State Regulations And The Brownfield Cleanup Program
Contaminated properties present terrific buying opportunities for savvy real estate investors and developers. Many times, buyers can acquire land at substantially discounted prices simply because the existing owner cannot afford to remediate the parcel or simply does not want to own a property that is impaired. This scenario provides a perfect opening for the resourceful real estate investor to purchase property at a reduced rate and then, if done properly, obtain tax credits from the state of New York for any investigation and remediation, and (in appropriate cases) development of the site.
A “brownfield” is a piece of property where a contaminant is present above the applicable soil standards set by the New York State Department of Environmental Conservation (DEC). In order to encourage the development of these brownfield sites, which are typically abandoned, underused or generally a blight on communities, New York in 2003 developed the Brownfield Cleanup Program (BCP). The BCP aims to promote the remediation and development of contaminated land by removing some of the burdens of environmental remediation and offering tax incentives to developers.
How The Process Works
Depending on the location of the brownfield site, the extent of cleanup and other factors, developers can receive substantial tax credits (not merely tax deductions) for many aspects of a project, including construction of buildings (aka “site preparation”). However, applying for and getting accepted into the BCP is no simple task.
The process begins with requesting a preapplication meeting at DEC. After the meeting, parties are required to retain an environmental engineering firm to assist with preparing the BCP application. Upon acceptance into the program, following a public comment period, applicants prepare a remedial investigation work plan (RIWP) and other documents that the DEC and the public comment on at various times during the project. If the site remediation is successful, the DEC approves various steps in the project and eventually issues a certificate of completion (COC), signaling a successful completion of a BCP project.
Periconi, LLC, has experience guiding clients through the BCP process, from the first steps in the application (i.e., the preapplication meeting, preparing the preapplication worksheet, etc.) through earning a COC. For more than a decade, Periconi, LLC, has successfully helped clients enter and complete the BCP, from highly contaminated sites in Long Island City to underdeveloped properties in the Red Hook section of Brooklyn.
If you are interested in learning more about New York state’s Brownfield Cleanup Program and receiving tax credits for the remediation of a contaminated site, contact the attorneys at Periconi, LLC, for a consultation immediately.