Brownfields play a pivotal but often underappreciated role in economic development. These underutilized or abandoned industrial or commercial sites, often burdened with real or perceived contamination, represent both a challenge and a significant opportunity. As demand for fully developed, “shovel-ready” sites increases, brownfields are becoming essential players in the future of urban revitalization and economic growth.

What Are Brownfields?

Brownfields are typically former industrial or commercial sites that may be contaminated due to past uses. These properties often have complex histories and environmental concerns, making them more challenging to redevelop compared to unused, undeveloped land (referred to as greenfields). Despite these obstacles, brownfields hold tremendous potential because they are often situated in strategic locations near transport infrastructure (i.e., highways and railways), and may already possess essential utilities such as water, wastewater, and energy lines. These existing assets can make them attractive targets for redevelopment once cleaned up.

Moreover, brownfields offer unique opportunities, especially in regions with limited availability of greenfield sites. Redeveloping these sites can assist in revitalizing urban areas, reduce blight, and create new economic opportunities. Additionally, brownfields can be instrumental in reducing urban sprawl by repurposing previously used land rather than expanding development into pristine environments.

Attributes of Brownfield Sites

One of the most appealing aspects of brownfield sites is their proximity to infrastructure that modern businesses need. Many brownfields have existing connections to critical utilities and transport routes. For example, many brownfields are rail-served and have access to highways, making them ideal for manufacturing or logistics operations. The presence of workforce availability in nearby urban areas further enhances their attractiveness to developers or companies looking to expand.

In many cases, the expense of building new infrastructure on greenfields makes brownfield sites more competitive when they are remediated. They offer the dual benefit of reducing urban sprawl and utilizing land that may otherwise go wasted, contributing to more sustainable land use practices.

The Economic Development Potential of Brownfields

In today’s competitive environment for attracting businesses and investment, economic development professionals are increasingly looking at brownfield sites as a solution to site shortages. In states where fully developed sites may be in limited supply, brownfields represent an alternative resource.

For instance, in Alabama, over the past decade, an increasing number of companies entering the state have turned to brownfield sites for their development projects.

Take, for example:

• The successful redevelopment of the 230-acre brownfield site in Limestone County, Alabama, which saw a $500 million capital investment and created over 200 jobs. This site, formerly part of an automotive supplier campus, is now home to a manufacturing and distribution company that represents a significant economic driver for the region;
• The transformation of a former rail car factory in Bessemer, Alabama, into a 50-acre campus now housing 600 employees in over one million square feet of manufacturing space; and
• The redevelopment of a former U.S. Army Air Corps base in Courtland, Alabama, into a 660-acre manufacturing site currently hosting a critical aerospace operation that has generated numerous jobs in the aerospace and hypersonic technologies sector.

These are just a few illustrations of the substantial job creation and economic revitalization that can come from redeveloping brownfield sites.

Challenges and Opportunities in Brownfield Redevelopment

The redevelopment of brownfields is not without its challenges. One of the most significant hurdles is the cost of environmental remediation. Cleaning up contaminated land can be expensive and time-consuming, which may serve as a deterring factor in the consideration of these sites. However, the Alabama Department of Environmental Management (“ADEM”) offers services and funding to support brownfield site redevelopment:

• Brownfields Redevelopment and Voluntary Cleanup Program (“VCP”): Provides oversight for voluntary assessment and cleanup efforts, offering significant liability protections during and after these activities. It operates as a fee-driven program.
• Alabama Land Recycling Revolving Fund Program: Offers low-interest loans to governmental entities for site remediation, with loans typically having a 10-year payback period. Applicants must own the properties to be eligible.
• Drycleaner Environmental Response Trust Fund Program: Assists in the cleanup of contaminated dry cleaner sites by reimbursing eligible parties for their cleanup costs, while ADEM oversees the process.

In addition to the above, federal funding sources are available to support brownfield redevelopment efforts. The U.S. Environmental Protection Agency (“EPA”) offers a variety of grants through its Brownfields Program to help communities revitalize contaminated properties. Assessment Grants provide resources for conducting brownfield inventories, planning, environmental assessments, and community outreach. Cleanup Grants are designed to fund remediation efforts for brownfield sites owned by the grant recipient. For communities that have identified specific areas with multiple brownfield sites through public engagement, Multipurpose Grants are available to support a comprehensive approach to redevelopment. Revolving Loan Fund Grants allow recipients to establish a revolving loan fund to finance cleanup activities and provide loans and subgrants to others; when loans are repaid, these funds can be re-lent, creating a sustainable source of capital for ongoing cleanup projects. Job Training Grants offer environmental training for residents in communities impacted by brownfields, ensuring local involvement in revitalization efforts. Additionally, the EPA provides funding for organizations to deliver technical assistance to help communities overcome brownfield-related challenges. These programs collectively enhance redevelopment efforts, promote economic growth, and encourage the use of leveraged resources for sustainable cleanup projects.

Related Legislation and Incentives

Legislation plays a crucial role in promoting both the development and redevelopment of sites. States like Alabama have been proactive in enacting legislation and providing incentives to support such activity. The Growing Alabama Credit, for instance, offers tax credits to companies that contribute to economic development organizations (“EDO”) working on approved qualifying projects. This program targets existing properties controlled by local EDOs and provides financial support for infrastructure improvements, remediation, and preparation for development.

Relatedly, Alabama’s 2023 Game Plan bills included the Site Evaluation and Economic Development Strategy Act (“SEEDS Act”), which was introduced to help expedite the availability of new sites for economic development. Under the SEEDS Act, grants are made available to qualifying local EDOs for site assessments and development, with the goal of developing sites to meet the needs of new and/or expanding businesses.

Another significant development is the creation of Alabama’s Brownfield Remediation Reserve Fund (an expansion of the Brownfield Redevelopment and Voluntary Cleanup Program) in early 2024, which is particularly geared towards sites that have previously been remediated through the VCP and where the cleanup standards have changed, requiring further remediation. This fund provides financial support for site remediation, reducing the financial burden on companies willing to invest in brownfields. Eligible developers can receive up to $4 million per site to aid in environmental cleanup.

Finally, under Chapter 9C of the Alabama Code, cities and counties have the power to abate non-educational sales, use, and property taxes for brownfield redevelopment projects. To qualify for these abatements, the property must be enrolled in ADEM’s VCP, and the project must have an approved cleanup plan. For new companies, there is no minimum capital investment requirement to qualify for abatements, while companies making significant additions to existing brownfield properties must invest at least 30% of the original remediation cost or $2 million.

Looking Forward

As brownfields become a more critical component of economic development strategies, continued legislative support, enhanced incentives, and funding will be essential. Brownfields represent both a challenge and an opportunity in the world of economic development. While environmental remediation can be a complex process, the potential rewards—job creation, infrastructure reuse, and sustainable growth—can be substantial. In optimal scenarios, brownfields can be transformed from neglected, contaminated sites into engines of economic revitalization. As cities across the country face land shortages and urban sprawl, the role of brownfields in shaping the future of economic development will only grow more critical.