February 8th - 2003

OREA encourages brownfield remediation

OREA wants all levels of government to work together to increase incentives for the remediation of brownfield sites.

OREA wants all levels of government to work together to increase incentives for the remediation of brownfield sites.

Brownfields are lands previously used for industrial or commercial purposes where expansion or redevelopment is complicated by some form of contamination. These properties are usually located in urban areas and hold great potential for redevelopment. However, concerns about legal liability and the lack of financial incentives to offset the costs of cleaning them up means these properties often remain unused.

Hamilton’s ERASE program

In Hamilton, the Environmental Remediation and Site Enhancement (ERASE) Plan provides financial and other incentives to promote the redevelopment and re-use of brownfield properties in a 3,400 acre older industrial area. A task force, comprised of private and public sector stakeholders from the legal, finance, real estate, environmental management, engineering and urban planning professions, was formed to develop strategies to bring brownfield properties back into productive use.

OREA is asking the provincial government to consider additional financial incentives to promote remediation including preferential tax treatment and changes to the existing Brownfields Statute Law Amendment Act, 2001. Incentives OREA is suggesting include:

· Crediting or rebating the Land Transfer Tax where a purchaser remediates a contaminated site.

· Rebating of the Provincial Sales Tax (P.S.T) on remediation expenses.

· Providing direct funding in the form of grants and loans for environmental site assessments and cleanups.

· Providing a provincially sponsored environmental insurance fund.

· Removal of provincial liens on brownfield properties.

As well, OREA has suggested improvements to the Act by amending legislation to provide for:

· Protection against civil liability for contamination to properties owned by third parties such as is contained in brownfields legislation in a number of US jurisdictions where the property has been rehabilitated to a set standard.

· A mechanism for limiting liability for off-site migration that runs through the property but originates from an “upstream” property. This will make “downstream” properties more attractive for redevelopment.

· Exemption of tenants of contaminated property from liability where the tenancy began after the contamination was reported. This will provide the owner of the property with a source of income for clean up.

· Provision of clear “standstill” agreements to protect against the enforcement of a Ministry of Environment Director’s Order during the remediation period.

· Inclusion of a proper legal description or the Registry Office Property Identification Number (PIN) for the property in the proposed environmental site registry so the property can be adequately identified.

· Completion and timely updating of the environmental site registry. This should be made a properly funded priority.

· Consideration of the linking of the environmental site registry to the electronic land registry records as those records are automated.

For more information visit the following websites: www.orea.com/gr www.city.hamilton.on.ca/CityDepartments/ecdev/business_development/brownfield_redevelop_program.htm Ministry of Municipal Affairs and Housing Brownfields Site: www.mah.gov.on.ca/scripts/index_.asp?action=31&P_ID=3305&N_ID=1&PT_ID=1&U_ID=

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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