The Brownfields Factor

While idled or abandoned “brownfields” have been the unfortunate result of rapid industrialization, the future of these properties may not be all doom and gloom. For the right business, developing on a former brownfield may present rewarding opportunities.

Brownfields are defined as abandoned, idled or underused industrial and commercial properties where expansion or redevelopment is complicated by environmental contamination. With an estimated 425,000 possible brownfield sites in the U.S., central Ohio potentially hosts several thousand of them.

We often think of these brownfields as deserted, polluted lands sitting in a forgotten part of town. However, many sites exist in thriving urban zones or sit adjacent to flourishing districts.

One of the greatest benefits to developing a former brownfield is its location. Consider a former industrial zone that now sits abandoned. Nearby is a thriving district that offers an assortment of entertainment, restaurant and nightlife options. After cleanup, the brownfield could become an urban residential hub. Former waterfront properties were hosts for manufacturing or warehousing operations. Today, the land could be home to a variety of new businesses, parkland and residential development. The added benefit is that these areas are often already serviced with updated infrastructure, including roads and utilities.

As always, developers should do their homework and thoroughly research any liabilities before purchasing or building upon a site. New owners may acquire the responsibility of remediating the property. It is important to establish the means of carrying out the cleanup before closing on the purchase.

Ideally, cleanup can be paid for through government grants, like Ohio’s “Clean Ohio Fund,” or local tax abatements. Because cities have a vested interest in redevelopment, they are often very willing to assist businesses that wish to return the land to successful use. Because the issue is gaining momentum, lenders are becoming more willing to provide private funding.

With today’s remediation techniques, cleanup is becoming easier and more thorough. Plus, with strict state and federal regulations overseeing the work, developers have the added assurance that the cleanup will be handled effectively.

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