The Brownfield Vision
09/05/2005
by -- Angus Ross
www.canadianbrownfieldsnetwork.ca
Brownfield redevelopment has been little more than an afterthought in the minds of many over recent decades. Today, however, as communities realize the damage caused by relentless urban sprawl, as well as the social, economic and environmental benefits of redeveloping those neglected sites often in the heart of towns. All levels of government are taking significant steps. I am particularly excited that HazMat has recognized the change and taken the bold initiative of focusing on brownfield redevelopment. Future issues will chronicle challenges, successes and how they were achieved.
In this first issue, I felt it would be useful to look briefly at some of the major challenges still facing the brownfield community, as well as some of the federal and provincial actions to further redevelopment. It could be termed a "wish list for action" and touches the areas that I would particularly like to see addressed.
We still face challenges on the financial side. Expensing remediation costs, as is the practice in the United States, instead of being forced to capitalize them would be a big beneficial change for small/medium developments. The federal finance minister has been asked for a number of years to make the changes to Sections 18 and 20(1) of the Income Tax Act, but, as of yet, to no avail. One province might have to take the initiative before the feds make a move.
Progress has been made on liens and tax arrears that encumber, in particular, properties abandoned to municipalities. At a one-day workshop in Ottawa -- presented by the Canadian Brownfields Network and the National Round Table on the Environment and the Economy (NRTEE) -- there was a broad discussion of the issues with federal, provincial and municipal representatives. A number of concise recommendations were made in a subsequent report (available at www.canadianbrownfieldsnetwork.ca). At least two provinces are actively looking at this problem with a view to possible changes. The federal government is also well aware of the situation.
Liability still remains a major issue, despite some provincial actions to reduce the exposure for lenders and purchasers. However, much more remains to be done across the country. Changes that have been made are only with respect to regulatory liability and no attempt has been made by any province to address the thorny issue of third-party liability. (Some provinces are beginning to look at the issue.)
On the positive side, the federal government has made brownfield money available through additional funding to the Federation of Canadian Municipalities Green Municipal Fund. There will be mechanisms that will enable funding to be accessed by the private sector. There has also been recognition of the federal responsibility for its own contaminated sites and funding for their cleanup.
But perhaps the most encouraging sign comes from an unlikely place -- New Brunswick. Having seen the real value of brownfield remediation in the rehabilitation of the Moncton Shops, the New Brunswick government has taken to heart the recommendations of the NRTEE's National Brownfield Redevelopment Strategy for Canada. It is undertaking a comprehensive review of brownfield legislation, policy and tools with a view to developing a brownfield strategy by the end of this year. Will New Brunswick become the new brownfields remediation leader and turn the vision into reality? Watch this space!
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