Some people in the Brownfield industry are saying that now is the time to increase the amount of Brownfield remediation projects. With the economy in a recession these people believe that it is now the time to invest in these cleanup projects. Andrew Himel, a partner with the Kilmer Brownfield Equity Fund, believes that now is the time to buy these places because in boom and bust times people are more likely to sit on the properties. Now since the economy is in such poor shape these properties will go for much less. Also since these projects usually take three to four years, according to Himel, the economy should be turning up by that time. Himel says “opportunistic investors should be able to find worthwhile properties but will likely need some cash in hand to convince lenders that deals can be closed.” These investors stand to benefit when the property values recover to pre recession levels.
In Canada there are somewhere between 30,000 and 100,000 Brownfield sites. Kilmer Brownfield Equity Fund is an investment fund that is dedicated to making the remediation of these sites possible. A specific example of Brownfield remediation in Canada is the Ladysmith Waterfront Lands, the inner harbor in particular. The British Columbian government has announced $1.8 million to determine the level of contamination so that the development plans can move forward. Making contaminated sites into something useful for the community is a great idea that Canada is utilizing.
The state of Ohio is also taking advantage of the economic benefits of Brownfield remediation. They have a plan called the Clean Ohio Fund; this fund in addition to cleaning up contaminated sites it has created economic growth and made many jobs. This fund for example gave the New Boston Steel Mill $3 million to clean up a site that had health risks from PCBs and benzene; the finished project is a retail complex that will create 500 full-time jobs. Other example of this fund at work is a project in the city of Middletown. The town was given $750,000 in grants to remediate the Midwest Services and Engineering property at 605 Clark St.; it now has a lead-impacted area.
These are a great example of the potential that Brownfield remediation can have for the economy. As it can be seen remediation of Brownfield sites can create jobs and stimulate the economy. Cleaning up these sites is a win-win situation, especially in this economic climate. These actions will clean-up the environment, eliminate health risks, create jobs, and stimulate the economy as a whole.
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