From Brownfields to Greenbacks: High-Yield Redevelopment in Conway
A brownfield is a property that is not being redeveloped because it is, or is perceived to be, environmentally contaminated in some way. A property can also be classified as a brownfield when it becomes so aesthetically blighted that it decreases the likelihood of redevelopment on nearby properties.
In 1995, the U.S. Environmental Protection Agency launched the Brownfields Program to provide support to local governments in their efforts toward cleaning-up these sites. The EPA's original intent for the program placed a focus on environmental quality. What no one expected was its economic development impact.
As sites were cleaned, the level of private redevelopment interest increased greatly. This effect was amplified when these sites were in downtown areas. (Many of which were witnessing the start to their own urban renaissance at the time.)
This includes cities in our area and some projects with which you may be familiar. For example, portions of the Little Rock River Market and Argenta Districts were redeveloped using EPA Brownfields grant money, including the headquarters of Heifer International.
In 2009, as the redevelopment conversations began for our Markham Street effort, it became apparent that we had a wonderful brownfield opportunity: Conway Scrapmetals, a multi-generational small business which just happened to be looking for a change of venue. It was also clear that no private developers were ready to invest in this area's potential until this 1.6 acre scrapping operation was cleared.
The timing was with us, so in 2011, the Planning and Development Department submitted, and was ultimately awarded, our first EPA Brownfields grant.
Here we are three years later, and the City of Conway has taken ownership of this key site along Markham Street with the intent of creating a wonderful urban park. This park will feature an outdoor performance amphitheater, while being designed in such a way that it mitigates much of the current flooding issues so common to our downtown area.
So why do I think this is one of the most important redevelopment and infrastructure projects for Conway in recent memory? Return on investment.
The money being spent to purchase, clean, and ultimately turn this parcel of land into a park, will be returned many times over in the form of private sector neighborhood redevelopment. Once this site is done and adjacent streets refinished, Conway residents will begin to notice the northward advancement of our current downtown economy. There are already developers lining up to break ground. Over time, this entire neighborhood will become home to a diverse mix of residents and businesses.
But don't just take my word for it. A recent paper by the National Bureau of Economic Research details a process "whereby changes in the socioeconomic characteristics of a community accompany changes in environmental amenities." In other words, once improvements to an area's physical character are made, benefits resonate through that area's economy and on to the people within it.
Even using conservative estimates, the NBER study finds an average benefit value of just over $3.9 million per brownfield site. According to the report, the average per-site cost for brownfield remediation is only $602,000, with the EPA covering about one-third of that amount. That's a six-to-one return on investment, on average, coast to coast, year after year since the program began. It grows to a 10:1 ROI if you consider the EPA's share of the heavy lifting.
(Coincidentally, this number is almost exactly what the City of Conway estimates our costs to be for acquisition and clean-up, including how much we're applying for in grants from the EPA.)
So if the research is even close to being accurate, and we can make some general inferences about our brownfield site based on the investment and value increases we've witnessed in Downtown Conway over the last ten years, then this project should return the public's investment many times over.
That's a significant return in anyone's books.
But the richest benefit comes from kickstarting a wonderful new walkable neighborhood that will serve our residents for decades to come as an amazing place to live, work, and play.