Each redevelopment is different depending on the ownership, remediation,
financing, end use of the property. The four main components in
the redevelopment process include: initiation, evaluation, transaction
Initiation: The brownfield site is identified and a need
or vision for that site is formed. Brownfield sites are often listed
with the state environmental agency or can be identified by anyone
in the community. Stakeholders are identified. Identifying and building
partnerships is key to begin planning a brownfield project. Understanding
the stakeholders priorities, conflicts and commonalities can lead
to a quicker and better development that is beneficial to all parties
and the environment.
Stakeholders include the site owner, government (federal and state
environmental agencies), municipalities, community groups and the
neighborhood, universities, investors and lenders, and the developer.
Evaluation: The viability of the project is determined based
on such factors as the past and future land use, needs of the community,
access to markets, and return on investment. Financing options are
also evaluated. Environmental risks are considered based on a Phase
I (historical use of the site) and Phase II (sampling) of the site.
The risk is determined and various remediation options are considered.
Communication of the risk and environmental issues and remediation
options are communicated to the stakeholders . Often the success
of the project is dependent on good communication. Understanding
the applicable legislation and regulatory requirements are critical
to the risk management process. It is possible that more than one
regulatory program and multiple agencies may apply. Performing the
financial risk analysis includes the environmental risk and the
applicable laws and regulations. The need for insurance is also
Transaction: Ownership often changes at this stage. Environmental
liability concerns are resolved and the protection from liability
is sought by both the transferee and tranferor of the property.
Preliminary and Pre-closing agreements may be necessary. Allocating
financial risk may be preferred through provisions in transaction
documents such as warranties, indemnification, or environmental
insurance. Allocating financial risk can also occur outside the
Implementation: Stakeholders are in agreement. Demolition,
renovation and corrective action occur at this stage. Any necessary
permits are obtained. The remediation is implemented and any long
term issues are addressed. Any correction action objectives are
met. Exiting the process entails the use of controls to insure that
new brownfields are not created.
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