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Brownfields FAQ's

What are brownfields?

Brownfields are abandoned, idled, or under-used properties where expansion or redevelopment is complicated by real or perceived environmental contamination. They typically are former industrial or commercial properties where operations may have resulted in environmental contamination. Brownfields often pose not only environmental, but legal and financial burdens on communities. Left vacant, contaminated sites can diminish property value of surrounding sites and potentially threaten the economic viability of adjoining properties.

What are the barriers to brownfield redevelopment?

The impediments to contaminated site redevelopment in New York are complex. The existing liability scheme may hold all owners of contaminated property liable for cleanup costs, regardless of when or how the property was acquired. This contributes to the reluctance of parties to purchase even minimally contaminated sites. The potential cost of cleanup, which may not be known for certain at the time of purchase, is also a deterrent to parties wishing to build, relocate, or expand businesses. Lenders have been reluctant to extend credit for the purchase and cleanup of contaminated sites, fearing future liability issues. Consequently, financing the purchase of a brownfield site may be more difficult than financing the purchase of an uncontaminated or greenfield site.

What are the benefits of cleaning up and redeveloping a brownfield site?

The cleanup and redevelopment of brownfield sites can bring viable businesses into a community. This in turn increases tax revenues and employment opportunities to a community. Existing streets, water lines, sewerage systems and other infrastructure systems can be used thereby obviating the need for public and private investments in this area. Also, the demand on developing or expanding business on uncontaminated land is reduced.

What loans are available for environmental improvements?

Under its Clean Water State Revolving Fund (CWSRF), the New York State Environmental Facilities Corporation (EFC) can help municipalities finance facilities that reduce or prevent water pollution. Water quality protection portions of Brownfields projects are generally eligible for CWSRF financing.

  • The CWSRF can prefinance design and construction costs prior to reimbursement of the State share from the 1996 Bond Act.
  • CWSRF interest-free, short-term loans allow municipalities to design and initiate construction without the interest expense associated with bond anticipation notes.
  • The CWSRF can finance the local share (non-grant portion) of Brownfields investigation and remediation projects with long-term, low-interest loans. The current 50 percent interest rate subsidy can save the municipality substantial interest costs over the life of the loan.
  • Some costs which are ineligible for the Environmental Restoration Program may be eligible for funding through the CWSRF.