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Brownfield Redevelopment: A Proposal

Brownfield Redevelopment: A Proposal Jess Anastasia Arizona State University

Brownfield Redevelopment: A Proposal Brownfield Redevelopment: A Proposal High unemployment rates in Olean, NY have led to steady population decreases in the past two decades as residents migrate to states such as North Carolina, Florida, and Texas in search for higher paying jobs. (Cattaraugus and Allegany counties continue to see population drop, 2014) While several new businesses have opened recently, most notably the new Kohls store in the Olean Center Mall, many of these jobs pay minimum wage; the minimum wage in Olean, NY does not deviate from New York States minimum wage requirement of $8.25 an hour. While Kohls has provided about 120 job opportunities, many of these employees are not earning enough to maintain living costs in the area. The Self Sufficiency Standard, a measure

that shows how much money a family needs in order to meet basic needs, of Cattaraugus County marks that even for a single individual working 40 hours per week, they would need to make $8.84 per hour to meet basic needs such as housing, food, transportation, and health care. (Comprehensive Community Needs Assessment for Cattaraugus County, 2012) In order to maintain the population of Olean, new businesses, and ones that can pay a livable wage, will need to be opened. However, in order to entice new businesses to the area, incentives will need to be provided. As an area that once thrived by being home to booming industries, Olean has a unique opportunity to revive its economy and bring down rising unemployment rates. This opportunity resides right on the very land those industries left behind through the redevelopment of this land, currently labeled as brownfields. There are several solutions that could provide the needed motivation for businesses to move into the area and create job opportunities but brownfield redevelopment has already proven that its the best solution to revitalize Oleans aching economy. A solution that could bring jobs to Olean faster than other solutions.

Brownfield Redevelopment: A Proposal Currently, the North Olean brownfield area takes up 500 acres in the Interstate 86

corridor near Buffalo Street. Brownfields are areas that have been polluted by previous industries or commercial uses and were then abandoned. (Brownfield Redevelopment, 2011) These sites were once home to tanneries, refineries, glass and brick manufacturers, industrial equipment and chemical manufacturers that dated back to the 1850s. These sites were then abandoned in the 1950s. (Long, long process to reuse brownfields, 2013) Since these sites were abandoned, most of the land has remained unused. The current brownfield areas within Olean were once home to several giant manufacturing facilities. In order to bring jobs back to Olean, we need to look to the past to redevelop the future. Some of the cities top employers offer livable wages but only employ a small percentage of the population. Manufacturing operations are still some of the top employers in the city, including Alcas Corporation, Conap, Inc., Cooper Power Systems, and Dresser Rand. However, other top employers are the Cattaraugus County government, which operates near the North Olean Brownfield area, St. Bonaventure University, Jamestown Community College, and Olean General Hospital and Upper Allegheny Health Systems. Most of these jobs require special certifications or undergraduate degrees. (Major Employers, n.d.) While these are high paying jobs, statistics for the county show that a significant proportion of the population have a high school degree or lower. (Comprehensive Community Needs Assessment for Cattaraugus County, 2012) In order to employ the unemployed and underemployed in the area in jobs that offer livable wages, we will need to bring in new industries, like more manufacturing jobs. Although brownfield redevelopment can be costly, grants available from the EPA and New York States Department of Environmental Conservation and tax incentives can make cleanup and redevelopment less expensive. (EPA, 2009; EPA, 2011; New York State Tax

Brownfield Redevelopment: A Proposal

Credits Available for Remediated Brownfields, 2010) These sites will need to undergo extensive testing and pre-development steps in order to determine the types of contaminants and left behind infrastructure to ensure that the land can be cleaned up and redeveloped. Once these steps are completed and analyzed, the land can then be cleaned up and developed for industry or commercial uses. (Anatomy of Brownfields Redevelopment, 2006) Former brownfield lands can not only be used for future industrial and commercial uses but can also be turned into green spaces such as parks and community gardens to enhance the ecological value of the property. Additionally, they could also be used for residential housing and as an added benefit, brownfield redevelopment could also offer an increase in property values. In order to spur brownfield redevelopment and allow businesses to buy and redevelop the land, the city can offer further tax incentives to businesses that redevelop these areas. While Olean would lose out on some tax revenue through these tax incentives, the job potential of redevelopment may offset the costs. Jobs that offer livable wages would allow residents currently living in Olean higher spending power, bringing in revenue from sales tax. This may also entice residents that have moved away to move back home. Further, this could bring new residents into the area. According to The United States Conference of Mayors, in 2008 the potential tax revenue of brownfield redevelopment sites nationwide was $3.3 billion. (Recycling Americas Land, 2008) Despite the cost of brownfield cleanup, a handful of businesses have taken advantage of unused brownfield land including Scott Rotary Seals, which built a new facility, M&J Painting Contracting Corp., and SolEpoxy. Even though these new business have provided only a couple hundred jobs each, they are providing livable wages to their employees and re-using land that has been sitting vacant for decades. While property values have yet to be re-assessed since these

Brownfield Redevelopment: A Proposal industries have moved into the area, it is clear that they are not only providing valuable jobs to area residents but also improving the community. While it is clear that redevelopment of brownfield lands can be costly, these businesses have already proven the advantages of this opportunity and supports the argument that the initial costs of brownfield redevelopment should not impede businesses and industry from moving into the area. Although this is a costly solution to an ongoing and growing problem, brownfield redevelopment seems to be the only viable, long-term solution. If minimum wage jobs refuse to

increase pay rates to offer livable wages to their employees, we are forced to look to more costly alternatives. However, these costly long-term alternatives may provide the best long-term solution regardless of whether minimum wages were raised or not. Luckily, the city would not carry the cost alone in redevelopment. Currently, the city owns 500 acres of useless land. Offering incentives to businesses to acquire and redevelop the land would not only bring in revenue through the sale of land parcels but through property taxes as well. Olean has been struggling the past few decades to offload the land for redevelopment. Efforts to redevelop have been put on the backburner for too long and action is now needed before Oleans problem becomes dire. By increasing the short and long-term incentives for businesses to buy the land and move or create businesses in the area, the city can ensure the future of Olean. Brownfield redevelopment will not only create jobs, it will also bring in much needed tax revenue for the city itself. Property taxes on the brownfield lands are not substantial. By redeveloping and bringing in businesses, the city can increase property taxes. In Jersey City, for example, a brownfield area was redeveloped to build a new AutoZone store. Prior to redevelopment, the property taxes (revenue to the city) were around $2,500 a year. After development, property taxes are now valued around $26,000 a year. (Success Stories:

Brownfield Redevelopment: A Proposal Brownfield Coalition of the Northeast (BCONE)). In Elizabeth, NJ, a former brownfield area was redeveloped into a retail center. It brought in more than 5,500 jobs, mostly in retail, and

annual revenues hover near the $2.5 million mark. (Revitalizing Southeastern Communities, n.d.) To move forward and allow Olean to bring in businesses and, as a result, jobs, we need to make brownfield development a priority. Not only can these areas be potentially hazardous to area residents, the land is currently sitting unused. Olean can lure in much needed business but also create community green space and housing without straining current infrastructure. We can re-use land, clear pollutants and contamination, create jobs, and make Olean a more beautiful place to raise families. People should not have to move to other regions of the United States in order to find jobs that can sustain a family; we can do that right here in Olean.

Brownfield Redevelopment: A Proposal References EPA. (2009). EPA Brownfields Cleanup Grants: Interested in Applying for Funding? Retrieved April 17, 2014, from http://www.epa.gov/brownfields/grant_info/cleanup/cleanup_factsheet.pdf EPA. (2011. Brownfields Tax Incentive Fact Sheet. Retrieved April 17, 2014, from http://www.epa.gov/brownfields/tax/ti_factsheet.pdf Brownfield redevelopment. (2011). In Berkshire encyclopedia of sustainability: Ecosystem management and sustainability. Retrieved from https://login.ezproxy1.lib.asu.edu/login?

url=http://literati.credoreference.com/content/entry/berkseco/brownfield_redevelopment/ 0 Cattaraugus and Allegany counties continue to see population drop - Olean Times Herald: News - Cattaraugus and Allegany counties continue to see population drop: News. (n.d.). Retrieved April 16, 2014, from http://www.oleantimesherald.com/news/article_6a68f534-c01c-11e3-b9af0019bb2963f4.html New York State Community Action Agency Comprehensive Community Needs Assessment for Cattaraugus Community Action, Inc. (n.d.). Retrieved April 20, 2014, from http://www.ccaction.org/wp-content/uploads/2013/09/Needs-Assessment-2012.pdf Long, long process to reuse brownfields - Olean Times Herald: News - Long, long process to reuse brownfields: News. (n.d.). Retrieved April 20, 2014, from http://www.oleantimesherald.com/news/article_bfdd0252-b268-11e2-abf70019bb2963f4.html

Brownfield Redevelopment: A Proposal Anatomy of Brownfields Redevelopment. (2006). Retrieved April 17, 2014, from http://www.epa.gov/brownfields/overview/anat_bf_redev_101106.pdf

New York State Tax Credits Available for Remediated Brownfields. (2010). Retrieved April 20, 2014, from http://www.tax.ny.gov/pdf/publications/multi/pub300.pdf Major Employers. (n.d.). Retrieved April 20, 2014, from http://www.cityofolean.org/commdev/employers.html Recycling Americas Land. (2008). Retrieved April 21, 2014, from http://usmayors.org/76thWinterMeeting/release_012408b_report.pdf

Revitalizing Southeastern Communities. (n.d.). Retrieved April 26, 2014, from http://www.epa.gov/region4/brownfieldstoolkit/casestudies/csnatlclargecomm.pdf Success Stories: Brownfield Coalition of the Northeast (BCONE). (n.d.). Retrieved April 26, 2014, from http://www.brownfieldcoalitionne.org/?page_id=339

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