Hartford Business Journal

9 HARTFORDBUSINESS.COM | APRIL 25, 2022 Deal Watch histories. However, Connecticut policymakers have set into motion a process to ease those environmental restrictions. Alexandra Daum, deputy commissioner of the Connecticut Department of Economic and Community Development (DECD), noted state lawmakers and the administration have authorized spending $50 million on brownfield grants over the next two fiscal years. "That is representative of how committed we are — both DECD and the administration in general — to brownfields remediation as a tool of economic development," Daum said. Past cleanups have resulted in an array of uses, Daum said. Industrial uses are "a great option" because the cleanup standards are lighter than other types of development, she said. State economic development authorities haven't been deluged with additional interest in brownfield redevelopments, but builders are more willing to consider these sites, she said. "Previously it was: 'I want a clean site, I want perfect highway access, I want a huge site, utilities perfectly connected – everything,' " Daum said. "That's still the first call people make, … but I think we are seeing a bit more flexibility and open-mindedness about considering sites that aren't perfect." Brownfields still have challenges and limitations, especially in terms of project complexity, time and cost, Daum acknowledged. The state's brownfield programs offer cleanup subsidies of up to $4 million, but each funding round is limited to $2 million grants. That means developers or municipalities need to apply through at least two different grant funding rounds to get the maximum award. It also takes time, and great expense, to identify areas of pollution, get cleanup plans approved and then certify it has been done correctly. "If you have a tenant that needs to be in [a location] in six months, a brownfield is probably not the right site," Daum said. "But there are a lot of enterprising, risk-taking investors out there who might want to clean up a site knowing there will be a use for that tenant they are confident will exist three years from now." Alexandra Daum Thomas Hyde, interim director of the Waterbury Development Corp. and CEO of the Naugatuck Valley Regional Development Corp., inside a 220,000-square-foot high-bay industrial building Waterbury has kept for redevelopment at the former Anamet manufacturing complex. HBJ PHOTO | MICHAEL PUFFER Intimate knowledge of the local business community. kbushey@centrevillebank.com 860.928.6501 x3072 EQUAL HOUSING LENDER | NMLS#402947 | MEMBER FDIC Kim Bushey Senior Vice President CT Commercial Market Head Centreville-38222 Revised ad_HBJ_10x325_Kim Bushey.indd 1 Centreville-38222 Revised ad_HBJ_10x325_Kim Bushey.indd 1 11/9/21 1:38 PM 11/9/21 1:38 PM Effort to replace troublesome Transfer Act making progress By Michael Puffer mpuffer@hartfordbusiness.com I ndustrial brokers, developers and public officials have long railed against Connecticut's Transfer Act as a heavy- handed and cumbersome deal-killer that has stalled many redevelopments. A top official working to replace the state's often-criticized system for cleaning polluted and possibly hazardous sites says new proposed regulations should debut this year. However, they likely won't take effect in 2022. Under the 36-year-old Transfer Act, any property that produced or stored more than 100 kilograms (220 pounds) of hazardous waste in any given month is subject to a lengthy, potentially unceasing state review to prove the property was not a hazard. The owner or buyer of such a property — called an "establishment" — must prove at the time of sale the site is clean, or has been cleaned to state standards. Even for a relatively small and clean site, this can mean paying hundreds of thousands of dollars for environmental investigation. Critics say it is a guilty-until-proven- innocent approach that adds costs and hurdles to property reuse not seen in most other states. Nicholas Morizio, president of brokerage firm Colliers International in Hartford and New Haven, said he has had clients work for 12 to 15 years trying to get their properties certified as clean. "All other states have a clear path to what is clean and what isn't, [but in Connecticut] you never get an answer, never get anything straight," he complained. "It's terrible." In 2020, the General Assembly passed Transfer Act modifications intended to make it easier for property owners to exit state review. The law clarified existing exemptions and authorized the state departments of Energy and Environmental Protection (DEEP) and Economic and Community Development to create a new system of environmental regulation akin to the "spill-based" model used by most other states. Under the anticipated changes, properties will no longer fall under exhaustive testing and review simply because hazardous materials were produced or stored there. Instead, the state will rely on mandates to clean spills and discharges as they happen. Frank H. Hird, vice president of O,R&L Commercial in Rocky Hill, is a member of the state- backed Transfer Act working group, which includes industry experts, environmentalists and regulators who are developing the regulations. Hird said the new system will be ready for final review by lawmakers this year and likely take effect within two years. Graham Stevens, DEEP's bureau chief of water protection and land reuse, said once the replacement regulations are published there will be a public review and comment period, as well as a necessary review by the legislature's Regulations Review Committee. Stevens said the working group hasn't decided how quickly to switch to the new system. There are concerns about disrupting deals currently underway under existing rules. The current system also operates on a mix of laws and regulations, so the legislature may need to act to repeal past legislation in favor of the new regulations, Stevens said. Stevens stressed current liability protections safeguarding municipalities and other entities that voluntarily cleanup pollution caused by others will not expire under the new regulations. The state will also continue to investigate spills and contamination, he said. Frank H. Hird Graham Stevens Nicholas Morizio

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