Transcript Brownfields and Greater Binghamton Revitalization Presentation of Kenneth S. Kamlet Director of Legal Affairs, Newman Development Group, LLC To Broome Leadership Institute Greater Binghamton Chamber Oct.

Brownfields and Greater
Binghamton Revitalization
Presentation of Kenneth S. Kamlet
Director of Legal Affairs,
Newman Development Group, LLC
To Broome Leadership Institute
Greater Binghamton Chamber
Oct. 28, 2004
Who I Am—My Background
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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
Outline of Presentation
What’s a “Brownfield”?
 Project examples (8 in Greater
Binghamton)
 New NYS Brownfields Law
 Current Controversy
 Conclusion
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What’s a “Brownfield”?
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“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 ongoing state or federal environmental
enforcement action related to the
contamination
Project Examples--1
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Vestal Town Square Mall
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Public opposition
Brownfield site (asphalt plant, etc.)
Wetlands
Geotechnical issues
Real estate recession
SEQRA litigation
Subsequent TSM Expansion
Vestal Town Square Mall
Original Wal-Mart
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Project Examples--2
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Shoppes at Vestal
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Brownfield site (former meatball factory)
3-sided culvert
Wetlands
Stormwater management
Vestal Rail-Trail
Streambank erosion adjacent to Town Park
The Shoppes at Vestal
View of Meatball Factory from Vestal Parkway
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Project Examples--3
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Vestal Rail-Trail
Project Examples—4
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Vestal Lowe’s
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Originally part of petroleum tank farm
Vestal Lowe’s
Town Square Mall
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Project Examples--5
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Gannett Corp. regional
printing press facility
Architect’s rendering of new printing press facility
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Former Endicott-Johnson Ranger Paracord Site
Ranger Paracord/Gannett, cont’d
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Ranger Paracord/Gannett, cont’d
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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
Project Examples—6
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Parkway Plaza
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Replacement of former factory (Ozalid
plant) and old shopping center (Century
Plaza)
Another example of a brownfield
revitalization
Parkway Plaza
Former Ozalid Factory
--looking southeast
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Parkway Plaza
Giant Food Store
Town Square Mall
Former Ozalid factory
Former Video King location
Former Century Plaza
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Project Examples—7
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Vestal Plaza/Vestal Park
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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”—
real property that is declining in use, but not
contaminated)
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Vestal Plaza/Vestal Park
AIG Call Center
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Vestal Plaza / Vestal Park
Old Vestal Plaza—pre-Newman
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Vestal Plaza/Vestal Park, cont’d
Artist’s Rendering—Student Housing
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Project Examples—8
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Chenango Plaza/Lowe’s
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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”
Chenango Plaza / Lowe’s
Old Chenango
Plaza
I-81
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Chenango Plaza
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Chenango Plaza / Lowe’s
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New NYS Brownfields Law
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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
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
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New NYS Brownfields Law
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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
VCP Risk/Benefit Matrix
VIABLE
SITES
RI
SK
RO
I,
H
IG
H
RO
I,
LO
W
LO
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Threshold Sites
H
IG
H
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P
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C
T
E
D
RI
SK
BF Benefit-Risk
HIGHMatrix
ROI, HIGH RISK
LOW ROI, LOW RISK
Risk of Environmental Liability
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NONNON-VIABLE
SITES
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New NYS Brownfields Law
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Main Positive Features:
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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
New NYS Brownfields Law
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Main negative features:
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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 municipallyowned BF sites
Failure to change DEC’s organizational structure
Adding extra site investigation costs to outstanding tax bills
may discourage redevelopment
Current Controversy
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Forest City Ratner/New York Times project
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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
Current Controversy, cont’d
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DEC has proposed new guidance to allow it
to disqualify sites based on:
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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
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Conclusion
The new
Brownfield
Cleanup
Program can be
a very significant
economic
development
tool.
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