BILL TO PROMOTE 75% COST
REIMBURSEMENT AT
PENNSYLVANIA'S BROWNFIELD
SITES ADVANCES
The legislative committee of the Pennsylvania Chapter of the National Brownfields Association has been assisting members of the General Assembly to gather information for legislation which would set up a PA 75% cost reimbursement program for Brownfield sites, similar to that now in effect in New Jersey. Senate Bill 106.2 was introduced last fall, and is expected to be coming up for vote in the Pennsylvania Senate very soon. Information on the success of New Jersey's Brownfields program was furnished to Pennsylvania legislators. In New Jersey, they have 107 redevelopment agreements entered into with redevelopers, and $21,271,000 has been reimbursed to developers on 20 projects. The total reimbursement under the program under the agreement signed is $526 million. In New Jersey, over $139 million in new tax revenues was brought into the state on redevelopment projects from new business.
Of particular interest in New Jersey are closed municipal landfill sites, and such leading national businesses including Home Depot and Hampton Inn & Suites, and other retailers have opened new facilities on Brownfield sites. We will keep you up to date on this proposed legislation in future editions of the RT Review.
If PA adopts the 75% reimbursement program, there could be a huge surge in redevelopment at the Brownfield sites. This program would help to make Brownfield sites which have been abandoned due to higher upfront capitol cost associated with redevelopment more attractive to developers. Portions of the redevelopment which can be justified as remediation could qualify for reimbursement. The reimbursement of those costs over the span of the project can offset the high upfront redevelopment cost which caused the site to be abandoned and overlooked for redevelopment.
As more Brownfield sites are reconsidered for redevelopment, no more Greenfield properties could be preserved and spared from the push of development. The Program would have benefits for both the public health and welfare and the environment and we applaud our legislators for their efforts to make a successful Program in PA.
Top
|
|