National Center for Smart Growth Research Works

Permanent URI for this collectionhttp://hdl.handle.net/1903/21473

The National Center for Smart Growth (NCSG) works to advance the notion that research, collaboration, engagement and thoughtful policy development hold the key to a smarter and more sustainable approach to urban and regional development. NCSG is based at the University of Maryland, College Park, housed under the School of Architecture, Planning, and Preservation, with support from the College of Agriculture & Natural Resources, the A. James Clark School of Engineering, the School of Public Policy, and the Office of the Provost.

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Author: search.filters.author.Alberini, AnnaSubject: search.filters.subject.Economic Development

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    Determinants and Effects on Property Values of Participation in Voluntary Cleanup Programs: The Case of Colorado
    (2005) Alberini, Anna
    State Voluntary Cleanup Programs (VCPs) were established starting in the 1990s to encourage the environmental remediation and redevelopment of contaminated properties. These programs typically offer liability relief, subsidies and other regulatory incentives in exchange for site cleanup. This paper asks three questions: First, what type of properties are attracted to voluntary cleanup programs? Second, what is the interaction between these state programs and other incentives for remediation and economic development, such as Enterprise Zone and Brownfield Zone designations? Third, what is the effect of participation in the VCP on property values? We use data from Colorado’s VCP to answer these questions. We find that most of the properties enrolled in this program were not previously listed on EPA’s contaminated site registries, and that most applicants seek to obtain directly a “no further action” determination without undergoing remediation. The main determinants of participation are the size of the parcel and whether the surrounding land use is primarily residential, while other incentives have little effect. Properties with confirmed contamination sell at a 47% discount relative to comparable uncontaminated parcels, and participation tends to raise the property price, but this latter effect is not statistically significant. Taken together, these findings suggest that the participating properties are those with high development potential, and hint at the possibility that owners or developers may be seeking to obtain a clean bill of health from the State with only minimal or no cleanup efforts. Were these findings confirmed with data from other states, they would raise doubts about the effectiveness of voluntary programs in encouraging remediation and their usefulness in reversing some of the undesired effects of the Superfund legislation.
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    What Are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland
    (2005) Alberini, Anna; Longo, Alberto
    Using the hedonic pricing approach, we investigate how the information released on public registries of contaminated and potentially contaminated sites affects nearby commercial and industrial properties in Baltimore, Maryland. We find that commercial and industrial properties are virtually unaffected by proximity to a site with a history of contamination. Knowing that the site is no longer considered contaminated does not have a rebound effect on property prices either. We also find that urban economic development policies, such as Empowerment Zones and Enterprise Zones, have little effect on property values. In sum, brownfield properties in Baltimore are not particularly attractive investments for developers, and there is little potential for self-sustaining cleanup based on appropriate fiscal incentives, such as Tax Increment Financing. It is doubtful that “one size fits all” measures to encourage the cleanup of contaminated sites can be successful in this context.