Windfall Lien Provision: Brownfield Property Sellers Could Be in for a Big SurpriseCongress had good intentions when, on January 11, 2002, it reformed parts of Superfund (CERCLA) by enacting the Small Business Relief and Brownfield Revitalization Act and its amendments. Congress attempted to start brownfield investment by providing funding for brownfield redevelopment and by exempting from liability new owners of contaminated sites, otherwise known as “bona-fide prospective purchasers” or “BFPPs”, as long as they satisfy the, and do not impede the performance of a response action or natural resource restoration. The incentives to redevelop a brownfield property are compromised, however, by Congress’ creation of a “windfall lien,” which arises the moment the EPA incurs response costs on the property. The uncertainties regarding the nature, amount, and operation of the lien as created by the amendments may discourage investors from pursuing redevelopment of brownfield properties affected by the lien. Until the windfall lien is clarified by an EPA guidance or court decision, the…Log In to Read Full Article
RACER Trust’s Proving Ground Stimulates Efficiency
Judge Robert Gerber, sitting in the U.S. Bankruptcy Court for the Southern District of New York, signed an order in effect creating RACER Trust in March 2011. RACER — for Revitalizing Auto Communities Environmental Response — was handed a portfolio of more than 300 properties scattered over 89 locations in… Read more
Water, Water Everywhere?
While in the following pages I will recount a number of serious localized water shortages, I can tell you at the outset, this will not be another gloom-and-doom scenario to which you are treated daily in your local and national news sources. Now, in my 54th year of professional effort… Read more