Troutdale-Reynolds Industrial Park is an example of a former brownfield redeveloped for new jobs.
A key committee in the Oregon Legislature signed off on a brownfield cleanup bill Wednesday, moving it one step closer to Gov. Kate Brown's desk.
The Senate Committee on Finance and Revenue voted unanimously to support House Bill 2734, which would allow local governments to create "land bank authorities," public entities that could clean up brownfields.
The bill is backed by a coalition, convened by Metro, of more than 40 local governments, business associations and community organizations from across Oregon.
The system allows sites like abandoned gas stations, dry cleaners and factories to be cleaned of toxins, while shielding local governments from liability. Many of those sites are derelict, with the private sector having little incentive to clean them up.
Local governments have historically been reluctant to step in because of the liability issue – if they owned the site, someone could potentially sue a city or county for environmental or physical harm caused by historic pollution.
Once established by local governments, the land bank authority would keep those governments' general funds shielded from liability. The legislation exempts the land bank itself from liability for pre-existing contamination, enabling it to focus resources on cleanup of contaminated properties.
The bill is part of a broader effort to address the 13,000-plus brownfields in Oregon, more than 2,000 of which are in the Portland region.
David Rabbino, an attorney at Tonkon Torp, told the Senate finance committee this week that the program is aimed at getting properties back on the tax rolls.
"It's to get a piece of property into the hands of an owner who wants to do something with it," Rabbino said. "Once the property's in better position, the hope is that the private real estate market then becomes interested, and you'll have bidders for whatever they believe the highest and best use of that property is."
The land bank, Rabbino said, would then sell the mitigated brownfield to the bidder proposing the highest and best use for the land. Money from the land sales could then be put toward future mitigation projects.
At a committee hearing Tuesday, Sen. Chris Edwards, D-Eugene, wondered whether the land banks could be used to convert brownfields to natural areas or parks.
"I'm not against open space, but I'm pro-finding more industrial lands in many parts of our state," Edwards said. "I'm wondering if this becomes a tool which can be hijacked to further different land use goals, whether it's in the Metro area or in Eugene and Lane County."
Metro lobbyist Randy Tucker said the bill was envisioned so that land could be used productively for economic development and job creation
"We haven't had any significant conversation to use this tool to provide open space," Tucker said. "It is possible, but the land bank is going to be self-sustaining if it can clean up property and sell it into the market."
The bill, which passed the Oregon House on a 43-15 vote on June 4, now heads to the full Senate for a vote.