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Brownfield Redevelopment Resources –
Financial Assistance
Michele Oertel
Federal Funding & Community Relations Coordinator
317-234-0235
www.brownfields.in.gov
MSECA Environmental Solutions
Related to Real Estate Seminar
IndianapolisSeptember 29, 2016
Environmental Stewardship. Economic Development.
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Today’s Topics
What is good to keep in mind about brownfields?
Who needs financial assistance?
How can the Indiana Brownfields Program (IBP) help?
What funding incentives are available from IBP and/or others?
How can Comfort Letters and/or Site Status Letters
available from IBP serve as funding incentives?
What are some redevelopment success stories in Indiana?
What is the bottom line?
Brownfield? Problem Property?
Obstacle? Opportunity?
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What is a Brownfield?
Indiana defines a brownfield site as:
a parcel of real estate
abandoned, inactive, or underutilized
on which expansion, redevelopment, or reuse
is complicated because of the presence or
potential presence of a hazardous substance,
a contaminant, petroleum, or a petroleum
product that poses a risk to human health and
the environment.
Similar to U.S. EPA definition (real property)
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Why care about
Brownfield Redevelopment?
Retail (shopping center, grocery store)
Commercial (bank)
Industrial (single building or park complex)
Residential (houses, condos, apartments)
Public (government offices)
Greenspace (park, soccer field, golf course, trail,
greenway)
MixedKeep in mind:
Remediation can dictate reuse and reuse can dictate remediation.
Environmental Stewardship. Economic Development.
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What are Obstacles to
Brownfield Redevelopment?
Real or potential environmental contamination
Assessment / Cleanup costs
Liability issues for the lender, prospective purchaser, and
third parties
Economic development climate
Viability of re-use plans for the site
Lack of resources – knowledge, money, partners
Unknowns – risks, ownership, access
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Indiana Brownfields Program
Background
Created by 2005 legislation (SEA 578); IC 13-11-2-19.3
Housed under the Indiana Finance Authority (IFA)
Funded by state appropriations & federal funds
Allows for voluntary participation – not enforcement
Provides governmental assistance to address environmental issues
that impede brownfield redevelopment
Works in partnership with U.S. EPA et al.
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Indiana Brownfields Program
Background
Works typically with communities or prospective purchasers vs. RPs
Relies on existing laws/regs/policies to protect
human health and environment
Has different processes for different incentives
Uses consultants differently per incentive
Utilizes IDEM Remediation Closure Guide
Offers closure documents
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Indiana Brownfields Program
Lends a Hand
Helps stakeholders by providing/coordinating:
Educational Assistance
Financial Assistance
Legal Assistance
Technical Assistance
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Financial Incentives
Indiana Brownfields Program (IBP) – loan funding,
professional services
Revolving Loan Fund (RLF) Incentive (federally funded)
IFA State Revolving Fund (SRF) Loan Program coordination
IDEM Supplemental Environmental Project (SEP) coordination
Phase I Initiative
Petroleum Orphan Sites Initiative (POSI)
OCRA-IFA partnership program coordination (e.g., demo, PI/II)
DLGF Tax Waiver brownfield determinations
Misc. (e.g., U.S. EPA, IHCDA LIHTC) brownfield
determinations/support letters (e.g., PEDs)
Current/Future funding via U.S. EPA (e.g., 128(a), RLF)
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Financial Incentives
Revolving Loan Fund (RLF) Incentive - loans
Rolling applications: first come, first served
Political subdivisions, non-profit and for-profit organizations
eligible; can re-loan to eligible 3rd party
Cleanup activities
Hazardous substances & petroleum contamination
Low-to-zero interest rate loans
Current balance/project targets TBD (RLF Supplemental awards)
Site awards obtain IFA Board approval
Funding source: U.S. EPA
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Financial Incentives
Phase I Initiative - professional services
Rolling applications: first come, first served
Political subdivisions eligible to apply for award of services
Phase I Environmental Site Assessment (ESA) activities
Hazardous substances & petroleum contamination
Bids solicited from IBP-qualified consultant pool for site work
Site awards obtain IFA Board approval
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Financial Incentives
IBP in partnership with IDEM – Petroleum Orphan Sites
Initiative (POSI) - professional services
Assists/benefits political subdivisions
Addresses petroleum contamination on brownfield sites resulting
from leaking underground storage tanks that cannot be addressed
by the responsible party due to an inability-to-pay, bankruptcy, or
other factors (orphan sites)
Includes site assessment, UST removal, and remediation
Also covers hazardous substances or petroleum contamination
from other on-site sources (e.g., hydraulic lifts, etc.) if funding is
available
Funding source: $3M ELTF transfer to IBP for SFYs ’14 &’15;
$2.91M ELTF transfer for SFYs ‘16 & ‘17
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POSI Process
No application
Sites referred by IDEM Enforcement and LUST programs
Petroleum Eligibility Determination (PED) if necessary
Site awards obtain IFA Board approval
Bids solicited from IBP-qualified consultant pool for site work
Assigned IBP Project Manager works with stakeholders
throughout process to ensure needs are met
NFA letter by IDEM is goal of IBP
Financial Incentives
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Indiana Brownfields Program (IBP) –environmental technical oversight, letters at no cost via request
form; can be outside of or serve as financial assistance
Comment Letters
Environmental liability
clarification/closure letters
(per non-rule policy)
- Comfort Letters (include BFPP language)
- Site Status Letters
- No Further Action Letters (petro. sites)
Technical/Legal Incentives
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Comfort Letter:
Issued to a party that qualifies for an applicable
exemption to liability found in Indiana law or
IDEM policy, but is not a legal release from
liability.
Explains the applicable liability exemption or
defense, or IDEM’s exercise of enforcement
discretion under an applicable IDEM policy.
Phase I ESA prior to purchase for due diligence!
Phase II ESA (recommended) for due
care/continuing obligations/reasonable steps!!
Technical/Legal Incentives –Liability Clarification Letters
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Comfort Letter:
Conduct an All Appropriate Inquiries (AAI)-compliant Phase I
ESA in accordance with ASTM 1527-13
(Due Diligence)
Meet five Continuing Obligations (Due Care)
1. Legally required notices
2. Appropriate Care/Reasonable Steps
a) a.) Stop continuing releases
b) b.) Prevent any threatened future release
c) c.) Prevent or limit human, environmental, or natural resources
exposure to any previously released hazardous substance
3. Land Use Restrictions and Institutional Controls
4. Cooperation/assistance, and access
5. Requests and Subpoenas
Technical/Legal Incentives –Liability Clarification Letters
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Comfort Letter:
More than one type of liability exemption/defense might
apply.
As long as the AAI requirements are fulfilled, a Comfort
Letter is not needed to qualify for the BFPP defense.
CL can be issued after purchase.
If timing of the property transaction is an issue, and a
Lender is the driver of the transaction, then IBP
recommends a Lender Liability Letter that has a much
quicker turnaround. Title search is main requirement, and
no ERC generated.
Technical/Legal Incentives –Liability Clarification Letters
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Site Status Letter: Issued to a non-responsible party that can demonstrate that
current levels of contaminants of concern substantially meet
current risk-based cleanup criteria as established by IDEM per its
Remediation Closure Guide (RCG)
Does not address the potential liability of the party
requesting the letter
States that based on a technical analysis of information
submitted to IDEM pertaining to site conditions, IDEM
concludes that current site conditions do not present a
threat to human health or the environment and that IDEM
does not plan to take or require a response action at the
brownfield site
Technical/Legal Incentives –Closure Letters
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Environmental Restrictive Covenants (ERCs) Attached to letters as necessary
Recorded/attached to property deeds
Describe land use restrictions (residential, commercial, industrial,
wells)
Include maps and tables
Discuss site contaminants of concern
- Hazardous substances
- Petroleum
Discuss affected media
- Soil
- Ground water
- Surface water
- Soil Gas
- Indoor Air
Technical/Legal Incentives –Liability Clarification/Closure Letters
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Leesburg: Former Leesburg Elementary School
Community need: New Maple Leaf Farms Headquarters
Resources: Comfort Letter -- For more details:
http://www.in.gov/ifa/brownfields/files/Brownfields_Bulletin_Winter_2012.pdf
Teamwork leads to Success!
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Indianapolis: Former National Malleable Castings
Community need: Residential redevelopment – Lincoln Apts.
Resources: Multiple, including Brownfields Program Letters
Teamwork leads to Success!
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Jeffersonville: Former BP Ellis Gas Station
Community need: Gateway to City
Resources: Brownfield RLF loan funds; NFA letter
Teamwork leads to Success!
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Brownfields: embrace opportunities to overcome
obstacles/challenges!
The end: begin with this in mind – reuse/revitalization vs. “just”
remediation…economic growth…quality of life….
Success: develop partnerships, talk with other successful
stakeholders & don’t reinvent the wheel.
Indiana Brownfields Program: inquire about tools and access
to other resources (not just money) to address environmental
issues to facilitate brownfield redevelopment.
Next steps: determine needs and ask for appropriate
assistance….
Brownfields Bottom Line
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Meredith Gramelspacher, Program Director /General Counsel 317- 233-1430
Michele Oertel, Federal Funding & Community Relations Coordinator 317- 234-0235
Bonny Elifritz, Financial Resources Coordinator 317- 234-1688
Andrea Robertson Habeck, Technical Staff Coordinator 317-234-0968
Kyle Hendrix, Redevelopment Coordinator 317-234-4860
Nancy Dollar, Planning Measures & Compliance Coordinator 317-234-9764
Check out the Indiana Brownfields Program web site at: www.brownfields.in.gov
Environmental Stewardship. Economic Development
Contact Information