This presentation was delivered at NADO's 2018 Annual Training Conference, held in Charlotte, NC on October 13-16. For more information, visit: https://www.nado.org/events/2018-annual-training-conference/

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FINANCING BROWNFIELDS
The Lender’s Perspective
Beth Gray
NADO 2018 Annual Training Conference
October 13–16, 2018
Charlotte, NC

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Why Would Lenders Consider
Financing Brownfields?
 Brownfields designation may help make financing
feasible for contaminated/abandoned/underutilized
properties in desirable locations.
 Property value > Remediation costs.
 Corporate citizenship - Redevelopment of
properties can help the community:
 Job creation
 Tax revenue
 Community/neighborhood pride

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Do We Have Adequate
Information & Documentation?
 Current Phase I Site Assessment
 Copies of prior assessments; contamination fully
delineated
 Copies of regulatory correspondence
 Executed Brownfields Agreement or comparable
Voluntary Cleanup Program Agreement

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Critical Issues
 Type, extent, and severity of contamination
 Regulatory agency requirements
 Approved remediation plans
 Reliable estimates of costs and timing to
achieve compliance and obtain regulatory
signoff
 Contingency plans for any issues
discovered during excavation,
redevelopment, construction

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Tools to Use
 Legal
 Engineering
 Financial

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Legal Tools
 Brownfields Agreements / VCPs
 Covenants Not to Sue / Release of Liability
(transferable)
 Deed Restrictions / Activity & Use Limitations
(AULs)
 Indemnifications

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Engineering Controls
 Caps
 Barriers
 Risk-based Assessment and
Design

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Financial Tools
 Reserves / Escrow Agreements
 Guarantors
 Tax Credits
 Environmental Insurance

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Facilitating the Transaction
Discussions among stakeholders can
help achieve consensus and facilitate
the deal.
 Borrowers and Developers
 Environmental Consultants and Engineers
 Attorneys
 Regulators
 Lenders

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The Bottom Line
Is there adequate information?
Is there an approved remediation
plan and schedule?
Does the deal make sense?

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Questions?