Brownfields in Pittsburgh:
Facts and Figures
This page was created by Jillian Kinikin for GO-367: State and Local Economic Development Policy and Skidmore College in Saratoga Springs, NY. Feel free to contact me with any comments or questions.
What exactly is the problem with Brownfields?
- They are a huge liability. Brownfields have the potential for being heavily contaminated, but since they have sat fallow for, in some cases decades, no one can be quite sure of the extent. Once a developer purchases the land, they are responsible for bringing the land up to currently health and safety standards, this could prove to be a very costly endeavor.
- The high price of cleaning-up Brownfields has limited the willingness of developers to purchase them. A Brownfield could cost up to $300,000 per acre to cleanup. That does not even include the cost of buildings or infrastructure.
Why should cities concern themselves with Brownfields?
In the past as factories moved into the suburbs and overseas cities were left with enormous tracts of land and decaying factories. Though there are laws currently in place to prevent this from happening today, cities must face the problems caused by the lack of policy in the past. While the nation was able to overlook Brownfields in the past, the current state of inner cities has forced policy makers to take a look at this issue.
The benefits of Brownfield redevelopment are numerous:
- Bring businesses back into the cities
Revitalize the inner city economy.
- Preserve the greenfields of the suburbs
Businesses are choosing to locate in the suburbs over cities. As they do this they destroy greenfields, and cause further pollution.
- Cleanup inner cities
Brownfields are thought to contain some sort of contamination, because of the nature of previous businesses that were located on them. By redeveloping the land one would clean it up and the city would no longer have contaminated land.
- Put the land to good use
Since Brownfield Redevelopment began in Pittsburgh, over 300 acres has been reclaimed. The reclaimed land has become everything from residential communities, to office parks, to recreational facilities. All of these uses have the ability to increase residents satisfaction. A lot of people identify very closely with where they live, and living next to a park is much better than living next to an abandoned factory.
What has the Federal government done about Brownfields?
In December 1980 the federal government passed the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA.) The purpose of this act was to establish limited liability for developers of Brownfields. It also called for the creation of the Superfund, a tax on the chemical and petroleum industries that provided for the responsible cleanup of contaminated sites.
Additionally, the 1995 Taxpayer Relief Act stated that the cost of Brownfield cleanup could be deducted from the developers taxes, assuming the Brownfield meet one of the four criterion. 1. It must be located in a census tract where 20% or more of the population lives in poverty. 2. it must be in an industrial area with a population of less than 2,000. 3. It must be an Enterprise or Empowerment Zone, or 4. It must be in the EPA pilot program.
What about the Commonwealth of Pennsylvania, are they doing anything?
In 1995 the Commonwealth of Pennsylvania enacted the Lands Recycling Program, a three act effort aimed at cleaning up abandoned industrial sites. Each of the three acts deals with a separate, yet vital role of the program.
Act 2 deals with the cleanup standards. Rather than have one blanket standard for all redevelopment projects this act gives developers a choice of three standards. Restore the land to its previous condition, to statewide regulation (so a child could safely eat a handful of dirt), or work with the Department of Environmental Protection to create a site-specific standard.
Act 3 aids with the financing of Brownfield redevelopment projects. It removes all parties not involved in the contamination from having liability. This way banks would not hesitate from lending money to potential developers. Previously banks would not loan money to Brownfields projects because they did not want to be faced with the possibility of having to foreclose and be responsible for the cleanup themselves.
Act 4 provided $2 million to conduct environmental assessments in distressed regions. This removes the mystery of how much contamination there is on a site. Since assessments can be costly, this fund help bring potential developers in to at least check out the possibilities.
How successful is Brownfield Redevelopment? And how do you measure success?
When trying to measure the success of Brownfield Redevelopment one needs to look at the state of the property before and after redevelopment occurred. Brownfield redevelopment is about turning deserted land into usable space for citizens to live, work, and relax. Since no one is getting any use from the land as a Brownfield, one can assume that as long as something positive comes out of the project it will be a success. Brownfield redevelopment leads to job creation, an increased tax base, increase pride for citizens, and in some cases brings in new segments of the population into an area they would not normally visit.
In general Brownfield redevelopment is extremely successful, despite its high price tag. Pittsburgh, Pennsylvania boasts three wonderful examples of successful Brownfield projects. To learn more about these projects (LTV Steel, Nine Mile Run, and the Pittsburgh Technology Center) check out The Brownfields Center a partnership between Carnegie Mellon University and the University of Pittsburgh, there you will find in-depth case studies.