• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio
 

The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio

on

  • 362 views

The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio ...

The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio

Presentation by Lavea Brachman, Executive Director of Greater Ohio Policy Center, to the Cleveland Metropolitan Bar Association's Environmental Law Section on October 7, 2013.

Statistics

Views

Total Views
362
Views on SlideShare
362
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio 
  • Ohio’s “smart growth” organizationPromote – through research, public education and grassroots advocacy – public policy to grow Ohio’s economy and improve the quality of life through intelligent land useNon-partisan, non-profit, primarily foundation-funded
  • All reports can be found on GOPC’s website
  • The fiscal, budgetary and housing crises of the Great Recession have been a wakeup call to state and local leaders Unparalleled opportunity to press for transformative state-level actions our cities needTime to Act is Now
  • COF was a brilliantly crafted program with four sub-programs that rallied diverse interests (urban, rural; public, private) around shared goals.Originally approved by Ohio voters in 2000, CORF awards grants to local governments to clean up brownfields sites and prepare them for redevelopment with private sector partners. Brownfields are: vacant and abandoned properties that are affected by real or perceived environmental contamination.
  • Ohio voters overwhelmingly support all programs in the Clean Ohio Fund because they contribute to economic and community development.
  • COF was a brilliantly crafted program with four sub-programs that rallied diverse interests (urban, rural; public, private) around shared goals.Originally approved by Ohio voters in 2000, CORF awards grants to local governments to clean up brownfields sites and prepare them for redevelopment with private sector partners. Brownfields are: vacant and abandoned properties that are affected by real or perceived environmental contamination.
  • For more than a decade, CORF was administered jointly by the Ohio Department of Development (now Ohio Development Services Agency) and the Ohio EPA.The program was administered in rounds, with grants of up to $3 million for acquisition, demolition, remediation, infrastructure and infrastructure-related activities.Statutory language: http://codes.ohio.gov/orc/122.658v1 Funding source: http://codes.ohio.gov/orc/151.40
  • Economic Benefits of Greenspace: TPL did a study on economic benefits of COF conservation programs and found a $4 return for every dollar invested.(Overall: Want to influence decisions around program’s future)
  • 45th in population growth from 2010-2012 (US Census)Growth and development has slowed with the recession, which has led to opportunities for infill development.
  • Background on report:Basic research question—what are the economic benefits of CORF?Study aimed to inform the public dialogue about the program’s future and to ensure that the program fulfills its mission of incentivizing brownfield redevelopment.Report is available on the GOPC website
  • Background on methodology:Hired economist and did qualitative interviewsData from ODSA (released in 2012)Due to time and resource constraints and data availability, the study narrowed the sample of 103 eligible projects to 21 projects for detailed analysis.The analyzed projects are representative of all 160 CORF projects.
  • One-time benefit: $360 million in household and business earningsAnnual benefit: ongoing project operations produce almost $500 million a year in household and business earnings.
  • The Clean Ohio Revitalization Fund has been an incredible asset to OhioThe study also identified a “ripple effect” throughout the state economy from the jobs created through the cleanup activities and reuse operations.
  • Benefits of brownfield redevelopment:Blight elimination and neighborhood stabilizationTies into community revitalization efforts by local non-profits and anchor institutionsHelps to meet demand for urban, green living
  •  
  • Priority will be given to job creation and retention projects within JobsOhio targeted industry sectors, those making additional capital investment beyond remediation and redevelopment and/or projects with wages higher than the average local wage rate.Eligible costs: demolition, environmental remediation, building renovation, site preparation, infrastructure.
  • It will remain a loan and grant fund.Available funding: site improvement loans, site improvement gap grants, asbestos and lead paint abatement grants
  • Why an urban agenda is ripe for now…

The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio Presentation Transcript

  • The Economic Benefits of the Clean Ohio Revitalization Fund and the Future of Brownfield Redevelopment in Ohio Presentation to the Environmental Law Section of the Cleveland Metropolitan Bar Association October 7, 2013 Photos of the remediation and construction of Jeffrey Place, in Columbus. Ohio. Ohio Development Services Agency Lavea Brachman, JD, MCP Executive Director Greater Ohio Policy Center lbrachman@greaterohio.org
  • Greater Ohio Policy Center: “Think” and “Do” tank An outcome-oriented statewide non-profit organization that develops and implements policies and practices to: • revitalize Ohio’s urban cores and metropolitan regions • achieve sustainable land reuse and economic growth
  • Greater Ohio Policy Center: “Think” and “Do” tank Since its formation in 2008, GOPC has championed revitalization and sustainable growth in Ohio, advocating policies and practices that enhance our metropolitan regions as economic drivers and preserve Ohio’s open space and farmland.
  • Greater Ohio Policy Center Research • 2010 Restoring Prosperity to Ohio, a report cowritten with the Brookings Institution • 2013 report Investing in Brownfields: The Economic Benefits of the Clean Ohio Revitalization Fund • 2013 policy brief on Regenerating America’s Legacy Cities for the Lincoln Institute of Land Policy
  • Restoring Prosperity Findings State policies undercutting Ohio’s competitiveness: • Hollowed out urban core & sprawl • Not building on our urban/metro assets • Insufficient regional/metro economic growth • Fragmentation due to too much government
  • Restoring Prosperity Findings • Ohio can compete in the “next economy” • But to compete, we must adapt • Reforms in Innovation, Infrastructure, Quality of Place, Workforce & Governance
  • Clean Ohio Fund Background The Clean Ohio Fund is a state bond approved by Ohio taxpayers in 2000, and again in 2008, to support a “package”: • brownfield revitalization (CORF) • farmland preservation • green space conservation, and • recreational trails
  • Clean Ohio Fund Background • Ohio voters overwhelmingly supported the Clean Ohio Fund • The voter initiative in 2008 passed in all 88 counties • 70% of all Ohioans voted in favor of the Clean Ohio Fund
  • Clean Ohio Fund Background $400 M in both 2000 & 2008: • $ 200 M for brownfield revitalization (CORF) • $200 M for farmland preservation, green space conservation, and recreational trails
  • The Original Clean Ohio Revitalization Fund The Clean Ohio Revitalization Fund (CORF) was the Clean Ohio Fund’s brownfield redevelopment program. • Funding source: bond on liquor tax profits • Primary factors and requirements: – Grants awarded and loans made shall provide not more than seventy-five percent of the estimated total cost of a project. – A grant or loan to any one project shall not exceed three million dollars.
  • Value Proposition of CORF Since the upfront cost of brownfields is prohibitive, CORF allows developers to redevelopment properties they otherwise would not have been able to.
  • The Clean Ohio Revitalization Fund Since 2002, CORF has made grants totaling over $315 million to support the clean-up of 160 brownfield sites in 71 communities.
  • Why We Care about Brownfield Redevelopment in Ohio • Brownfield sites are scattered by the hundreds throughout the state in cities of all sizes as well as rural areas, a legacy of Ohio’s industrial past. • Land consumption is outpacing population growth in Ohio. • Economic benefits of greenspace
  • Land Consumption in Ohio has Outpaced Population Growth • Ohio is 8th in land conversion • But Ohio is only 45th in population growth • Ohio’s rate of development of acres outpaced its population growth by almost 6 times in last thirty years • Developing new land without increasing population leads to vacancies in urban areas.
  • Why CORF is Important for Communities • Proximity to a brownfield reduces adjacent property values by approximately 20 percent. • Brownfield cleanup increases nearby property values by approximately 5-13 percent.
  • Investing in Brownfields: The Economic Benefits of CORF In 2013, GOPC conducted the first independent study of CORF to analyze the statewide economic impacts of public investments in brownfield sites:
  • Report Methodology • Analyzed a representative sample of 21 CORF projects at various levels of development and success located across the state. • 21 CORF projects selected for the diversity in their degree and type of end use, geographic location, and other characteristics.
  • Report Findings The GOPC study found the CORF generated substantial direct and indirect economic impacts: 1) The 21 projects resulted in a net positive value for the state’s investment, producing $1.16 billion in one-time contributions and contributing $1.4 billion annually to the state’s Gross Domestic Product.
  • Report Findings 2) Goods and services related to predevelopment alone produced a return on investment of $4.67 in new economic activity for every one dollar spent by the Program on the 21 projects.
  • Report Findings 3) For every direct job created or sustained through activities tied to a remediated brownfield, more than one additional job was indirectly created or sustained by the 21 projects.
  • Report Findings 4) Predevelopment and construction activities in the 21 projects created more than $360 million in household and business earnings, while ongoing project operations produce almost $500 million a year in household and business earnings.
  • Report Findings 5) The 21 projects annually generate $55 million in state and local taxes and were responsible for an additional $42 million in one-time state and local taxes.
  • Report Findings If all 160 CORF-funded sites experienced the same level of success and failure demonstrated in the 21 sites of the study, benefits to Ohioans would be projected at 7.6 times the estimated benefits, including: • Over $8 billion in one-time and over $10 billion in annual contributions to the state GDP • Over $2.5 billion in one-time household and business earnings based on remediation and construction activities and over $3.5 billion in annual household and business earnings • $418 million annually in state and local taxes.
  • Report Findings GOPC concluded that the Clean Ohio Revitalization Fund has: • Protected Ohio’s environment • Served as a catalyst for economic development in Ohio’s communities • Generated state-level return on investment
  • Benefits of Brownfield Redevelopment CORF helps support economic development and job creation by making our communities more attractive to businesses and individuals looking for a high quality of life.
  • Program in Transition • The CORF program is in transition since JobsOhio was created. – Funding for brownfield redevelopment has been channeled to JobsOhio. – The program now falls under the administration of JobsOhio.
  • Current status of Brownfields Redevelopment financing in Ohio JobsOhio is in process of creating a brownfields program that aligns with its other programs.
  • Program in Transition Program is now the JobsOhio Revitalization Program: • Beginning to accept applications • Priority will be placed on projects that support near term job creation opportunities for Ohioans. • JobsOhio will refer its recommendations to the Director of the Ohio Developmental Services Agency or Clean Ohio Council for review and potential approval.
  • JobsOhio Revitalization Program According to JobsOhio, the program will be: • Launched in late 2013 • A more streamlined and responsive program • Open to public and private entities • Funded by up to $43 million annually • Patient capital with flexible terms
  • Increasing Demand for Urban Living further Increases Importance of Brownfields Redevelopment Societal changes since the program was created 15 years ago: • Increasing demand for green, urban living • Demographic trends: Gen Y and Baby Boomers • Cities and metros are driving economies • The time is ripe for an urban agenda in Ohio
  • Questions? Visit our website: http://greaterohio.org/ Greater Ohio blog: http://greaterohio.org/blog Follow us on Twitter: @GreaterOhio Like Greater Ohio Policy Center on Facebook