Redevelopment Process

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 and implementation.


Redevelopment Roadmap

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 evaluated.

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 transaction document.

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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