March
6, 2002
Thank you, Mr.
Chairman and members of the committee, for the opportunity to testify today on
behalf of the National Association of Development Organizations (NADO) on the
EDA Brownfield Site Redevelopment Assistance Act of 2001.
My name is Mary
Lou Bentley and I am the Executive Director of the Western Nevada Development
District, which is headquartered in Carson City and serves a seven-county
region in Northwest Nevada.
Incorporated in 1983, the organization is a designated and funded
Economic Development District recognized by the US Economic Development
Administration (EDA). As a locally-controlled entity, the Western Nevada
Development District is governed by a policy board consisting of county and
city elected officials, business leaders and citizen representatives.
The
National Association of Development Organizations (NADO) provides training,
information and representation for regional development organizations serving
the 82 million people living in small metropolitan and rural America. Founded in 1967 as a public interest group,
NADO and its members are part of the intergovernmental partnership among federal,
state and local governments. Through
its research foundation, NADO also provides research, education and training
opportunities for community, economic and rural development practitioners and
policymakers.
NADO’s
general members–-known variously as councils of government, economic development
districts, planning and development districts, regional planning commissions
and regional councils--provide valuable professional and technical assistance
to over 1,800 counties and 15,000 small cities and towns, many of which have
little or no professional staff.
Members
of NADO also deliver a myriad of federal and state programs on a regional
basis. Depending on local need, a
regional development organization may administer and deliver aging, community
and economic development, emergency management, environment, housing, small
business development finance, transportation and workforce development
programs.
Another important function of the 325 regional
development organizations who are designated by EDA as Economic Development
Districts is to bring local communities together on a regional basis to develop
Comprehensive Economic Development Strategies (CEDS). With EDA planning grant
assistance, each regional organization formulates programs and strategies to
create and retain quality jobs as well as build local institutional capacity in
distressed areas.
Mr. Chairman,
we strongly support the goals and intent of the EDA brownfields redevelopment
legislation for three main reasons.
First, Mr. Chairman, the proposed EDA brownfields redevelopment
program would significantly strengthen the current portfolio of federal
brownfields programs. While the Environment
Protection Agency has an exceptionally effective and important brownfields
program, it is targeted almost exclusively toward helping communities assess
and clean up brownfields. The EDA program would establish a unique and flexible
set of tools to help local governments, regional development organizations and
nonprofits redevelop and transform former brownfields sites into productive
facilities.
As highlighted in two recent reports by the
NADO Research Foundation, there have been a number of impediments historically
to successful brownfields work in small metropolitan and rural areas. These
include a lack of local professional staff expertise and time, limited project
implementation funds, liability concerns and property ownership issues. In
addition, redevelopment activities are very costly, with a typical project
costing over $5 million. [Source: Reclaiming
Rural America’s Brownfields: Alternatives to Abandoned Property. NADO Research
Foundation, April 2001.]
While the recently enacted EPA brownfields
legislation aggressively addresses many of these impediments, such as liability
concerns and funding for assessment and cleanup, there is still a significant
void in funding for redevelopment activities, including planning and technical
assistance. The proposed program would
not only place a priority on brownfields redevelopment within EDA, but also
raise awareness in local communities about the hundreds of thousands of sites
scattered around the country.
More importantly, the creation of the EDA program would reinforce the
concept that local organizations have options beyond cleaning up sites to
preserve green space and curb sprawl.
Local communities could now pursue strategies for taking previously
productive industrial and commercial facilities and returning them to viable
economic centers. This represents the
best of both worlds: creating jobs and increasing local revenue, while also
raising community pride and environmental awareness, promoting positive land
use, and encouraging reinvestments in older areas. Sites that once marred the
landscape could be put back into productive use for the public and private
sectors.
In studying existing brownfields efforts, the NADO Research Foundation
found a host of good examples and best practices around the nation. In Vermont, for example, local elected
officials and community leaders within the area covered by the Southern Windsor
County Regional Planning Commission teamed together to address six brownfields
sites, including a former Goodyear plant and machine shop. Today, the adaptive
reuse of the site is providing quality jobs and tax revenue to the community.
Located on a narrow strip of land between the Chesapeake Bay and the
Atlantic Ocean, the town of Cape Charles and Northhampton County in Virginia
also proved that redevelopment is possible, even in highly distressed
areas. With assistance from EDA and others,
the community now has the nation’s first eco-industrial park, which features
manufacturing space, conference facilities, restored wetlands, a nature trail,
environmental education facility and a tertiary sewage treatment system. It even uses solar panels to cut energy
costs.
Second, Mr. Chairman, the
proposed EDA brownfields program would help regional development organizations
and local governments incorporate redevelopment efforts into their
comprehensive economic development strategies.
Acknowledging the presence of brownfields in a particular area is an
important first step to considering redevelopment. Many organizations that are
currently involved in brownfields work initially failed to recognize they had
brownfields, but instead knew they had land that was abandoned and potentially contaminated.
In many cases, this awareness coincided with the stark reality that land for
development was unavailable. At this point, their sights often turn to vacant,
abandoned pieces of land.
Along the shoreline of Lake Michigan, for example, the West Michigan
Shoreline Regional Development Commission (RDC) is assisting 120 cities and
towns and five counties in economic development activities including
redeveloping brownfields sites. The
West Michigan Shoreline RDC annually asks local governments to submit projects
for its Comprehensive Economic Development Strategy. The suggested projects are then prioritized and sorted into EDA’s
main project categories.
Within the region, both the city and county of Muskegon are recognized
as leaders in taking a proactive role in brownfields redevelopment. The city has established a Brownfields
Redevelopment Authority to promote the revitalization of environmentally
distressed properties within the city, while the county is transforming former
foundries into recreational parks, industrial parks, shopping centers,
restaurants and housing. The regional organization plays the key role of
coordinator, making sure that the various levels of government are
communicating and sharing information.
Currently, EDA provides seed funding for local communities,
predominantly through the national network of 325 Economic Development
Districts, to prepare comprehensive strategies that:
§
promote
economic development opportunities;
§
foster
effective transportation access;
§
enhance
and protect the environment; and
§ balance resources through sound
management of development.
While brownfields
redevelopment and revitalization is consistent with the overall goal of the
planning process, most small metropolitan and rural communities have been
either reluctant to tackle the issue or were unaware of potential federal
assistance programs. Another major
problem is the decline in the true purchasing power of the EDA planning grant
program, making it difficult for most regions to add another element to the
process.
While still an
incredibly valuable and essential program for regions, the average district
planning grant is currently about $54,000, the same average as in 1966.
Adjusted for inflation, the value of a 2002 grant is less than $10,800 or 20
cents on the dollar. For districts to
continue building on their successful track records, they need a well-deserved
funding increase to remain on the cutting edge, informed and well versed in the
latest planning issues.
We believe the
legislation takes the right approach by providing supplemental planning
assistance and calling for more coordination of brownfields redevelopment
within the context of the existing strategy development process. It is also noteworthy that legislation
specifically requires the Secretary of Commerce to be involved in coordinating
efforts with other federal agencies, state and local officials, Indian tribes
and nonprofit organizations.
Brownfields
redevelopment activities are complex, costly and time intensive, therefore,
coordination is a major key to success. This includes dialogue and partnerships
among the various federal agencies, as well as at the local level between local
governments, nonprofits, the private sector and the public. It also involves open communications among
the various levels of government.
Third, Mr. Chairman, the proposed
legislation would allow EDA to continue its successful brownfields
redevelopment work without depleting its resources for other equally important
initiatives. Since 1997, EDA
has invested more than $250 million in more than 250 brownfield redevelopment
projects nationwide. However, there is little assurance currently that the
agency can sustain this level of investment, especially within the existing
appropriations and authorization caps.
By establishing a
specific program for brownfields redevelopment, the agency would be given the
stability and sustainability required to meet the growing needs. According to the US Conference of Mayors,
the redevelopment of brownfields could generate more than 550,000 additional
jobs and up to $2.4 billion in new tax revenue for major cities. This number is
even greater when you add the hundreds of thousands of brownfield sites in
small metropolitan and rural areas. A 1999 survey of regional development
organizations found that millions of dollars could be generated annually
through local taxes on redeveloped brownfields property.
In addition, the
program is needed to help ensure that rural areas have an opportunity to obtain
implementation, technical assistance and planning funds for brownfields
activities. Within both the current EPA and EDA programs the limited budgets
almost force the agencies to select high profile projects in major urban
areas. This frustration with the lack
of resources for less populated regions was constantly mentioned during the
NADO Research Foundation studies.
By separating the program, the agency would
also be better positioned to assist distressed communities with their other
pressing needs, whether it is recovering from a natural disaster, responding to
a plant closing or expanding existing businesses. While many of the nation’s urban and suburban areas have enjoyed
economic prosperity in recent years, there are still hundreds of small
communities struggling to enter or re-enter the economic mainstream. Often times, EDA is the only federal agency
that can help these distressed rural and small metropolitan communities.
Over the past 35 years, Mr. Chairman, EDA
has developed a successful track record in partnering with local
communities—including regional development organizations—to revitalize, upgrade
and expand former commercial sites into industrial facilities that help create
quality jobs, expand the local tax base and improve the quality of life in the area. This includes making the necessary
investments in infrastructure, as well as providing often overlooked planning
and technical assistance.
In conclusion, we strongly believe that the
expanded brownfields redevelopment program would be a valuable addition to the
EDA toolbox. The legislation would
significantly strengthen the current portfolio of federal brownfields
programs. It would help regional
development organizations and their partners incorporate brownfields
redevelopment efforts into their comprehensive economic development strategies.
And, it would allow EDA to continue its brownfields work without depleting
resources for its other job creation programs.
Mr. Chairman and members of the committee, thank you for
the opportunity to testify today on behalf of NADO and I would welcome any
questions.