Project scale and private sector environmental decision making: Factors affecting investments in small- and large-scale brownfield projects

The past decade has seen substantial policy effort directed at promoting the reclamation and reuse of urban brownfields or potentially contaminated properties. This paper is based on interviews with developers and lenders involved in redevelopment efforts. Findings indicate that effective policies and programs need to be framed within an understanding of the different needs of smaller and larger redevelopments. While market forces were equally significant inducements for both types of projects, important needs of small developers were not met. Overall, they were less likely to receive government subsidies, had greater difficulty accessing private capital, and lacked information about processes associated with remediation. Developers of large projects were more likely to benefit from public financing and were able to mobilize a network of supportive organizations to help them manage barriers to project completion. Additional findings suggest problems with legal mechanisms intended to promote brownfields cleanup in the course of redevelopment. While lender financing and public involvement of large projects encouraged environmentally responsible behaviors, self-financing of small redevelopments permitted some developers to skirt environmental requirements and avoid cleanup altogether. The paper ends with a discussion of the value of placing greater public emphasis on small projects and offers suggestions for policies to address their needs.