brownfields development
A Brownfield is an abandoned or under-utilized commercial or industrial site where potential redevelopment is complicated by environmental contamination, real or perceived. Frequently located in older urban areas, Brownfields can include decommissioned refineries, railway yards, worn-out warehouses, abandoned gas stations, former dry cleaners, and other commercial properties where toxic substances may have been stored or used.
Following a century of industrialization, thousands of contaminated sites lie abandoned or underused in Canada. These sites undermine the economic life of cities, and degrade the environment. Redevelopment brings many tangible benefits, including:
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 | | increasing job opportunities and local tax revenues,
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| | improving the environment and removing potential impact on public health,
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| | reducing urban sprawl by using existing public infrastructure,
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| | bringing in emerging technologies and manufacturing processes, and
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| | Improves a neighbourhood’s image, property values, and long-term sustainability. | | | |
Many of these sites can be cleaned up and brought back into productive use, but Canada’s emphasis on “command and control” pollution regulations tends to impede site clean-up activity and deters both prospective developers and investors. Arbitrary regimes of liability for clean-up are a concern to future owners and lenders. The regulatory requirements for the actual site cleaning activity itself, are complex. McMillan has worked in Brownfields redevelopment in Canada from its inception; our goal is to create pathways for developers and builders to achieve environmental clean-ups that address all environmental concerns and at the same time, create end products that will satisfy both investors and regulators.
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Representative Transactions/Cases |
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| | Reon Development Corporation and Stelco Inc.: Represent the brownfield developer, Reon Development Corporation, in the acquisition, remediation and redevelopment of a 14-acre brownfield site situated in downtown Toronto. The site was a heavy manufacturing site for over 100 years. McMillan was involved in negotiating and drafting the purchase arrangements from Stelco Inc., and negotiating and drafting the venture capital arrangements where Reon was financed from Cherokee Investment Partners, LPII, a venture capital fund based in Denver, Colorado. McMillan represented Reon in the subsequent sale of the site to Cresford Development. McMillan was also involved in obtaining municipal rezoning and entitlements. The site was rezoned from industrial use to a residential use to permit 175 townhouse units and approximately 750 high-rise condominium apartments. The ultimate development of the 14-acre site is expected to be worth in excess of $225 million Cdn when fully built.
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| | Reon Development Corporation, Victoria, B.C.: Represented Reon Development Corporation in negotiating and concluding a joint venture arrangement with a large international pulp and paper company, Bowater Pulp and Paper Canada, for the investigation, remediation, and redevelopment of a 7-acre site situated on the ocean near Victoria, B.C. The site had been a former pulp and paper mill site and was contaminated with the residue of plywood manufacturing and other earlier manufacturing activities. Under the joint venture agreement, Reon Development Corporation will be solely responsible for the management and financing of the remediation, but the owner and Reon will share in the proceeds of the disposition once it has been completed.
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| | Reon Development Corporation and Oakville Site: Represented Reon Development Corporation in the negotiation and purchase of a manufacturing site situated in Oakville, Ontario from a large U.S.-based manufacturing company. The company was in Chapter 11 proceedings in the US and the acquisition involved negotiation with the trustee/receiver and the submission of all purchase and sale documentation for approval to US bankruptcy courts.
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| | Receivership Sale of Contaminated Property, Downtown Toronto: Represented a court appointed receiver acting in the bankruptcy of A.R. Clarke Limited, a former leather tanning operation which had a large manufacturing site in downtown Toronto. The site was heavily contaminated from historical spills of VOCs (volatile organic compounds), which were in the soil and groundwater. The site was the subject of administrative proceedings initiated by Ontario’s Ministry of the Environment. In addition to dealing with the administrative orders, McMillan was involved in court submissions under the Bankruptcy and Insolvency Act and in dealing with prospective purchasers. The matter was further complicated by a very serious fire that destroyed a substantial part of the buildings on the site towards the end of the receivership. |
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Partners:
Michael M. Peterson
David L. Rosentzveig
Michael M. Peterson
416.865.7839
environmental
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