The Economic Development- URBAN DESIGN LINK in BROWNFIELD REDEVELOPMENT by Kevin L
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the economic development- URBAN DESIGN LINK IN BROWNFIELD REDEVELOPMENT By Kevin L. Bacon, Jr, Richard Dagenhart, Nancey Green Leigh, and John Skach intent was to promote clean up of contaminated land, and to provide opportunities for the U.S. Environmental Protection Agency to recover clean up costs from all potentially responsible parties Photo credit: Brian Leary Photo credit: (PRPs), but fear of being assigned liability as a PRP had the unintended consequence of significantly reducing interest in redeveloping brownfields. The few who chose to accept the risks focused the majority of their resources and energy on envi- ronmental remediation. New development began only after extensive cleanup processes were com- plete. From start to finish, brownfield redevelop- ment was a complex, time-consuming process, involving numerous stakeholders and very large capital investments from a variety of sources. These facts combined to constrain redevelopment solu- tions to principles of cost effective site engineering along with the standard private development Aerial view of the former Atlantic Steel Company foundry and rolling mills in central process that is driven by market demand and con- Atlanta, now the site of Atlantic Station. ventional financing packages. The ultimate impact is that brownfield redevelopment has cemented INTRODUCTION Kevin L. Bacon, Jr is a itself as a real estate – rather than an economic master’s student in archi- he wave of deindustrialization development – concept, particularly for large sites. tecture and planning at over the past several decades Consequently, the physical design and planning for Georgia Tech has contributed substantially to these brownfield projects are tied closely to short ([email protected]); t the 450,000 brownfields that are term market projections, and the opportunity to Richard Dagenhart is create a platform for sustainable economic develop- an Associate Professor estimated to exist nationwide. ment has been missed. Brownfield sites manifest themselves in a wide of Architecture at States and localities, particularly those in the Georgia Tech range of sizes, locations, contexts, and environ- “Rustbelt”, were leaders in seeking means to over- ([email protected] tech.edu); mental states. Although they can have com- come CERCLA’s unintended consequences. mercial as well as industrial former uses, the Regaining lost jobs, stimulating new businesses, Nancey Green Leigh is largest have industrial pasts. and increasing tax revenues became top priorities a Professor of City and and guided public sector support in the brownfield Regional Planning at In one sense, the U.S. created the brownfield redevelopment process. In the case of smaller cities Georgia Tech redevelopment problem when it passed the 1980 that depended on a single major manufacturer for ([email protected]); Comprehensive Environmental Response, Com- sustenance of the local economy and whose identi- John Skach is a pensation, and Liability Act (CERCLA). Its initial ties were defined by its presence, the wounds creat- Senior Associate at Urban Collage in Atlanta ([email protected]. LEARNING FROM ATLANTIC STATION Today, large brownfield sites are valued real estate development opportunities for high density, commercial, and housing mixed-use projects. In the past, they were typically stand-alone industrial sites. Recent redevelopment efforts suggest they continue to be perceived as stand-alone sites even though they may be occupied by a variety of business, residential, and public uses. However, redesigning and redeveloping large brownfield sites so that they become part of the surrounding city and neighborhoods is key to gaining approvals from a myriad of local, regional and national stakeholders, and making lasting and maximum contributions to the local economy. This article discusses the critical role of urban design for maximizing the economic development benefits of brownfield redevelopment, illustrated through a case study of Atlanta’s Atlantic Station. 30 Economic Development Journal / Spring 2008 ed by deindustrialization ran particularly deep. In this article, we argue for a re-examination of Larger cities with more resilient and diversified the brownfield redevelopment process to focus on economies, often faced the problem of large aban- sustainable development that integrates economic doned sites threatening negative impacts on the development and urban design. We first consider surroundings and on city or even regional econom- the conventional brownfield redevelopment ic development marketing. The result was an process, suggesting five guiding principles. Then inevitable urge to move quickly, identifying imme- we relate the story of Atlantic Station, suggesting diate or short-term uses. Capturing perceived mar- lessons that can be learned from a project that was kets quickly led the public sector to get involved in expected to integrate itself into the larger process of the redevelopment process. Brownfield redevelop- city design and economic development. ment became synonymous with local economic development but little attention, if any, was given to THE BROWNFIELD the physical design, planning, and reintegration of REDEVELOPMENT PROCESS these sites with the surrounding locality. Four major steps are commonly associated with The U.S. EPA’s 1995 Brownfield Action Agenda the brownfield redevelopment process – pre-devel- was a specific response to help promote economic opment, securing the deal, cleanup and develop- development that fostered a sophisticated brown- ment, and property management. Each is a field industry which includes specializations in response to perceived redevelopment challenges of environmental consulting, finance and investment, environmental liability, financial barriers, cleanup law, insurance, research and development of new considerations, and reuse planning (Anatomy of remediation technologies, real estate, engineering, Brownfields Redevelopment, US EPA 2006). and remediation. Consequently, developer atti- The first step, pre-development, involves a range tudes toward brownfield redevelopment have shift- of activities including: determining a new use or idea ed, reinforced by the emerging trend in the reoccu- for the site, studying financial feasibility, analyzing pation of central cities throughout the nation and environmental contamination, obtaining property increasing availability of financial incentives from access, and identifying sources of funding. Inception various government agencies. of a governing redevelopment idea typically begins In some cases, financial incentives have even here with a highest and best use analysis of the succeeded in making redevelopment of urban property. Consultation with all stakeholders, includ- brownfield sites even more lucrative than pursuing ing the local community should occur (but often new development on suburban, greenfield land. does not) during this first step. For example, Atlantic Station utilized a variety of sources including its tax allocation (also known as tax increment finance) district status to fund envi- ronmental remediation and general improvements While there have been a number of private and public sector of the site. This substantially reduced the overall innovations created to overcome market failures and enable cost of the property compared with similar “uncontaminated” property in the area (Berger, brownfield redevelopment, there has been little accompanying 2006, p. 207). The redevelopment of the former innovation in the typical brownfield redevelopment process. Atlantic Steel mill site in Midtown Atlanta is her- alded for its leadership in refocusing growth and development back towards the inner city and away Once redevelopment use for the site has been from the region’s sprawling suburbs (Dunham- established, it usually ends up driving the remain- Jones, 2005, p.61). But Atlantic Station is not with- der of the process. A pro forma and environmental out fault. Though the project is often touted as a analysis are developed to study the financial feasi- brownfield model for Smart Growth, its conven- bility of the project, based on the projected use, and tional approach may limit its contribution to to determine the extent of cleanup, again associated brownfield redevelopment lessons. (Dagenhart, with the pre-determined use. After these basic first Leigh and Skach 2006, Miller, 2006). project parameters have been established, the While there have been a number of private and remaining steps in the process are relatively public sector innovations created to overcome mar- straightforward: secure funding sources, obtain ket failures and enable brownfield redevelopment, property rights, prepare architectural design, and there has been little accompanying innovation in acquire necessary approvals and permits. These the typical brownfield redevelopment process. This steps follow the traditional real estate development has the potential to short-change the economic process, with the exception of the development of a development benefits to both the private and pub- site remediation plan which coordinates cleanup lic sectors from the extraordinary levels of effort activities with new construction so that both may that have been undertaken to create a functioning be completed as quickly as possible. In concept, the brownfield redevelopment market. process is simple and effective in creating new uses Economic Development Journal / Spring 2008 31 for the site. However, the process can easily become internally focused,