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For a variety of reasons, more brownfield sites than ever are
being identified across the country. This trend is also true in
Burlington. One reason may be the significant changes in the
awareness level in the real estate and banking industries. For
example, before commercial real estate transactions can close, most
lending institutions now require that a detailed site assessment be
conducted. This was not true ten years ago, and is now standard
practice.
Another reason that more brownfields are being identified may be
that developers now seek out contaminated sites as they see a
clearer path to resolving contamination issues, due to improved
federal and state legislation, funding programs, and insurance
products.
The most common time when a contaminated site is discovered in
Burlington seems to be during a real estate transactions, when an
assessment has been performed in advance of property sale and/or
redevelopment. Another time when contamination is unearthed is
during excavation when a previously unknown condition is found.
There are also a large number of abandoned underground storage tanks
(possibly several hundred city-wide) that are discovered during site
assessments, ground penetrating radar surveys, and/or site
excavation.
Vermont’s history is primarily based in agriculture and open
space, but former manufacturing sites can be found in Burlington,
Rutland, Bellows Falls, St. Johnsbury, St. Albans, Springfield,
Bennington, Brattleboro and other communities. This includes a broad
range of past land uses that have caused contamination.
Historical and fire insurance (“Sanborn”) maps of the City reveal
the locations of many activities that could cause contamination. In
the older residential parts of the City, many commercial services
were once provided within each neighborhood. Many of these small
businesses released contamination that can be found in soils and
groundwater.
As a result, there are areas in Burlington where contamination
can be expected to be found in groundwater, specifically in parts of
downtown, the Old North End, Waterfront, and the Pine Street/Flynn
Avenue corridor. Since the City of Burlington has a water and sewer
system, contaminated groundwater is not as much as of issue as it is
in areas where residents depend on well water and/or septic systems.
This contamination is a threat, however, to the local ecosystem.
Depending on the type of substance, the size of the release,
types of soils, depth to groundwater, and numerous other factors,
the degree and extent of contamination is always a concern.
Pollutants can move from the original source and impact other
properties, sometimes hundreds of yards away. Some types of
contamination (e.g., dry cleaning fluid) can last for decades, and
migrate through subsurface groundwater. Petroleum compounds, on the
other hand, can break down and become inert over time, but when
mobilized, can cause significant environmental damage.
The issues of liability and cost are repeatedly cited in national
surveys and studies as the biggest barriers to brownfields
redevelopment.
Until recently, there were little or no protections for “innocent
landowners” or “bona fide prospective purchasers” i.e., parties who
had no role in causing a hazardous release, but are left with owning
a contamination problem. Even well-meaning parties can create huge
liabilities for themselves by cleaning up contamination: ironically,
they could be brought into legal actions relating to contamination
that they did not originally produce.
To address this issue, there are a number of recent changes in
federal law that can help release innocent landowners from liability
for past releases of contamination that they had no part of. The key
issue is the buyer’s knowledge of conditions at the site: a Phase I
Environmental Site Assessment (described below) must be performed on
the property in advance of closing, and the “All
Appropriate Inquiry” process completed.
Many states have also been responding to the liability problem by
enacting voluntary cleanup programs with liability relief
provisions. New insurance products are also being created and
implemented. Despite these changes, the cost and responsibility for
assessment and cleanup often ends up with the owner/developer, and
are often totally out of balance with real estate values and owner
affordability.
In response to the cost problem, state legislatures and the
federal government have enacted series of grant programs for
assessment and cleanup of contaminated sites. The general concept is
to promote site assessments and redevelopment, while keeping close
track of the work being performed. With the creation of the
EPA Brownfields Initiative
in the mid-1990’s, funding for assessment and cleanup became
available through
regionally-administered programs.
Other federal resources include the
Department of Housing and Urban Development and the
Economic Development Administration.
Some liability relief and grant assistance is also available
through the
Vermont Department of Environmental Conservation’s Redevelopment of
Contaminated Sites Program (RCP).
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