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NY Brownfield Revamp 'More Generous'

ALBANY, NY-An agreement between Gov. David Paterson and lawmakers revises the state's brownfield program while giving developers a better tax break.

By Paul Bubny | Updated on June 24, 2008

ALBANY, NY-Developers who remediate polluted sites through the state’s Brownfield Cleanup Program Act will get a bigger tax break than they would have under legislation that then-Gov. Eliot Spitzer introduced in January. Gov. David Paterson and New York legislative leaders agreed Monday on revisions to the BCPA that environmental attorney Charles S. Warren says are “more generous” than what Spitzer had proposed.

Under the agreement worked out in Albany yesterday, developers will be reimbursed up to 50% of the cost of cleaning up a brownfield, compared to 22% in the current program. It sets a cap for redevelopment credits on non-manufacturing projects to $35 million or three times the cost of site cleanup, whichever is less. For manufacturing projects, the cap is higher: up to $45 million or six times the cost of cleanup. Spitzer’s bill would have set a maximum cap of $15 million. “There was a recognition on all sides that you needed some type of a cap,” says Warren, the New York City-based chair of the environmental department at Kramer Levin Naftalis & Frankel LLP. “That was a major sticking point in the negotiations.”

Noting that the cap is higher on cleaning up sites that will be turned into manufacturing facilities, Warren observes, “I think that’s a nod to upstate, where you’re likely to see some manufacturing projects, whereas you probably won’t see those types of projects downstate.”

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