By Judy Sheahan
January 31, 2005

Representative Mike Turner (OH) spoke at the Wednesday plenary session at the 73rd Winter Meeting about two urban economic initiatives - Speaker of the House Dennis Hastert's (IL) "Saving America's Cities" Working Group and his own Brownfields Tax Credit bill.

Turner, former mayor of Dayton, serves as the Chair for Speaker Hastert's "Saving America's Cities" Working Group. The Working Group, according to Turner is made up of a members who have municipal urban experience, urban impacted districts, or members who sit on committees that deal with urban issues. The purpose of the group is to develop a list of goals and principles to help urban America, identify solutions, and advocate for legislation that meet the goals of the group. The primary focus is on economic development and redevelopment.

"I know you struggle every day with economic development along with other things such as crime, social services, and homeland security," Turner said, "But what is fundamentally important is economic development. Economic development leads to prosperity."

In addition to chairing the working group, Turner will also be reintroducing his Brownfields Tax Credit bill, H.R. 4480. "The Small Business Liability Relief and Brownfields Revitalization Act of 2002 provides some protection against liability but does not address the high redevelopment costs of brownfield sites," Turner said. "The high cost of redevelopment of brownfields remains the number one impediment to urban economic development."

The $1 billion annual tax credit would be allocated to states according to population and administered by the state. The tax credits would be awarded based on the remediation plan and it would allow for up to 50 percent of demolition and remediation costs. The tax credits are also transferable to third parties such as banks with the proceeds of the sale are non'taxable. The remainder of the costs is deductible/depreciable by the property owner. In addition, there is an incentive for property owners who have "mothballed" their sites. Potentially responsible parties that contribute no less than 25 percent of remediation costs receive liability release for 100 percent of approved remediation and demolition costs.

Last year when Turner first introduced the bill, which was endorsed by the Conference of Mayors, he was joined by then Conference President Hempstead Mayor James Garner, Conference Vice President Donald L. Plusquellic of Akron, National League of Cites First Vice President Anthony Williams of the District of Columbia, and Rockford Mayor Doug Scott .

Turner asked for the Conference's support. "I need your help in educating people regarding the opportunities for this bill," Turner said, "Please go to your Representatives, Senators, and businesses and get them to support this bill."

Turner said, "I will be the first to acknowledge that we have our work cut out for us — but I want to assure you that I will continue to do what I can — to advance policies that make sense economically for America's cities."