Greenfield Projects are thosewhere deferent aspects of the project are to be done from scratch. Brownfieldprojects are those where the preliminary development of the site is already done,and the investors come in with the required expertise. Feasibility studieswould have been completed and either the profitability is determined or, aPattern of subsidy to reach break-even, and achieve some nominal profit wouldhave been identified and put in place.
Greenfield
There are many reasons for afirm or an individual to decide whether to build a new facility rather thanpurchase or lease an existing building. The primary reason is that a newfacility offers maximum design flexibility and efficiency to meet the project’sneeds. An existing facility constrains the designer to adjust to the existingsite conditions.
In most cases, the maininfrastructure of an existing building will need an overhaul maintenanceeffort. New buildings in most cases, require much less budget to maintain incomparison to aged buildings.
Brownfield
The evident benefit of abrown-field investment strategy is that the structure is already constructed.The upfront costs for buildup will considerably be reduced. There will also bean acceleration in timetable for utilizing the building as in most casesretrofitting an existing facility takes less time than to build a completely newbuilding.
Most of the time brown-fieldfacilities are already “up to code” and require less time to passpermitting process. In cases thefacility is planned to be used for a similar line of business as originallydesigned this is even a bigger plus and saving in rehabilitation costs.
What is usually referred to as greenfieldengineering or greenfield construction is the procedure of building a structureover a lot that has never been developed. Brownfield engineering is related to developingor building over a property that was previously developed and requiresadditional steps and planning.
Greenfield Engineering
Greenfield areas are normallyundeveloped areas highly recommended for new construction. The benefits ofgreenfield construction relate to pristine pieces of land with little to nocontamination that contains no structures in the premises. The most beneficialadvantage is that there is no cost related to environmental remediation and isready to start building right away.
The most important drawback isthat greenfield is usually located outside city centers that might requireadditional infrastructure upgrades but those are offset by more accessible landcosts. Another advantage is that they offer larger pieces of real estateideally for future expansion and their zoning classification is easier to bechanged or adjusted as required. Keep in mind that greenfield usually requiresdeforestation and could affect environmentally sensitive areas including thehabitat of endangered species.
Greenfield construction advantages:
• Ample space to build
• Better planning due to open land access
• Less unknown
• No contamination
• Sizing of property is not an issue
• Low property cost
• Future expansion possibilities
• Flexibility to use larger equipment
• Road posting might affect deliveries and schedule
However, some of the drawbacks are:
• No accommodations for crews, per-diem might be required
• Additional infrastructure costs
• Limited local suppliers
• Deforestation and environmental permits could take longerdue to the impact on sensitive areas
• Additional costs due to location, and temporary offices(power, facilities, and warehouse space)
Brownfield construction
While greenfield is undevelopedland, brownfield construction is related to pieces of land that have beenpreviously developed and might be contaminated. Since brownfield properties areenvironmentally challenged, additional remediation costs mandated by EPA andother agencies will affect the total construction cost and the project budget.The main advantage is the location and easier access to the property includingexisting infrastructure in the area.
The EPA (EnvironmentalProtection Agency) established a Brownfields Program in 1995 and is the guidelineto develop a rebuilding plan. In some localities, certain incentives, includingtax benefits are introduced to encourage redeveloping existing/abandonedbuildings as part of community improvement plans. Some of the lots have highervalue due to the location and some may encounter challenges related to zoningrequirements and location.
The main advantages of brownfield construction are:
• Existing infrastructure in the area
• Accessibility for deliveries and workers
• Some cities might offer tax incentives
• Might qualify for additional LEED points
• Historical data such as Geotech and plats might beavailable
• EPA grants are available for future development
• Job training grants available through EPA program
• Job creation in city centers
• Can increase property value to nearby properties
The main disadvantages of brownfield construction are:
• Limited parking space for crews
• Hazardous material on-site and in soil
• Demolition activities might increase development costs
• Zoning and permitting requirements might be the limitingfactor
• Finding the right land with the required sizing requirementmight be difficult
• Limited storage space for material
Although there are manyparameters to consider when deciding on the roadmap to follow, ultimately thedecision will be based on economic and special location requirements that couldnot be in your hands but being informed is good to make the case for yourrecommended location. Always consult with your local state and federal agencyon additional permits, requirements, and costs associated with developing inbrownfield and greenfield sites.
Whichever path is more suitable to your project, InnoDez has the competency and wealth of hands on experience to support your design activity for both greenfield as well as brownfield projects.
