brownfields and greater binghamton revitalization presentation of kenneth s. kamlet director of...
TRANSCRIPT
Brownfields and Greater Binghamton Revitalization
Presentation of Kenneth S. KamletDirector of Legal Affairs,
Newman Development Group, LLC
To Broome Leadership InstituteGreater Binghamton Chamber
Oct. 28, 2004
2
Who I Am—My Background
Director of Legal Affairs, NDG—’97-Present Education: Penn Law—JD, ’73; Yale U.—
M.Phil.,’70—Biochem. Sciences; CCNY—B.S.,’66—Biology.
Pollution & Toxics Director, and Director of Legal Affairs— Nat’l Wildlife Fed.—’73-’85
Environmental Consultant—’85-’92 Private Law Practice—’92-’97
3
Outline of Presentation
What’s a “Brownfield”?Project examples (8 in Greater
Binghamton)New NYS Brownfields LawCurrent ControversyConclusion
4
What’s a “Brownfield”?
“Any real property, the redevelopment or reuse of which may be complicated by the presence or potential presence of a contaminant [hazardous waste, petroleum, or pollutant]….”
Exclusions: site that is subject to any on-going state or federal environmental enforcement action related to the contamination
5
Project Examples--1
Vestal Town Square Mall– Public opposition– Brownfield site (asphalt plant, etc.)Brownfield site (asphalt plant, etc.)– Wetlands– Geotechnical issues– Real estate recession– SEQRA litigation– Subsequent TSM Expansion
6
Vestal Town Square Mall
Original Wal-Mart
7
Project Examples--2
Shoppes at Vestal– Brownfield site (former meatball factory)Brownfield site (former meatball factory)– 3-sided culvert– Wetlands– Stormwater management– Vestal Rail-TrailVestal Rail-Trail– Streambank erosion adjacent to Town Park
8
The Shoppes at Vestal
View of Meatball Factory from Vestal Parkway
9
Project Examples--3
Vestal Rail-Trail
10
Project Examples—4
Vestal Lowe’s– Originally part of petroleum tank farm
11
Vestal Lowe’s
Town Square Mall
Petroleum Tank Farms
12
Project Examples--5
Gannett Corp. regional printing press facility
Former Endicott-Johnson Ranger Paracord Site
Architect’s rendering of new printing press facility
13
Ranger Paracord/Gannett, cont’d
14
Ranger Paracord/Gannett, cont’d
Total site = 27.41 acres; Gannett parcel is 11.56 acres State-of-the-art, high-tech printing press from Wurzburg,
Germany will rise to a height of 6 stories in a 96,000-sf building
It will service Gannett papers from not only Binghamton, but also Elmira and Ithaca
The building will also house distribution and paper storage facilities
Site was chosen because of proximity to 3 major interstates (I-81, I-88, and future I-86)
Also, hopefully, to catalyze similar efforts to revitalize other dormant industrial sites in Greater Binghamton
15
Project Examples—6
Parkway Plaza– Replacement of former factory (Ozalid
plant) and old shopping center (Century Plaza)
– Another example of a brownfield revitalization
16
Parkway Plaza
Former Ozalid Factory
--looking southeast
17
Parkway PlazaTown Square MallGiant Food Store
Former Ozalid factory
Former Century Plaza
Former Video King location
18
Project Examples—7
Vestal Plaza/Vestal Park– Failed, deteriorating shopping center– Addition of office uses (NCI, AIG)– Addition of Ames / bankruptcy of Ames– Addition of student housing
Not a Brownfield (but maybe a “grayfield”—Not a Brownfield (but maybe a “grayfield”—real property that is declining in use, but not real property that is declining in use, but not contaminated)contaminated)
19
Vestal Plaza/Vestal Park
AIG Call Center
20
Vestal Plaza / Vestal Park
Old Vestal Plaza—pre-Newman
21
Vestal Plaza/Vestal Park, cont’d
Artist’s Rendering—Student Housing
22
Project Examples—8
Chenango Plaza/Lowe’s– Voluntary cleanup agreement negotiated
with DEC in 1996– It took >6 years and >$250,000 to secure
a liability release– Much time and money was spent because
many people could say “No” and require more study, but only one person could say “Yes”
23
Chenango Plaza / Lowe’s
I-81
Old Chenango Plaza
24
Chenango Plaza
25
Chenango Plaza / Lowe’s
26
New NYS Brownfields Law
A. 9120 approved by Assembly June 20th per 3-way agreement; Senate passes wrong bill
Senate reconvenes September 16th and passes A. 9120 / S. 5702 by a 51-9-2 vote
Governor participates in Babylon, Long Island event Sept. 17th—planned to sign bill, but it doesn’t make it there in time.
Signing occurred in October 2003—a little over a year ago
27
Brownfields Bill (A. 9120)
For more information about the
new Brownfields legislation and
its genesis, please consult my
New York Brownfields website:
www.ny-brownfields.com
28
New NYS Brownfields Law
107 pages Has positive and negative features All western New York Senators (Buffalo, Rochester,
etc.) voted against it They were concerned that the legislation would not
significantly benefit redevelopers of Upstate BF sites 48-page Technical Correction Amendments
approved by the Legislature on Aug. 11, 2004
29
BF Benefit-Risk Matrix
6
VCP Risk/Benefit MatrixVCP Risk/Benefit Matrix
Threshold SitesThreshold Sites
VIABLE VIABLE SITESSITES
NONNON--VIABLE VIABLE SITESSITESLOW ROI, LOW RISKLOW ROI, LOW RISK
HIGH ROI, HIGH RISKHIGH ROI, HIGH RISK
Risk of Environmental Liability
EXPECTED
ROI
30
New NYS Brownfields Law
Main Positive Features:– Financial incentives (tax credits, including one for
environmental insurance; priority assistance for sites in BOAs)
– Improvements to Environmental Restoration Program & ability to stay foreclosure proceedings
– Adoption of federal liability exemptions– Workable cleanup goal & use-based cleanup track– Relaxed liability for current owners– Liability release binding on State, not just DEC– Greater certainty and finality
31
New NYS Brownfields Law
Main negative features:– Several provisions that may make innocent owners
reluctant to enter into BCAs “mothballing”– Several provisions that may discourage BF real estate
transactions—especially Upstate—because of added red tape, cost, and delay
– Failure to carry use-based cleanups over to municipally-owned BF sites
– Failure to change DEC’s organizational structure– Adding extra site investigation costs to outstanding tax bills
may discourage redevelopment
32
Current Controversy
Forest City Ratner/New York Times project– 52-story office tower on Eighth Ave & 40th St--
$850-million project– Never industrial– Limited contamination– Highly desirable Times Square real estate– Deal was committed to before new BF law– Seeking >$170-million in BF tax credits
33
Current Controversy, cont’d
DEC has proposed new guidance to allow it to disqualify sites based on:– Limited contamination in relation to the value of
the deal—BF status is not “complicating” the property’s development or re-use
– Even if the property meets the definition of a BF, if it is not in the “public interest” to grant it BF status
Legislators are threatening to amend the law to cap or roll back BF tax credits
34
35
Conclusion
The new Brownfield Cleanup Program can be a very significant economic development tool.