James G. Wright
Lincoln Institute of Land Policy
113 Brattle Street
Cambridge, MA 02138-3400
(800) 661-7235
1997. 32 PP. $14.00

   Although they might not be able to define the term, many real estate professionals have had experience with brownfields, industrial or commercial facilities that have been abandoned, idled or under-utilized due in part to real or perceived environmental contamination. Brownfields often can be redeveloped, but since most real estate professionals have limited experience with mitigating environmental contamination, they may encounter major hurdles when redeveloping these sites.

   According to author James G. Wright, the number of brownfields in the United States is estimated to be as many as 450,000, involving vast acreage. Quoting figures from a 1995 Urban Land Institute study, Wright states that there are approximately 132,000 to 176,000 acres of brownfields - an area about the size of Los Angeles.

   Risks and Rewards of Brownfield Development presents a convincing argument for recycling brownfields: a vacant brownfield not only represents a waste economic resources but also exacerbates community decline. Abandoned sites attract illegal dumping, transients, and illicit activities. Businesses and residents relocate, removing community employment opportunities and taxes. As those able to leave do so, there is an increase in the amount of sprawl, which translates into higher expenditures for infrastructure. Communities then have to support the cost of both adding infrastructure for new development and maintaining infrastructure for abandoned areas.

   Wright lists powerful reasons why free market development alone can not solve the brownfields problem. He cites numerous constraints to brownfields redevelopment, such as local zoning and cleanup liability under the Comprehensive, Environmental Response, Compensation and Liability Act (CERCLA), known as Superfund. Zoning also restricts the reuse of these abandoned sites. Many cities retain the sites' manufacturing zoning long after manufacturers have abandoned the inner city. A number of these sites are on waterways, in downtowns, and close to urban amenities. The best use for much of this land is housing. Wright believes that with more flexible zoning that allows residential development some brownfields could be redeveloped cost effectively. Also, while CERCLA's liability requirements have bbeen relaxed through administrative action, an innocent purchaser of property unaware of pollution at the time of purchase could incur unlimited liability for cleanup.

   To stimulate the redevelopment of brownfields, certain states have adopted innovative approaches, such as allowing risk based assessments, which essentially loosens state environmental requirements. Previously, the level of cleanup required was severe and was applied uniformly to all properties regardless of their intended use. Under risk-based assessment guidelines, the state establishes different levels of acceptable pollution depending on the degree of human exposure to contaminants. These relaxed requirements allow properties to be considered "clean" at significantly higher levels of pollution, enabling more cost-effective cleanups.

   In addition, the U.S. Environmental Protection Agency (EPA) has relaxed many of its requirements, declaring that it will not hold municipalities liable for cleanup costs for abandoned properties that are involuntarily obtained through tax foreclosure. However, these policy changes could be reversed. Wright suggests that an overhaul of CERCLA by Congress is needed to secure the EPA's administrative changes through legislation. Only when such changes are made into law, says Wright, will developers be comfortable in redeveloping polluted sites.

   The book provides five case studies that illustrate how concerned government organizations have been able to bring sites to a state of regulatory and environmental comfort. Private industry then was able to purchase, redevelop, and tenant the site. Wright's choice of case studies implies that brownfield redevelopment is a costly undertaking - each redevelopment required significant expenditures. For example, EPA spent $20 million for the cleanup and redevelopment of the Bailey Smelter in Denver. Surprisingly, none of the cases used an inexpensive regulatory change such as new zoning or deed restrictions to prohibit residential use.

   Risks and Rewards is an excellent primer for members of public agencies and quasi-public organizations who have been introduced to the brownfields problem and want take action. However, it spends little time discussing how private industry has become involved. The book primarily is a guide for nonprivate entities that want to encourage brownfield redevelopment in their community.