Frequently Asked Questions

These FAQs were provided by the Environmental Law Institute’s Brownfield Center.

Q. What is a brownfield?

A. The term brownfield typically refers to land that is abandoned or underused, in part, because of concerns about contamination. The federal government defines brownfields as “abandoned, idled, or underused industrial and commercial properties where expansion or redevelopment is complicated by real or perceived environmental contamination.”

Q. Is there a brownfield in my community?

A. Ask yourself: Is there land that is idle, vacant, or less productive than it could be? Are concerns about environmental contamination contributing to the problem? If you answered “yes” to both questions, then that property might be a brownfield.

Q. Why the interest in redeveloping brownfields?

A. When brownfields sit idle, everybody loses. Neighbors face environmental worries and reduced property values. Cities see roads, sewers, and other infrastructure underused. New business seeks out “greenfields” or undeveloped land, encouraging sprawl. And, brownfield owners must deal with a long list of worries – from potential lawsuits to deriving too little income from their property.

Q. What are the benefits of brownfield redevelopment?

A. Brownfield redevelopment:

• Benefits the community;
• Eliminates health and safety hazards;
• Eliminates eyesores;
• Brings new jobs into the community;
• Brings new investment into the community;
• Increases the productivity of the land; and
• Increases property values and tax receipts by local and state governments.

Q. Why do some owners leave a brownfield property in its current condition?

A. Many brownfield owners are satisfied with leaving their properties in their current condition. In many cases, the neighborhood property values may seem too low to justify any sort of investment in the site.

A property owner who decides to do nothing should be sure that the decision is based on a full understanding of the situation. Unfortunately, many owners may not have full information or analyze all the implications of leaving a brownfield as is. Community members may be able to convince an owner to reconsider the decision to let the property sit, but the owner may resent such an intrusion. In particular, the owner should look at possible liabilities for environmental contamination. Even potential liability can affect a business, making it harder to get credit or raise equity for projects not directly related to the brownfield.

Also, a property owner who is letting a brownfield sit idle probably should make sure that things are not about to get worse. If the site is posing a health or environmental threat to neighbors, delay could lead to bigger injuries and bigger liabilities. On a site bad enough to justify government attention, an owner who waits may be inviting cleanup on expensive terms dictated by the government, possibly with years spent with attorneys arguing over the process. In such a situation, both the owner and the community may lose as the cleanup is likely to take longer, be more expensive, and not be coordinated with redevelopment options. Even when cleanup appears to be a losing proposition, prompt cleanup may make sense as a way for an owner to cut losses.

Q. What are the benefits of brownfield redevelopment to property owners?

A. In addition to providing benefits to surrounding communities, property owners who clean up and reuse their brownfield properties may benefit directly by:

• Avoiding potential environmental enforcement actions by federal, state, and local regulatory agencies that could impose penalties and costly cleanups;
• Receiving tax benefits for cleaning up and reusing the property;
• Reducing the likelihood that contamination from the property will migrate off-site or into the groundwater under the site, thereby limiting liability for, and long-term costs of, cleaning up the property;
• Creating goodwill within the community;
• Reducing the potential need to address liabilities associated with the property in financial statements and Securities and Exchange Commission filings; and
• Realizing an enhanced return from the property by making it more valuable and marketable.