1	"Bucks County Steering Committee" Bucks County Steering Committee April 29, 2004 Charles Bartsch www.nemw.org/brownfields.htm
2	What Are Brownfields? Prior to passage of the Brownfield Revitalization Act, EPA considered brownfields to be abandoned, idled, or underused facilities where expansion or redevelopment was complicated by real or perceived contamination. The new law modified that working definition of a brownfield site to “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance pollutant or contaminant.”
3	Barriers to Brownfield Reuse Contamination Unknown contamination Known contamination with unknown cleanup cost and time Lack of process certainty and finality How clean is clean? When is cleanup complete? Who can answer these questions and how? “Liabilities” and related concerns Evolving in practice, from pure legal liability to lender/new owner concerns over: Reduced value of collateral Borrower inability to pay both cleanup costs and loan amounts simultaneously Lender having to assume cleanup costs in the event of foreclosure OR forfeit collateral in the face of cleanup Added costs linked to environmental cleanup Lack of redevelopment financing
4	The Project Development Process -- Simplified! What Impact Does Contamination Have on Financing? Conceptualizing and Planning the Project Economic Analysis for Marketing the Project Dealing with Stigma $ for Site Assessment Additional Underwriting/Site Development/R.O.R. Costs $ for Preparing a Cleanup Plan and Taking It Through VCP/State/Local Regulatory Agencies $ for Cleanup
5	Pennsylvania’s Voluntary Cleanup Program Program Description Land Recycling Program (1995) — offers clients release from liability for approved cleanups and PRPs may participate. the program identifies risk-based standards for clean, simplifies the approval process, and limits future liability when standards are attained. In addition, it provides financial assistance for assessment and cleanup Financing Programs Targeted to Brownfield Situations Industrial Sites Reuse Program — provides loans and grants to municipalities and private entities for site assessment and remediation; maximum of $200,000 for site assessment, or $1 million for remediation per year; Infrastructure Development Program — provides public and private developers with grants and loans for site remediation, clearance, and new construction, up to $1.25 million per project at 3% interest for 15 years. Brownfield Inventory Grant (BIG) program — grants up to $50,000 to cities and development authorities to carry out brownfield inventories. Incentives to Attract Private Investment to Brownfields Key Sites Initiative — state-funded contractors can conduct site assessments and prepare work plans to promote reuse of abandoned industrial properties; Keystone Opportunity Zones — in newly designated KOZs, all taxes maybe forgiven for up to 12 years. Job Creation Tax Credit Program — a tax credit of $1000 per new job was created for firms who increase employment by 25 jobs or 20% within three years from start date (with program). Economic Benefits/Number of Sites: Over 1,200 sites have entered the program and 1,000 have been completed and approved; over 25,000 jobs created
6	Federal Financing Programs Loans EDA’s Title IX (capital for local revolving loan funds) HUD funds for locally determined CDBG loans and “floats” EPA capitalized brownfield revolving loan funds SBA’s microloans SBA’s Section 504 development company debentures EPA capitalized clean water revolving loan funds (priorities set/ programs run by each state) HUD’s Section 108 loan guarantees SBA’s Section 7(a) and Low-Doc programs Grants HUD’s Brownfield Economic Development Initiative (BEDI) HUD’s Community Development Block Grants (for projects locally determined) EPA assessment pilot grants EDA Title I (public works) and Title IX (economic adjustment)
7	Federal Financing Programs: HUD COMMUNITY DEVELOPMENT BLOCK GRANTS Activities locally determined; can include coping with contamination as part of financing for site preparation or infrastructure development; can be lent to private companies under some circumstances Examples: Somerville, MA/Visiting Nurses Assisted Living Bangor, ME/Shaw’s Supermarket
8	Visiting Nurses Assisted Living -- Somerville, MA This former mattress factory had been vacant for more than two years. To spur redevelopment, the City of Somerville used funds from its EPA Brownfields Assessment Demonstration Pilot to complete a site assessment. Contaminants found to be present included barium, lead and petroleum waste. The project's redeveloper, the Visiting Nurses Association, remediated the site and demolished the existing structures to construct an assisted-living facility and health center, containing 97 units for low-to-moderate income seniors. $100,000 in CDBG was used as a cost-containment reserve.
9	Shaw’s Supermarket -- Bangor, ME
10	Federal Financing Programs: Other Likely Suspects ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) Two major programs – (1) public works grants finance industrial development site and infrastructure preparation, and (2) economic dislocation program capitalizes RLFs for distressed areas. Example: Riverside, CA/University Village
11	University Village – Riverside, CA Deteriorating mixed-use, economically distressed 30 acre site adjoining UC-Riverside $950,000 in EDA funding for infrastructure improvements, part of multi-agency funding package that included HUD and DOT monies The result – a 410,000 square-foot retail and entertainment center, which includes conference space for university use
12	Federal Financing Programs: Surprise Prospects ARMY CORPS OF ENGINEERS Can provide planning and technical support if you can make the brownfields/waterfront connection Examples: Traverse City, MI/River’s Edge Bend, OR/River Bend Development Chicago, IL/Chinatown River Front
13	River’s Edge – Traverse City, MI Financing: Financial incentives included direct and indirect financing and tax credits, such as: (a) State Coastal Management funds used to assess the environmental contamination and future uses of the property, (b) a state site reclamation grant, (c) a downtown development authority (DDA) public infrastructure TIF, and (iv) the single business tax credit associated with the brownfields redevelopment authority. Benefits: River's Edge redevelopment involved over $50 million in private investment. The site is built on more than 300,000 sq ft, with a value of nearly $100 million. Mixed-uses include a street-level retail shops, second floor office space and high rise residential units. Much of the parking is hidden below the buildings, giving the surface back to the people to stroll, shop, live, work and play.
14	Old Mill District – Bend, OR
15	Chinatown River Front – Chicago, IL
16	Federal Financing Programs: Surprise Prospects LOW-INCOME HOUSING TAX CREDITS AND HOME FUNDS Can encourage capital investment in affordable housing projects on brownfield sites, or provide home buyer assistance Examples: Waukesha, WI/Phoenix Heights Cincinnati, OH/Mills of Carthage Portland, OR/Macadam District
17	Phoenix Heights – Waukesha, WI 69 energy-efficient homes completed, many for moderate income families $13.5 million project, including $3.13 million in public funds, for * $1.87 million in state funds for cleanup * $415,000 in CDBG for construction * $575,000 in state and HOME funds for buyer assistance $405,000 in annual property taxes generated
18	Mills of Carthage – Cincinnati, OH
19	South Waterfront/ North Macadam – Portland, Oregon
20	Federal Financing Programs: Surprise Prospects TRANSPORTATION PROGRAMS (DOT) DOT highway and transit construction programs can support brownfields by (1) helping upgrade existing facilities; (2) offer transportation amenities that improve access to – and marketability of – sites; (3) fund facilities and structures that serve as part of the remedial solution Examples: Old Town, ME/Marsh Island Carry Central Falls, RI/Spintex Mill
21	Marsh Island Carry – Old Town, ME The redevelopment of this underutilized contaminated site into a revitalized waterfront park and commercial property was made possible by several additional grants from federal and state agencies. Funding included a $400,000 Enhancement Grant from ME DOT for the park and walkways; a $400,000 Community Development Block Grant for infrastructure around the commercial buildings, a $24,500 from the National Trails Recreation Act for trails, walkways, and river stabilization, and $8,000 from ME Forest Service for tree planting.
22	Spintex Mill – Central Falls, RI The Spintex Mill burned down in 1995, and the city of Central Falls foreclosed on the property due to back taxes in 1996. The results from the TBAs showed that there was no contamination found on the site and no clean up was needed. The city redeveloped the site into the River Island Community Park and Blackstone River Island Nature Trail, dedicated in October 2002. Funding sources included RI Department of Transportation's Trails Grant Program for $46,348, Community Development Block Grant (CDBG) funds for a total of $550,000 (from fiscal 1998 to 2002), RI Department of Environmental Management Open Space Bond for $225,000, and a Rhode Island Recreation Area Grant from the state's Greenways Council for $25,000.
23	“Low-Cost/No-Cost” Tools That Enhance the Climate for Brownfield Transactions Institutional controls Proprietary Governmental Innovative remedial technologies “Mr. Wizard” meets economic development Cost saving technical assistance and project support Environmental insurance Remediation insurance Stop-loss coverage Pollution legal liability insurance