April 21, 2008

Remediation

Ontario’s brownfield legislation helps, but uncertainty remains, developer says

SAUL CHERNOS

correspondent

Despite new and up-and-coming provincial government policies and rules, the waters remain muddy for brownfields in Ontario, a veteran developer says.

In a presentation to CanBUILD 2008 in Toronto, Mitchell Fasken, president of Kimshaw Holdings, said Green Belt and Planning Act legislation has helped lead to significant intensification inside urban areas and reinforce direction with in-fill urban redevelopment.

Fasken, who recently joined Trammell Crow Company’s eastern Canada business unit, also praised amendments the Ontario Ministry of the Environment has introduced, tightening the definition of Qualified Persons who conduct or supervise environmental site assessments and make certifications in records of site condition filed to the Brownfield Environmental Site Registry.

“This is a step forward,” Fasken said.

“I’m a developer, not an engineer or a scientist, and I want to be sure the guy who signs my paper is qualified. The ministry has finally made it clear as to who’s qualified and who’s not and what the rules are.

However, these amendments were originally slated to take effect on Apr. 1 and have not yet been enacted. Fasken expressed concern about a climate of uncertainty due to various pending rules and regulations.

“New standards (proposed last year) have basically created a freeze in the industry. We’re not really sure what the rules are that we’re going to play by next year, and whether or not the sites where we’re looking at doing risk assessments can ever be cleaned up based on theoretical standards.”

Fasken called the record of site condition “the diploma to say you’re out of jail in terms of contaminated sites,” but noted that rules often vary among municipalities.

“There’s no clarity in the industry and we continue to muddle forward. Sites are becoming more complex and difficult to deal with.

“They are no longer simple dig-and-dumps. There is groundwater impact, soil impact, off-site impact, and in many cases risk assessment is the only solution.”

Fasken also called for increased consistency in property assessment rules governing brownfields, saying the Municipal Property Assessment Corporation needs to deal promptly with tax reductions and adjustments for brownfield sites that qualify for tax increment financing.

“My view would be 90 to 120 days,” he said.

Carol Mitchell, MPP for Huron-Bruce and parliamentary assistant to Municipal Affairs and Housing Minister Jim Watson, said the ministry took over the administration of the Brownfields Financial Tax Incentive Program from the Ministry of Finance in 2007 and is working to streamline the application process.

“We know that 70 municipalities in Ontario have Community Improvement Plans or are in the process of putting incentives in place for brownfields, and 20 are considering the Brownfield Financial Tax Incentive Program in their CIPs,” Mitchell said.

“We recognize that there’s much more work to be done, and we will continue to meet with the brownfields advisory group to discuss such matters as the coming new regulations as well as additional gaps and barriers that confront our municipalities and developers.”

In an interview, Mitchell said that her ministry intends to work closely with municipalities to reduce variance and increase transparency.

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