ABSTRACT
Financial risk is a steadily rising concern for both public and private sector participants in the real estate redevelopment market. Environmental regulators face uncertainty in the future cost and effectiveness of remediation but can no longer rely on the availability of well-funded statutory cleanup budgets should adverse cost outcomes be experienced. In all except the most sought-after urban areas, project owners (i.e. developers and land owners) may observe a relatively small change in remediation and construction costs resulting in a relatively large change in profit or loss. It is within this context that financial risk is a key driver of both cleanup and redevelopment decision-making.
