By Robert P. Blauvelt, PG., CHMM
Senior Vice President

Published Mid-Atlantic Real Estate Journal, April 10, 2009

      As the country works its way through the current economic downturn, we are finding that a series of very fortunate events (to steal a phrase from a well-known book series) are taking place.  Brownfields redevelopment is becoming more and more mainstream thanks to a growing market maturity, streamlined regulatory approval processes, and cheaper, more easily implemented cleanup technologies.  This perfect storm (another book reference) of events represents a new way of evaluating and assessing the usefulness of a site; ranging from that old, long inactive corner gas station to the slowly rusting 20-acre chemical plant.
      One of the key indicators that the Brownfields market has matured is the realization by developers, lenders, buyers, and sellers that environmental impacts (primarily soil and ground water contamination) are not insurmountable when it comes to returning a parcel to productive use.  Helping to drive this ongoing maturation process are governmental master plans encouraging or mandating preservation of open space and redevelopment of urban and industrial core areas.  This regulatory impetus, when combined with a growing lack of affordable or easily developed “Greenfield” space within the mid-Atlantic region, and the increasing availability of grants, tax incentives, and often strong community support for such projects all contribute to a rare atmosphere of high energy “can do” enthusiasm.
      Within the mid-Atlantic region, most states and the District of Columbia, have well-established legislative programs in place that provide a clear regulatory path for performing and obtaining approvals for redevelopment of Brownfield sites.  While each program is different, they fundamentally intend to provide a purchaser/developer with current and future liability protection from contamination that is present on a site.  This protection includes, in many cases, exclusion from Federal and State enforcement actions so long as the cleanup is conducted under the appropriate oversight and in compliance with established protocols.  In almost all cases, these protocols provide for reasonable cleanup standards that are protective of human health and the environment and are flexible enough to be implemented with most anticipated land re-use scenarios.
     Cleanup technology has finally caught up with the needs of the marketplace and there are now a number of relatively low cost, non-intrusive, and reliable ways to address soil and ground water that has been impacted by former waste management or industrial processes at a site.  Fast acting chemical additives can be added to soil and ground water in ways that do not require extensive site disruption.  These in-situ treatments usually are supplemented with removal of grossly contaminated materials (“hot spots”) or the installation of low maintenance, passive contaminant collection systems or flow-through chemical treatment walls.  When these and other remedial solutions are used in combination with engineering and institutional controls (e.g., asphalt paving and deed restrictions that limit certain types of future property uses) it frequently means that cleanup goals can be achieved without the need for expensive soil excavation or installation of complicated, long-term ground water collection and treatment systems.
      Ultimately, impacted soil and ground water issues are becoming just another factor that needs to be considered in the overall evaluation of the deal.  If the property makes sense from a real estate perspective – location, price, end use, etc. – environmental issues can be managed within a business context that allows most transactions to proceed in a timely and profitable manner.  In fact, many remedial firms offer fixed priced (guaranteed) cleanups to limit downside environmental risks and eliminate cost overruns.  Today’s predictable regulatory procedures and dependable, low-cost remedial technologies offer a clear path forward for the development of a Brownfield site and its introduction as an important, contributing part of a revitalized community.