We’ve
gotten smarter with fuel tanks. We now require old tanks to be
replaced and contaminated soil to be removed or cleaned, but do we
know where all of the tanks are or were? My experience with the
Florida Department of Transportation will verify there are buried,
unknown tanks everywhere, and hazardous waste dumps in the most
unlikely places.
The
Federal Brownfield cleanup program is designed for major hazardous
and contaminated sites. Congress allocates funds which are
distributed for cleanup on a priority ranking list. It might take
years, if ever, for a smaller site to reap cleanup funds.
Now
entering in the picture is our state with the Florida Brownfields
program. It takes its name from the federal program, but in my
opinion, is a remarkably progressive economic development tool. It’s
a program with a misleading name, but one that provides unique
opportunities for all communities.
A
Florida Brownfield can be designated by a city or county for an area
where development or redevelopment might be anticipated. No evidence
or suspicion of
contamination or hazardous material is necessary for designation,
but could exist and could be a major problem.
Once an
area is designated as a Florida Brownfield, a host of benefits
become available to the municipality and the landowners within the
designated area.
First, the state can provide a bonus tax refund for job creation in
designated categories—up to $2,500 per job – certainly not to be
ignored for any commercial development.
Second,
the state will provide loan guarantees for primary lenders for up to
50 percent on all sites, and up to 75 percent when the end use is
affordable housing.
If the
end use is affordable housing, there is a sales tax credit on all
building materials.
Those benefits are available within the entire Brownfield Area
irrespective of whether
contamination is found. What happens if contamination is discovered?
Ordinarily, and outside of a designated Brownfield Area, the cleanup
costs must be borne entirely by the landowner even if it occurred
many years before their ownership.
However,
the Florida Brownfield provides for an expedited and specific
regulatory
framework for the cleanup, and an opportunity for financial
reimbursement if the landowner is not the one who caused the
contamination.
When the
landowner enters into a Brownfield Site Rehabilitation Agreement
with the
Florida Department of Environmental Protection, and fulfills their
obligations for cleanup, they are protected against any future
liability for that site. In addition, they may receive tax credits
against the cost of cleanup for up to 50 percent of the cost of
cleanup. The credits are marketable tax credit certificates that are
saleable in the open market and can be used by the landowner or
purchasers of the certificates to pay their state tax obligations.
While
not perfect, partial reimbursement for an “environmental surprise”
is a big help and an inducement for development.
So,
instead of the knee-jerk reaction to the word “brownfield” and all
of the negative
connotations, think of the Florida Brownfield program, and the
economic development
benefits a designation could provide for your community.
