Funding Puzzle Pieces to Consider

Transcription

1 Brownfields Funding Strategies Part 1: Meet the Funders Part 2: Ask the Funders Brooks Stanfield US EPA Region X Jack Peters HUD Trini Mayo USDA-RD Terry Lawhead WA Commerce John Means WA Ecology Karen Homolac BizOregon Steve Gill Idaho DEQ Barb Chamberlain WSU Melissa Wittstruck City of Spokane Brownfields Funding Strategies CCLR Program Areas Technical Assistance to Community Developers Policy & Legislative Research Training for Redevelopment Specialists Resource Center Media Gallery & more Ignacio Dayrit Center for Creative Land Recycling (CCLR) Funding Puzzle Pieces to Consider WHAT Vision Priorities General & Specific Plans Partners / Stakeholders Resources HOW Outreach Planning A&E Infrastructure Acquisition O&M 3 4 1

2 5 More Things to Consider: Livability Principles Provide more transportation choices Promote equitable, affordable housing Enhance economic competitiveness Support existing communities Coordinate and leverage federal policies and investment Value communities and neighborhoods 6 Morton Depot- Move, Clean, Restore Started with Heritage Grant $230,000 A year and a half later- leveraged over $1.3M Transportation, cleanup, economic development, historic preservation, tourism grants 7 Eddon Boat Project acres in Gig Harbor voter-approved land acquisition bond $3.5 million : EPA Brownfields Cleanup grants - $400,000 Dept. of Natural Resources Creosote Removal Program Grant - $225,000 Technical assistance - Ecology VCP 2008: Ecology cleanup - $900,000 WA Heritage Capital Grant $1Million 8 Rainier Court $ 9 million City of Seattle Office of Economic Development (CDBG grants and float loan) U. S. Department of Health & Human Services (OCS Grant) Impact Capital (LISC) predevelopment & acquisition bridge loan City of Seattle Office of Housing (multifamily Levy loan) Private Equity 2

3 Phase I: $960,000 EPA Grant & construction financing Phase II: $650,000 RLF (WA Commerce) & construction financing Phase III: $600,000 (est.) EPA Stimulus Grant, loan & construction financing Phase IV : $2,100,000 (est.) EPA Grant, HUD 108 loan, construction financing; RLF. Rainier Court Mix & Match Rental 9% LIHTC Tax-exempt & Taxable bonds Tax credit investor equity Conventional bank loan Development partner equity Brownfield Redevelopment Loan Homeownership Conventional Bank Financing City of Seattle Housing Levy (if renewed) LISC/NCDI funds Sale Proceeds Federal Funds 9 10 Environmental Protection Agency Environmental Protection Agency Targeted Brownfield Assessments (TBA) In-kind technical services (not a grant) Phase I & II Equivalent of up to $70K Can be on public or private land Ongoing applications as funding permits Inventory Governments, tribes, nonprofits make request Assessment, Revolving Loan Fund & Cleanup - (ARC) Grants for assessment, cleanup and loan funds Government, tribes and coalitions Non-profits (cleanup only) $200K-$1M per eligible entity/site; some matching required Site eligibility requirements RFP each fall; Selection each spring 11 Joanne Labaw labaw.joanne@epa.gov Brooks Stanfield stanfield.brooks@epa.gov Susan Morales morales.susan@epa.gov

4 Environmental Protection Agency Assessment Inventory of sites Phase I & Phase II assessments New: Area - Wide planning Community wide or site specific Coalitions Communities with assessment grants: Moscow, Pend Oreille Trail, etc. Environmental Protection Agency Revolving Loan Fund (RLF) Make low interest loans and subgrants to carryout cleanup activities only Up to $1M per eligible entity Coalitions may apply States with RLF: Idaho, Oregon, Washington, Montana Environmental Protection Agency Cleanup Funding for clean up activities Phase II completed Sole (fee simple title) site ownership when applying Not responsible party Environmental Protection Agency Other resources CARE & Environmental Justice Grants Environmental Workforce Development & Job Training Technical support (i.e. Smart Growth, Renewable Energy, Green Cleanups) Sustainable Communities Visioning Brooks Stanfield stanfield.brooks@epa.gov

5 Housing & Urban Development Ongoing Tools Regular Community Development Block Grants (CDBG) Acquisition Land Banking Clean-up Indian CDBG Budget Issues Housing & Urban Development Section 108 Loan Guarantees Allows entitlement grantees to expand the use and impact of CDBG funds Up to 5 times the CDBG allocation may be borrowed Non-competitive, year-round Long term and low interest rates Not a general obligation 17 Jack Peters jack.peters@hud.gov Housing & Urban Development CDBG Float Loans Undisbursed funds in CDBG line of credit can be floated for short term, eligible uses Up to 2.5 years Enable the funds to be used twice Interest rate determined by the jurisdiction CDBG requirements apply 20 Housing & Urban Development Potential Tools Brownfields Economic Development Initiative (BEDI) Competitively offered through annual NOFA Funds used in a variety of ways to enhance Section 108 Loan Guarantees such as interest rate subsidy, mitigation or other project costs $20 million available in 2009 $2 million maximum per project 5

6 Housing & Urban Development Sustainability Linkages HUD- DOT- EPA National Sustainability Partnership Livability Principles HUD-DOT-EPA Region X Team Sustainability Planning Grants Regional Planning Grants Challenge Grants FY2011 Option Housing & Urban Development Port Townsend Housing & Urban Development Housing & Urban Development 23 Seattle: Cadillac Hotel into Klondike Gold Rush Historical Museum 24 Seattle: Chubby & Tubby into Claremont Place 6

7 Most of the West Is Rural We Build Communities From The Ground Up Increase economic opportunity in rural America Improve the quality of life of all rural Americans Trini C. Mayo NE Area Director Wenatchee Area Office 301 Yakima Street, Suite 317 Wenatchee, WA , Ext Programs to Meet Our Mission Utility Programs Business & Cooperative Programs Community Facilities Programs Housing Programs Sampling of USDA programs Rural Utilities Programs Water & Waste Disposal: Loans & Grants ELIGIBLE PROJECTS: Pre-construction and construction associated with building, repairing or improving drinking water and wastewater facilities ELIGIBLE APPLICANTS: Cities or towns with fewer than 10,000 people Counties, special purpose districts, tribes unable to get other funds FUNDING AVAILABLE: Loans, grants in some cases % interest 40-year maximum term PRE-DEVELOPMENT PLANNING GRANTS UP TO $15,

8 Value Added Producer Grants Rural Energy for America Program Guaranteed Loans & Grants 30 Eligible Entities Independent Producers, Agricultural Producer Groups, Farmer or Rancher Cooperatives, or Majority Controlled producer based businesses. Eligible Purposes Planning Purposes - feasibility study, marketing strategy, business plan, or legal work Working Capital - portion of the start up costs 31 Grants, Guaranteed loans, Combination guaranteed loans/grants Eligible Entities Agricultural Producers Rural Small Businesses Purchase and install renewable energy systems Make Energy Efficiency improvements Dairy Waste Digester, Whatcom County Cooperatives Community Facilities Direct Loans 33 Areas with a population of less than 20,000 Eligible entities include: Counties, Cities and Towns Tribes Non-profit entities Districts such as hospital districts, fire districts, etc Other local governmental entities Maximum loan term of 40 years or life of the facility Interest rates are usually between 4.25% and 5% Old Wellness Center New Wellness Center Community Facilities Grants Average Grant less than $30,000 % of Total Project Cost Population MHI 75% <5,000 60% or below MHI 55% <12,000 70% or below MHI Makah Marina 35% < 20,000 80% or below MHI 15% < 20,000 90% or below MHI 34 Port Gamble S Klallam Cultural Center 8

9 Community Facilities Guaranteed Loans Loans are Made and Serviced by Lenders 90% Guarantee 1% Guarantee Fee Rates negotiated with lender - can be fixed or variable Can finance recreational type facilities whose primary purpose is to serve the local community 35 Town of Cusick Skate Board Park Paving and Sidewalk 36 Single Family Housing Direct Loans Guaranteed Loans Low and Very Low Income Moderate income Households households No down payment required Loans are made by banks Payments are based on income No subsidy on usually about 30% of their payments income. Payments are No down payment subsidized. No mortgage New definition of modest insurance housing in WA State: up to 1500 sq ft for 1-4 household size; 1800 sq ft for 5-8 household size. Farm Labor Housing Energy: Eyes on the Money Only national source of construction funds dedicated for farm labor housing Two Farm Labor Housing Options: On-Farm Housing Off-Farm Housing On-Farm funds are undersubscribed And other goals. Maintain Competitive Energy Prices Foster a Clean Energy Economy and Jobs Meet Obligations to Reduce Greenhouse Gas Emissions energystrategy@commerce.wa.gov 37 Trini Mayo trini.mayo@wa.usda.gov x Terry Lawhead terry.lawhead@commerce.wa.gov

10 39 Funding & Incentives - Federal Production Tax Credits (wind, biomass; not solar) Investment Tax Credits (or cash grant) Bonneville Conservation Program Renewable Energy Credits MACRS accelerated depreciation REAP (USDA) USDA Biomass Programs Grants.gov (DOE) Treasury Grant Program Funding & Incentives - State Washington Sales Tax Exemption Production Incentives Net Metering Utility Loan Programs Utility Efficiency Incentives Utility Renewable Energy Rebates & Production Incentives Renewable Energy Standard Mandatory Utility Green Power Opt Renewable Energy Sales and Use Tax Exemption Oregon & Idaho Corporate Tax Credits Bond Programs Utility Loans Local Improvement Districts Green Streets Loan Program Small Scale Energy Loan Program BEF Solar 4R Schools Energy Trust Numerous Rebate Programs Tony Isibelli tony.isibelli@commerce.wa.gov Bob Repine bob.repine@odoe.state.or.us John Chatburn john.chatburn@oer.idaho.gov Financial & Popularity Issues Fatal Flaws Review Wind & Solar Power Hydropower Geothermal Biomass Scalability Brownfields The wind and sun are free, but biomass is local and creates jobs. Got a Champion? How s Your Tax Appetite? Goals, Budget, Technology Fit, Resources, Scalability, Environmental Issues/Community Issues Ownership Models Permitting/Land Use Issues Regional Conditions Feasibility Capital Power Purchase Agreements Equity Partners Debt Financing Ongoing Expenses Selling Byproducts

11 For consideration Sample of Other Federal Funds Build Trusting Relationships with Everybody Worry About Getting the Match Think Regional Worry About Deadlines Document Communication With Agencies Educate Your Community Worry about Unpredictable Eligibility Changes Use this website: Worry about NEPA ech/wsgr/index.aspx Work All Technical Assistance People to Death Transportation Economic Development Administration Army Corps of Engineers Small Business Administration 43 Terry Lawhead State Funds Commerce Brownfields Revolving Loan Fund Purpose Eligibility Special Conditions Application Loan terms Brownfields ARRA Sub-Grants Blake Nelson

12 Commerce Ecology Other Funds Community Economic Revitalization Board Rural Washington Loan Fund Coastal / Forest Loan Fund Integrated Planning Grants Admin & project management Scope development Budget & financial planning Economic impact forecasting Stakeholder agreements Conceptual site design Boundary survey, title report ASTM Phase I & Phase II, etc John Means john.means@ecy.wa.gov Ecology Ecology 49 Remedial Action Grants (RAGs) Remedial Investigations Feasibility Studies Pilot/Planning Studies Interim Actions Cleanup Action Plans Landfill Closures Jessica Brandt jebr461@ecy.wa.gov Oversight RAG (Formal Site Agreement) Agreed Order or Consent Decree required to be in place Pays for assessment and cleanup activities Pay as you go Matching requirements 10%-50% Independent RAG (Voluntary Cleanup Program) Assessment and cleanup Reimbursement after NFA is issued Matching Requirements 50% 12

13 Ecology Ecology RAGs Priorities Relative hazard ranking Necessary to expedite cleanup Readiness to proceed Puget Sound Projects (PSP) Sites identified in PSP action agenda Public Participation Grants Not for profit and public interest groups encourage public involvement in monitoring the cleanup of contaminated sites pollution prevention through waste reduction and elimination Funding cycle opens November 2011 Applications are due January 2012 Up to $120,000 for a project Jason Alberich jason.alberich@ecy.wa.gov BusinessOregon BusinessOregon Business Development Brownfields Redevelopment Fund (BRF) Loan & Grant flexible with respect to structure Oregon Coalition Brownfields Cleanup Fund Similar in structure to BRF Only for cleanup Structured to assist local governments, nonprofits/for profits & private individuals Business Development - Secondary Funds Special Public Works Fund Community Development Block Grant Oregon Credit Enhancement Fund Oregon Capital Access Program Industrial Lands Program Getting sites prepared for Industrial Development Technical Assistance &Funding Oregon Main Street Workshops & Trainings Technical Assistance Historic Surveys Community Assessments Resource Center 53 Karen Homolac karen.homolac@state.or.us Sheri Stuart sheri.stuart@state.or.us Michael Williams michael.williams@state.or.us

14 OR Dept. of Environmental Quality ID Dept. of Environmental Quality Brownfields Program Public and quasi-public entities Phase I and Phase II ESAs, site-specific assessments and limited removals ~$35K IDEQ Brownfield Revitalization Opportunities IDEQ Brownfields Assessments IDEQ Voluntary Cleanup Program RIBC - Reuse Idaho Brownfields Coalition Revolving Loan Fund (RLF) 55 Gil Wistar wistar.gil@deq.state.or.us Kathleen Robertson robertson.kathleen@deq.state.or.us Steve Gill steve.gill@deq.idaho.gov ID Dept. of Environmental Quality ID Dept. of Environmental Quality IDEQ-Funded Brownfields Assessments Privately-Owned Properties, with public sponsor Phase I/Phase II, Human Health Risk Analysis, Proposed Cleanup Alternatives Community Reinvestment Pilot Initiative (PILOT) State Provides up to $1,500,000 in Rebates to Private Parties Conducting Cleanups via VCP 70% of Cleanup Costs, up to $150,000 Per Project, Rural Focus w/economic-social Benefit Brownfields Cleanup Revolving Loan Fund IDEQ and 6 Economic Development Districts - Reuse Idaho Brownfields Coalition (RIBC) Low-to-No Interest Loans to Qualifying VCP Participant Subgrants available for municipalities/counties

15 ID DEQ: Tools for Voluntary Cleanup Community Reinvestment Pilot Revolving Loan Fund Voluntary Cleanup Program 59 = +70% Cleanup Cost Rebate + Rebates up to $150,000 = + 0% Interest + No payments for 3 years (until they receive Pilot $) = + Expedited process + Covenant not to sue + Enforcement bar + Lender liability + Innovated strategies + Cooperative partnership Steve Gill steve.gill@deq.idaho.gov Foundations Specifics Grants & in-kind contributions to nonprofits & small rural communities National, regional & local foundations Environmental conservation, convening facilities, recreation, capital projects, capacity building Grant range - $5K-$250K Application processes & time frames vary Area Foundations Paul G. Allen Foundation The Seattle Foundation Ford Family Foundation The Norcliffe Foundation The Russell Family Foundation Surdna Foundation Georgia Pacific Tax Credits 101 Tax Credits & Incentives What are tax credits? Rehabilitation 10% - 20% credit Substantial work on income-producing asset Conform to historic preservation standards Low-income Housing 4% and 9% credits Supports wide range of housing needs New Market Tax Credits Gives investors federal tax credits for equity investments in designated Community Development Entities (CDEs), for use in low-income communities CDEs use their allocations to make loans or investments in qualified businesses and development activities Community facilities, charter schools, For-profit and nonprofit businesses, homeownership projects ShoreBank Enterprise Cascadia Brownfields Cleanup Expensing Deduction for cleanup costs, allowing new owners to recover costs in the year incurred Only incentive targeted to private site owners

16 Solving the Funding Puzzle Leveraging multiple sources WHAT Vision Priorities General & Specific Plans Partners / Stakeholders Resources Money HOW Outreach Planning A&E Infrastructure Acquisition O&M Don t need all the money at once Consider all sources: Public: other federal, state & local grants & loans, tax exempt & taxable bond financing, local levy funds Private: bank/other institution loans, investor s equity, tax credits In-kind: staff salary/benefits, volunteer hours, equipment, building space Money attracts money Plan & Prioritize To pull or not to pull the trigger 65 Grant Funding Cycles Funding Agency priorities Economic or community development needs Infrastructure Planning Housing Conservation or Resource protection Recreation or Open Space Other Grant & development team Political and community support Planning and construction schedule 66 Political support? Priorities established? Other leveraging opportunities exist? Ability or time to obtain demographic information to demonstrate benefit Realistic goals? Grant writing expertise and assistance? 16

17 Case Studies Riverpoint Campus, WSU Site/Previous Use: Railyard (multiple lines), municipal incinerator, multiple uses. Material relocated from original site to containment cell. Owner: Washington State University Other info: Academic campus. Bisected by major transportation corridor; property includes ROW for future mass transit line. Bordered by Spokane River. Proposed use: Biomedical/Health Sciences Building, Phase I. Clinical, research, and teaching space, live animal research space Barb Chamberlain Melissa Wittstruck City incinerator. Original waste site. Future site of containment cell. Containment cell in old railroad trench. Sirti Building. Original excavation site

18 Future site Biomedical Building on containment cell. Subject Property 71 Contamination: Commingled waste, incinerator ash, metals from Sirti Building excavation; analyzed as hazardous but not dangerous. PRP: Multiple waste generators and site owners over time. Funds requested: $2.5M for removal of entire cell. $1.3 million if possible for building footprint only. Excavation, transport, and disposal of containment cell material. Restoration of area around future building footprint. Timeline: Very short. State capital construction dollars being identified; site prep must include remediation. La Grande, OR Site/Previous use: Former Oddfellows Building & connecting State Theatre Owner: Private City of La Grande / URA seeking acquisition. Other Info: City is working through ODEQ s Prospective Purchaser s Program Contaminants of Concern: Asbestos, mold, pigeon waste Proposed reuse: Rehab historic building for mixed commercial/ residential use RECs in Phase I At least 4 former dry cleaners identified within one block of site No releases reported to date Documented plume of dieselimpacted groundwater extends beneath a large area north of property and surrounding commercial/residential properties. Funds for planning and assessments. 73 Karen Homolac karen.homolac@state.or.us

19 Pend d Oreille Bay Trail Brownfields Assessment Coalition Planned Reuse Property size: 91 acres; IDEQ-led assessment coalition of municipal partners of properties covering a 2-mile stretch of Lake Pend Oreille shoreline that provide informal access to the lake. Property owner: Multiple local, private & federal Past use: Lead smelting and refining, lumber mills, railroad-related activities Cleanup status: Phase I; COCs in soil & groundwater include metals (arsenic, lead, mercury, etc.), VOCs, PCBs, PAHs, other hazardous materials associated with household solid waste Proposed reuses: Park, greenspace, ped/bike corridor Provide residents of Sandpoint, Ponderay, and Kootenai with a safe and clean access corridor to Lake Pend Oreille. Current unofficial path to the lake formalized into a 2-mile trail. Creation of two acre parks at the northern and southern ends. 75 Steve Gill steve.gill@deq.idaho.gov Funding/Technical Assistance Pursued to Date Leveraged Resources: 2,020 hours of in-kind community resources have been committed to this assessment project Funding Type Amount Activities Status 2009 Brownfields Assessment Coalition Community Wide Brownfields Assessment Grant $650,000 for hazardous substances and petroleum National Parks Service Rivers, Technical Trails and Conservation Assistance Assistance Program Army Corps of Engineers, Multi- Vision Integration Vision to Action 77 Technical Assistance - Community Engagement - Phase I and II Assessments started - Facilitation of Meetings with key stakeholders - Assistance with preparation of an overall project strategy - Facilitation of hands-on visualization process supported by a professional artist/illustrator Secured Secured (24 month period) Secured 19

20 Guiding Questions 1. Are there financial and complementary legal strategies for securing property from BNSF, municipalities and the private property owners (e.g., outright acquisition, conservation easements, and tax incentive programs)? 2. What financial and operating strategies can be used to design agreements with the U.S. Army Corps of Engineers, Bonneville Power Administration or other entities to ensure the long-term operations and maintenance of the POBT corridor? 3. Once the shoreline corridor becomes a reality, what strategies can be employed to effectively counter or reduce the effect from the potential gentrification of the towns of Ponderay (pop. ~730) and Kootenai (pop. ~520)? 80 Anytown, USA Site/Previous use: Abandoned gas station & motor shop Owner: Absentee Other info: Downtown; tax arrears & liens; fear of foreclosure; Proposed use: Blight removal; any proposed redevelopment. Contamination: USTs abandoned in place; spills Potentially responsible party: Absentee owner Funds requested: Additional assessment; remediation; planning Karen Homolac karen.homolac@state.or.us