Bayshore Gateway Triangle CRA (BGT CRA) Brownfield Program a Success!
In 2009 the Board of County Commission passed a resolution declaring the CRA-owned 17+ acre site a Brownfield Area. This declaration allowed the property to qualify for various tax credits and other financial incentives for redevelopment subject to various rules in Florida. On the outparcel that used to be a gas station, trace amounts of petroleum contamination were discovered. Though the amount of contamination discovered was minimal and determined to be of no immediate threat to the community, the CRA determined that the best action was to clean the site to the highest standards for residential redevelopment. To this end, the CRA executed a Brownfield Site Rehabilitation Agreement (BSRA) with the Florida Department of Environmental Protection (DEP), which established the level to which rehabilitation had to be achieved and the financial incentives to which the CRA was entitled in return.
Funds expended on the cleanup qualify for the Voluntary Cleanup Tax Credit (VCTC) and entities cleaning sites through the Brownfield Program can earn back up to 50% of the expenses toward cleanup in corporate tax credits. Though the CRA does not incur any taxes, the CRA can transfer the credits to an entity which does incur taxes. The CRA has completed the remediation of all contamination on the site and received a Site Rehabilitation Completion Order (SRCO) from DEP. This means that DEP recognizes that the site has been cleaned up and is rehabilitated! To date the CRA has earned $53,958.75 in credits that could be transferred to a private entity who may purchase the 17+ acre project as a means to buy down the cost of the land or the credits can be sold on a tax credit market. Since the cleanup project is complete, the CRA is now eligible for bonus cleanup credits worth up to 25% of the entire project costs.
To learn more about the State of Florida’s Brownfield programs, check out this link.