Value Creation In The Redevelopment Of Environmentally Impaired Properties
Free (open access)
S. M. Hollingshead
The essence of value creation is the application and coordination of a broad range of capabilities to the complex process of contaminated asset redevelopment. This process includes careful risk analysis and containment, optimal land use and infrastructure planning, financial engineering, targeted real estate marketing and access to a myriad of governmental entities. The goal of value creation through an integrated site-planning model is to: Align the interests of all stakeholders Contain risk through a variety of risk control measures to achieve certainty Minimize remediation costs Identify the true market for an asset Shorten cycle time Coordination of these objectives is demonstrated in a review of two redevelopment projects conducted by the author. 1 Introduction While the economic prospects for redeveloping contaminated properties vary widely, a significant portion of these assets have remedial requirements the cost of which overwhelms the future value of the property. The result of this unfortunate equation is that these properties continue to sit idle and are only addressed to the extent that public or private funds can be used to offset the negative value of the property. Practitioners within the brownfield redevelopment field have looked for other tools that might bring greater value to these properties and expedite their redevelopment and reuse.