Source: https://dnr.wisconsin.gov/topic/Brownfields/LGU.html
Timestamp: 2020-08-11 22:52:34
Document Index: 101234958

Matched Legal Cases: ['§ 292', '§ 66', '§ 66', 'art 312', '§ 292', '§ 292', '§ 292', '§ 292', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 292', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 75', '§ 292', '§ 75', '§ 75']

Local governments and contaminated property | Wisconsin DNR
Brownfields_Content Page_Local governments and contaminated property
State law offers liability relief for local governments that take control of contaminated land. It is possible to obtain environmental assessment and cleanup assistance and the DNR is available to help guide local officials through the brownfield renewal process. Contact us today for a collaborative "Green Team" consultation.
In 1993, the Wisconsin Legislature created an environmental liability exemption for local governmental units (LGUs), including some economic development corporations, in § 292.11(9)(e), Wis. Stats. [PDF exit DNR]. These laws are intended to help LGUs redevelop their brownfields, and it removes most environmental liability for LGUs that acquire property through the following methods:
eminent domain according to ch. 32, Wis. Stats. [PDF exit DNR];
removes and properly disposes of, or properly stores, any hazardous substances in above-ground containers that are leaking or likely to leak;
immediately reports any discharge of hazardous substances to the DNR; and
The local governmental environmental liability exemption is statutory – you do not need the DNR's approval as long as you acquire it through one of the eligible methods. However, upon request, the DNR can provide a fee-based ($700) liability clarification letter that explains how the LGU exemption applies to a specific property. Use our Technical Assistance and Environmental Liability Clarification Request (Form 4400-237) [PDF] to request a liability clarification letter.
The LGU exemption is not transferrable to a private party but is transferrable between eligible LGUs. If an eligible LGU acquires property from another exempt LGU, they are not responsible for investigation and cleanup, subject to the same conditions as above.
Slum clearance and blight eelimination is one of the "exempt" acquisition methods. This property acquisition method is complex and requires an LGU to understand the proposed method before proceeding. Generally, this method requires the LGU to make a slum clearance or blight elimination finding as part of a documented, legal process.
For condemnation or any other proceeding under ch. 32, Wis. Stats. (Eminent Domain), document in writing the steps taken in accordance with the statutory requirements and the "necessity of taking" for slum and blight elimination.
§ 66.1331, Wis. Stats .(Blighted Area Law), describes the planning and acquisition procedures that a city or village should follow for slum clearance or blight elimination purposes.
§ 66.1333, Wis. Stats. (Blight Elimination and Slum Clearance), describes the planning and acquisition procedures that a Redevelopment Authority must follow for slum clearance or blight elimination purposes.
Through documented and approved ch. 32 or ch. 66, Wis. Stats., proceedings that deal with specific slum clearance or blight elimination determinations.
For more information on the municipal exemption, please see the EPA's web page [exit DNR] and USEPA Guidance: Superfund Liability Protections for Local Governments (June 2020) [PDF].
All Appropriate Inquiries (AAI) [exit DNR] is a federal code (40 CFR, Part 312) promulgated by the Environmental Protection Agency (EPA) that establishes standards for conducting a Phase I environmental site assessment. AAI is commonly done prior to commercial or industrial property transactions to assess the likelihood of contamination, and to begin collecting information about the liability for cleanup if contamination is found. Conducting AAI prior to purchase of a property provides a legal defense from CERCLA liability, even if the assessment identifies contamination.
Under state law, local governments (LGUs) can recover costs of environmental cleanup on properties the LGU acquires under § 292.11(9)(e)1m, Wis. Stats. If an LGU acquires property through tax delinquency, bankruptcy proceedings, condemnation, eminent domain (according to ch. 32, Wis. Stats. [PDF exit DNR]), escheat, for slum clearance or blight elimination, by using stewardship funds or from another eligible LGU, the LGU is authorized to take action to recover costs it incurs in investigating and cleaning up a property on which a hazardous substance has been discharged (§ 292.33, Wis. Stats. [PDF exit DNR]).
Local governments could use the cost recovery procedures described above instead of or in addition to the existing negotiation and cost recovery procedures laid out in § 292.35, Wis. Stats. [PDF exit DNR]. The negotiation and cost recovery procedures in § 292.33, Wis. Stats. [PDF exit DNR] authorize LGUs to negotiate with parties responsible for hazardous substance spills to allow those parties to share the costs of, and cooperate in, cleanup action on contaminated land owned by the LGU.
Tools for managing delinquent taxes at brownfield properties
Three Wisconsin statutes provide options to local governments for managing the problem of delinquent taxes at brownfield properties. These statutory tools can help local governments facilitate the environmental cleanup and redevelopment of tax delinquent contaminated properties.
§ 75.105, Wis. Stats. [PDF exit DNR].
Counties and the city of Milwaukee are authorized by § 75.105, Wis. Stats., to cancel all or a portion of unpaid property taxes due at a contaminated property.
It is the responsibility of the person interested in the possibility of having past-due property taxes canceled to contact and negotiate with the county (or city of Milwaukee) to obtain the local government’s agreement to do this.
Prior to a tax cancellation action by the county or city of Milwaukee, the statute requires the person requesting the tax cancellation to obtain a signed, written agreement with the Department of Natural Resources (DNR) committing to promptly complete necessary environmental investigation and remediation actions at the property.
Persons requesting a § 75.105, Wis. Stats., agreement with the DNR should complete and submit the DNR’s Technical Assistance and Environmental Liability Clarification Request Form, 4400-237 [PDF](see especially section 5 of the form). Applicants must also include the appropriate fee with their request form.
Model § 75.105, Wis. Stats., agreement [Doc] - The DNR will generally use the basic text of this model agreement as the basis for § 75.105, Wis. Stats., agreements, unless the site is considered complex, (e.g, when there are federal jurisdiction issues – TSCA, CERCLA, RCRA or other complicating factors exist at the site). At complex sites the DNR may use the § 292.11(7), Wis. Stats., negotiated agreement format.
Assignment of right to tax foreclosure acquisition for contaminated properties
§ 75.106, Wis. Stats. [PDF exit DNR]
§ 75.106, Wis. Stats. [exit DNR] authorizes the governing body of a county (and the city of Milwaukee) to assign to a person the county's right to take judgment to any brownfield parcel that is subject to foreclosure under § 75.521, Wis. Stats. [exit DNR], or its right to take a tax deed with respect to any brownfield parcel subject to § 75.14, Wis. Stats. [exit DNR]. This process keeps a county (and the city of Milwaukee) out of the chain of title for the property.
A person seeking to obtain title to a tax delinquent brownfield property, through the § 75.106, Wis. Stats., process, must conduct an environmental assessment of the property and submit the assessment report to the Department of Natural Resources (DNR) before a court judgment occurs or a tax deed is granted under § 75.14, Wis. Stats. [exit DNR].
If the property is contaminated and requires remedial action the person must also enter into an agreement with the DNR to clean up the property.
The DNR will generally use language from the template agreement § 75.106, Wis. Stats., agreement (RR-059) [PDF]unless the overall cleanup activity is determined to be complex based on, for example, overlapping state and federal jurisdictional issues at a property, the involvement of federal environmental laws such as TSCA, CERCLA, RCRA and/or other complicating factors. In these situations, a § 292.11(7), Wis. Stats., negotiated agreement may be created and proposed by the DNR.
Acquisition through the county and transfer to a municipality
§ 75.17, Wis. Stats. [PDF exit DNR]
§ 75.17, Wis. Stats. [exit DNR] authorizes municipalities to demand that a county take a tax deed for property in their municipality that is subject to a tax certificate and that is contaminated by a hazardous substance, if the county has not acquired the property within two years after the expiration of the statutory redemption period.
Following acquisition, the county may retain ownership of the property or transfer ownership to the municipality for no consideration within 180 days of the tax foreclosure action.
For additional information, see: State and Federal Liability Protections for Local Governmental Units (RR-579) [PDF]
Contamination that is ignored can worsen and spread, further diminishing property values and adding to cleanup costs. Sites that sit become significant legal, regulatory and financial burdens on a community and its taxpayers. The DNR can help communities make progress at brownfield properties.
Often times, facilities on brownfields have been abandoned or have sat vacant for a number of years and may be prime projects for salvaging. In addition to valuable building materials and equipment, these buildings can contain hazardous substances, waste oils and other materials that may be harmful to the environment at the site or at a disposal site. In order to ensure that these operations are safe and not a detriment to the community or environment, local governments may elect to enact an ordinance for regulation of salvaging from vacant buildings.
A model ordinance for removal of salvageable nonstructural materials from vacated buildings (RR-988) [DOCX], was developed by the DNR and stakeholders to address issues for nonstructural, nondemolition related salvaging. Municipalities are encouraged to enact a separate demolition ordinance that addresses the unique issues specific to demolition activities.
The LGU would also be responsible for taking appropriate action to restrict access to the property in order to minimize costs or damages that may result from unauthorized persons entering the property, such as exposure to the newly discovered hazardous substance discharge. In addition, any substance found in above-ground containers must be disposed of according to solid and hazardous waste laws.
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