DEVELOPING
BROWNFIELDS IN
CONNECTICUT:
What’s Out & What’s In
Presented to CBIA’s Environmnental
Conference 2008
June 3, 2008
THE PANEL
• Ann Catino, Partner, Halloran & Sage LLP (& CoChair of the State’s Task Force on Brownfield Strategies)
• Liz Appel, Acting Director, Office of Brownfield
Remediation & Development (OBRD) / DECD
• Cynthia Petruzzello, Vice President of
Brownfields Redevelopment for the Connecticut
Brownfields Redevelopment Authority (CBRA) / CDA
• Graham Stevens, Brownfield Coordinator,
Connecticut Department of Environmental Protection
(DEP)
BROWNFIELDS
• What are they?
• “Any abandoned or underutilized site
where redevelopment and reuse has not
occurred due to the presence or potential
presence of pollution in the buildings, soil
or groundwater that requires remediation
before or in conjunction with the
restoration, redevelopment or reuse of the
property.”
WHY BROWNFIELDS ARE
IMPORTANT
• ECONOMIC BENEFITS: New economic activity
– jobs & productivity
• COMMUNITY BENEFITS: Aesthetics, blight
removal, community pride, catalyst for further
development
• MUNICIPAL BENEFITS: Taxes, Community
Growth & Development
• STATE BENEFITS: Jobs, Income & Business
Taxes, Quality of Life
• ENVIRONMENTAL BENEFITS: protects the
general public from health risks related to
exposure to toxins present on these sites.
Preserves Open Space.
BROWNFIELDS ARE …
• PART OF OUR LANDSCAPE & HISTORY
• PRESENT COMMERCIAL & INDUSTRIAL
GROWTH OPPORTUNITIES
• FUTURE HOUSING FOR NEW PURCHASERS
• PARK & RECREATIONAL OPPORTUNITIES
• OPTIONS FOR MORE JOBS
• IMPORTANT FOR CONNECTICUT’S FUTURE
BROWNFIELDS ARE …
SMART
GROWTH
WHAT’S BEEN HAPPENING??
• 2006 – The Beginning of the Brownfield
Wave
– Public Act 06-184: An Act Concerning
Brownfields
– Executive Order #15: Responsible Growth
Initiative
2006 Brownfields
• General Creation of the Office of Brownfield
Remediation & Development within DECD
• Development of a Municipal Pilot Program for 4
Municipalities
– Grant Opportunities
– Changes to the Transfer Act for Pilots –
foreclosures & subsequent sales are exempt
– Liability Exemptions: municipality & subsequent
purchaser
• Establishment of a Task Force
2006-2007 Brownfields
• Task Force – 1 year of Proceedings
• Report Issued: February 2007 – website:
www.ctbrownfields.gov
• Recommended Legislative Changes to the
General Assembly: Organizational,
Programs, Funding, Liability Relief
• Public Law 07-233
Public Act 07-233
• Organizational: Established OBRD as a
“one stop shop” & Required a MOU
• Program Changes:
– DECD: New & Expanded Programs
• Pilots
– CDA: Loan Guarantees
• DEP: CERTAINTY
– Sunset on DEP’s ability to Audit LEP
Verifications
2007 New Expanded Programs
• NEW Grant & Loan Programs
• Who’s eligible: Any municipal, for profit or nonprofit
organization or entity, a local or regional economic
development entity acting on behalf of a municipality or
any combination thereof
• What are you eligible for? Costs for assessment,
remediation and development
• Where can your project be located? Anywhere in the
State, including in flood plains, provided it is subject to
the RSRs and is in or adjacent to an area identified as a
regional center, neighborhood conservation area, growth
area or rural community center in the State Plan of
Conservation and Development
Additional 2007 Changes
• Transfer Act / LEP Process
– Upon a Transfer Act filing, oversight delegated by
default to a LEP after 75 days after DEP receipt of a
Form III or IV
– Within 75 days after “completion determination” –
submit a schedule
– Within Two Years After “completion determination”:
Investigation Must be complete
– Within Three Years After “completion determination”:
Initiate Remediation & Submission of a RAP
– Verification Audit Period: Sunsets after 3 years
(exceptions)
Additional 2007 Changes
• Changes to Property Valuation for Municipal
Assessments if landowner enters into an agreement with
DEP to remediate such property, files the agreement on
the land records & has developed an approved RAP
• Covenants Not to Sue – allowed if the commissioner has
approved a investigation plan & remediation schedule;
fee payment schedule allowed.
• CDA/CBRA – TIF allowed for residential or mixed use
developments & loan guarantee program established to
provide guarantees of not more than 30% of the loan to
lenders
• Continued the Task Force
2007-2008 Brownfields
• MOU established
• Task Force Back at Work !
– OBRD
– Funding & Financing & Tax Credits
– Liability & Insurance
• Report Issued to Legislature, February
2008 website: www.ctbrownfields.gov
Public Act 08-174
“Face of Connecticut”
• Where Preservation of Open Space &
Farmland Protection Meets Brownfields
– Funding Opportunities:
• for the restoration or stewardship of properties
that serve 4 objectives: (1) open space
conservation; (2) renovation and enhancement of
urban parks; (3) preservation of active agricultural
land; (4) restoration or reuse of historic resources
2008 Brownfield Changes
• Clarifies the 2007 Programs
• Municipal Grant Program
– Municipalities, economic development authorities,
regional economic development authorities, qualified
nonprofit community & economic development
corporations
– Types of Projects: manufacturing, retail, residential,
municipal, educational, parks community centers &
mixed use development
– Eligible costs: infrastructure, investigation,
remediation…hard & soft costs
– Grants awarded on a competitive basis, annually
through an RFP to be issued beginning on October 1,
2008
– Grant recipients are “immune from liability” & may
make low interest loans to a redeveloper
– Grants <= $4 M
2008 Brownfield Changes
• Loan Program
– Targeted Brownfield Development Loan Program to
New Developers & Existing Property Owners who:
• Are in good standing and otherwise compliant with
DEP’s regulatory programs
• Demonstrate an inability to fund the investigation and
clean-up themselves
• Cannot retain or expand jobs due to the costs
• Includes manufacturing, retail, residential (emphasis on
homes for 1st time homeowners) & mixed use
– Myriad of cost categories covered, including past
costs
– Redevelopment Plan Required if Loan > $50K
Additional 2008 Changes
• Municipal Access (22a-133dd) to Perform Investigations,
without liability, on certain properties:
–
–
–
–
Owner can’t be located
Tax Lien
Filing notice of Eminent Domain
Investigation is in the Public Interest as determined by the
municipality's legislative body to determine if the property is
underutilized or should be included in any undertaking of
development, redevelopment or remediation
– Any official of the municipality reasonable finds such
investigation necessary to determine if such property presents a
risk to the safety, health or welfare of the public or a risk to the
environment.
– Procedure established to Object – Quick Deadlines
Additional 2008 Changes
• Continued the Task Force ……
Ann M. Catino, Partner
Halloran & Sage LLP
One Goodwin Square
225 Asylum Street
Hartford, Connecticut 06103
860-297-4682
catino@halloran-sage.com