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Brownfields and Greater Binghamton Revitalization

Brownfields and Greater Binghamton Revitalization. Presentation of Kenneth S. Kamlet Director of Legal Affairs, Newman Development Group, LLC To Broome Leadership Institute Greater Binghamton Chamber Oct. 28, 2004. Who I Am—My Background. Director of Legal Affairs, NDG —’97-Present

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Brownfields and Greater Binghamton Revitalization

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  1. Brownfields and Greater Binghamton Revitalization Presentation of Kenneth S. Kamlet Director of Legal Affairs, Newman Development Group, LLC ToBroome Leadership Institute Greater Binghamton Chamber Oct. 28, 2004

  2. Who I Am—My Background • Director of Legal Affairs, NDG—’97-Present • Education:Penn Law—JD, ’73; Yale U.—M.Phil.,’70—Biochem. Sciences; CCNY—B.S.,’66—Biology. • Pollution & Toxics Director, and Director of Legal Affairs— Nat’l Wildlife Fed.—’73-’85 • Environmental Consultant—’85-’92 • Private Law Practice—’92-’97

  3. Outline of Presentation • What’s a “Brownfield”? • Project examples (8 in Greater Binghamton) • New NYS Brownfields Law • Current Controversy • Conclusion

  4. What’s a “Brownfield”? • “Any real property, the redevelopment or reuse of which may be complicated by the presence or potential presence of a contaminant [hazardous waste, petroleum, or pollutant]….” • Exclusions: site that is subject to any on-going state or federal environmental enforcement action related to the contamination

  5. Project Examples--1 • Vestal Town Square Mall • Public opposition • Brownfield site (asphalt plant, etc.) • Wetlands • Geotechnical issues • Real estate recession • SEQRA litigation • Subsequent TSM Expansion

  6. Vestal Town Square Mall Original Wal-Mart

  7. Project Examples--2 • Shoppes at Vestal • Brownfield site (former meatball factory) • 3-sided culvert • Wetlands • Stormwater management • Vestal Rail-Trail • Streambank erosion adjacent to Town Park

  8. The Shoppes at Vestal View of Meatball Factory from Vestal Parkway

  9. Project Examples--3 • Vestal Rail-Trail

  10. Project Examples—4 • Vestal Lowe’s • Originally part of petroleum tank farm

  11. Vestal Lowe’s Petroleum Tank Farms Town Square Mall

  12. Project Examples--5 • Gannett Corp. regional printing press facility Architect’s rendering of new printing press facility Former Endicott-Johnson Ranger Paracord Site

  13. Ranger Paracord/Gannett, cont’d

  14. Ranger Paracord/Gannett, cont’d • Total site = 27.41 acres; Gannett parcel is 11.56 acres • State-of-the-art, high-tech printing press from Wurzburg, Germany will rise to a height of 6 stories in a 96,000-sf building • It will service Gannett papers from not only Binghamton, but also Elmira and Ithaca • The building will also house distribution and paper storage facilities • Site was chosen because of proximity to 3 major interstates (I-81, I-88, and future I-86) • Also, hopefully, to catalyze similar efforts to revitalize other dormant industrial sites in Greater Binghamton

  15. Project Examples—6 • Parkway Plaza • Replacement of former factory (Ozalid plant) and old shopping center (Century Plaza) • Another example of a brownfield revitalization

  16. Parkway Plaza Former Ozalid Factory --looking southeast

  17. Parkway Plaza Giant Food Store Town Square Mall Former Ozalid factory Former Video King location Former Century Plaza

  18. Project Examples—7 • Vestal Plaza/Vestal Park • Failed, deteriorating shopping center • Addition of office uses (NCI, AIG) • Addition of Ames / bankruptcy of Ames • Addition of student housing Not a Brownfield (but maybe a “grayfield”—real property that is declining in use, but not contaminated)

  19. Vestal Plaza/Vestal Park AIG Call Center

  20. Vestal Plaza / Vestal Park Old Vestal Plaza—pre-Newman

  21. Vestal Plaza/Vestal Park, cont’d Artist’s Rendering—Student Housing

  22. Project Examples—8 • Chenango Plaza/Lowe’s • Voluntary cleanup agreement negotiated with DEC in 1996 • It took >6 years and >$250,000 to secure a liability release • Much time and money was spent because many people could say “No” and require more study, but only one person could say “Yes”

  23. Chenango Plaza / Lowe’s Old Chenango Plaza I-81

  24. Chenango Plaza

  25. Chenango Plaza / Lowe’s

  26. New NYS Brownfields Law • A. 9120 approved by Assembly June 20th per 3-way agreement; Senate passes wrong bill • Senate reconvenes September 16th and passes A. 9120 / S. 5702 by a 51-9-2 vote • Governor participates in Babylon, Long Island event Sept. 17th—planned to sign bill, but it doesn’t make it there in time. • Signing occurred in October 2003—a little over a year ago

  27. Brownfields Bill (A. 9120) For more information about the new Brownfields legislation and its genesis, please consult my New York Brownfields website: www.ny-brownfields.com

  28. New NYS Brownfields Law • 107 pages • Has positive and negative features • All western New York Senators (Buffalo, Rochester, etc.) voted against it • They were concerned that the legislation would not significantly benefit redevelopers of Upstate BF sites • 48-page Technical Correction Amendments approved by the Legislature on Aug. 11, 2004

  29. BF Benefit-Risk Matrix

  30. New NYS Brownfields Law • Main Positive Features: • Financial incentives (tax credits, including one for environmental insurance; priority assistance for sites in BOAs) • Improvements to Environmental Restoration Program & ability to stay foreclosure proceedings • Adoption of federal liability exemptions • Workable cleanup goal & use-based cleanup track • Relaxed liability for current owners • Liability release binding on State, not just DEC • Greater certainty and finality

  31. New NYS Brownfields Law • Main negative features: • Several provisions that may make innocent owners reluctant to enter into BCAs “mothballing” • Several provisions that may discourage BF real estate transactions—especially Upstate—because of added red tape, cost, and delay • Failure to carry use-based cleanups over to municipally-owned BF sites • Failure to change DEC’s organizational structure • Adding extra site investigation costs to outstanding tax bills may discourage redevelopment

  32. Current Controversy • Forest City Ratner/New York Times project • 52-story office tower on Eighth Ave & 40th St--$850-million project • Never industrial • Limited contamination • Highly desirable Times Square real estate • Deal was committed to before new BF law • Seeking >$170-million in BF tax credits

  33. Current Controversy, cont’d • DEC has proposed new guidance to allow it to disqualify sites based on: • Limited contamination in relation to the value of the deal—BF status is not “complicating” the property’s development or re-use • Even if the property meets the definition of a BF, if it is not in the “public interest” to grant it BF status • Legislators are threatening to amend the law to cap or roll back BF tax credits

  34. Conclusion The new Brownfield Cleanup Program can be a very significant economic development tool.

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