By Benjamin Leslie-Bole

In his 23 years at Environmental Resources Management (ERM), Benjamin Leslie-Bole has had the unique opportunity to witness first-hand the growth and progress of the brownfield development industry. In this month’s guest column, Leslie-Bole lets us view the market through the eyes of an environmental consultant and offers readers seven observations that reflect the brownfield industry in the last decade, and where the market is headed.
 
1. The low hanging fruit has been picked
Gone are the days of quick and easy brownfield transactions. The industry’s low-hanging fruit – brownfield redevelopment projects with low cleanup costs and high land value – is increasingly harder to come by. The good news? The shortage has ushered in a new wave of creative brownfield development, where developers are taking on challenges that they might not have otherwise considered.
 
2. Traditional developers less reticent to engage in redeveloping contaminated properties
Once limited to specialists in brownfield redevelopment, traditional developers have become increasingly comfortable in dealing with a range of environmental remediation problems. Not surprisingly, the interest has spurred a demand for specialists in this niche like ERM and EFG who understand the risks associated with brownfields and every possible solution to consider when developing on brownfields. I expect to see this trend toward increasing comfort to continue.
 
3. Creative solutions are essential
In my experience, I’ve found that the success of any brownfield development project is heavily reliant on creativity – innovative solutions that address the specific challenges of each unique property. In many cases, a unique and creative solution is the difference between a successful development and a property that continues to be underused.
 
Take cleanup standards, for example. Increasingly, developers and landowners are finding that the traditional way of doing “just enough” remediation imposes unintended limits on the future land use flexibility. Today, some developers will clean up property to standards that exceed minimum regulatory clean-up requirements; others will look for increased flexibility in the selected remedies. Engaging local communities from the beginning of a project also offers developers and other stakeholders more insight and flexibility toward the desired redevelopment outcome.
 
4. Sluggish demand for commercial development has slowed infill projects
It’s become increasingly evident that the number of brownfield opportunities is directly related to the demand for commercial development. Not surprisingly, the softening of the commercial real estate development market has consequently affected demand for new brownfield infill projects. One thing I have found over the years is that when the demand for commercial development is low, it makes financing cleanup more challenging and constrains redevelopment flexibility. Successful transactions during times like these depend on the creative solutions.
 
5. Regulators are more comfortable with associated risk
Generally speaking, government agencies are more aware of the challenges associated with and benefits derived from brownfield projects, and many are increasingly comfortable with making decisions to allow new uses of the remediated land. The increased reliance on risk-based decision-making has enabled regulators to find comfort with new uses on formerly contaminated properties.
 
6. Regulatory relationships are still essential
The once antagonistic relationship between regulators and the regulated has evolved into a more collaborative model. I think it’s a reflection of a maturing industry. Today, it’s become more commonplace for all parties in the brownfield redevelopment process – lenders, developers, regulators, the community and other stakeholders – to work harder to create and maintain relationships that will foster a solution that benefits everyone.
 
7. Regulatory bodies are more apt to offer support
In the state of California, for example, Cal/EPA has given priority to streamlining approvals for “shovel-ready” projects (particularly brownfield projects), projects that can create jobs and projects that carry a “green dividend.” In just the last few years, we’ve also seen an increased focus and enforcement on brownfields in areas of environmental justice concerns. In short, what California and many states across the U.S. have recognized is that brownfield development has an economic dividend – it creates jobs, it encourages smarter land use by using urban infill, and it builds healthier communities.
 
 
 Benjamin Leslie-Bole is a partner with Environmental Resources Management (ERM), a leading global environmental consulting firm headquartered in Walnut Creek, California. He has more than 23 years of experience in the investigation, remediation and redevelopment of hazardous materials sites. He can be reached at ben.leslie-bole@erm.com or (925) 946-0455.