Legislation boosts Connecticut revitalization.

Legislation approved during Connecticut's 1995 session reduces barriers to development of Connecticut's former manufacturing sites, offering hope for the future of its cities. Supported by SACIA, The Business Council of Southwestern Connecticut and other business groups, the legislation essentially reduces the burden of environmental compliance by allowing private professionals to expedite cleanups on behalf of the Department of Environmental Protection. Addressing the fear of future contamination liability, the legislation also includes a "covenant not to sue" for contamination problems which arise after redevelopment or purchase.

On a national level, the city of Bridgeport is one of three cities around the country designated for the federal "Brownfields Project," which will renew developer interest in previously contaminated sites.

State Legislation Promotes Clean-up of Contaminated Sites

Legislation approved by the Connecticut General Assembly designates licensed environmental professionals to supervise the clean-up of contaminated industrial sites now being directed by the state's Department of Environmental Protection, promoting a faster and more efficient clean-up process. It also provides a "covenant not to sue," essentially pledging that the Connecticut Department of Environmental Protection will not force the clean-up of hazardous materials discovered after the property owner has acquired the property.

"This legislation opens a new window of opportunity for commercial sites across Connecticut that until now were unattractive to investors or expanding firms for fear of future liability," says Chris O'Hara, a commercial real estate agent with CB Commercial Real Estate in Stamford.

The legislation received strong support from the Co-Chairs of the Environmental Committee, Senator Cathy Cook of Mystic, CT and Representative Jessie Stratton of Canton, CT.

Senator Cook explains that the legislation is "a major step forward for urban sites throughout Connecticut. Essentially it says that we've recognized that the old way doesn't work," says Cook, referring to an overburdened Connecticut Department of Environmental Protection. "By allowing developers to work with the private sector to develop clean-up plans, and removing the threat of environmental and financial liability down the road, we've eliminated obstacles that were threatening the very future of our cities."

Specifically, the legislation allows the Connecticut Department of Environmental Protection to contract with approved Licensed Environmental Professionals (LEPs), who can review the clean-up process of contaminated properties. "This legislation recognizes that the Department of Environmental Protection has previously been unable to handle its workload, creating a time and expense issue that has been driving developers away," says Cook. "Working with the private sector LEPs will make complying with environmental laws faster and less costly for developers."

Helping to mitigate associated clean-up costs, the legislation includes $30 million in bonding money dedicated to clean-up efforts. The legislation also allows the Commissioner of Environmental Protection to enter into a "covenant not to sue" with a land purchaser if the investor did not cause the pollution and plans to re-develop the property for productive use.

"In other words," says Cook, "once a clean-up plan is approved, a building is renovated or built, and business is underway, we've taken away the threat of an investor being held responsible for an environmental issue that arises years after they've acquired the property. That alone has been a major deterrent for investors who might otherwise have been interested in industrial land. At the same time," continues Cook, "we're encouraging the re-development of existent sites, rather than driving developers further into our open spaces."

"These bills are accompanied by a real commitment from my department to streamline the clean-up process," says State of Connecticut Department of Environmental Protection Commissioner Sid Holbrook. "We are committed to working with the private sector to promote economic development."

According to Fairfield County commercial real estate developer Robert Scinto, chairman of R.D. Scinto, Inc., "Anything that protects the value of a site and reduces future liability risks for a purchaser is good legislation for the state. I would expect property owners, businesses and developers to respond positively to these changes."

Asked about the potential effect of the legislation on a major city in Connecticut, Stamford Economic Development Director Christopher "Kip" Bergstrom cites the opportunity for development in Stamford. "We have one million square feet of vacant industrial space and 50 acres of vacant industrial land, much of it moderately contaminated," says Bergstrom. "Re-development of this space could create 2,400 manufacturing jobs. I'll be keeping these changes in mind as I suggest potential sites to investors."

Bridgeport Targeted for Brownfields Initiative

In Bridgeport, the United States Environmental Protection Agency's Brownfields Economic Development Project offers hope for a city whose manufacturing sites comprise almost 25 percent of the city's landscape. The city is one of three in the country to be targeted for re-development of abandoned industrial sites, commonly referred to as "brownfields," as part of the EPA's overall agenda to attract private investors.

An initial $200,000 grant to the city has facilitated the establishment of a community oversight committee made up of investors, developers, utility officials, bankers, attorneys, educators, city, state and environmental officials. The city has contracted with a consulting team which is establishing an inventory of contaminated properties, and collecting environmental and economic data for those locations. The team and committee will eventually create re-development strategies for between two and six selected pilot sites.

"There's no question that Bridgeport offers a location in Fairfield County, within 50 miles of New York City, that is attractive to relocating companies and potential developers," says Bridgeport Mayor Joseph Ganim. "The problem has been that, once an investor targets a site, they become overwhelmed with what lies below it."

"We need to rebuild our cities by attracting businesses back into urban areas, to create jobs and pay taxes," says U.S. Representative Christopher Shays. "Through the Brownfields Program, the EPA has recognized the importance of surveying and cataloguing environmental hazards in urban areas, so these properties can be remediated and marketed for productive re-use."

According to the U. S. Environmental Protection Agency, the project's central goal is to empower local officials towards community-based revitalization. EPA Commissioner Carol Browner is expected to be visiting the Bridgeport to officially announce the Brownfields initiative and its goals.

Pilot programs such as the one taking place in Bridgeport are expected to serve as models for exploring re-development in other states struggling with the same issue. The EPA estimates that as many as 100,000 sites across the country require evaluation under federal or state Superfund programs. The historical "polluter pays" philosophy, successful in deterring the contamination of new sites, has driven private investors away from the purchase and clean-up of sites that may be contaminated. These developers have instead moved to undeveloped "greenfields," leaving the nation's industrial and urban centers to economic decline.

The information on the sites ultimately identified will be available through a Geo-based information system (GIS) operated by the city and available to developers interested in the sites. In addition, the committee plans to market the selected sites to potential developers, financiers and investors through a series of Investor Forums. According to Michael Freimuth, director of economic development with the city of Bridgeport, "The Forums will display the data we've gathered, essentially showing how the value of the property exceeds the cost of remediation." The project will focus on the city's main industrial areas, the West End, Seaview Avenue Corridor, and the East Side of Bridgeport.

Following the project's overall goal of promoting community empowerment and job creation, the committee plans include the creation of a curriculum at Bridgeport's Housatonic Community Technical College on hazardous waste removal and environmental technology.

"The return of urban sites to productive use will benefit both the community and the State of Connecticut," says Commissioner Holbrook. "Discovery and remediation of these sites will encourage re-development while promoting a cleaner, healthier environment."