Can we partner? City, local, county and state organizations have park staff
-2-
-------
and are often looking for this type of project to help revitalize their
neighborhoods. Also, urban areas have other, non-land trust partners, who
may have volunteers to help: housing non-profits, community resource non-
profits, etc. The city government will identify these for you.
More Questions to Ask:
*- Does it work? Is there sufficient community support to take care of the
property after it's built and to champion it if it is vandalized or misused?
** Does the city administration want it? Are there local or municipal plans that
need to be followed? Zoning ordinances, other regulations? Do they have
the ability to police and maintain it?
** What are the tax impacts? Is there a positive tax impact? Can we show the
community that the clean up of a site, even if as a tax-exempt park, increases
the property values in the surrounding neighborhood?
*> Can we protect ourselves financially if something goes wrong? This applies
more to contaminated sites but any site in an urban area needs to be treated
with care.
If the Site is a Brownfield:
>*- Is there a known technology for remediation? How brown is it? Who will pay
for clean-up? Is a principal party still around?
*> How clean is clean? What levels or standards apply? Will deed restrictions
be needed? Will permanent monitoring occur, and if so, by whom?
*< How is the contamination issue handled in the appraisal? Most likely the
appraisal will assume a clean site.
*- Prior to acquisition, can you secure a covenant not to sue or "no further
action" letter by the appropriate government agency?
* Will the owner grant indemnification protecting you against future liability?
»* Can you get an environmental clause in the contract of sale structured to
allow termination of the contract if the contamination either can't be well-
defined, or the cost to remediate it is beyond a set dollar amount? (The last
is usually determined by what the owner is willing to spend to clean-up any
new found problems.)
Selecting a Site
-3-
-------
** Ideally, a resource inventory will identify key historic, ecologic, or scenic
parcels which need intervention by a conservation organization. Inventory of
known contaminated sites may already exist through state environmental
agencies.
**- However, the first project may be outside of the inventory such as an offer of
donated land through community urban renewal efforts, which becomes
available when the community learns that the land trust is a potential partner.
$$ Funding $$
** Municipal governments may have acquisition funding through Community
Development Block Grants (CDBG funds), Industrial Development Agency
(IDA) monies, and will have access to alphabet soup of federal housing and
urban development grants, most of which give "extra points" for a public
access or public amenity component.
*- Private sources: foundations and fundraising. Key into foundations with
community development element and interest in your geographical area.
*+ State funding: in New York, Environmental Protection Fund (EPF) grants,
administered by Department of State are available for municipal parks and
historic preservation projects. They're looking for innovative, partnering
grants and are available to land trusts.
*» To date, EPA Brownfields program, and the NYS Brownfields component of
the Clean Air Clean Water Bond Act are not available to non-profit land trusts.
However, non-profits can receive funding through the municipality as a
contractor/consultant who facilitates the process or performs the inventory of
sites, etc.
Scenic Hudson, Inc. is a 35-year-old not-for-profit environmental organization dedicated to protecting the
ecosystem, unique landscapes, and historic fabric of the Hudson River Valley.
EPA is granted the right to reproduce this document for purposes of distribution for the EPA Brownfields
'97 conference.
-------
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3G) Grant Writing
Thursday, September 4,1997
10:30 a.m. - 12:30 p.m.
Description: This session will teach you how to write an effective grant application. It is designed for the
neophyte and will be particularly helpful to small cities and rural communities and organizations and institutions
with little experience in the area.
Location: Room 1203B
Speakers and Affiliation:
Mr. Mosi Kitwana (Moderator)
Mr. John Rosenthal
International City/County Management Association
National Conference of Black Mayors
MR. Most KITWANA
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. JOHN ROSENTHAL
[Biography was not available at time of printing. Please refer to conference addendum.]
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3H) Still Banking on the Banking Industry
Thursday, September 4, 1997
8:00 a.m. -10:00 a.m.
Description: Investment capital is the key to making cities thrive through brownfields cleanup and
redevelopment. This panel will help developers, cities, and consultants understand what makes capital providers
tick. Hear industry leaders explore the lending preferences of various institutional investors and their impact on
the parties who do the deals.
Location: Room 1203A
Speakers and Affiliation:
Mr. Lawrence Jacobson (Moderator)
Mr. Bruce Alexander
Mr. William McKinstry
Mr. James P. O'Brien
Mr. Glen E. Sibley
Mortgage Bankers Association of America
Bank One Colorado
Teachers Insurance and Annuity Association
Baker and McKenzie
Cheslock, Bakker, & Associates, Inc.
MR. LAWRENCE JACOBSON
Lawrence Jacobson is the Director of Commercial Real Estate Finance (CREF) at the Mortgage Bankers Association
of America (MBA), Washington, D.C. Mr. Jacobson is a staff representative of the MBA's CREF Environmental
Issues Committee. The Environmental Issues Committee is comprised of mortgage bankers, commercial bank
lending and underwriting professionals, life insurance company investment officers, environmental consulting
professionals, environmental liability insurance providers, real estate attorneys and representatives from information
technology companies.
In the July, 1995 issue of Mortgage Banking magazine, Mr. Jacobson co-authored the article entitled "EPA's
Brownfields Initiatives" with David Slutzky. This article describes the importance of the EPA's policy initiatives aimed
at expediting the redevelopment of environmentally impaired properties.
Mr. Jacobson is also responsible for the MBA's largest annual conference, the Commercial Real Estate
Finance/Multifamily Housing Conference, and staffs the CREF Technology Initiatives Committee. Mr. Jacobson has
been at the MBA since 1990. Prior to joining MBA, Mr. Jacobson worked for the Federal Deposit Insurance
Corporation (FDIC) in Washington, D.C. as an information technology analyst.
Mr. Jacobson received a Bachelor of Arts from Lafayette College, Easton, Pennsylvania, in 1981.
MR. BRUCE ALEXANDER
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. WILLIAM MCKINSTRY
As chief environmental officer for Teachers Insurance and Annuity Association (TIAA), Mr. McKinstry is responsible
for environmental matters as they affect the investment division. TIAA is the world's largest pension fund with over
$185 billion in assets, divided between stocks, bonds, mortgages and real estate. With over $25 billion invested in
over 2,000 properties consisting of commercial mortgages and owned real estate, a strong environmental program is
essential.
Mr. McKinstry was instrumental in the development of TIAA's environmental policy in 1987, and has since acted as
the environmental coordinator charged with overseeing compliance for all commercial real estate investment.
Mr. McKinstry received his bachelor's degree in architectural engineering - construction management from the
Pennsylvania State University and is finalizing a master's degree in environmental engineering at the Stevens
Institute of Technology. He resides in New City, New York, with his wife and two daughters.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields'97 Partnering for a Greener Tomorrow
MR. JAMES P. O'BRIEN
As a partner in the banking, finance and major projects group of the law firm of Baker and McKenzie in Chicago, Mr.
O'Brien concentrates his practice on environmental and energy law matters, including permitting, approvals,
enforcement and compliance. Mr. O'Brien has represented clients before the U.S. Environmental Protection Agency
(EPA) and almost all of the state regulatory agencies. In addition, Mr. O'Brien has prosecuted and defended civil
and administrative actions before federal and state tribunals.
Mr. O'Brien also serves as counsel in major project transactions, such as power generation and waste recycling
facilities. Both on behalf of project sponsors and lenders, Mr. O'Brien has led the counsel team moving projects
through financial closing, construction and operation. As part of that work, Mr. O'Brien has managed complex
environmental permitting and transaction issues.
Mr. O'Brien has spoken widely and has written more than twenty articles on environmental and energy topics. Mr.
O'Brien has been called upon to testify as an expert witness before the U.S. Congress on proposed environmental
legislation.
Mr. O'Brien graduated from the University of Notre Dame with a Bachelor of Science in physics, and received his
Juris Doctorate, Order of the Coif, from the University of Wisconsin. Mr. O'Brien is a member of the Federal Trial
Bar for the Northern District of Illinois, the American College of Real Estate Lawyers, and is admitted to practice
before a number of federal courts and the states of Illinois and Wisconsin.
MR. GLEN E. SIBLEY
Glen Sibley is senior vice president of Cheslock, Bakker & Associates, Inc., a commercial real estate investment
banking firm headquartered in Stamford, Connecticut. The firm has proven capabilities in commercial and
multifamily mortgage finance and securitization. He is responsible for business development among the firms' major
commercial real estate developer, investor, insurance company and investment banking clients. Mr. Sibley's career
spans more than twenty years and includes experience in commercial real estate, commercial mortgage finance and
environmental issues affecting commercial real estate transactions.
Prior to joining Cheslock, Bakker, Mr. Sibley was senior vice president of ERIC Group, Inc., where he pioneered
insurance coverage for environmental risk in commercial real estate mortgage backed securities (CMBS), for REIT's
and for other commercial real estate portfolios. Previously, as director of marketing for BCE Development Properties
he was responsible for more than $750 mm in office and retail lease transactions, was a member of the team which
negotiated a $180 mm loan on a single office building, and was the developer of the 766,000 square foot World
Trade Center/Denver.
Mr. Sibley served as director of Downtown Denver, Inc., The Greater Denver Corporation, the Denver (Olympic)
Games Committee, as vice chairman of Denver's World Trade Center, and as president of the Historic Paramount
Foundation. He is an active full member of the Urban Land Institute, serves on its Environmental Committee as well
as being its liaison to the National Realty Committee.
Articles authored by Mr. Sibley have appeared in Urban Land. Corporate Real Estate Executive. Real Estate Forum.
Building Owner and Property Manager. The Journal of Attorneys and Executives in Commercial Real Estate, and
others. He is a frequent speaker on matters of commercial real estate asset securitization and environmental risk in
commercial real estate transactions.
Mr. Sibley received an Master of Business Administration from the University of Denver and holds bachelor's
degrees in business administration and economics from the University of Puget Sound. He is based in Denver,
Colorado.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3H: STILL BANKING ON THE BANKING INDUSTRY
Brownfields '97 Partnering for a Greener Tomorrow Brnwnfields '97 Partnering for a Greener Tomorrow
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JULY 7. 1997
Lenders Leverage Legal Protection
On Contaminated Properties
Lending on cleaned-up brownfield sites can be good business
for both financial institutions and borrower/operators.
BYDEIDRADAHSA
RFJT STAFF REPORTER
For eight years the abandoned concrete
pipe manufacturing facility stood vacant and
decaying on a 26-acre site on the west side of
Dallas. The soil was contaminated with petro-
leum hydrocarbons, as was the ground water
underneath it. The seven buildings on the site
were in need of substantial repair. It was a
blight on the community and die minority.
neighborhood that surrounded it
For some dine Ed Ostrovitz had been eye-
ing the property, scrutinizing its condition, its
environmental damage, and its possibilities.
In March 1996, Ostrovitz submitted a contract
to purchase the property, contingent upon
the seller's removing storage tanks, both
above and below ground, and remediating the
soil.
With financing from Comerica Bank-Texas
and support from state and federal environ-
mental agencies, Ostrovitz was able to bring
the property back to life and locate a wood
pallet recycling business at the site. The
project benefited from the brownfields pro-
Senate Moves
Multifamily Sec. 8
gram, an initiative by the U.S. Environmen-
tal Protection Agency to remove some 25,000
sites from the federal Superfund program.
The true beauty of the brownfields pro-
gram is there are some great locations in the
city dial people haven't touched for years,"
Ostrovitz said. The location will generate sub-
stantial savings in long-term trucking costs, a
necessary part of the company's business. He
said the savings are a fair trade-off for the ex-
tra bureaucratic hassle of environmental regu-
lations and the cost of renovations.
"I could have taken the same amount of
money and gone to a greenfield site and built
from scratch and not have any of those prob-
lems," he said.
"He's our local American hero," said
Beverly Negri, EPA brownfields liaison for the
City of Dallas. "Ed has brought in business-
made an eyesore look a lot better." Plus, she
said, Ostrovitz' business will provide employ-
ment to those in the community.
Under a voluntary program in Texas, prop-
erty owners document their cleanup activities
at brownfield sites. After inspection, a certifi-
cate is placed on the property deed that re-
leases future owners and lenders of liability.
The involvement of financial institutions
is key to the redevelopment of environmen-
tally troubled properties. According to Negri,
lenders are being drawn to these deals be-
cause of legislation relieving them of liability,
voluntary state programs and rules that re-
duce their risk in these brownfield transac-
tions.
"Since the lender liability legislation came
through last September, die concerns about
liability have significantly diminished," said
Lawrence Jacobson, director of commercial
real estate at die Mortgage Bankers Associa-
tion of America. The economic viability of
the transaction is a greater concern."
In September 1996, reforms to the federal
Superfund law were enacted as part of an
omnibus appropriations bill. Under the re-
vised law, lenders can conduct pre-loan activi-
ties, loan servicing activities, workout, and re-
organization and foreclosure activities
(provided die lender has not participated in
management activities prior to foreclosure)
without becoming liable for the cost of
cleanup.
Linda demons, an environmental coordi-
nator for Comerica, said: "We don't lend on
contaminated property unless the property
meets certain criteria. The contamination
must be defined, delineated, and die cost of
remediation established." Even after cleanup,
some properties continue to carry the stigma
of contamination that turns off future buy-
See Brownfields, Page 21
Cityscape Corp.
Setting the Paa in Mortgage Lending
Brokers Advised
To Brace
For Changes
Ideas from other industries
could help originators prepare
for the future.
BYKARAGERLACH
REFT STAFF REPORTER
ATLANTA Looking into a crystal ball
in an attempt to predict the future is noth-
ing new for most mortgage brokers who live
everyday with the concern of what the years
ahead will bring.
With increased competition, a reliance
on technologies that have revolutionized
the industry, and the need to work together
to find common ground on issues, brokers
face many changes in the future.
Industry experts shared their perspec-
tives on the future of the mortgage indus-
try and the importance of keeping up with
technology innovations on June 23 at the
annual National Association of Mortgage
Brokers convention.
"It's a win-win situation to forecast what
the future will bring," said Jim Cotton, vice
president of marketing at Freddie Mac. "No
one ever remembers who forecasted wrong,
only who forecasted right. As brokers, you
need to have an idea of where the market
will be four to five years from now because
it's the only way that you will survive. In or-
der to make the right decisions, though, it
will be necessary for you to look at the
trends occurring right now and the past his-
tory of the industry."
Cotton said brokers should not just look
at
hn<:inr l«nl* >(
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STATE FINAi
Brownfields
(imtinnrti from page )
crs and prevents them from reaching mar-
ket value.
"On Ed's property we said the market
value could fluctuate by 15 percent because.
of stigma," demons said.
The Ostrovilz deal was one of three con-
taminated properties Comerica financed in
1996. "We've always made loans on contami-
nated properly if we had a good estimate for
cleanup cost and a plan to implement it,"
said demons.
To date, there have been no problems on
any of the redeveloped properties financed
by Comcrica. That's partly because the bank,
like other lenders that finance brownfield
projects, does extensive due diligence that
includes interviews with borrowers, attor-
neys, state EPAs and, in some instances, hav-
ing a consultant reinspect property and sub-
mil a technical report.
PROTECTING COLLATERAL VALUE
"As an environmental coordinator, what
I'm responsible for is protecting the bank's
collateral value," said Gary Martyr of Bank
One, Dallas.
Because the bank could end up owning
die property and having to face up to envi-'
ronmental laws, Bank One will only make
loans when the property's value is more than
the cost of remediation. For example, an
inspection of Fort Worth office warehouse
being sold for $800,000 revealed bore holes
in the building's slab, suggesting that a pre-
vious environmental study had been done.
Further investigation found that equipment
buried in the slab had leaked solvents into
the soil that had never been cleaned.
The new information diopprd the
building's value to $400,000, and with the
cost of remediating the pollution the loan
became undesirable. "You're looking at
$100,000 left on an $800,000 building," Mar-
tyr said. "What if the economy in the area
lakes a dive and you lose?"
As in Texas, other states have initialed
voluntary cleanup programs to encourage
brownfield redevelopment.
"We are lucky to be located in Pennsylva-
nia," said Dolores Selby, assistant vice presi-
Lemkr protection dauta are Helping to revive brownfield rites.
dent of Mellon Bank in Pittsburgh, referring
lo the state's brownfields program. Before
the program was created, regulatory agen-
cies did not have cleanup standards or a re-
quired time frame lo review and respond lo
brownlicld redevelopment cases, Selby said.
"In many cases (regulators would] change
their mind," Selby said. "Under new legisla-
tion it really requires agencies to respond in
a timely manner.
Mellon has completed approximately a
dozen loans under the brownfield program.
Selby noted that because the liability protec-
tion is applicable only to identified issues,
lenders must conduct a comprehensive study
of the site.
Once financing is provided, borrowers
have lo meet certain deadlines. In one case,
Selby said, the buyer and the seller had a
schedule of issues to meet within 180 days
or lose a substantial escrow. Because of that,
the bank was able to proceed with the financ-
ing by making a business decision, the bol-
loin line in lending money.
VIABLE LOANS
"We look for loans that will be paid back,"
said Randy Muller, vice president and man-
ager of environmentally services at Bank of
America, Chicago. "We don't run from any-
thing in particular.
"Our key is a short term," said Muller of
the bank's commercial financing arrange-
ments thai run three lo seven years on these
properties.
"Essentially we take a look at the level of
environmental impairment and put it in
terms of the cleanup. If there is residual
value in the property that will facilitate the
credit, we will consider taking the property,
either as collateral or as an abundance of
caution."
An abandoned dry cleaning facility in
southern Illinois is representative of typical
brownfield projects for Muller's branch. In
this case the perceived cleanup costs were
between $2.5 million and $6 million.
"We went in and were actually able to
work with the state environmental agency
and gel the property put back on line for
$20,000," Muller said. With help from Illi-
nois Power, the bank used computer mod-
cling lo prove that contaminated ground
water trapped in a clay pocket would not
move off the properly. Further drilling in
boundary sites did not show contaminated
water.
In Portland, OR, a former dairy process-
ing plant was redeveloped by the las Ange-
les branch of Bank of America into a low-
income housing and retail center.
"Pan of the property had underground
storage lank problems," said Evan Henry,
senior vice president of environmental ser-
vices. "We were able lo work with the respon-
sible parties lo gain legal protections and
work with the regulatory agencies to make
sure they were clear on the requirements
going forward, and ultimately able to rede-
velop that property. It took extra work, and
extra time analyses characterizing all the
environmental issues, but dial's a vciy suc-
cessful project."
Ivooking lo future environmental redevel-
opment projects, Henry said. "I believe for
the success of brownfields the municipality
and redevelopment agenciesthose who
have the most to gainmust take on the
primary responsibility for those things thai
restrict brownfield redevelopment: gather-
ing information, taking on liability, or put-
ting in the necessary funding lo gel things
moving."
The bottom line is lo provide financing
for creditworthy borrowers, either real estate
secured or unsecured. "In so far as we want
to be a competitive and high quality lender,"
Henry said, "We have to have the skills lo
market that and include environmental
risks."
NY
Continued from pagr 16
needed lo put offices in them, but they are
perfect for residences. People are starting lo
feel very comfortable working and living
Hnu'nfnu'ii Tlii*: wlmlr prrn lt;is Iwrn immv
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(31) Malls, Strips, and Shopping Centers: The Art of the Deal
Thursday, September 4,1997
10:30 a.m. -12:30 p.m.
Description: Meet the heavy hitters who make it possible for the rest of us to "shop until we drop!" Developers
from some of America's finest shopping centers discuss the advantages of using brownfields rather than greener
pastures for malls, outlet centers, discounters, and the newer warehouse outlets. Learn how these developments
benefit local communities as panelists describe the elements that entice developers to one property rather than
another.
Location: Room 1203A
Speakers and Affiliation:
Mr. John E. Ayres (Moderator)
Mr. Peter J. Hopley
Mr. C. Lincoln Jewett
Mr. William H. McCabe
GZA GeoEnvironmental Technologies, Inc.
BJ's Wholesale Club
North American Realty Advisory Services, L.P.
New England Development
MR. JOHN E. AYRES
John Ayres is a certified professional geologist and a Senior Principal with GZA GeoEnvironmental, Inc. (GZA). His
experience with GZA spans 30 years, during which he has served in various capacities ranging from staff geologist
to president. Mr. Ayres initiated GZA's entry into the environmental and hazardous waste fields in 1978 and
managed the technical and business development aspects of the firm's practice in these areas for several years. He
has been the principal-in-charge for over one thousand projects involving environmentally impaired properties,
including sites in twenty states and five countries. Mr. Ayres is an active member of several professional and trade
organizations and is presently chairman of the International Council of Shopping Centers' Toxic Waste and
Brownfields Task Force.
MR. PETER J. HOPLEY
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. C. LINCOLN JEWETT
For more than 20 years with North American Realty Advisory Services, L.P., Mr. Jewett has participated in several
hundred "brownfield-type" consulting projects for Fortune 1,000 corporations, utilities, and financial institutions
throughout the United States and Canada. Mr. Jewett focuses on "motivating, redeploying, and divesting" corporate
land and building assets at optimum return, at minimum cleanup cost, and at no new equity investment or risk.
From 1948 to 1964, Mr. Jewett was employed by Arthur D. Little, Inc., Cambridge, MA, an international management
consulting, research, and engineering firm.
MR. WILLIAM H. MCCABE
Mr. McCabe is the partner involved in analyzing the land, acquiring the land and obtaining all permits necessary to
construct a regional shopping center. He is also responsible for reviewing and determining subsequent
environmental issues that develop after the mall has been completed. A number of earlier malls were built on sites
that today would be classified as brownfields. Groundwater, soils and air pollution issues have only been focused on
in the past ten years so that existing properties require constant reinvestigation. Because of this experience with
these types of issues, Mr. McCabe is comfortable in considering developing a brownfields site.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 31: MALLS, STRIPS, AND SHOPPING CENTERS: THE ART OF THE DEAL
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Divesting Corporate Real Estate
Having Contamination Constraints.
"THE TROIKA SOLUTION"
AAA
The Reuse-Vision
The keystone element for divest-
ing property having contamina-
tion constraints is a documented
reuse-vision. Involving the
synchronous, parallel participa-
tion of (1) real estate marketers,
(2) environmental engineers,
and (3) legal counsel.
We call it "The Troika Solution" -
after the Russian sleigh pulled by
3 horses, abreast.
The Use-Based Strategy
The first task to set the stage for
marketing the property is to
define:
1. For what new use, or uses,
could the property be
marketed, that are:
- Market supportable;
- Physically doable;
- Financially viable;
- Politically feasible, and
- Environmentally
compatible.
2. For that use, or uses, what is
the degree, time-span, and
cost of clean-up.
3. What economic development
benefits, new jobs, and tax
revenues would be created
for the community, from
such new use, or uses.
This task defines the reuse-target
to aim toward.
Harnessing Governmental
& Community Support
When the documented
reuse-vision, for creating new jobs
and tax revenues, is presented to
the economic development
agencies, elected officials, and
community groups, it harnesses
positive support.
Regulatory agencies then
expedite approvals for, say,
rezoning, off-site improvements,
variances, clean-up schedules,
and incentives for new users or
investors.
Also, the corporate owner
receives positive press, rather than
being massacred in the media.
It's a win-win situation for all
parties.
Here's an Example:
A surplus 100-acre, manufacturing
facility had some contamination
"going all the way down to China."
We saw its potential as a multi-user
industrial/office park. And docu-
mented this reuse-vision, on paper.
Clean tracts and buildings were sold
or leased first, to users and
developers, generating cash to offset
remediation costs on the mildly-
contaminated tracts. In turn, these
tracts were sold, or leased, providing
cash for clean-up of the heavy
contamination. This "bootstrap"
operation achieved $35 million for
our client, offsetting clean-up costs.
Benefits
The Troika Solution:
Overcomes the contamination
hurdle;
Creates optimum dollar
returns;
Offsets remediation costs;
Insurance can be obtained
that transfers risk and creates
financing opportunities for
buyers;
Puts a "positive light" on the
corporation;
Reduces the time-span to a
divestment, via sale, lease,
joint-venture, donation, or
combination; and
New jobs and tax revenues
are produced for the
community.
We've completed 850 such
assignments. We welcome your
inquiries on how The Troika
Solution could be applied to your
needs at no new capital
investment or risk.
Norths
American
Realty
Advisory
Services
100 Park Avenue
New York, NY 10017
212-883-0500 Fax 212-883-05:0
C. Lincoln Jewett
Executive Vice President
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3J) Blazing New Trails: State Financing Initiatives
Thursday, September 4,1997
8:00 a.m. -10:00 a.m.
Description: Some of the most creative brownfields financing strategies are coming from the states, and many
were in place before the term brownfields was used. This panel captures some of the exciting initiatives being
undertaken by state legislatures and how different states are implementing them.
Location: Room 1204A-B
Speakers and Affiliation:
Ms. Mary Gade (Moderator)
Mr. Thomas Boydell
Ms. Darsi Foss
Mr. David A. Munro
State of Illinois, Environmental Protection Agency
Seneca Consulting Group
State of Wisconsin, Department of Natural Resources
State of New York, Department of Law
Ms. MARY GADE
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. THOMAS BOYDELL
[Biography was not available at time of printing. Please refer to conference addendum.]
Ms. DARSI Foss
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. DAVID A. MUNRO
[Biography was not available at time of printing. Please refer to conference addendum.]
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields'97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3K) Banking Over the Rainbow: Turning Brownfields into Gold
Friday. Septembers. 1997
10:30 a.m.-12:30 p.m.
Description: This is an opportunity to hear what goes on behind bankers' closed doors. What makes a bank
want to participate in one deal over another? How do banks and their partners really view brownfields properties?
Leam about the competing pressures banks must cope with, how they balance their bottom lines with community
responsibility, deal with the effects of lender liability reform, and more!
Location: Room 221 OB
Speakers and Affiliation:
Mr. Raymond Natter (Moderator)
Mr. Clement Dinsmore
Mr. Evan Henry
Mr. Robert O. Zdenek
U.S. Department of the Treasury, Office of the Comptroller
of the Currency
Self-employed consultant
Bank of America
New Community Corporation
MR. RAYMOND NATTER
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. CLEMENT DINSMORE
Mr. Dinsmore is a self-employed consultant and teacher specializing in the creation of financial programs with
environmental goals. This year he is teaching courses at the University of Virginia, School of Architecture, on
recycling brownfields sites and financing sustainable development. Mr. Dinsmore has served on the Chicago
Brownfields Forum, the Baltimore Brownfields Industrial Redevelopment Council, and the Maryland Voluntary
Cleanup Program Task Force. He has written articles on brownfields issues for Federal EPA Region 2, Federal
EPA's Environmental Financial Advisory Board, the Urban Land Institute, the Lincoln Institute for Land Policy, the
Journal of Urban Technology, and the National Low Income Housing Coalition. He has testified on brownfields
legislation before committees of the Ohio and New York legislatures.
MR. EVAN HENRY ;
Mr. Henry, as Senior Vice President and Manager of the Environmental Services Department of Bank of America, is
responsible for assessment of environmental risks associated with the commercial lending practices of the bank.
Mr. Henry earned a Bachelor of Science degree in geology from Tufts University, followed by a Master of Science
degree in hydrology from the University of New Hampshire. Prior to joining Bank of America, Mr. Henry gained
approximately ten years of professional experience with environmental consulting firms providing hazardous waste
assessment and cleanup advice to commercial, industrial and governmental clients. Mr. Henry is a Registered
Geologist and a Registered Environmental Assessor in the state of California. Mr. Henry has been a panelist at
numerous professional seminars and conferences and has authored several papers on lender environmental
polices. Under Mr. Henry's direction, Bank of America has cosponsored national conferences on the environmental
issues in lending and real estate transactions.
MR. ROBERT O. ZDENEK
[Biography was not available at time of printing. Please refer to conference addendum.]
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
DOCUMENTS THAT SUPPORT
PANEL 3K: BANKING OVER THE RAINBOW: TURNING BROWNFIELDS INTO
GOLD
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
-------
PRESENTATION BY CLEMENT DINSMORE
AT PANEL CHAIRED BY OFFICE OF THE COMPTROLLER OF THE CURRENCY
SEPTEMBERS, 1997
[The Federal Environmental Protection Agency is granted permission to reproduce this paper for the
Brownfields '97 conference in Kansas City.]
Contact:
Clement Dinsmore
3726 Veazey Street, N.W.
Washington, D.C. 20016-2229
202-244-6648 [phone]
202-244-9224 [fax]
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I. INTRODUCTION
Thank you, Ray.
Ray and I confirm that bipartisan collegiaiity can work in the United States Senate. Senator Jake
Garn with Ray's aid took the lead on the lender liability issue beginning in 1991. After much discussion
within the Banking Committee and with the Senate Environment and Public Works Committee Ray with my
support was able to include effective lender and fiduciary liability protection language in the Senate
Superfund reform bill that was reported out of committee in 1994. With the failure of Congress to enact that
legislation a two year delay occurred before somewhat different legislation passed last September.
The lender and fiduciary liability subject lead me into Brownfields. Beginning in 1992 Banking
Committee Chairman Donald Riegle, for whom I worked, advocated funding for Brownfields recycling. The
Chairman introduced similar bills in 1992 and 1993. Ultimately, we struck a bargain with the Senate
Environment and Public Works Committee on the terms of the voluntary cleanup title-Title Ill-of the 1994
Superfund reform bill. The title incorporated funding and leveraging ideas that we advocated.
II. STATE INITIATIVES TO PROTECT LENDERS AND FIDUCIARIES
While the Congress was considering Superfund reform, the States were actively engaged in
reforming their hazardous substance laws. Prior to the 1993-1996 period many States had amended their
laws to clarify the liability exposure of lenders and fiduciaries. But, in their more recent actions States have
altered their laws more substantially to limit the potential sources of financial risk to lenders and fiduciaries.
I will not attempt a national survey of the States' actions. Instead, I will highlight the actions of
several States.
Pennsylvania in 1995 enacted its Economic Development Agency, Fiduciary, and Lender
Environmental Liability Protection Act as part of a three bill package designed to facilitate the recycling of
Brownfields in that State. Mellon Bank's counsel led the effort on lender and fiduciary liability protection.
They took what Ray and I had developed in the Senate and went several steps further. Significantly, the
Pennsylvania legislation:
'requires proof either of direct causation or exacerbation of contamination by a lender, orjhe
lender's knowing and willful compulsion of borrower action that causes contamination;
requires proof that a fiduciary controlled the property that caused or was the site of the
contamination, and the contamination resulted from the fiduciary's gross negligence or willful
misconduct; and
protects both lenders and fiduciaries against the claims of third parties and not simply those of the
Commonwealth.
Illinois and Michigan in 1995 also amended their laws to limit significantly the potential liability of
lenders and fiduciaries. The Illinois legislation:
protects fiduciaries and lenders from liability to the State orttiird parties, unless the lender following
foreclosure or fiduciary directly causes contamination;
requires proof that the persons allegedly liable proximately caused or contributed to the
contamination; and
-------
'limits the recovery by the State gjr_a third party to a person's proportionate share of cleanup costs.
The Michigan legislation:
"requires proof that an alleged owner or operator, including a lender following foreclosure, is
responsible for the activity causing the contamination;
'like Illinois requires apportionment of cleanup costs;
'protects lenders in a manner resembling EPA's lender liability rule that the Congress codified in last
fall's CERCLA and related Solid Waste Disposal Act amendments; and
'protects fiduciaries against personal liability, although they may be liable for their negligence as
well as for gross negligence and willful misconduct.
Ml. THE 1996 CERCLA AND RELATED SWDA AMENDMENTS
I will briefly note several significant differences between the lender and fiduciary liability protection
provisions of the 1994 Superfund reform bill that did not pass and the Asset Conservation, Lender Liability,
and Deposit Insurance Protection Act of 1996.
The 1996 amendment codified the EPA's April 1992 lender liability rule. Unlike the 1994 bill it does
not:
'impose a dollar cap on liability, if incurred;
'condition liability protection upon compliance at loan origination with environmental risk
assessment guidelines issued by the EPA Administrator in consultation with the Treasury Secretary;
and
'limit the liability of various Federal credit and banking regulatory agencies acting in various
capacities, including as receiver or conservator for a financial institution.
The 1996 amendment, unlike the 1994 legislation, also:
'exposes a fiduciary to liability in both its fiduciary and personal capacities, if the fiduciary through
negligence causes or contributes to a release of a hazardous substance;
'creates liability for the fiduciary that engages in negligence rather than a failure to exercise due
care, which in some States may require proof of more than negligence; and
'excludes from protection persons that become fiduciaries of contaminated property with the intent
of avoiding CERCLA liability.
III. RECONCILING MARKET REALITIES WITH POLITICAL GOALS
The flood of State legislative actions in recent years responds to, and creates, political expectations
that hazardous substance regulatory programs will work more effectively and efficiently and Brownfields will
be recycled.
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Realizing these expectations with respect to properties that may number in the hundreds of
thousands and are most highly concentrated in older, urban centers is difficult in an economic and political
context, where with few exceptions:
America's population is becoming more widely dispersed;
economic activity is not simply becoming dispersed within the United States but around the globe;
and
the most highly developed economies-all countries with substantially more intense land use and
population density than American practice-are also developing or altering their policies concerning
the recycling of former industrial sites.
While the States, Federal EPA, and local communities throughout the United States have embarked
upon many exciting initiatives and achieved much with respect to developing a public consensus that
contaminated, previously urbanized land should be recycled rather than lie fallow, there are many, additional
factors that complicate the successful realization of this goal.
These factors include the existence of multiple, Federal, State, and local environmental and land
use regulatory regimes in addition to those relating to the management of hazardous substances.
The Clean Air Act, for example, has significant effects upon the ability of local communities to reuse vacant,
industrial sites for new industrial uses or commercial uses that generate substantial automobile or truck
traffic.
I will focus on one of these complicating factors. That is the increasing mobility of capital and the
related competition for capital that communities burdened with Brownfields face.
Bankers and investors among you are more familiar than I with the global changes occurring in the
intermediation of capital that enable you and me to extend credit or invest equity in companies or projects
anywhere in the world. The dynamics are illustrated by the increasing allocation of consumer savings-
particulariy now in a mature, bull market-to mutual funds that invest in companies-small, medium, and
large-doing business in other countries. Savings management and its related fee income are the focus of
attention of most commercial banks in this country.
The dynamics, also, are illustrated by the emergence of the real estate mutual fund industry-
especially the real estate investment trusts. In recent years the equity capitalization of this sector has
mushroomed, and with their capital growth REITS have rapidly expanded their geographical scope of
investment opportunities. Only a few years ago, for example, the Oliver Carr Company was a developer
of several office buildings in downtown Washington, D.C.. Today CarrAmerica Realty Corporation manages
a $1 billion plus portfolio of suburban office buildings throughout the United States.
The point is that you and I through our bank, a mutual fund, a REIT, or other investment vehicle can
move our savings capital anywhere in the United States or the world that appears opportune to us or the
managers of our funds.
In contrast, the communities most burdened with Brownfields are immobile. Their Brownfields sites
don't move, and their populations, including available labor, often chose not to move. These communities
do not have the same scope of economic opportunities, as we and those now intermediating our savings
capital do.
I will provide one illustration, before I close. The City of Philadelphia has many, vigorous community
development organizations. Each has a clearly defined geographical focus. If Brownfields sites exist within
a CDC's community, as they usually do throughout the City, the revitalization of the community will require
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the cleanup and reuse of the sites. As long as the community's population choses to remain, their
opportunities are limited by the Brownfields' reality.
The same is not true for the major financial institutions and corporate citizens of Philadelphia that
have created partnerships with the local CDCs. State corporate income tax credits have helped encourage
the development of these partnerships, which are doing many wonderful things. But, the reality remains that
you and I, if we were depositors or otherwise customers of Philadelphia's participating banks, could elect
to direct our savings to alternative investments that focused on opportunities elsewhere than the local
communities in the City that are struggling with the reality of Brownfields.
IV. CONCLUSION
The prospect for successful recycling of Brownfields is highly variable. It depends upon many
factors that are highly local. Federal EPA is helping to enhance the creative dynamic of local communities
and their constituencies that desire to reuse the Brownfields in their midst.
There, also, are many, common, non-local factors that affect the prospect for recycling Brownfields.
These include current, public attitudes regarding the use of land, water, air, energy, human and non-human
habitats, and other natural resources. The feasibility of reuse of many Brownfields, especially those
concentrated in our urban centers, will be affected by whether public attitudes change to recognize both the
economic and environmental values of a more efficient use of our natural resources, including our previously
urbanized land.
Market mechanisms that recognize both these values may be emerging. One that may emerge
more quickly than previously anticipated is auto congestion pricing. The rapid institutionalization of the E-Z
Pass toll system-with the involvement of Chase Bank-within the New York City metropolitan region and
from New York City to Washington may be a harbinger of congestion pricing's arrival on the Mid-Atlantic
coast. Substantial investment in the energy efficiency of commercial and residential buildings in our cities
may be another, favorable dynamic that suggests increasing recognition of the economic and environmental
values of efficient use of resources. There are others-including introduction of the location efficient,
residential mortgage that I hope the lenders among you soon will originate and sell to Fannie Mae and
Freddie Mac.
Thank you.
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Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
(3L) Industry Update: Where Industry Sits on the Brownfields Issue
Friday, Septembers, 1997
8:00 a.m. -10:00 a.m.
Description: Is industry changing its position on brownfields? This panel will bring together representatives of
different companies that have quite different views about buying, selling, and expanding to contaminated
property.
Location: Room 1205
Speakers and Affiliation:
Mr. Jerry Prout (Moderator)
Mr. Roger Platt
Mr. Bernie J. Reilly
FMC Corporation
National Realty Committee
DuPont Company
MR. JERRY PROUT
[Biography was not available at time of printing. Please refer to conference addendum.]
MR. ROGER PLATT
Roger Platt is national policy counsel for National Realty Committee (NRC), which serves as Real Estate's
Roundtable in Washington for national policy issues. NRC members are America's leading real estate owners,
advisors, builders, investors, lenders and managers.
Working closely with NRC's Environmental Policy Advisory Committee, Mr. Platt communicates to Congress, the
Clinton Administration and federal agencies NRC's views on environmental issues impacting real estate, such as
regulation of wetlands and stormwater runoff, Endangered Species Act requirements, liability for hazardous waste
cleanup costs and indoor air quality controls. In addition, he is responsible for advocating NRC's positions on
federal telecommunications policies. Mr. Platt serves as staff liaison on environmental and telecommunications
issues to NRC's Executive Committee.
Prior to joining NRC in 1994, Mr. Platt acted as a consultant to President Clinton's newly formed Corporation for
National and Community Service. Previously, he was a senior associate at the San Francisco law firm of Coblentz,
Cahen, McCabe & Breyer, where he specialized in real estate and urban land-use issues.
Before joining Coblentz, Cahen, et al., Mr. Platt was an associate in the real estate department at Bianchi, Paxton,
Engel, Keegin & Sherwood, a law firm in San Rafael, California, where he represented a variety of residential and
commercial real estate companies.
Mr. Platt is a graduate of Harvard University and the University of San Francisco School of Law. He is a frequent
contributor to American Bar Association and other journals covering federal environmental and land use policies. He
is a member of the California and District of Columbia bar associations and serves on the board of directors of the
Center for Watershed Protection.
MR. BERNIE J. REILLY
Mr. Reilly is an attorney at the DuPont Company where he has been responsible for environmental issues for over
20 years. He coordinates DjjPont's response to the legal issues at its Superfund sites and is responsible for the
environmental issues at the DuPont plants in New Jersey and Indiana. He also participates with the members of the
Chemical Manufacturers Association (CMA) in adopting positions and lobbying Superfund reform. He chairs the
CMA Superfund Liability Work Group and has presented the CMA testimony to several Congressional
Subcommittees. He also is a member of the Superfund Settlement Project, and is a member of the team at DuPont
working to get its older, vacant sites remediated and back into productive use.
Brownfields '97 Partnering for a Greener Tomorrow Brownfields '97 Partnering for a Greener Tomorrow
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