Davenport Green Week Presentation


Published on

Published in: Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Davenport Green Week Presentation

    1. 2. What is Sustainable Development? <ul><li>Development that meets the needs of the present without compromising the ability of future generations to meet their own needs </li></ul>
    2. 3. Sustainable Development Concepts <ul><li>Brownfield Redevelopment </li></ul><ul><li>Green Building/LEED Certification </li></ul>
    3. 4. <ul><li>Abandoned, idled, or under-used industrial or commercial properties where expansion or redevelopment is complicated by real or perceived environmental contamination. </li></ul>What are Brownfields?
    4. 5. Why Brownfields? Challenges and Opportunities <ul><li>Challenges </li></ul><ul><ul><li>Real or perceived environmental contamination </li></ul></ul><ul><ul><li>Demolition costs and issues </li></ul></ul><ul><ul><li>Economic conditions associated with certain locations </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Acts as a catalyst for remediation and health and safety risk management that may not otherwise be addressed </li></ul></ul><ul><ul><li>Shifts development focus away from “greenfield” sites </li></ul></ul><ul><ul><ul><li>Protects green and open spaces, reduces sprawl and, in turn commuting distances </li></ul></ul></ul><ul><ul><ul><li>Reduces impact of additional infrastructure on environment and promotes walking and transit use </li></ul></ul></ul><ul><ul><ul><li>Reduces construction material costs by reusing portions of existing structures, where possible, and makes use of existing infrastructure </li></ul></ul></ul><ul><ul><li>General accessibility to highways and other high-density services </li></ul></ul>
    5. 6. Brownfield: Multi-Party, Muli-Component Projects <ul><li>Parties </li></ul><ul><li>Developer </li></ul><ul><li>Local Brownfield Redevelopment Authority </li></ul><ul><li>Michigan Department of Environmental Quality (DEQ) </li></ul><ul><li>Local Units of Government (LUG) (core communities) </li></ul><ul><li>Michigan Economic Development Corporation (MBT Credits) </li></ul><ul><li>Environmental Consultants </li></ul><ul><li>Lawyers </li></ul><ul><li>Local Communities </li></ul>
    6. 7. Brownfield Redevelopment Process <ul><li>Four Main Components: </li></ul><ul><li>Determine Brownfield status </li></ul><ul><li>Determine whether cleanup is necessary </li></ul><ul><li>Seek potential funding sources for cleanup and development </li></ul><ul><li>Cleanup and redevelopment </li></ul>
    7. 8. Is the site a Brownfield? <ul><li>Is the site a “facility” as defined under Part 201 of the Natural Resources and Environmental Protection Act; and/or </li></ul><ul><li>Is the site located In a Qualified Local Unit of Government and blighted or functionally obsolete? </li></ul>
    8. 9. Determine Whether Cleanup Is Necessary <ul><li>Part 201 of the Natural Resources and Environmental Protection Act </li></ul><ul><ul><li>Cleanup liability protection for new owners and operators </li></ul></ul><ul><ul><ul><li>Baseline Environmental Assessments </li></ul></ul></ul><ul><ul><li>Due care obligations </li></ul></ul><ul><ul><ul><li>Prevent exacerbation of existing contamination </li></ul></ul></ul><ul><ul><ul><li>Prevent unsafe exposures to hazardous substances </li></ul></ul></ul><ul><ul><ul><li>Anticipate and take precautions to avoid foreseeable acts of third parties </li></ul></ul></ul><ul><ul><li>Risk-based cleanup options </li></ul></ul><ul><ul><ul><li>Remediation based on proposed land use </li></ul></ul></ul>
    9. 10. Seek Potential Funding Sources for Cleanup and Development <ul><li>Brownfield Redevelopment Financing Act and Clean Michigan Initiative </li></ul><ul><ul><li>Grants and loans to local units of government </li></ul></ul><ul><ul><li>Tax increment financing for environmental and infrastructure costs </li></ul></ul><ul><li>Michigan Business Tax Credits </li></ul><ul><li>Federal Brownfield Assessment and Cleanup Grants </li></ul>
    10. 11. Grants <ul><li>Brownfield Redevelopment Grants </li></ul><ul><ul><li>Eligibility and limitations </li></ul></ul><ul><ul><ul><li>Up to $1,000,000 per project </li></ul></ul></ul><ul><ul><ul><li>Michigan Department of Environmental Quality (DEQ) awards to local units of government (LUG) and Brownfield Redevelopment Authorities, not developers </li></ul></ul></ul><ul><ul><ul><li>Applicant cannot be a liable party and funds cannot be used to benefit a liable party </li></ul></ul></ul><ul><li>Brownfield Assessment Grants </li></ul><ul><ul><li>Through a federal grant, DEQ provides 10 investigations per year at no charge </li></ul></ul><ul><ul><li>Purpose of the assessment is to evaluate property for redevelopment before a party commits to purchase and/or redevelopment </li></ul></ul><ul><ul><li>Eligibility and limitations </li></ul></ul><ul><ul><ul><li>LUG must submit application </li></ul></ul></ul><ul><ul><ul><li>Liable parties are usually ineligible </li></ul></ul></ul>
    11. 12. Loans <ul><li>Brownfield Redevelopment Loans </li></ul><ul><li>Eligibility and Limitations </li></ul><ul><ul><li>DEQ awards to local units of government and Brownfield Redevelopment Authorities </li></ul></ul><ul><ul><li>Cannot benefit a liable party </li></ul></ul><ul><ul><li>15-year term </li></ul></ul><ul><ul><li>5-year grace period with no payments or interest accruals </li></ul></ul><ul><ul><li>Can be repaid using TIF through a Brownfield Redevelopment Authority </li></ul></ul>
    12. 13. Tax Increment Financing (TIF) <ul><li>Generally </li></ul><ul><ul><li>Allows developer to capture taxes from the increase in value of the developed land </li></ul></ul><ul><ul><li>Can be used to reimburse a developer for eligible activities (environmental-related costs) </li></ul></ul><ul><ul><li>Additional advantage in “core communities” (site preparation, demolition, lead and asbestos abatement and public infrastructure) </li></ul></ul><ul><li>Eligibility and Limitations </li></ul><ul><ul><li>Brownfield Redevelopment Authority approval (Brownfield Redevelopment Plan) </li></ul></ul><ul><ul><li>Michigan Economic Growth Authority approval (for use of school taxes) </li></ul></ul>
    13. 14. Michigan Business Tax Brownfield Credits <ul><li>Brownfield Credit </li></ul><ul><ul><li>Available for up to 12.5% of eligible investments for qualifying projects </li></ul></ul><ul><ul><li>3 categories of credits: </li></ul></ul><ul><ul><ul><li>Large credits – investments greater than $10 million </li></ul></ul></ul><ul><ul><ul><li>Small credits – investments between $2-$10 million </li></ul></ul></ul><ul><ul><ul><li>Mini credits – investments of $2 million or less </li></ul></ul></ul><ul><li>Total of $40 million in credits available per year </li></ul><ul><li>2008 legislation created MBT Brownfield tax credit in the amount of 20% of eligible investment for certain “urban development area projects” </li></ul>
    14. 15. Cleanup and Redevelopment
    15. 16. Future of Brownfield Redevelopment <ul><li>Land Policy Institute at Michigan State University Case Study </li></ul><ul><ul><li>Potential Application of Renewable Energy on Brownfield Sites: A Case Study of Michigan </li></ul></ul><ul><ul><ul><li>Advantages of renewable energy on Brownfields: </li></ul></ul></ul><ul><ul><ul><ul><li>Ready market for end product due to proximity to energy consumption and grid transmission </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Available land with few current competing uses </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Existing transportation systems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sustainability and reduction of collective carbon footprint </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Flexibility to adapt sites to higher uses in the future </li></ul></ul></ul></ul><ul><ul><ul><li>Potential to create over 17,500 construction, maintenance and operation jobs and more than $15 billion in new investment dollars </li></ul></ul></ul>
    16. 17. Future of Brownfield Redevelopment <ul><li>Taking advantage of additional economic incentives </li></ul><ul><ul><li>Michigan Business Tax Credits </li></ul></ul><ul><ul><ul><li>Historic Rehability Credit </li></ul></ul></ul><ul><ul><ul><li>Renaissance Zone Credit </li></ul></ul></ul><ul><ul><li>Energy Efficiency and Alternative Energy Credits </li></ul></ul><ul><li>Incorporating Additional Sustainable Features </li></ul><ul><ul><li>Green roofs </li></ul></ul><ul><ul><li>Landscaping to decrease stormwater runoff </li></ul></ul><ul><ul><li>Alternative energy sources </li></ul></ul><ul><ul><li>Green Building / LEED Certification </li></ul></ul>
    17. 18. U.S. Green Building Council <ul><li>USGBC’s Mission </li></ul><ul><ul><li>To transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy and prosperous environment that improves the quality of life. </li></ul></ul>
    18. 19. Why Make a Building “Green” <ul><li>Buildings consume more than 30% of the total energy in the United States; </li></ul><ul><li>Buildings consume more than 60% of the total electricity in the United States; and </li></ul><ul><li>Approximately 5 billion gallons of potable water is used each day to flush toilets. </li></ul>
    19. 20. LEED Version 1.0 <ul><li>Launched in 1998 </li></ul><ul><li>Created from a committee composed of architects, realtors, a building owner, an attorney, environmentalist and industry representatives. </li></ul><ul><li>Any ideas as to why a cross section might have been important? </li></ul>
    20. 21. Leadership in Energy & Environmental Design (LEED) <ul><li>The Current LEED Rating Systems: </li></ul>
    21. 22. LEED Certification Levels <ul><li>Certified: 26-32 points </li></ul><ul><li>Silver: 33-38 points </li></ul><ul><li>Gold: 39-51 points </li></ul><ul><li>Platinum: 52-69 points </li></ul><ul><li>As of July 31, 2008: </li></ul><ul><li>12,706 registered projects, totaling 3,532,219,069 square feet. </li></ul>
    22. 23. LEED New Construction & Major Renovations v2.2 <ul><li>Credit Categories: </li></ul><ul><ul><li>Sustainable Sites </li></ul></ul><ul><ul><li>Water Efficiency </li></ul></ul><ul><ul><li>Energy & Atmosphere </li></ul></ul><ul><ul><li>Materials & Resources </li></ul></ul><ul><ul><li>Indoor Environmental Quality </li></ul></ul><ul><ul><li>Innovation & Design Process </li></ul></ul>
    23. 24. Credit Category Point Assignments
    24. 25. Sustainable Sites <ul><li>Goals: </li></ul><ul><li>Develop only appropriate sites </li></ul><ul><li>Reuse existing buildings and/or sites </li></ul><ul><li>Protect natural and agricultural areas </li></ul><ul><li>Reduce need for automobile use </li></ul><ul><li>Protect and/or restore sites </li></ul>
    25. 26. Water Efficiency <ul><li>Goals: </li></ul><ul><li>Reduce the quantity of water needed for the building </li></ul><ul><li>Reduce municipal water supply and treatment burden </li></ul>
    26. 27. Energy & Atmosphere <ul><li>Goals: </li></ul><ul><li>Establish energy efficiency and system performance </li></ul><ul><li>Optimize energy efficiency </li></ul><ul><li>Support ozone protection protocols </li></ul><ul><li>Encourage renewable and alternative energy sources </li></ul>
    27. 28. Indoor Environmental Quality <ul><li>Goals: </li></ul><ul><li>Establish good indoor air quality </li></ul><ul><li>Eliminate, reduce, manage the sources of indoor pollutants </li></ul><ul><li>Ensure thermal comfort and system controllability </li></ul><ul><li>Provide for occupant connection to the outdoor environment </li></ul>
    28. 29. Benefits of Integrated Design <ul><li>Integrating relationships among the building project elements </li></ul><ul><li>Creates greater value and successful sustainable development </li></ul>
    29. 31. Synergies for Vegetated Roof Systems <ul><li>Reduction of roof rainwater runoff </li></ul><ul><li>Reduction of heat island effects </li></ul><ul><li>Reduced cooling loads for the building </li></ul><ul><li>Reduced electric power demands </li></ul><ul><li>Added layer of insulation to help prevent heating energy loss </li></ul><ul><li>Protects roof membrane from sun rays </li></ul><ul><li>Communicates leadership in sustainability </li></ul><ul><li>Provides habitat for birds and wildlife </li></ul>
    30. 32. Emerging Legal Issues <ul><li>HB 4124 (Introduced January 27, 2009): </li></ul><ul><li>Permits a taxpayer to claim a credit equal to 50% of the total cost for the construction of a green building and the expenses incurred to obtain LEED certification or $50,000.00, whichever is less. </li></ul>
    31. 33. City of Grand Rapids Commission Resolution No. 74599 <ul><li>All construction and renovation projects involving municipal buildings larger than 10,000 square feet and a cost of $1 million or more must receive LEED certification. </li></ul>
    32. 34. Key Issues <ul><li>Negotiate and draft contracts keeping in mind that the LEED rating system requires the allocation of responsibility. </li></ul><ul><li>The professionals and consultants building the project should have experience and be familiar with sustainable design, the specific rating systems, and the certification process. </li></ul><ul><li>Your contract must specify the materials, systems, and products required to achieve the necessary level of green performance. </li></ul><ul><li>You must know the state and local legislation which governs green building standards, or that otherwise offers incentives for such projects. </li></ul><ul><li>Because “green” design is non-traditional you cannot rely on a contract that might be used for a traditional built structure. </li></ul>
    33. 35. Questions & Answers