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| BROWNFIELDS REDEVELOPMENT
Brownfields RedevelopmentBrownfields are real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Cleaning up, reinvesting in and redeveloping these properties shifts development pressures away from undeveloped land, improving and protecting the environment. Moreover, brownfields redevelopment returns non-productive real estate assets to productive use, promoting the economic development of many of the nation’s most economically distressed areas and regions.Working with EPA: the Brownfields Redevelopment ContinuumEDA is a long-standing partner with the US Environmental Protection Agency (EPA) on brownfields redevelopment. EDA was the first federal agency to enter into a partnership agreement with EPA to assist in brownfields revitalization activities nationwide. If brownfields redevelopment is viewed as a continuum (from assessment to cleanup to reuse), EPA and EDA’s complimentary roles cover the entire process: EPA focuses on the “front-end” or environmental aspects while EDA targets the “back-end” or real estate development components of transactions.Brownfield Redevelopment Continuum  (click image for larger view)EDA’s Role in Brownfields RedevelopmentWithin its broad mission to lead the federal economic development agenda by promoting innovation, competitiveness, and regionalism, EDA encourages market-driven brownfields reuse through its strategic grant investments. EDA investments range from planning and technical assistance to infrastructure construction. Project examples include activities such as feasibility studies, revolving loan fund capitalization, infrastructure construction and the creation of redevelopment plans. As with most brownfield transactions, EDA’s successful involvement is dependent on the active participation of multiple partners, particularly the private sector. A primary objective of EDA is to help create an environment in which the private sector is more willing to invest its capital in brownfield projects that enhance job creation and overall community revitalization. Overall, EDA’s goal in brownfields redevelopment is to create value by returning non-productive, blighted and/or formerly contaminated real estate to local tax roles while fostering capital investment and creating higher-skill, higher-wage jobs.  (click image for larger view)EDA ResultsIn the last six years, EDA has invested approximately $225 million in over 200 brownfields redevelopment projects. The average investment during this period was roughly $1.1 million. In fiscal year 2006 alone, EDA invested over $40 million in 27 brownfield-related efforts (average investment, $1.5 million). Since fiscal year 2001, EDA investments in brownfields projects have helped community economic development activities in over 40 states and 150 communities. Investment recipients estimate that these brownfields projects will generate almost $6 billion in private investment and will create or retain over 100,000 jobs. Approximately 29 percent of the investments were made in rural communities.EDA Investment Results: Brownfield Redevelopment Projects FY01-FY06  (click image for larger view)EDA Brownfield Redevelopment Projects FY01-FY06 Investments  (click image for larger view)EDA Brownfield Redevelopment Success StoriesAt-A-GlanceLocation: Shelby County, Tennessee Total EDA Investment: $6.3 million Investment Award Date (initial): 1998 Total Project Cost: $11.5 million Estimated Private Investment: $5.1 million Estimated New Jobs: 2,546 Memphis Depot Business Park  (click image for larger view)OverviewIn September 1997, the Memphis Defense Distribution Depot was decommissioned as a result of the 1995 Base Realignment and Closure (BRAC) recommendations. In response to closure, local leaders adopted the Depot Redevelopment Plan, an ambitious five phase strategy to convert the former military installation into premiere business park. Specifically, the plan outlined an accelerated phased development strategy necessary to convert and upgrade the aging utility and infrastructure to modern standards. ImpactToday, with the help of EDA’s Economic Adjustment Program assistance totaling $6.2M, the Memphis Depot Business Park is a thriving 578 acre urban industrial park with 4.1 million square feet of industrial property. Minutes from the Memphis International Airport and direct interstate access, the Park strengthens Memphis’ position as “the distribution center of America.” The Park is currently 90% occupied with twenty-five (25) distribution and manufacturing companies employing 1,200 workers with an estimated $5.6M in private investment (equipment and working capital), a satellite campus of the Southwest Tennessee Community College, and a job training initiative (warehouse distribution) of the Memphis Leadership Foundation. Long term, the Park will continue to serve as a major economic resource to the local and regional community with an estimated 2,546 higher skilled, higher wage jobs offered by the companies located within the Business Park. EDA Brownfields Redevelopment Fact SheetClick here for the EDA Brownfields Redevelopment Fact Sheet Power Point Slide or here for a PDF version. Related LinksClick here for more information on EPA’s Brownfields Program. Click here for more information on NOAA’s Brownfields Program . |   |
