New Jersey Real Estate

Earlier this year, New York State established a brownfield redevelopment plan. The goal of the plan was to encourage the creation of affordable housing. Developers and others were offered grants, tax incentives and other forms of financial assistance for the clean up, clearing and construction of brownfield property. Shortly thereafter, the Iowa State Senate passed a similar bill establishing a redevelopment tax program for brownfield and greyfield sites in that state.

The U.S. Environmental Protection Agency defines a brownfield site as “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” A brownfield site is typically the former location of a chemical plant or production facility that made or used potentially toxic substances like industrial cleaning products or fertilizer. Though a facility may have been abandoned for years, harmful chemicals may still be present in the facility itself and the ground on which it sits. The cost of cleaning brownfield sites can be so high as to prevent them from being developed at all. As a result, the harmful contaminants remain in the environment, posing health risks while the abandoned property simultaneously hinders the neighborhood’s economic development.

In contrast, a “greyfield” site rarely poses any environmental or health risks. It is a term that was coined in the early 2000s to describe empty and abandoned commercial and retail property. (The word “greyfield” refers to the often-expansive parking lots that surround the structures.) The redevelopment of greyfields generally costs less because Read the rest of this entry »