Markell signs bills aimed at resolving brownfield finance issues

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10-06-14 bill signingAt a former brownfield site that’s now a WSFS Bank branch location in north  Wilmington,  Gov. Jack Markell  signed legislation that enhances the state’s capabilities in  transforming  properties and protecting the public.

He was joined by the bills’ sponsors, Senator David McBride (D-Hawk’s Nest) and Rep. Debra Heffernan (D-6th District), and DNREC Secretary David S. Small. Markell signed into law three bills that made changes in lending and liability language to Delaware’s Hazardous Substance Cleanup Act, the Underground Storage Tank  Act and the Jeffery Davis Aboveground Storage Tank  Act.

Old gas station sites have been difficult to convert to new uses because of liability and other  issues caused by gasoline leaks.

“Historic releases of petroleum products and other hazardous substances have emerged as a major cause of groundwater contamination in the state,” said Small. “It’s noteworthy that the governor’s signing these bills today at the location of a former service station, where petroleum releases impacted soils and groundwater in the area. As with many complex groundwater contamination sites, this site is still undergoing remediation after almost two decades. Yet through the collaborative effort between a business developer and DNREC’s Tank Management and Brownfield Development Programs, the site was safely cleaned up to support redevelopment, bringing new business opportunities and jobs to the Brandywine Hundred area. These new laws support the repurposing of environmentally-impaired properties into safe, viable and thriving business sites.”

Senate Majority Leader McBride championed Delaware’s original  brownfields bill that passed in 2004, and which he said has succeeded beyond his hopes.  A 2010 University of Delaware study found that each dollar invested in brownfields showed a return on investment of $17.50. “Brownfields are an important, but still underdeveloped resource for Delaware and, for all of us who want to see brownfields converted to new, productive uses, this is an important change in the law. I think we all hope it will encourage more development on these sites,” said McBride,  “It will encourage banks to make the loans needed to redevelop brownfields by not holding them liable for contamination and will allow the state to directly pay consultants working with businesses to redevelop these sites.”

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