Brownfield Cleanup and Redevelopment

Looking to purchase a building or property?

Many building and properties contain environmental contaminants that, if not discovered and documented properly before purchase, eliminate the possibility of cleanup funding for future redevelopment.

Lillian Sunwall

Are you looking to redevelop a building or property? Contact Lillian to discuss your project and learn what resources are available.

What Is A Brownfield?

A brownfield is a property where expansion, redevelopment, or reuse may be complicated by environmental contaminants. Example properties include abandoned gas stations, underused industrial or commercial properties, buildings where lead based paint or asbestos are concerns, meth-impacted buildings, and for vehicle/equipment maintenance facilities.

What Resources Are Available?

  • Brownfields Assessments provide funding for environmental assessments such as Phase 1s, Phase 2s and cleanup planning.
  • Brownfields Revolving Loan Fund provides low interest loans to for-profit companies and potential grants for non-profits to clean up brownfield sites.
  • Technical Assistance, Training, and Research Funds allow developers to conduct research/training/technical assistance to help address Brownfields challenges or next steps on difficult sites.
  • Targeted Brownfields Assessments provide assessment funding to organizations that do not currently have an assessment grant or are out of funding in current assessment grant.

Why Use Brownfields?

Contingent on the location and the type of property, a brownfield site often can be redeveloped for multiple uses ranging from housing, retail, industrial, or mixed-use to public and non-profit uses such as parks, recreational areas and municipal facilities.

Brownfields can be redeveloped by private developers, local governments or through public-private partnerships.

The Phases of Brownfield Redevelopment

There are three basic phases of the brownfield redevelopment process: pre-development, development, and management. Generally, the activities outlined here for each phase are done by potential purchases/developers.

Pre-Development

  • Determine Go/No Go Analysis – Is this financially feasible, does it pencil out?
  • Develop Agreement for Purchase of Property – A Buy/Sell must be in place prior to using Brownfields funding for a Phase 1 on a project.
  • Prepare a Redevelopment Plan – Demonstrates to our Brownfields Committee and to the bank that there is a plan for the use of funds.
  • Conduct Due Diligence (AAI/Phase 1) – An assessment to determine what, if any, contaminants exist on the site. In order for a property to qualify for further Brownfields funding, it is a requirement.
  • Work with our Brownfields Team to Identify Sources of Funding – Potential Phase 2 based on results of Phase 1, clean up planning, clean up loans/grants.
  • Acquire Environmental Insurance, if applicable – This protects the buyer if the Phase 1 does not identify any contaminants that are later discovered during redevelopment.

Development

  • Obtain Permits and Necessary Approvals from City/County Planning
  • Conduct Environmental Cleanup and Site Preparation Activities – Based on testing results and MT Department of Environmental Quality requirements, work with QEP/GFDA Team to create a cleanup plan.
  • Conduct Marketing and Pre-leasing Activities
  • Complete Construction/Remodeling and Open the Project

Management

  • Sell the Property – Buyer assumes Operations and Management
  • Keep the Property – Developer/Owner assumes Operations and Management