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Brownfields Redevelopment Journey: Gray

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This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/

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Brownfields Redevelopment Journey: Gray

  1. 1. 00 FINANCING BROWNFIELDS The Lender’s Perspective Beth Gray NADO 2018 Annual Training Conference October 13–16, 2018 Charlotte, NC
  2. 2. 11 Why Would Lenders Consider Financing Brownfields?  Brownfields designation may help make financing feasible for contaminated/abandoned/underutilized properties in desirable locations.  Property value > Remediation costs.  Corporate citizenship - Redevelopment of properties can help the community:  Job creation  Tax revenue  Community/neighborhood pride
  3. 3. 22 Do We Have Adequate Information & Documentation?  Current Phase I Site Assessment  Copies of prior assessments; contamination fully delineated  Copies of regulatory correspondence  Executed Brownfields Agreement or comparable Voluntary Cleanup Program Agreement
  4. 4. 33 Critical Issues  Type, extent, and severity of contamination  Regulatory agency requirements  Approved remediation plans  Reliable estimates of costs and timing to achieve compliance and obtain regulatory signoff  Contingency plans for any issues discovered during excavation, redevelopment, construction
  5. 5. 44 Tools to Use  Legal  Engineering  Financial
  6. 6. 55 Legal Tools  Brownfields Agreements / VCPs  Covenants Not to Sue / Release of Liability (transferable)  Deed Restrictions / Activity & Use Limitations (AULs)  Indemnifications
  7. 7. 66 Engineering Controls  Caps  Barriers  Risk-based Assessment and Design
  8. 8. 77 Financial Tools  Reserves / Escrow Agreements  Guarantors  Tax Credits  Environmental Insurance
  9. 9. 88
  10. 10. 99 Facilitating the Transaction Discussions among stakeholders can help achieve consensus and facilitate the deal.  Borrowers and Developers  Environmental Consultants and Engineers  Attorneys  Regulators  Lenders
  11. 11. 1010 The Bottom Line Is there adequate information? Is there an approved remediation plan and schedule? Does the deal make sense?
  12. 12. 1111 Questions?

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