1. James M. Poling Brownfields Administrator Department of Natural Resources and Environmental Control Brownfields 2011 Sustainable Communities Start Here April 5, 2011 Economic Impact on Delaware’s Economy The Brownfield Program

2. Evaluation Toolbox Value Stream Mapping: 102 Steps Reduced to 69 24 Months Reduced to 13 Acreage: 3,000 plus Investigated and Redeveloped Capital Investment: Upwards of up to $100 Million Currently Studying: Intangible Benefits of the Brownfield Program Quality of Life, Walkability, Housing

3. Overview of Report 1. Understand the differences among Delaware brownfields 2. Use property assessments to determine the net change in brownfield property values and estimate the impact on tax revenue. 3. Measure the change in employment and wages for the geographical area surrounding brownfields. 4. Estimate the “extra” contribution to the state’s economy due to the activity immediately near Delaware brownfields. * Study Conducted by UD’s Center for Applied Demography & Survey Research

4. Brownfield Example

5. Study Parameters Ten Year Study Period (01.01.99 – 12.31.08) 29.3 Million Invested by DNREC Evaluated Sites During All Phases of Cleanup and Redevelopment Looked at 119 Sites Throughout the State New Castle – 99 Kent – 10 Sussex – 10

6. Delaware Brownfield Characteristics Type of Development Proposed for Brownfield Remediation StatusBusinessResidence Business & Residence Open Space Nonprofit Business Nonprofit ResidenceTotal New CastleComplete229212339 In Progress196942040 Inactive140400220 Total5515 54599 SussexComplete1211005 In Progress1200003 Inactive0002002 Total24130010 KentIn Progress42301010 Total42301010

7. Theoretical Change to Assessed Values If properties were assessed daily, many brownfields would follow this trend. Typically, only changes from A  B or from A  C are observed. Many projects only involve remediation, so assessed values do not change. Unfinished projects will usually show a loss in assessed value. Initial Time New Temporary Assessment Initial Value Demolition Remediation Construction New Value A B C

8. Summary of Assessment Results As of 2008, the Delaware brownfields increased in property value by $470 million. Many brownfields have not finished development, so this number will likely increase in the future. The brownfield program has paid $29.3 million (nominal $) on these projects. Each dollar corresponds to approximately $17.50 of additional market value in New Castle County and Sussex County. It is too early to calculate a meaningful ratio for Kent County. Most of the improvements in the state occurred on the Riverfront. Brownfield assessed values in New Castle increased more than 10 times their respective district average. Assessed values in Sussex increased 78% faster than the respective district average. In Kent, assessed values increased 4%, while the district average increased 22%. Nearly $2.75 million in 2008 property tax revenue was generated by higher brownfield property assessments. Most of this revenue went to the Christina school district and the City of Wilmington. Annual tax revenue will increase as more projects finish.

9. Summary of Changes in Economic Activity Between 2000 and 2008, state employment and wages increased by 2.8% and 33.7% respectively. Wages and employment closest to brownfields grew faster than the county averages in New Castle County and Sussex County. The average annual wage per worker increased significantly faster for workers near brownfields than it did for the average worker. Brownfield businesses in New Castle and Sussex pay above average wages. Brownfield businesses in Kent County pay below average wages. Activity in high wage sectors, like finance and insurance, increased around brownfields. Activity in lower wage sectors, like manufacturing and retail trade, declined.

10. Conclusions “Extra” brownfield activity directly or indirectly contributed 695 jobs in 2008. This does not include the management of companies sector. $394 million in 2008 GDP was due to above average brownfield activity. Total wage and salary disbursements were $135 million more than they would have been. Disposable personal income per capita was $105 million larger than it would have otherwise been.

11. Conclusions Continued… Most of the gains in economic benefits stem from brownfield growth in the finance and insurance sector. New Castle has seen the most gains. As of 2008, activity near Kent County brownfields has declined. This is likely due to incomplete development. These are likely conservative estimates, since the activity surrounding brownfields probably would have been below the county growth rates.

12. For More Information UD Brownfields Economic Study is available at: http://www.awm.delaware.gov/BAC/Documents/UD%20 Economic%20Impact%20Study.pdf. http://www.awm.delaware.gov/BAC/Documents/UD%20 Economic%20Impact%20Study.pdf Site Investigation and Restoration Branch Contact: Jim Poling, Brownfield Administrator (302) 395-2600/Jim.Poling@state.de.us Economic Impact on Delaware’s Economy The Brownfield Program