Return on Regional Redevelopment Investment

Economic Impact of Brownfields Redevelopment

EPA provides millions of dollars in funding for brownfields assessment, cleanup, revolving loan fund and job training grants annually. The most commonly reported outcomes of these regional projects were increased community awareness of environmental concerns, additional community involvement, job creation and increased tax revenues.

Brownfields redevelopment is an environmental and public health issue, since it involves identifying and remediating contamination. But for many regions, the most significant outcomes of brownfields projects are related to community and economic development: job creation and retention, increased tax revenues and downtown revitalization. Typically, priority sites are in downtown areas because these projects can bring new economic and social activity to areas in disrepair.

Regional development organizations also reported that brownfields redevelopment projects reduce barriers to reuse, improve ecological health and create housing, public parks and green space through such projects as the conversion of rails to trails. Some organizations have documented the region’s success by establishing measures such as units of housing or number of parks created, new mentions of brownfields or site redevelopment in municipal plans or an increase in the number of inquiries into brownfields program.

The Land-of-Sky Regional Council in North Carolina estimates that $350- 500 million in economic benefits in the Council’s region have resulted from their brownfields work. Permanent job creation has not yet been measured, but jobs and new business development are expected once the projects proceed to redevelopment. Most of Land-of-Sky’s projects are currently in the assessment or cleanup phases, and some redevelopment plans have been completed and have developers committed. To date, there have been approximately 50 redevelopment/construction jobs. Council officials estimate that these projects require five to 10 years due to the size and rural nature of the areas. As a result, funding accumulation and development has been slower.

The Northwest Piedmont Council of Governments (COG), also in North Carolina, has significant data on its job training program. The program is conducive to reporting on results because specific numbers of students are completing the program, securing jobs and earning wages. The initial goal was to enroll at least 30 students. To date, over 70 students have completed the program and more than 20 students had already enrolled in early 2006. The West Central Arkansas Planning and Development District has gained 25 jobs from its brownfields project – an industrial park. The job creation is significant considering that Plainview has a population of 755 people, and the project generates additional taxes. Plainview owns the building, providing a rental income stream for additional economic development.

Other scan participants shared similar stories of jobs created and downtown areas revitalized. In some cases, the results from one encouraged organizations to move forward with assessment and cleanup of additional sites.