Marc Romanowski, Rupp Pfalzgraf partner and leader of our Project Development, Land Use & Energy group, was featured in The Buffalo News discussing the current state of New York State’s Brownfield Cleanup Program in Western New York.
The program encourages private-sector cleanups of contaminated sites, transforming them into safe developments for businesses, stores, and housing. This revitalizes local communities, particularly in Western New York, where these sites are common. A key part of the program is tax credits, which encourage developers to take on these projects and help cover the high costs of cleaning up contamination, an expense that doesn’t exist in non-brownfield developments.
However, these tax credits are set to expire in two years, and New York State has no plan to extend them. This jeopardizes many redevelopment efforts across Western New York, including the Bethlehem Steel complex in Lackawanna. Romanowski explains why this major project requires tax credits beyond the next two years, stating “It was so large, and it very naturally is taking time to build out… It’s just such a massive undertaking that it’s a different animal.” Without an extension, cleanup and redevelopment at Bethlehem Steel could be significantly delayed or even stopped altogether.
Another challenge is the potential introduction of a prevailing wage requirement, which would further increase the cost of redeveloping brownfields. While the proposal did not pass in 2024, Romanowski expects it to return this year with a stronger chance of approval. “If the prevailing wage is tied to something they can already anticipate and budget for, that will make it much more palatable than the first draft was,” he notes.
As discussions around tax credits and new regulations for the brownfield cleanup program continue, the future of key redevelopment projects in Western New York remains uncertain.
The Rupp Pfalzgraf Project Development, Land Use & Energy team is here to help developers navigate the intricacies of project development and move projects forward. With extensive experience in brownfield redevelopment, we work to secure the necessary approvals for our clients to carry out the redevelopment of these sites.
