1978

1. The EVOLUTION of the BROWNFIELDS MARKET 1978 LOVE CANAL focused public attention on the need to strengthen environmental laws to protect human health in reaction to grass roots community activists. The state of New York evacuates and relocates families from 240 homes. In 1980, through federal emergency order, more than 700 additional homes are taken by the state. Consequence – increases public awareness of environmental issues and starts a wave of federal and state environmental legislation. Congress Passes CERCLA/Superfund, which regulates conduct at orphaned waste sites, attempts to reduce liability, and provides a funding mechanism to recover U.S. EPA cleanup costs. Consequence – forcibly brings environmental liability to the attention of the business community through strict, joint and several liability that requires responsible parties to cover cost of cleanup without regard to the percentage of individual environmental contribution or harm. Inhibits the transfer and sale of contaminated property. 1980 New Jersey passes Environmental Cleanup Responsibility Act (ECRA) the first state property transfer law and environmental disclosure law to bring more certainty to innocent purchaser defense under CERCLA. Industrial Sites Recover Act (ISRA) replaced ECRA in 1993. Consequence – sites regulated under ISRA/ECRA must be cleaned up before they can be transferred. Phase I site assessments begin to be part of the due diligence process and other states begin to adopt similar legislation. 1983 State of Minnesota adopts first Voluntary Investigation and Cleanup program (VIC). Consequence – owners of contaminated property in the state of Minnesota can receive final approval on sites entered into the program. Other states begin to establish similar programs. 1988 Brownfields: The National Perspective By Charles Bartsch, Robert V. Colangelo, Ken Kastman and Bruce Rasher

2. Fleet Factors establishes legal precedent that could draw lenders into the chain of environmental liability as a result of taking a management role in financed properties with environmental hazards. Consequence – lender requirements and due diligence process for financing properties becomes more stringent and many properties could no longer be financed due to the lender’s fear of liability. 1990 Northeast-Midwest Institute publishes first report on brownfields, New Life for Old Buildings and in 1992 hosts first conference for public sector and nonprofits on site reuse. Consequence – identifies key issues and notes impediments to site reuse. Increases public awareness about this issue. 1991 ASTM E-50 makes the Phase I Environmental Site Assessment (ESA) standard publicly available, which sets the minimum level of investigation to be performed during a Phase I ESA. Consequence – sets national standards and practices for completing environmental due diligence and brings comfort to the lending community. U.S. Conference of Mayors meets with U.S. EPA Administrator Browner and informs her of the mayors’ concerns for this issue. Consequence – recommendations are made regarding tools needed to help municipalities. EPA established first pilot program in Cleveland, Ohio. EPA designates 350th pilot program in 2000. Consequence –funding was made available for jurisdictions to assess sites for reuse. 1993 U.S. Conference of Mayors holds first forum for elected officials on brownfields. Consequence – mayors across the country recognize the importance of the issue and arrange a brownfield task force meeting with President Clinton and Vice President Gore to discuss brownfields. Resolution Trust Corporation liquidates failed S&L assets. Niche investors buy environmentally impaired portfolios. Consequence – joint ventures are created between real estate, venture capital firms and environmental cleanup firms to take advantage of buying opportunity. 1994 Brownfields: The National Perspective By Charles Bartsch, Robert V. Colangelo, Ken Kastman and Bruce Rasher

3. State of Michigan first to adopt legislation that discards strict liability and substitutes causation liability. Consequence – under Michigan laws only those parties responsible for contamination are liable for cleanup. Allows for the purchase of contaminated properties without liability for cleanup. The first wave of specialty development companies begin operations dedicated to acquiring brownfields (LandBank, Cherokee Industries, Brookhill, Brownfield Remediation, Greenfield, Mars Equity, Brownfield Development). Many of these companies have ceased operation or re-engineered to adapt to changing market conditions. Consequence – brownfields begin to be viewed as an investment opportunity Insurance industry begins to issue expanded insurance policies that cover the risk associated with transferring environmentally impaired properties. AIG issues first policy to cover the broad range of liabilities associated with transfer of brownfields. U.S. EPA issues first Memorandum of Agreement (MOA) to Illinois with additional MOAs negotiated with the states of Minnesota, Wisconsin, and Indiana. The MOA recognizes the states’ capacity to oversee brownfield cleanup. Consequence – owners in these states could develop properties with reduced fear of federal liability, bringing greater finality to the cleanup process. Risk Based Corrective Action (RBCA) standard. ASTM creates a standard and delineates the practice that establishes risk-based assessment cleanup criteria at sites where a petroleum release has occurred. Consequence – cleanup levels in soils at petroleum release sites can vary based on risk, and the cost to remediate certain properties is reduced. 1995 Brownfields: The National Perspective By Charles Bartsch, Robert V. Colangelo, Ken Kastman and Bruce Rasher

4. 1996 Risk Based Corrective Action (RBCA) standard. ASTM creates a standard and details the practice establishing risk-based cleanup criteria at sites where a chemical release has occurred. Consequence – cleanup levels at certain sites may vary based on risk, and the cost to remediate certain properties is reduces. Cherokee Investment Partners establishes first $100 million private equity fund to finance the acquisition of brownfield properties. Consequence – made capital available to finance private sector brownfield transactions. Brownfield News, Inc. establishes first publication that is dedicated to covering the topic of brownfields on a consistent basis. Consequence – increased public awareness, exposes a wide range of public and private sector issues, makes readers aware of opportunities in this emerging market. U.S. Conference of Mayors (USCM) releases brownfield survey and first action plan. Subsequent reports were issued in 1998, 1999, and 2000. Consequence – expanded focus through increased public awareness. Encouraged federal agencies to make their programs and policies relevant and show how they relate to brownfield development. U.S. EPA establishes the first National Brownfield Conference for the public and private sector. Consequence – awareness of the emerging market is increased as the conference draws more than 500 attendees. Mayor Paul Helmke, President USCM, calls brownfields the number one priority for the USCM. Consequence - increased public awareness among various local, state and federal government agencies. Oxford English Dictionary, first dictionary to define the word brownfield. Consequence – establishes the fact that brownfields are not a fad and brings clarity to the term. 1997 Brownfields: The National Perspective By Charles Bartsch, Robert V. Colangelo, Ken Kastman and Bruce Rasher

5. 1999 Massachusetts is the first state to establish a brownfield revitalization office and to create an environmental insurance program. Consequence - sets precedent for other states and validates the use of insurance products as a risk management tool. Stamford, Conn. Receives first brownfield cleanup loan from the U.S. EPA which capitalizes revolving loan fund program. Consequence – sets example of public/private partnership to finance cleanups. AIG/AMB Greenfield Investment Alliance establishes a dedicated fund with anticipated transaction volume in excess of $300 million. Cherokee Investment Partners II establishes their second private equity fund for $250 million. Consequence – more than$500 million available for investment in the market. Increased availability of capital substantiates market and increases prospecting for deals. Love Canal, final cleanup completed and 240 once-evacuated homes go on sale. Consequence – America goes full circle on dealing with contaminated properties. Nationally, a pragmatic stance on property transfers occurs. Brownfields blend environmental protection with economic concerns to create an atmosphere where all parties befit from responsible development of these sites. National Brownfield Association establishes first national organization dedicated to brownfield issues and creates first market for trading properties at Deal-Flow conference. Consequence – the diverse group of public and private sector professionals and stakeholders involved with the brownfield market are unified. Brownfields: The National Perspective By Charles Bartsch, Robert V. Colangelo, Ken Kastman and Bruce Rasher