Brownfield Redevelopment Incentives Information
Brownfield incentives address the fundamental problem: contaminated properties are often left vacant because: the cleanup cost is uncertain and potentially large, the liability risk deters buyers and developers, and traditional lenders avoid financing contaminated properties. Incentives include: liability protection (the developer who undertakes voluntary cleanup may receive limited immunity from future contamination claims), tax incentives (tax credits, job creation incentives, and property tax abatements), cleanup funding (grants and loans for assessment and remediation), expedited permitting (streamlined regulatory review for brownfield projects), and zoning flexibility (local governments may grant zoning concessions for brownfield redevelopment).
Florida Legal Definition
Brownfield redevelopment in Florida is governed by: Florida Statutes §376.77-376.86 (Brownfields Redevelopment Act). Under §376.80, a brownfield site must be: designated by the local government through resolution (the local government must find that the site is contaminated or is perceived as contaminated, and that brownfield designation will support redevelopment). Under §376.82, the person responsible for rehabilitation (PRFR) may enter into a Brownfield Site Rehabilitation Agreement (BSRA) with DEP, which provides: immunity from third-party claims related to the contamination (upon completion of the cleanup), eligibility for the voluntary cleanup tax credit (up to 75% of cleanup costs), and streamlined regulatory review (DEP manages the cleanup oversight through the BSRA). Under §376.86, brownfield sites are eligible for: bonus refunds under the state economic development incentive programs, and the local government may provide: property tax incentives, zoning flexibility, and expedited permitting.
How It's Used in Practice
In practice, attorneys structure brownfield redevelopment projects for developers and property owners. The attorney: evaluates brownfield designation eligibility (is the site eligible for local government designation?), coordinates with the local government on brownfield designation (preparing and presenting the designation resolution), negotiates the BSRA with DEP (establishing the cleanup plan, schedule, and liability protections), structures the financing (incorporating: tax credits, incentive programs, and lender coordination), coordinates the cleanup (overseeing the environmental consultant's work and ensuring compliance with the BSRA), and obtains the site rehabilitation completion order (SRCO; the final order from DEP confirming that the cleanup has been completed and the liability protections are in effect). Common issues include: the time and cost of cleanup (which may exceed initial estimates), the coordination between multiple agencies (DEP, the local government, and the EPA for federal sites), and the developer's cash flow during the cleanup period (incentive reimbursements may lag behind expenditures).
Key Takeaways
- Brownfield Act (§376.77-376.86): incentivizes cleanup of contaminated sites.
- Local government designates brownfield sites by resolution.
- BSRA with DEP: provides liability protection and cleanup oversight.
- Tax credit: up to 75% of cleanup costs.
- SRCO: final order confirming cleanup completion and liability protection.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
Business Attorneys
Real Estate Attorneys
Litigation Attorneys
Estate Planning Attorneys
Business Sale Closings
How to Sell a Business in Florida
Contact Information:
Tel: 941-867-7818
Email: info@barneswalker.com
Trust • Experience • Results