Buying Brownfields – From Rags to Restored

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Hospitals and healthcare centers are places of intended cleanliness and health. As such, tradition has held that in the planning and construction phases of erecting a new facility, a very prime piece of real estate must be chosen; a place of cleanliness that has had a proven history of a more idyllic nature. Naturally, this is logical thinking for such an important establishment.

Today though, that long-standing trend is being turned upside down. Healthcare establishments are now finding that the more imperfect the land, the better. Why, you may ask. The answer lies in previously little-known, or at least little-exploited laws and regulations.

According to the well-versed, recent New York Times article, the trend of such establishments purchasing and using troubled land and property is growing rapidly. Hospitals and healthcare centers are buying up such property and enjoying massive tax credits and incentives for taking on the burden. Valuable grants and even H.U.D. lending is extended to a buyer when the property being purchased is in a bad state. The same article cites individual credits of up to $500,000 having already been issued.

What Makes a “Brownfield”

In short, the start-up capital gleaned from all the available incentives overcomes the expenses of even the worst property reparations. But what exactly qualifies a property as problematic, or a “brownfield” property? The Environmental Protection Agency actually provides valuable resources on the subject right from its website. According to the EPA, any number of circumstances can see a property considered a brownfield. Deep structural decay, toxic wastes, solid wastes, waste water accumulation, and other property ailments all can draw a brownfield label. From here, the prospective buyer assesses what is needed to make the site usable, and weighs it against the many financial incentives to be gained. In most cases, the reparations are well worth the benefits. Subsequently, the purchase is made and work starts.

Everyone Wins

This arrangement is not only beneficial to the incoming healthcare establishment, but is also greatly helpful to the community. Generally, these distressed properties are in lower-income, depressed parts of the municipality. With no other potential buyers, an incoming health facility cleans up the particular property and its problems single-handedly. In addition, the area is provided with localized healthcare, often desperately needed.

With such a mutually beneficial outcome, it is little wonder that this trend is just at its beginnings, with much more soon to come. As of now, this “Brownfield Buying Extravaganza” is mainly taking place in Florida, its birthplace, but is expanding quickly to many other states. Look for upcoming legislature that makes this a friendly process in many more jurisdictions. The only question now – which other industries will be the next to try to and jump on board.