Brown Field
I own a property that is accross the street from a 4 acre evironmental problemed parcel. Oil in the ground is the issue. I believe it has had a phase II studie. I read about super funds and grants. This roperty is in a super fund area. What are the basic costs. Anyone experienced? The property is in a good location with one great building on it.
The property may be considered for brownfield funding and liability limitations if it has been vacant for an extended period due to the presence of an environmental hazard or contaminant.
If the property qualifies as a brownfield there is state and federal grant money available to potential developers. Grant money can be used to do an assessment of the property, and grant money is available to cleanup the property. Revolving loans are also available.
An example of a brownfield may be a warehouse building with asbestos. The cost to abate the asbestos may be more than the value of the property, as a result the property cannot be sold. To get these properties out of the catch 22 situation, federal and state money is provided.
Investors in Brownfields are not held liable for the environmental issues at the property. If the environmental costs gets out of hand (escalate significantly above grant limitations) the investor can walk away with no liability for the contamination present. If the environmental issues can be addressed within the limits of grant money provided to the investor, the investor will make a killing. Choosing the right environmental consultant will make all the difference.
It takes a very confident investor to attack a brownfield property, however, the rewards can be tremendous.
Good luck[ Edited by McGaha_Consulting on Date 10/20/2005 ]