Pulling all the Pieces Together: Mixing & Matching

Resources for Brownfields Success

Oklahoma Workshop - March 2013 Ignacio Dayrit

It’s like doing a Puzzle …

• Early money EPA grants only act as a bridge to assessment,

cleanup some planning • Other Federal, State, and local initiatives for:

Infrastructure Development – commercial, industrial, housing etc.

• This presentation shows how cities and communities have combined different funding and resources to achieve their goals

Public Sector Finance Role

• Provide resources directly • Competitive or formula grants; forgivable loans • In-kind technical assistance

• Reduce private financing risk and costs • Loan guarantees; companion loans • Interest-rate reductions or subsidies

• Improve the borrower’s financial situation • Re-payment grace periods; tax abatements and

incentives; training credits and funding • Promote Public-Private Partnerships

Commonly used (non-EPA & ODEQ) resources especially in smaller communities

• USDA – rural development/community facilities loans and grants

• HUD – CDBG • EDA – public works,

economic dislocation • DOT – enhancement,

construction, system rehab/modernization

• Tax code incentives – for housing, cleanup, structural rehabilitation

• State funds • Local tools

Outlook for Federal Funds

• State of the economy Real estate market State revenues Impacts to local government

• Uncertainty on Federal Budget Declining executive branch budgets Realigning programs and new priorities Sequester, cliff, shutdown…

• Prognosis

Housing and Urban Development (HUD) Entitlement and State/Small Cities CDBG Programs

Entitlement communities (> 50,000) receive annual allocations Small cities’ (less than 50,000 population) community

development needs – OK Commerce CDBG funds must meet one of HUD’s 3 objectives:

• address needs of low- & moderate-income people • address slum & blight • meeting an urgent community need

Eligible Activities • Demolition & removal • Rehabilitation of public & private buildings • Planning • Construction or reconstruction of infrastructure, neighborhood

centers, recreation/public works facilities • Can manage contamination as part of site preparation or

infrastructure development Can be lent to private companies in some circumstances

Economic Development Administration (EDA)

• EDA typically puts 50%+ of its resources into small/mid-sized towns and rural areas

• Key EDA investment Priorities Collaborative Regional Innovation Public/Private Partnerships National Strategic Priorities Global Competitiveness Environmentally-Sustainable Development Economically Distressed and Underserved

Communities • Must be included in CEDS – contact your EDD

• Transportation funds can be used for cleanup integral to transportation system development/upgrades

• Must work through state / local transportation agencies • DOT highway/transit construction programs can

support related revitalization by: helping upgrade existing facilities offer transportation amenities that improve access to and

marketability of Brownfield sites fund facilities and structures that serve as part

of the remedial solution

Transportation Programs

OK Department of Commerce

• Rural CDBG • Site Ready Program • Main Street Program

Training, resources, and technical assistance for preservation-based commercial district revitalization

OK Housing Finance Agency

• Affordable Housing Tax Credits (AHTC) • Home Investment Partnerships Program

(HOME) • Housing Trust Fund (HTF) • Rural Housing Linked Deposit (LD) • Multi-Family Bonds (MFB)

New Markets

Tax Credit • The NMTC program provides a tax incentive for private sector

investment into economic development projects and businesses located in low-income communities.

• Program overseen by U.S. Department of the Treasury and directly administered by the Community Development Financials Institutions (“CDFI”) Fund.

• NMTCs are allocated by the CDFI Fund to community development entities (“CDEs”).

• CDEs offer NMTCs to investors in exchange for qualified equity investments (“QEIs”) for the purpose of a making loans to qualified active low-income businesses (“QALICBs”)

• Sweet spot - $5-10M loans • Examples: Stigler Health & Wellness, Durant; First Wave Aviation, Bristow

Rehabilitation Tax Credits • Historic Preservation Credit

Federal Limited application State credit

• Taken the year renovated building, in service

• Credit for certified rehabilitation work done on historic structures 20% Federal credit 20% State credit

• 10% Federal credit for work on “non-historic” structures build before 1936; no certification required

• State Historic Preservation Office & National Parks Service

Gaylord-Pickens Oklahoma Heritage Center

Meadow Gold sign, 11th Avenue, Route 66, Tulsa

Tax Increment Financing Uses the anticipated growth in property and/or sales taxes

generated by a development to finance eligible expenses

Base Tax Taxes distributed to districts in project area

Incremental tax belongs to TIF authority to pay for eligible expenses

New Post-Project Taxes

Total taxes now belong to all

entities receiving taxes in project

area

Taxe

s R

ecei

ved

- $

Taxes over Project Life

Created Terminated

5 10 15 20 25 Year TIF

Case Study Omaha NE

• Abandoned Ford Motor factory • New Market Tax Credits–

$12M instrumental in attracting private capital from US Bank to close the $24.5M deal

• 96 moderately priced apartments, ground floor commercial space with 138 jobs

• Significant additional private investment in surrounding area

Case Study Richmond CA • Ford Motor Plant: 520,000 sq. ft. • Built in 1930; closed 1953 • Rehabilitation work began in 2004

Included seismic retrofits, green performance measures, including solar panels on roof

• $11M in rehab tax credits • HUD Section 108 / BEDI • Manufacturers of sustainable

products, park, meeting and entertainment venue

Case Study Milwaukee WI

• Menomonee Valley • Areawide plan • Partnerships • EPA ARC grants • Redevelopment assistance • Sustainable development

guidelines • Business Improvement District • Jobs-housing links • 4000+ new jobs,

30+ companies, parks, trails, linkages

Case Study Coralville IA $293M in Public & Private Reinvestment • Property acquisition and demolition • IRL infrastructure • Conference Center and Hotels • Housing, retail and commercial, brewery • Parking Garage with sustainable features • University of Iowa Ambulatory Care • Regional LEED™ Transit Facility (in planning) • Interchange Improvements (in design/funding) Partners / Funding • EPA Brownfields • U.S. Army Corps of Engineers • FEMA • U.S. DOT Bus Livability Program • Federal Highway Administration • Responsible Party-Leveraged Cleanups • HUD – CDBG Pumping Stations • Iowa Dept. of Transportation, National

Resources , Economic Development • I-Jobs Stormwater Control Features

Case Study Eugene OR

• Broadway Commerce Center • $0.68m EPA Brownfields • Section 108/BEDI 2006 • Acquired early 2008

$2.7m 108 $0.7M BEDI

• Construction $5.1M 108 $1.3 M BEDI

• $1m Regional Planning

Case Study Rosalia WA (600) • 1923 vintage Texaco station, vacant 21

years • “Heritage tourism” main street revitalization • Converted to “gateway” retail, craft/farmers

market, visitor center for nearby Steptoe Nat’l Battlefield, national forest

• Public financing sources include: • USTfields pilot grant • WA Dept of Ecology grant • Whitman County • “community development ’08” grant

• Partners include: • Grant sharing from surrounding counties • Lions Club and “Gifted Grannies” • Retired Texaco Executives Assn. • Pro bono legal, remedial services • Utility incentive rates • Community sweat equity • State Dept. of Corrections

Case Study Plainview AR

• Lumber/pressure treating facility, shut down in 1986

• Declared superfund site in 1999.

• Redeveloped as specialty steel plant.

• EDA public works - $763,000 for site preparation, construction, infrastructure as part of $1.1 million financing package

• 25 new jobs, significant tax revenues for community

Case Study Potosi WI (700)

• Brewery built 1852, abandoned 1972. • Asbestos, lead paint, etc. • WI DNR seed grant • USDA $3.3 million guaranteed loan • Department of Commerce, American

Breweriana Association, FHWA National Scenic Byways Program, Jeffris Family Foundation

• Transformed Potosi’s main street; community involvement key

• Refurbished as micro-brewery, brewing museum and library

• 50 new jobs, 4 new beers

Lessons

• Partnerships • Patience • Perseverance • Planning early

Student, Professional and Contractor in-kind labor to “help the kids”

$40,000

Building dozens of pro-Brownfield

citizens annually; PRICELESS

Ignacio Dayrit •Center for Creative Land Recycling • ignacio.dayrit@cclr.org