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Thank You for Subscribing to Brownfields Spotlight

July 9 , 2003

IN THIS ISSUE:

EPA Announces $73.1 Million in National Brownfields Grants in 37 States and Seven Tribal Communities

As part of EPA’s ongoing efforts to promote economic revitalization while safeguarding the environment and public health, EPA Administrator Christie Whitman recently announced $73.1 million in brownfields funds for a variety of different grants made available from the Small Business Liability Relief and Brownfields Revitalization Act. EPA announced that 176 applicants were selected to receive awards. Applications came from communities located in 37 states and seven tribes.

The $73.1 million will provide: 117 assessment grants totaling $30.7 million, 69 cleanup grants totaling $12 million, and 28 revolving loan fund grants totaling 30.4 million.

The assessment grants are used to inventory, characterize and conduct planning relating to one or more brownfield sites or as part of a community-wide effort. The 2002 law expanded the definition of what is considered a brownfield, so communities may now focus on sites contaminated with petroleum, as well as lands scarred by mining.

The revolving loan fund grants allow communities to give funds to public and private organizations clean up brownfields. The new brownfields law also allows loan fund officials to make subgrants to state and local governments or tribes and nonprofit organizations to clean up sites they own.

The brownfields program encourages redevelopment of America’s 450,000 abandoned and contaminated waste sites. Redevelopment approaches have included the conversion of industrial waterfronts to riverfront parks, landfills to golf courses, and rail corridors to recreational trails. The program provides funding incentives, feasibility tools, and individual grants up to $1 million to help states, tribes, communities, and other organizations prevent, assess, safely clean up, and reuse brownfields. EPA’s brownfields assistance has leveraged more than $4.6 billion in private investment, helped create more than 20,000 jobs, and resulted in the assessment of more than 4,000 properties.

For a regional listing of brownfields grants awarded June 20, 2003, visit http://www.epa.gov/brownfields/03grants/03grants_r.htm.

For more information about the brownfields program, visit http://www.epa.gov/brownfields/.

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Redeveloping Brownfields Could Generate 576,000 New Jobs, $1.9 Billion in Tax Revenue

A new survey by the U.S. Conference of Mayors finds that redeveloping brownfields could generate more than 575,000 new jobs and as much as $1.9 billion annually in new tax revenue for America's cities. Increased economic development and new tax revenues would help cities facing tight budgets due to rising homeland security costs, state aid cuts, and a weak national economy.

According to the survey, 153 cities have already successfully redeveloped 922 sites totaling 10,594 acres, and 45 cities collected $90 million in revenues. More than 83,000 jobs were created in 74 cities. The survey finds that 205 cities have 24,987 brownfield sites awaiting redevelopment. Of those cities, 148 cities reported that 576,373 new jobs and as much as $1.9 billion annually could be generated if their brownfield sites were redeveloped.

In the survey, the most frequently identified impediment to redevelopment of these sites is lack of cleanup funds (82%), liability issues (59%), and the need for environmental assessments (51%). Three-quarters of the respondents said that additional resources are needed to attract greater private sector investment.

Mayors have requested that Congress provide $250 million in annual funding to the Environmental Protection Agency for brownfields assessment and clean-up. Congress is also currently considering creating two new funding streams at the Department of Housing and Urban Development and the Department of Commerce to help prepare brownfield sites for redevelopment. The Conference has endorsed this effort. This survey demonstrates that such funding would prove a highly effective investment in economic development and job creation in America's cities.

The General Accounting Office (GAO) has estimated that there are 400,000 to 600,000 brownfield sites across the United States. This survey examines only a fraction of the existing sites, although it is the most detailed report documenting specific brownfield sites.

Since 1992, the U.S. Conference of Mayors has taken a national leadership role in raising and addressing the brownfields issue. Working closely with the business community, the Conference has identified and worked to address impediments to brownfields redevelopment. These efforts culminated in the 2002 passage of the Small Business Liability and Brownfields Redevelopment Act that addressed liability issues and provided some environmental assessment and clean-up funds.

The complete report can be downloaded at http://www.usmayors.org

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Environmental Assessments Performed for Conversion of Landfill into Municipal Park

The city of Orange (California) recently awarded a contract to SCS Engineers to provide environmental consulting and assessment services for converting the Cerro Villa Landfill into a new municipal park. U.S. EPA (Region 9) awarded a Brownfields Assessment Pilot grant to the city in April 2001. The city of Orange is located in central Orange County, approximately 32 miles southeast of Los Angeles. Incorporated in 1888, the older and western portions of the city are landlocked and fully built-out. Located at the corner of Goldenrod Lane and Crest de Ville, the Cerro Villa Landfill operated as a burn dump during the 1940s and 1950s, and is now surrounded by residential development.

The project redevelopment team for the Cerro Villa Landfill site includes Pamela Galera, landscape architect and project development coordinator for the city of Orange and Anthony J. Maggio, a registered geologist, certified hydrogeologist, and registered assessor in the state of California. Ms. Galera is overseeing the project on behalf of the city and Mr. Maggio is serving as project manager for SCS Engineers. The Orange County Health Care Agency (OCHCA) is the lead environmental agency for the project.

In its capacity as environmental consultant for the project site, SCS reviewed several previous studies performed at the site since 1992. The most important past study performed was the Solid Waste Assessment Test, also known as the SWAT study. Sampling and analysis of soils during that investigation determined that heavy metal concentrations, a major concern at most burn dumps, were very low and did not meet the criteria to be classified as hazardous waste. After reviewing all available information for the site, SCS Engineers and the city of Orange held meetings with each of the regulatory agencies to discuss the concerns each had regarding the site. SCS Engineers prepared a workplan for a Phase II site investigation in accordance with EPA guidelines. The work plan was reviewed by several regulatory agencies, including U.S. EPA Region 9 Office of Quality Assurance, the Regional Water Quality Control Board for the Santa Ana Region (RWQCB), and the OCHCA Department of Environmental Health.

The final approved workplan included the installation of five perimeter probes around the Cerro Villa Landfill site, placed between the existing landfill and the surrounding residential communities. In addition, four probes were placed inside the landfill in areas of known refuse disposal. The probes will be monitored for methane gas once a month for a period of six months. Should methane levels be detected below five percent by volume, monitoring will continue on a quarterly basis for two quarters. The entire monitoring program will take one year to complete.

For more information about the project, contact Bonnie Kutch or Sarah Daoust, at
(619) 299-1010, or via e-mail at info@kutchco.com.

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Rural Communities Turn to RCAP for Assistance

The Indiana Rural Community Assistance Program (RCAP) has been providing technical assistance to rural communities since 1981. When many Indiana rural communities need help with sewer, water, and solid waste issues, they turn to RCAP and its team of technical assistance providers. RCAP can provide free assistance to low-income communities under 10,000 in population facing tough decisions about local infrastructure. While RCAP is restricted to helping communities with a population of less than 10,000, a typical RCAP-assisted community has a population of fewer than 1,000. RCAP can also assist communities during all steps of a project, including project development, procuring engineering services, securing funding, and more.

In addition to the many other types of solid waste assistance, RCAP staff can aid communities with brownfields evaluation and redevelopment. For example, RCAP is working with a central Indiana community that requested help to clean up an abandoned, illegal dumpsite to create a public park. RCAP, IDEM’s Office of Land Quality, and the U.S. EPA Region V Brownfields Program are working together to assess the property and determine the level of contamination. Once the assessment is completed, RCAP will work with the community to determine the next steps toward converting this local liability into a community asset.

RCAP is a nationwide, non-profit network of technical assistance providers. Since the organization is underwritten by federal and state grants, RCAP is able to offer its services at no charge to the community. For more information on RCAP’s free programs and services, call (800) 382-9895.

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Contaminated Properties Becoming New Investment Niche in Tight California Real Estate Markets
By Daniel Johnson

A growing number of California developers are realizing that getting their hands a little dirty can really pay off, especially in tight real estate markets (i.e., San Diego) that currently face land shortages and “cap” rates in the five or six range in low-risk niches such as apartments.

Of the estimated 500,000 contaminated sites that sit abandoned across the U.S., at least 100,000 sites are located in California with estimates of fair market value in the hundreds of billions. Although the risk and hold times may not appeal to every investor, the rate of return can be substantial. Several recent changes have made the risk more manageable than it has ever been.

The acquisition of contaminated properties has become an increasingly important investment niche for savvy developers looking for better rates of return. Buyers and lenders alike are looking more closely at properties with environmental issues for two key reasons: 1) regulatory reforms, such as clearer guidelines regarding due diligence, have been implemented to reduce liability and increase protection for property owners; and 2) affordable insurance to adequately address environmental concerns increasingly has become available.

Click here to read the entire article.

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