CONNECTING SMART GROWTH AND BROWNFIELDS REDEVELOPMENT Produced by Center for Environmental Policy and Management University of Louisville Lauren C. Heberle In Cooperation with the U.S. Environmental Protection Agency Adhir Kackar Center for Environmental Policy and Management University of Louisville 426 West Bloom Street Louisville, KY 40208 Published November 2006 © Center for Environmental Policy and Management Acknowledgements: This publication would not have been possible without the able assistance of Susan Opp and Fae Goodman. Design and layout by Patrick Piuma. Cover photo courtesy of EPA. This publication was developed under the Cooperative Agreement No. PI83233601-1 awarded by the U.S. Environmental Protection Agency to the Center for Environmental Policy and Management at the University of Louisville. 1 TABLE OF CONTENTS UNDERSTANDING THE LINKS BETWEEN SMART GROWTH AND BROWNFIELDS............................................................ .3 What is Smart Growth........................................................ .3 Brownfield Redevelopment and Smart Growth................................ .3 Barriers to Redevelopment.................................................... .4 PLANNING STRATEGIES...................................................... .6 Zoning, Parking and Building Codes.......................................... .6 Zoning............................................................................ .6 Reduce Parking Requirements.....................................................8 Examine Rehabilitation Building Codes............................................9 Regional Development Strategies............................................. 10 Urban Growth Boundaries........................................................10 Explore Revenue Sharing Strategies...............................................11 Address Urban Infrastructure Needs through the Creation of Special Districts or Zones................................................... 11 Historic Preservation Districts.................................................... 12 Enterprise, Empowerment, and Economic Opportunity Zones.....................12 Corridors: Waterfronts, Railroad Lines Transit................................... 12 Fix-it First Strategies............................................................. 14 Involve Citizens in Development Decisions.................................... 14 FINANCIAL INCENTIVES AND FINANCING OPTIONS................15 Tax Credits and Abatements..................................................15 Historic Rehabilitation Tax Credit and Similar State Credits..................15 Density Bonuses or Credits....................................................16 Tax Increment Financing (TIF)...............................................16 Waivers of Development Fees..................................................17 Split Rate Property Tax....................................................... 17 Brownfield Specific Financial Tools...........................................17 INSTITUTIONAL PRACTICES................................................ 19 Expedite Approval Process....................................................19 Improve Public Access to Property Information............................... 19 Assist in Marketing Community Wide Development...........................19 Land Assembly................................................................20 CONCLUSION....................................................................21 ENDNOTES........................................................................21 ADDITIONAL RESOURCES....................................................22 2 UNDERSTANDING THE LINKS BETWEEN SMART GROWTH AND BROWNFIELDS What is Smart Growth ing how brownfields redevelopment and smart growth principles are related, the Smart growth strategies create new neigh- report examines planning, financial and borhoods and maintain existing ones institutional strategies and practices that that are attractive, convenient, safe, and are part of smart growth initiatives that healthy. They foster design that encourag- have the potential to encourage brown- es social, civic, and physical activity. They field redevelopment. protect the environment while stimulating economic growth. Most of all, they create more choices for residents, workers, visi- Brownfield Redevelopment and tors, children, families, single people, and Smart Growth Principles of Smart Growth: older adults—choices in where to live, how Directing development towards existing to get around, and how to interact with the 1. Mix Land Uses people around them. When communi- communities is an important principle ties engage in smart growth planning, of smart growth. This principle encour- 2. Take Advantage of Compact Building they preserve the best of their past while ages the reuse of existing infrastructure, Design creating a bright future for generations adapting and reusing buildings, and more 3. Create a Range of Housing to come. generally engaging in urban infill to meet Opportunities and Choices development needs.1 Directing develop- 4. Create Walkable Neighborhoods Communities around the country are ment to existing communities invariably searching for ways to get the most out of involves brownfield redevelopment. 5. Foster Distinctive, Attractive new development and to maximize their in- Communities with a Strong vestments. Frustrated by development that Brownfields are defined in 2002 Federal Sense of Place requires residents to drive long distances Law as “Real Property, the expan- 6. Preserve Open Space, Farmland, between jobs and homes, many communi- sion, redevelopment, or reuse of which Natural Beauty, and Critical ties are challenging the rules that make it may be complicated by the presence Environmental Areas impossible to put workplaces, homes, and or potential presence of a hazardous 7. Strengthen and Direct Development services closer together. Many communi- substance, pollutant, or contaminant.” Towards ties are questioning the fiscal wisdom of Many pre-existing buildings and urban Existing Communities neglecting existing infrastructure while parcels that can accommodate infill expanding new sewers, roads, and services development fall under that definition. 8. Provide a Variety of Transportation into the fringe. And in many communities Choices A 1996 study found that brownfields where development has improved daily 9. Make Development Decisions in Detroit, Chicago, Milwaukee, and life, the economy, and the environment, Predictable, Fair, and Cleveland could absorb one to five years smart growth principles have been key to Cost Effective their success. of residential development, 10 to 20 years of industrial development, or 200 to 400 10. Encourage Community and 2 Stakeholder Collaboration in This report discusses how smart growth years of office space. This means that if Development Decisions with Smart land use and development strategies can communities encourage development in Growth also make brownfields redevelopment existing areas and with that the redevel- easier and more profitable. This report opment of brownfields, communities can reap real benefits. These benefits can in- focuses on the most common strategies (Source: Smartgrowth Network. clude: a stronger tax base, closer proxim- and tools that are currently used. Rather www.smartgrowth.org/) than prioritize or evaluate among tech- ity of jobs and services, taxpayer savings, niques, this report provides a survey of reduced pressure to build on greenfield tools and strategies available to communi- sites, and the preservation of farmland ties. Policymakers and citizens are in the and open space. Furthermore, directing best position to determine which, if any, development to existing communities of these techniques are appropriate for can also support cleaner air and water. use in their communities. After introduc- When development occurs in existing Understanding the Links Between Smart Growth and Brownfields 3 places it is easier to protect open space and funds to support assessment and clean up. natural lands and to minimize increases in Technological solutions have been devel- impervious surfaces. This helps to protect oped to reduce clean-up costs. Despite watershed-wide water quality. Directing these policy innovations, concerns about development can also create more trans- liability and clean-up costs sometimes still portation choices in existing places, which prevent brownfield redevelopment, espe- can lower vehicle miles traveled and ulti- cially of smaller, less marketable sites. mately improve regional air quality. Current development practices and policies also have an affect on brownfield Barriers to Redevelopment redevelopment including zoning and A range of challenges complicate brown- government policies and regulations, and field redevelopment. Developers are often taxpayer subsidies that encourage green- hesitant to take on brownfields because of field development. Although they are not issues of actual or perceived contamina- equal products, brownfield and greenfield tion, concerns about liability, and the sites can and do compete with each other cost of clean up. These challenges have for new development activity. Greenfield lessened in recent years as both the public developments often win in this competi- and private sector have offered solutions. tion because many government policies Federal and state governments have de- often make it easier for developers to build veloped programs that clarify the rules on the greenfield