As the economy slowly recovers from the deepest downturn in decades, interest in redevelopment projects is also rebounding. With the private and public financing picture improving, developers and local governments are seeking to restart Brownfield redevelopment projects. However, the new rules of engagement require even stricter due diligence and scrutiny of the property as well as greater attention to financing, regulation, risk management and viable end uses or exit strategies.
The good news is that a wide variety of financial incentives are still available. Many states continue to offer Brownfield tax relief, and there is a range of federal and state-sponsored government funding sources for redevelopment. The American Recovery and Reinvestment Act, for instance, include Brownfield incentives. In 2011, the Environmental Protection Agency (EPA) authorized a non-competitive $50 million grant program to establish and enhance state and tribal response programs, addressing assessment, cleanup, and redevelopment of Brownfield sites. Some state programs even provide financing for environmental risk insurance premiums associated with Brownfield redevelopment. Redevelopers are well advised to research financial incentives that many states and major cities have for Brownfield cleanup and assessment activities, including community grants and loan guarantees. In addition, there are often a variety of tax incentives available, such as property tax abatement. (more…)