The New York State Economic Development Council joined local economic development leaders and developers this week called on Governor Cuomo and state lawmakers to keep the Brownfield Cleanup Program (BCP) alive.
“Since 2008, over 40 projects across Erie and Niagara County have enrolled in the BCP, which will result in more than a half billion dollars in new investment, tax base growth and a cleaner environment,” said Brian McMahon, executive director of the NYS Economic Development Council.
“If this program is eliminated, developers will cross brownfield sites off their lists, resulting in a lingering threat to public health and dead zones of unutilized properties and loss of historic buildings,” Mr. McMahon added.
The Brownfield Cleanup Program encourages developers and business owners to voluntarily clean-up and redevelop contaminated properties, while protecting the public health and welfare. At this time, state lawmakers have not reached consensus on its continuation beyond 2015.
The Buffalo area has been highly active in brownfield redevelopment, including major projects such as Steelwinds, Welded Tube and the Tecumseh Business Park, all located on the former Bethlehem Steel site. Investment in those projects currently totals $294 million, which required $3.8 million in environmental remediation through the Brownfield Cleanup Program.
Downtown, the HealthNow office building and One Canalside totaling $169 million in new construction, are also examples of stunning adaptive reuse on brownfield sites. The $172.2 million HARBORCENTER, set to debut late this year, is also located on formerly contaminated land which qualified for the state’s brownfield program.
Looking ahead, overhaul of the historic Trico Products Corp. building, the former Millard Fillmore Gates Hospital, and completion of the Conventus medical building on the Buffalo Niagara Medical Campus are all seeking the environmental tax credits to turn properties with contamination issues into a mix of medical, residential and Class A office space.
Samuel Savarino, President, Savarino Companies, is currently remediating a brownfield site at 500 Seneca St., in Buffalo, to convert the former F.N. Burt box manufacturing plant into 300,000 square feet of Class A office space, 55 apartments and a nonprofit job training center. The $31.7 million project, in which Savarino is partnering with the Frontier Group of Companies, could not move forward without environmental cleanup.
“This is structure that’s on the National Register of Historic Places, but was in danger of demolition unless someone was willing to take the risk of investing in a complex that needs a lot of work, including decontamination. If not for the Brownfield Cleanup Program, we wouldn’t be standing here today. You’d see bulldozers, not construction equipment. The Brownfield Cleanup Program is helping us bridge the critical financial and liability gaps that would have prevented us from tackling this project,” Savarino said.
Peter Krog, CEO, The Krog Development Corp., is counting on the BCP to execute a long-awaited, $50 million adaptive reuse of the historic Trico Products Corp. plant on Washington Street. While the state has approved Krog for the BCP, the program could disappear before remediation can be completed.
Brian Sampson, Executive Director, Unshackle Upstate, said an unfortunate reality of Upstate and Western New York’s proud industrial past is that a significant number of former industrial properties face severe development and environmental challenges.
“The Brownfield Cleanup program has proven to be an indispensable tool for economic regeneration across Upstate, returning unproductive properties to the tax rolls and creating new opportunities that reflect Western New York’s economic future. Extending and expanding this program is vital to the continued revitalization of Buffalo and urban centers across Upstate,” Sampson said.