Transcript Slide 1

Department of Toxic Substances Control
Brownfields and Environmental Restoration Program
Revolving Loan
Fund
Stewart W. Black
Acting Deputy Director
Brownfields and Environmental Restoration Program
April 5, 2011
DTSC’s
RLF Program
Purpose:

Facilitate the reuse and/or redevelopment of
contaminated sites

Provide low-cost financing for Brownfield
cleanups
Program Overview

DTSC, City of Los Angeles and San Francisco
Redevelopment Agency formed the California Urban
and Rural Brownfields Coalition (CURB)

U.S. EPA awarded CURB Total $5.8 M
 $3 M RLF Grant (initial)
 $1.8 M Federal Stimulus (ARRA) Funds
 $1 M addition RLF Grant

CURB Loans and Sub-grant
 $3.2 M loans (RLF & ARRA) Funds
 $2.6 M sub-grants
Loans & Subgrants

Five Housing Projects - $3.815 million
Low Income Housing
$613,000 sub-grants, $277,000 loan
Private Housing Projects
$1.25 million RLF; $1.675 million ARRA Funds loan

Five Open Spaces Projects
$1.76 million sub-grants

Two Community Redevelopment Projects
$250,000 sub-grant
Selection Process
DTSC Processes the RLF Application


Site eligibility, review cleanup plan and cost estimate
Underwriting by independent Loan Fund Manager
Projects Submitted to CURB Loan Committee
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Committee member from each partner
CURB RLF Prioritization Criteria
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Threshold Criteria
Applicant/Remediation Criteria
Redevelopment Criteria
RLF Program Marketing

Funding Workshops around the State
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
Partner with U.S. EPA and other State
agencies
Key Stakeholders
Redevelopment Agencies
 Local Government Agencies
 Environmental Consultants

178 Townsend Street
San Francisco, CA
Former Automotive/Machine Repair Shop
$1.25M RLF Loan (Repaid in 12 months)
Project Benefits
94 new rental housing
25% below market value
100 new construction jobs
60 new permanent jobs
$500K increase in sale tax revenue
$200K increase annual property tax revenue
2235 Third Street Project
San Francisco, CA
Former Scrap Iron & Metal Yard
1924 to 1999
Third Street Perspective
$1.675M RLF (ARRA) Loan (Repaid in 12 months)
Project Benefits
196 new housing units, 39 affordable units
200 new construction jobs for 2 years
$800K annual increase in sales tax revenue
$400K annual increase in property tax revenue
Restored 2 historic brick buildings
Illinois Street Perspective
Contact Information
Stewart Black
Brownfields and Environmental Restoration
(916) 324-3148
[email protected]
Delaware Brownfield
Revolving Loan Fund
Melissa Leckie
Management Analyst
Site Investigation & Restoration Branch
April 5, 2011
General Overview

DE BRLF loan/subgrants:
decrease funding needed to cover remediation costs
after Brownfield grant dollars are expended.
 can only be used for remediation activities.
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In the past 3 years all the Brownfield's State
Grant dollars have been expended months
before the end of the year.
Delaware Brownfield Program
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State Brownfield Grant Dollars are $5 million each
year.
Divided up equally between public and private
entities on a first come first serve basis
Public entities receive:

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$500K per property @ 100% match
$125k per property @ 50% match.
Private entities receive:
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$125K per property @ 100% match
$75k per property @ 50% match.
Site Eligibility for Delaware BRLF
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Must be a certified Brownfield property
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Property must be in remediation phase
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Collateral is required for all loans
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Available to public and private entities
BRLF Loan
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Loans may range from $10,000 up to $400,000.
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Lower or higher amounts may be available but are at
the discretion of the Department
Maximum loan term is 10 years
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Full repayment is required when the property is
refinanced or sold.
What the DE Program Offers

For Non Profit Entities Interest rates are 0.00% up
to 1%.
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To qualify for 0.00% Interest rate your project must
meet the following criteria
 Affordable/Inclusionary Housing for low to middle
income purchaser/renters;
 Is a LEED Certified Green Building; or
 Is consistent with the smart growth principles of
“Livable Delaware” goals (is located in a Level 1or 2
Investment Area).
Projects that do not meet the above criteria will get a 1%
interest rate.
What the DE Program Offers

For Public Entities Interest rates are 1% up to
2%.
To qualify for a 1% interest rate you must meet the
same criteria as an Non Profit.
 Projects that do not meet that criteria will get a 2%
interest rate.

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Public Entities consist of State Agency or body,
county or local government, or housing
authority.
What the DE Program Offers

For Private Entities Interest rates are 2% up to
3%.
To qualify for a 2% interest rate you must meet the
same criteria as an Non Profit and Public entity.
 Projects that do not meet that criteria will get a 3%
interest rate.

Unique Policies
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Delaware BRLF can be used as a bridge loan for
Non-Profit entities
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There must be strong evidence to prove why
funding is needed if all state grant dollars are not
expended.
st
1
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Loan for Delaware
38 Vandever Ave
1st recipient of the BRLF Loan
 Community center in the city of Wilmington, DE
 Loan amount $120,261.00
 Loan will be used for the installation of the
approved cap on the property
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BRLF Grant Dollars
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$149K available in grants
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3 properties received grants
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Only for Public & Non Profit entities.
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No more than $200K can be given to any one
allowable site.
38 Vandever Ave
(Before)
38 Vandever Ave
(After)
Challenges

Meeting EPA requirements
Approval of documents
 Approval of the project
 Davis Bacon
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Meeting State requirements
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Mortgage, loan agreement, & promissory note
Contact Information
Melissa Leckie
Site Investigation & Restoration
(302) 395-2600
[email protected]
Redevelopment Authority of the
City of Milwaukee
Revolving Loan Fund Program
Karen Dettmer, P.E.
April 5, 2011
Brownfields 2011
Philadelphia, PA
Milwaukee Revolving Loan Fund
Program

Goals


Provide qualified
applicants the
necessary capital to
conduct cleanups of
contaminated
properties
Establish a revolving
loan fund that is selfsustaining
Milwaukee Revolving Loan Fund
Program
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Eligibility

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The entity is authorized to enter into a loan agreement
The entity carried out all appropriate inquiries to meet the
definition of “innocent landowner”, or “bona fide
prospective purchaser”
The entity is NOT using the funds to pay for response costs
at a property for which they are a responsible party
Revolving Loan Fund Portfolio
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$7,950,000 portfolio
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$6 million regular program
funding
$1 million in ARRA funds
$950,000 in supplemental
funding
5 Cooperative Agreements since 2002
8 loans, 1 subgrant, 2 pending loans
Milwaukee Revolving Loan Fund
Program

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$274 million invested in redevelopment
176 acres of contaminated land remediated
$35 million in clean up costs
2,000 jobs (expected) created
Thank you!
Questions:
Karen Dettmer
[email protected]
(414)286-5642
CONTACTS
Stewart Black
[email protected]
(916) 324-3148
www.dtsc.ca.gov/SiteCleanup/Brownfields
Melissa Leckie
[email protected]
(302) 395-2600
Karen Dettmer
[email protected]
(414)286-5642
www.awm.delaware.gov/SIRB
www.mkedcd.org/racm
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