DEVELOPING BROWNFIELDS IN CONNECTICUT: What’s Out & What’s In Presented to CBIA’s Environmnental Conference 2008 June 3, 2008

THE PANEL Ann Catino, Partner, Halloran & Sage LLP (& Co- Chair of the State’s Task Force on Brownfield Strategies) Liz Appel, Acting Director, Office of Brownfield Remediation & Development (OBRD) / DECD Cynthia Petruzzello, Vice President of Brownfields Redevelopment for the Connecticut Brownfields Redevelopment Authority (CBRA) / CDA Graham Stevens, Brownfield Coordinator, Connecticut Department of Environmental Protection (DEP)

BROWNFIELDS What are they? “Any abandoned or underutilized site where redevelopment and reuse has not occurred due to the presence or potential presence of pollution in the buildings, soil or groundwater that requires remediation before or in conjunction with the restoration, redevelopment or reuse of the property.”

WHY BROWNFIELDS ARE IMPORTANT ECONOMIC BENEFITS: New economic activity – jobs & productivity COMMUNITY BENEFITS: Aesthetics, blight removal, community pride, catalyst for further development MUNICIPAL BENEFITS: Taxes, Community Growth & Development STATE BENEFITS: Jobs, Income & Business Taxes, Quality of Life ENVIRONMENTAL BENEFITS: protects the general public from health risks related to exposure to toxins present on these sites. Preserves Open Space.

BROWNFIELDS ARE … PART OF OUR LANDSCAPE & HISTORY PRESENT COMMERCIAL & INDUSTRIAL GROWTH OPPORTUNITIES FUTURE HOUSING FOR NEW PURCHASERS PARK & RECREATIONAL OPPORTUNITIES OPTIONS FOR MORE JOBS IMPORTANT FOR CONNECTICUT’S FUTURE

BROWNFIELDS ARE … SMART GROWTH

WHAT’S BEEN HAPPENING?? 2006 – The Beginning of the Brownfield Wave –Public Act : An Act Concerning Brownfields –Executive Order #15: Responsible Growth Initiative

2006 Brownfields General Creation of the Office of Brownfield Remediation & Development within DECD Development of a Municipal Pilot Program for 4 Municipalities – Grant Opportunities –Changes to the Transfer Act for Pilots – foreclosures & subsequent sales are exempt –Liability Exemptions: municipality & subsequent purchaser Establishment of a Task Force

Brownfields Task Force – 1 year of Proceedings Report Issued: February 2007 – website: Recommended Legislative Changes to the General Assembly: Organizational, Programs, Funding, Liability Relief Public Law

Public Act Organizational: Established OBRD as a “one stop shop” & Required a MOU Program Changes: –DECD: New & Expanded Programs Pilots –CDA: Loan Guarantees DEP: CERTAINTY –Sunset on DEP’s ability to Audit LEP Verifications

2007 New Expanded Programs NEW Grant & Loan Programs Who’s eligible: Any municipal, for profit or nonprofit organization or entity, a local or regional economic development entity acting on behalf of a municipality or any combination thereof What are you eligible for? Costs for assessment, remediation and development Where can your project be located? Anywhere in the State, including in flood plains, provided it is subject to the RSRs and is in or adjacent to an area identified as a regional center, neighborhood conservation area, growth area or rural community center in the State Plan of Conservation and Development

Additional 2007 Changes Transfer Act / LEP Process –Upon a Transfer Act filing, oversight delegated by default to a LEP after 75 days after DEP receipt of a Form III or IV –Within 75 days after “completion determination” – submit a schedule –Within Two Years After “completion determination”: Investigation Must be complete –Within Three Years After “completion determination”: Initiate Remediation & Submission of a RAP –Verification Audit Period: Sunsets after 3 years (exceptions)

Additional 2007 Changes Changes to Property Valuation for Municipal Assessments if landowner enters into an agreement with DEP to remediate such property, files the agreement on the land records & has developed an approved RAP Covenants Not to Sue – allowed if the commissioner has approved a investigation plan & remediation schedule; fee payment schedule allowed. CDA/CBRA – TIF allowed for residential or mixed use developments & loan guarantee program established to provide guarantees of not more than 30% of the loan to lenders Continued the Task Force

Brownfields MOU established Task Force Back at Work ! –OBRD –Funding & Financing & Tax Credits –Liability & Insurance Report Issued to Legislature, February 2008 website:

Public Act “Face of Connecticut” Where Preservation of Open Space & Farmland Protection Meets Brownfields –Funding Opportunities: for the restoration or stewardship of properties that serve 4 objectives: (1) open space conservation; (2) renovation and enhancement of urban parks; (3) preservation of active agricultural land; (4) restoration or reuse of historic resources

2008 Brownfield Changes Clarifies the 2007 Programs Municipal Grant Program –Municipalities, economic development authorities, regional economic development authorities, qualified nonprofit community & economic development corporations –Types of Projects: manufacturing, retail, residential, municipal, educational, parks community centers & mixed use development –Eligible costs: infrastructure, investigation, remediation…hard & soft costs –Grants awarded on a competitive basis, annually through an RFP to be issued beginning on October 1, 2008 –Grant recipients are “immune from liability” & may make low interest loans to a redeveloper –Grants <= $4 M

2008 Brownfield Changes Loan Program –Targeted Brownfield Development Loan Program to New Developers & Existing Property Owners who: Are in good standing and otherwise compliant with DEP’s regulatory programs Demonstrate an inability to fund the investigation and clean-up themselves Cannot retain or expand jobs due to the costs Includes manufacturing, retail, residential (emphasis on homes for 1 st time homeowners) & mixed use –Myriad of cost categories covered, including past costs –Redevelopment Plan Required if Loan > $50K

Additional 2008 Changes Municipal Access (22a-133dd) to Perform Investigations, without liability, on certain properties: –Owner can’t be located –Tax Lien –Filing notice of Eminent Domain –Investigation is in the Public Interest as determined by the municipality's legislative body to determine if the property is underutilized or should be included in any undertaking of development, redevelopment or remediation –Any official of the municipality reasonable finds such investigation necessary to determine if such property presents a risk to the safety, health or welfare of the public or a risk to the environment. –Procedure established to Object – Quick Deadlines

Additional 2008 Changes Continued the Task Force ……

Ann M. Catino, Partner Halloran & Sage LLP One Goodwin Square 225 Asylum Street Hartford, Connecticut