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Brownfields sites come in all sizes and locations. Some are viable projects simply due to market economics. Others are not as market friendly, the so-called second-and third-tier properties. Other sites may have little market value, but are desirable to put into community use such as parks and open space. Successful redevelopment requires the coordination of various interests, including the private sector, public officials, and the affected community. Brownfields transactions can range from simple to complex-this article presents an overview of potential players, their roles, and the skill sets that may come into play on any particular brownfields deal. The information presented here is intended to provide a broad-based background for environmental consultants desiring to be part of an effective brownfields redevelopment team. Environmental Practice 5:53-57 (2003)W hile the word "contamination" conjures up images of big cities, heavy industry, and billowing smokestacks, brownfields sites are often centrally located in established commercial and industrial districts-large and small sites integrated into the fabric of large and small communities alike. A recent study of potential brownfields sites in the western United States (Silverstein, 2001) indicates a prevalence of small sites, such as auto service stations, dry cleaners, plating shops, radiator shops, etc., resulting from small business operations (firms with five employees or fewer).

This paper shows that brownfield redevelopment occurs at a lower than socially optimal rate due to a stigma effect. A theoretical framework is employed, incorporating asymmetric information showing this stigma within the brownfields market generates a first-mover problem. Developers require a risk premium on their rate of return to offset this stigma, which discourages investment. Asymmetric information further widens the gap between offer and asking prices, reducing successful transactions. Implications of the theoretical framework are explored using a survey of real estate developers in the Denver metropolitan area. Brownfield developers' typical characteristics along with their risk and stigma premiums are quantified and found to be substantially in excess of cleanup costs.

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