Financing for Small Cities, Rural Communities and Tribes Brownfields 2003: Growing A Greener America October 28, 2003

Financing for Small Cities… Legislative History Funding Programs Funding Process Project Examples

Financing for Small Cities… Legislative History HB (Ch. 662 OR Laws 1995) – Changed Oregon’s cleanup law – First time term brownfields appears – Directed OEDD to convene funding task force 1997 Brownfields Funding Task Force – Public/Private partnership – Issued set of recommendations to legislature

Financing for Small Cities… Legislative History HB 3724 (Ch 738 OR Laws 1997) – Created Brownfields Redevelopment Coordinator – Created Brownfields Redevelopment Fund – Amended other programs for brownfields SB 275 (Ch 96 OR Laws 2001) – Expanded scope project and funding type

Financing for Small Cities… Funding Programs

Financing for Small Cities… Funding Programs Brownfields Redevelopment Fund Special Public Works Fund Community Development Block Grants

Financing for Small Cities… Brownfields Redevelopment Fund Direct loan and grant program Funds environmental actions on brownfields –Brownfield defined in statute (ORS 285A.185)

Financing for Small Cities… Brownfields Redevelopment Fund Environmental action is defined as activities undertaken to: 1.Determine if a release has occurred, if the release poses a significant threat to human health or the environment or if additional remedial actions may be required at the site; 2.Conduct a feasibility study; 3.Plan for a remedial action or removal; or 4.Conduct a remedial action or removal at the site

Financing for Small Cities… Brownfields Redevelopment Fund Eligible applicants: –Municipal & Non-Municipal Cities, counties, tribes, ports, and special districts Individuals, businesses, and non-profit organizations –Any applicant under an active enforcement order relating to the contamination at the site receiving the environmental action is NOT eligible

Financing for Small Cities… Brownfields Redevelopment Fund Program award maximums for loan, grant, or combination: $200,000 if project located in an economically distressed community $150,000 if not located in an economically distressed community

Financing for Small Cities… Brownfields Redevelopment Fund Loans –Both term and bridge loans available 20 years for term loans (generally) 2 year maximum for bridge loans –Interest rate fixed for term of loan Set at time of loan award based on project benefits Rate different for municipal and non-municipal recipients Bridge loans eligible for interest waivers

Financing for Small Cities… Brownfields Redevelopment Fund Grants –Grants geared toward municipalities and non-profits –Private parties only eligible if purchasing property with PPA and creating substantial public benefit such as family wage job creation

Financing for Small Cities… Brownfields Redevelopment Fund Municipal grant match –10% of award if project in distressed community –20% of award if project not in distressed community –Match can be cash, in-kind services, or other contribution of measurable value –If municipality is liable for contamination due to conduct, match requirement is 100% of award

Financing for Small Cities… Brownfields Redevelopment Fund Private grant match –1:1 ratio or 100% of award –Must be cash

Financing for Small Cities… Brownfields Redevelopment Fund Non-profit organizations –501(c)(3) status –Eligible for grants if did not cause on contribute to contamination If responsible for contamination, still eligible for loan –Subject to municipal grant match requirements 10% if project in distressed community 20% if project not in distressed community

Financing for Small Cities… Brownfields Redevelopment Fund Liability –Applicants that are not liable are given priority –Liability based on conduct important program factor for municipal and non-profit applicants More match for municipal Not eligible for grants if you’re a non-profit

Financing for Small Cities… Brownfields Redevelopment Fund Summary – Anyone not under enforcement eligible to apply – Loans preferred and some grants available – Liability, debt capacity, and site reuse major program considerations

Financing for Small Cities… Special Public Works Fund Cities, Counties, Tribes, Special Districts – Infrastructure – Community Facilities – Technical Assistance 20-Year Loans up to $11,000,000 Grants up to $500,000 or 85% of project

Financing for Small Cities… Community Development Block Grant Non-entitlement communities of Oregon Most projects qualify under LMI Objective Slums & Blight Objective problematic – Continued Use Requirement Public Works State Priority – Downtown Revital. & Brownfields Redevelopment Up to $300,000

Financing for Small Cities… Other Funding Sources Port Revolving or Planning & Marketing Fund Credit Enhancement Fund Targeted Brownfields Assessments (DEQ) EPA Cooperative Agreements

Financing for Small Cities… Funding Process

Financing for Small Cities… Funding Process 5 Management Clusters –Capital Projects –Business Development –Community Development –Public Affairs –Central Operations Service delivery (contract management) occurs through the Capital Projects Division

Financing for Small Cities… Funding Process Project intake (pre-application) –Generated or assisted by staff –Reviewed by capital projects division –Program funding source identified –Application invitation letter Project application –Staff recommendations Program analysis Financial analysis Other program specific review

Financing for Small Cities… Funding Process Award letter generated –Date reimbursable expenses can start accruing Award contract drafted –Fund disbursement begins only after contract signed by department and recipient

Financing for Small Cities… Project Examples

Financing for Small Cities… Examples of State Brownfields Funding City of Seneca (Pop. 300) – $12,000 BRF grant for cleanup and UST removal OFCO, Madras (Pop. 5000) – $99,000 BRF grant for cleanup and site clearance Coast Tire Project,City of Tillamook (Pop 4300) – $30,000 EPA grant for site characterization City of Newberg (Pop. 18,000) – $280,000 CDBG for cleanup and site clearance

Financing for Small Cities, Rural Communities and Tribes Brownfields 2003: Growing A Greener America October 28, 2003