May 2001 - Ref 551
Obstacles to the release of brownfield sites for redevelopment
The Government's town planning policies, especially those relating
to new housing development, focus on reusing land that has been
'previously developed'. Often referred to as 'brownfields',
returning this land and redundant buildings to economic use is more
complex than developing on former agricultural, or 'greenfield',
sites. This project obtained the views of 230 people and organisations
involved in the process of redevelopment and found that:
- Contamination is only one of many physical characteristics that may
prove to be an obstacle to the reuse of previously developed land.

- Owner aspirations as to the value of brownfield sites ranked
highest in the list of obstacles to redevelopment, followed by
remediation difficulties and costs.

- Developers were concerned that high density development, as
proposed by the Urban Task Force, could lead to 'town cramming'.

- Decision-makers, such as residential, industrial and commercial
property developers, were generally satisfied with the way that local
authorities handled planning applications.

- There was support for the suggestion to establish national
'standards' for remediation of previously used land.

- With brownfield problems becoming more complex, those already
involved with the development of brownfield sites are spending
increased time on this issue.

Background
The research was a two-year project that examined the problems
involved against a changing policy and practice climate. In June 1999
the Urban Task Force published its report Towards an urban
renaissance. In March 2000, the DETR published its revised Planning
Policy Guidance on housing (PPG3). Less than a month later, Parliament
implemented the contaminated land legislation, Part IIA of the
Environmental Protection Act 1990. Finally, in November 2000, the
Government published the Urban White Paper, Our towns and cities: the
future. Government policy is that 60 per cent of new housing should be
provided on brownfield sites; some towns and cities are already
meeting this criterion whilst for others it will probably prove
impossible due to the lack of available brownfield sites.
The aims of the research were to:
- identify the main issues that inhibit the release of brownfield
land for redevelopment;
- consider the mechanisms that need to be put in place in order to
ensure that urban regeneration is not prevented, or delayed, as the
result of site assembly problems; and
- review ways in which information concerning the risks may best
be conveyed.
The term 'brownfield' in the report relates to land that is
capable of redevelopment, whether with or without treatment, whether
contaminated or not, and where such redevelopment would be in
accordance with planning policies or urban renewal objectives.
Town planning, urban renewal and taxation
The research found that reusing brownfield sites often involves
transforming land, previously used for heavy or toxic industries,
making it suitable for more sensitive uses, especially housing.
However, land is also needed for a wide range of industrial and
commercial purposes, and not all brownfield sites are suitable for
housing. This can be due to inadequate access or 'bad' neighbour
uses such as heavy industry etc. As part of the urban renewal process,
town planning policies favour reuse of previously developed sites, in
preference to using 'greenfield' land. The survey found that
developers have real concerns about their liabilities in relation to
the remediation of contamination in brownfield sites. More than 80 per
cent of the respondents in phase one of the study regarded the
financial standing of the organisation undertaking the decontamination
as important or very important.
Support was expressed for the use of remediation standards to be
set by a governmental body, such as the Environment Agency, although
the introduction of set standards is unlikely in view of government
policy that sites should be remediated on the basis of suitability for
use. There was also limited support for the idea of remediation being
validated by a government body.
Some respondents were concerned that higher densities in respect of
urban developments, as suggested by the Urban Task Force, might lead
to 'town cramming'. Another major obstacle could be the need to
change people's views of their living requirements, for example
reducing their requirement for private gardens.
Many interviewees felt that taxation incentives or penalties may
form important stimuli in returning brownfield land to beneficial use.
Incentives could include tax credits in respect of remediation costs;
penalties could include taxing the development of greenfield land or
imposing taxes on the owners of brownfield sites. Shortly before the
report went to press (March, 2001), the Chancellor of the Exchequer
announced tax relief at the rate of 150 per cent in respect of
expenditure incurred in reclaiming land determined to be contaminated
in accordance with Part IIA of the Environmental Protection Act 1990.
The overall impression gained was that the decision-makers, such as
housing developers and housing associations, as well as commercial and
industrial property developers, are generally satisfied with the ways
in which planning applications are handled by local authorities. There
are some communication problems but they are not one-sided. Some
developers leave it too late to open a dialogue in respect of their
proposals but expect quick decisions.
Risk assessment
Government policy regarding land containing contaminative
substances is that remediation should take place through the planning
and redevelopment process. No set standards are laid down for
remediation and the principle employed is 'suitability for use'.
This involves intending developers in a 'risk assessment' process.
Many factors are considered as part of a risk assessment but the
results of the interviews showed that decisions on whether or not to
redevelop, the form of treatment and the form of new development have
to be determined on a site-specific basis. The survey showed that, not
surprisingly, the financial viability of the project was considered to
be the most important factor, with legislation and insurability of the
development being the two next most important issues. The quality of
documentation relating to past uses or work undertaken was recognised
as being important in the risk assessment process and a majority of
the interviewees also recognised the importance of keeping such
information with the deeds of the property.
Physical characteristics of the site and its environs
The research found that developers might encounter problems in
trying to assemble development sites of a viable size due to the
problems of multiple ownership, not wishing to be the first to develop
in a previously untested area, or even because of the presence of
archaeological remains. Creating an attractive overall environment is
seen as being important, whether that involves the conversion of a
redundant building or the demolition of that building in order to
create a 'new build' project.
The physical characteristics of a site are important;
ground-bearing capacity has implications for foundation design,
topography and water features affect the layout of the development.
The presence of contaminants may sterilise part of the site and views
of water or other attractive aspects may dictate the orientation of
the buildings.
Environmental concerns
Many environmental issues may have to be considered, including
site- and use-specific factors, such as noise and traffic generation,
the disposal of wastes, existing trees and other flora and fauna. The
survey found that developers and their advisers considered that
research into site history, a well-planned site investigation, fully
documented records of remediation or site preparation works are all
essential components of the decision-making process. The majority of
the interviewees expressed the opinion that legislation was required
to deal with the legacy of land contamination, although some were also
concerned that such legislation might lead to delays in the
redevelopment of brownfield land. Reservations were expressed as to
the clarity of the legislation and the extent to which it was
understood by the regulators.
The community matters
The research found that the attitude of the local community is
important in determining the level of priority attached to the
redevelopment of a brownfield site. Involving the community in the
project can reap rewards in many ways, from detailed information about
past activities on the site to reducing the risk of vandalism and
graffiti.
Transport
Transport issues affect redevelopment, with implications for the
engineering and construction phases of the project, in the selection
of remedial methods for site preparation, in the final form of the
development and its acceptability to end users or investors. The
survey found that there was a strong preference for moving heavy goods
traffic from road to rail by improving rail freight lines. More light
rail schemes also found strong support.
Managing the supply of development land
The survey found that many different factors affect the supply of
development land:
- The need for development land may be predicted on the basis of
past demands, with supply allocated accordingly. In areas of high
demand this will result in calls for more greenfield sites to be
released for development, with consequent objections from countryside
and preservationist lobbies. The development industry recognises the
importance of the town planning process in ensuring an adequate supply
of development land, although interviewees felt some aspects of the
process could be speeded up.
- Whilst development proposals are sometimes frustrated by what
the developers regard as the intransigence of landowners in holding
out for high prices, they would be reluctant to see a weakening of the
rights of land ownership.
- Image is important in many ways if brownfield land and buildings
in 'run-down' areas are to be redeveloped.
- The research found that, although low importance was attached to
public transport overall, the respondents considered that improvements
to public transport could make a major contribution to managing the
supply of development land.
Valuing brownfield land
Developers and valuers are more likely to be confronted with
problems on land that falls outside the legal definition of
'contaminated land' but nevertheless contains contaminative
substances. Such land may be acceptable for its existing use, not
causing harm to human beings, their property or the wider environment,
but in a redevelopment context may present highly complex problems.
There is some disagreement as to the most appropriate valuation
methods and the choice of method may also be dependent upon the
purpose of the valuation. The two main methods are the 'yield
adjustment' approach and the 'cost to correct' approach. The
question of 'stigma' impact on value, that is the financial impact
that exceeds any physical detriment, is also an important issue.
Conclusions and recommendations
The study concludes that, whilst developers are prepared to tackle
the problems of reusing previously developed land, they do have
concerns about the processes involved. Nine recommendations are made
for Government, the development industry and the professions involved
with the built environment:
- Planning authorities need to adopt a flexible approach to the
reuse of land as they are sometimes too constrained by Unitary
Development Plans or local and Structure Plans.
- Property developers need to establish early dialogue with town
planners and environmental regulators.
- Holders of derelict, vacant or contaminated land need to
consider how they may contribute to the urban renewal process, whilst
taking advantage of tax benefits.
- Land Quality Statements or Land Condition Records should form
part of the sale and transfer process for previously developed land
and buildings.
- Landfill Tax exemption should continue to apply where removal of
contaminated soil to landfill is the best, or only, option for site
remediation.
- There is room for improvement in communications between
regulators and the development industry.
- There is a need for better information flows in respect of soil
remediation methods.
- Developers should consider ways in which to involve the local
community in development projects.
- The Government should consider how best to introduce a
replacement for 'gap-funding' grant regimes - note: a partial
replacement for the Partnership Investment Programme (PIP) was
announced by the DETR in March 2001; this will provide support for
small and medium enterprises anywhere in England and for larger firms
in Assisted Areas.
About the study
A research team at Sheffield Hallam University, headed by Paul Syms,
Professor of Urban Land Use, conducted the study.
The study focused on ascertaining the views of property developers
and their professional advisers as being the main stakeholders in
activating the process of redeveloping brownfield land and buildings.
The first phase was a questionnaire survey, in which a wide range of
people in the development industry (developers, landowners and
professional advisers) were asked about their involvement with
brownfield land. Most of those contacted had a considerable amount of
experience, in senior positions, and many confirmed that their
involvement was increasing.
The first phase survey was followed by three seminars at which the
results were discussed and wider views obtained, including those of
local authority representatives. The questionnaire survey and seminars
facilitated compilation of a list of forty factors having a bearing on
the redevelopment of brownfields. These and other aspects of the
development process formed the basis for the third phase of 100
structured interviews.
The fourth 'consultation' phase comprised an interim report,
which provided the opportunity for public sector and representative
organisations to respond to the views of the predominantly private
sector participants in the first three phases. A second interim report
and final phase questionnaire were then circulated to everyone
involved in the earlier phases of the research.
The phased approach allowed the research questions to be updated
and new questions to be included in response to events during the
study period.
It had been hoped to assemble a database of brownfield property
transactions, with details of the problems that had been encountered
by landowners and developers. However, due to problems with
confidentiality, this proposal was abandoned. It has been possible to
describe twenty case examples that highlight a range of problems and
the methods used in resolving them. These case examples are included
as an appendix to the report.
How to get further
information
The full report, Releasing brownfields
by Paul Syms, is published by the RICS Foundation. It is obtainable
from the RICS Bookshop, 12 Great George Street, Parliament Square,
London SW1P 3AD, telephone 0207 222 7000, price £16.50 plus post
and packing (£3.15 in the UK). (ISBN 1 84219 046 6).
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