Presented to: Lovejoy Community Utilizing Brownfields, HUB Zones and Enterprise Zones for Redevelopment Presented to: Lovejoy Community October 2009

Presentation Overview Brownfields Redevelopment Program Background Process Program Benefits Brownfield areas vs. sites VCTC Program Summary of 2006 Legislative Changes HUB Zones Enterprise Zones Local Success Stories Information and Contacts

What Are Brownfields? Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination. 376.79(3) F.A.C.

What Are Brownfields? Brownfield area means a contiguous area of one or more brownfield sites, some of which may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprived communities and areas, and Environmental Protection Agency-designated brownfield pilot projects. 376.79(4) F.A.C.

What are Brownfields? Redevelopment Opportunities that result in: Economic Development Community Development Residential, and Open-Space/ Green-Space Projects Former Robbins Manufacturing Facility

Brownfields Redevelopment Act Statutory Intent Remove contamination or stigma Provide economic and regulatory incentives Encourage voluntary cleanup and reuse Make available risk-based cleanup criteria State / Federal Partnership Governor’s Office – OTTED and Enterprise Florida USEPA Local government and economic development agencies

Program Objectives Improve the environment and quality of life Environmentally safe and market ready sites Economic enhancement Capital investment Job creation Broaden tax base and increase tax revenue Positive redevelopment and economic effects Better utilization of community resources Remove stigma Level the playing field Brownfields vs. greenfields Utilize existing infrastructure

Examples of Possible Eligible Sites PRFBSR must not have caused or contributed to contamination after July 1, 1997 Former Dry Cleaners and other Hazardous Waste Facilities Former Gas Stations Adjacent Properties

Florida Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government Initiated by local government or PRFBSR - DEP not involved Statutory Requirements Makes some benefits available

Brownfield Area Designation Local government must consider whether the Brownfield area: Warrants economic development Is reasonably focused, not overly large Has potential interest to the private sector Is suitable for recreation or preservation

Brownfield Area Designation Local government shall designate if: Owner/controller agrees to site rehabilitation 5 new permanent jobs will be created Redevelopment consistent with comp plan Designation is properly noticed Reasonable assurance of financial viability May include Affordable Housing Projects

Florida Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government Person Responsible for Brownfield Site Rehabilitation (PRFBSR) May occur before or after designation of area IDENTIFICATION OF PRFBSR

Florida Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government Brownfield Site Rehabilitation Agreement (BSRA) Voluntary Eligible for voluntary cleanup tax credit Model agreement available on line IDENTIFICATION OF PRFBSR EXECUTION OF BSRA By FDEP and PRBSR

Florida Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government IDENTIFICATION OF PRFBSR Conduct site rehabilitation According to: Chapter 62-785 Schedule in BSRA EXECUTION OF BSRA By FDEP and PRBSR IMPLEMENTATION OF BSRA By PRFBSR

BSRA Elements Agreement between FDEP and PRFBSR Attachments Provides terms and responsibilities Negotiable Attachments A – Maps and legal descriptions of area and site B – Brownfield Site Rehabilitation Schedule C – Site Access Agreement D – Certification of Redevelopment Agreement E – Contractor Certification F – Quality Assurance Certificate G – Advisory Committee Members H – Format for submittal of Technical Documents

Florida Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government IDENTIFICATION OF PRFBSR EXECUTION OF BSRA By FDEP and PRBSR IMPLEMENTATION OF BSRA By PRFBSR Site Rehabilitation Completion Order (SRCO) SRCO

Brownfields Program Benefits Brownfield Area Economic Incentives Loan Guaranties Contact Enterprise Florida early in process

Brownfield Area Economic Incentives Bonus Refund for Job Creation Up to $2,500 per job May be combined with other incentives such as HUB Zone Loan Guarantee Program 50% loan guarantee on site rehabilitation and development 75% for affordable housing Sales/Use Tax Exemption on Building Materials Applicable to any property within a designated brownfield area provided eligibility criteria for each incentive are met

Brownfields Program Benefits Brownfield Sites (executed BSRA) All benefits of Brownfield area Regulatory Framework for Cleanup (Rules 62-785 and 62-777, F.A.C.) Dedicated staff – expedited technical review Liability Protection Voluntary cleanup tax credits Brownfield Benefits Tax Credit …

BSRA Liability Protections Owners and Redevelopers (PRFBSRs) Relief from further liability for site rehabilitation Section 376.82(2)(a), F.S. Does not limit third party rights for damages Section 376.82(2)(b), F.S. Available if BSRA terms met Lenders Serving in fiduciary capacity, in connection with a loan Did not Cause/contribute to contamination Control/manage site rehabilitation Economic incentives do not apply during the lender’s ownership Government, non-profit, charitable organizations

Available Tax Credits Site rehabilitation 50% of annual eligible costs Incurred and paid during calendar year $500,000 per year Maximum credit is $250,000 per site per year. To encourage cleanup completion, a taxpayer may claim an additional 10% of the total cleanup costs, not to exceed $50,000, in the final year of cleanup as evidenced by an No Further Action or Site Rehabilitation Completion Order. If tax credits exceed tax liability, the taxpayer may carry forward the unused credits for up to 5 years from the date of issuance. (Refunds will not be given.) Credits may be transferred once to another entity, in whole or in units of no less than 25%. If the certificate is transferred, then the transferee(s) will have another 5 years from the date of transfer to use the credit. An active market exists for VCTC Certificates, and we’ll see a table later that will give you an idea of how popular that option has become.

Site Rehabilitation Is… Legal assistance Execution of BSRA Site rehabilitation Site assessment Work Plans Field work and laboratory expenses Reports Progress Meetings Remedial action Plans Remedial action implementation Operation and Maintenance charges for ongoing remediation Relevant monitoring Progress reports on site rehabilitation

Available Tax Credits (cont’d) Site Rehabilitation Bonus Credits SRCO Site rehabilitation complete 25% of total eligible costs Maximum of $500,000 Affordable Housing Demonstrate affordable housing 25% of total eligible costs since 07/01/06

Available Tax Credits Solid waste removal, transportation and disposal 50% of total eligible costs Incurred and paid since 07/01/06 $500,000 per site Maximum credit is $250,000 per site per year. To encourage cleanup completion, a taxpayer may claim an additional 10% of the total cleanup costs, not to exceed $50,000, in the final year of cleanup as evidenced by an No Further Action or Site Rehabilitation Completion Order. If tax credits exceed tax liability, the taxpayer may carry forward the unused credits for up to 5 years from the date of issuance. (Refunds will not be given.) Credits may be transferred once to another entity, in whole or in units of no less than 25%. If the certificate is transferred, then the transferee(s) will have another 5 years from the date of transfer to use the credit. An active market exists for VCTC Certificates, and we’ll see a table later that will give you an idea of how popular that option has become.

VCTC Program Process Complete applications $2 million annual cap First-come, first-served order Applicant = PRFBSR $2 million annual cap If exhausted, remaining applications are first priority in next year's allocation Annual applications: Due by January 15 Issued by March 31 Applications are processed in first-come, first-served order based on the date "complete" applications are received. DEP issues tax credit certificates to eligible applicants by March 1 of each year. If the $2 million annual tax credit authorization is exhausted, remaining applications will be included in the same order in the next year's allocation, if any.

Voluntary Cleanup Tax Credit (VCTC) Program Florida corporate income tax May be transferred once

Available Tax Credits - Summary Tax Credit Type Application Frequency Maximum Credit for Costs Incurred after 06/30/06 Site Rehabilitation Annually 50% $500,000 No Further Action (i.e., SRCO) Once 25% Affordable Housing Solid Waste

Other Brownfields Opportunities

SRP Grant State and Tribal Response Grant EPA funding Administered by DEP Independent of the Florida Brownfields Redevelopment Program Grant of services, performed by FDEP contractors Up to $200,000 for assessment tasks Up to $200,000 for remediation tasks (source removal) Eligibility considerations Meet federal definition of brownfield Applicant did not cause or contribute to contamination No viable responsible party Project provides public benefit Applicant has willingness and ability to complete project Applications are processed in first-come, first-served order based on the date "complete" applications are received. DEP issues tax credit certificates to eligible applicants by March 1 of each year. If the $2 million annual tax credit authorization is exhausted, remaining applications will be included in the same order in the next year's allocation, if any.

HUB Zones TARGETED INDUSTRY INCENTIVES Qualified Target Industry Tax Refund (QTI) Qualified Defense and Space Contractor Tax Refund (QDSC) Capital Investment Tax Credit (CITC) High Impact Performance Incentive Grant (HIPI)

HUB Zones WORKFORCE TRAINING INCENTIVES: Quick Response Training Program (QRT) Incumbent Worker Training Program (IWT)

HUB Zones INFRASTRUCTURE INCENTIVE: Economic Development Transportation Fund SPECIAL OPPORTUNITY INCENTIVES: Enterprise Zone Incentives

Enterprise Zones Okaloosa County has one Enterprise Zone Located ½ in Crestview & ½ in County Includes the Industrial Airpark Qualified Industries: Aviation/Aerospace Electronics Design/Manufacturing Information Technology Metal Fabrication & Machining 

Enterprise Zones Jobs Tax Credit (Sales Tax) Jobs Tax Credit (Corporate Income Tax) Business Equipment Sales Tax Refund Building Materials Sales Tax Refund Property Tax Credit (Corporate Income Tax) Sales Tax Exemption for Electrical Energy

The Enterprise Zone program operates at both the state and federal levels.  The Governor’s Office of Tourism, Trade, and Economic Development (OTTED) administers the Florida Enterprise Zone Program.    OTTED is responsible for overseeing the activities of the local enterprise zones and providing them with technical assistance and information.  Enterprise Florida works with OTTED in developing zone approval guidelines and determining which communities would qualify for a zone designation.

Local Success Stories

Baskerville-Donovan Main Street - Pensacola Historical use: Port facility warehouse Contaminants Arsenic in soil No groundwater contamination Status Remediation completed Building and parking lot are engineering controls New restaurant completed on waterfront

Herman Street Behind New County Offices Historical use: Contaminants C & D landfill Contaminants Arsenic-soil and groundwater PAHs-soil Status Conditional SRCO Building and parking lot are engineering controls Control on use of groundwater

Former St. Joe Paper Mill Port St. Joe Historical use: Paper mill since 1934 Contaminants Metals, PAHs, PCBs, solvents Soils Groundwater contamination in one well Status Facility razed 80% of site meets residential criteria Remainder meets industrial Soil caps in four locations Planned mixed use Draft Restrictive Covenant under review

Visit Us on the Web Brownfields VCTC Rule Development http://www.dep.state.fl.us/waste/categories/brownfields/default.htm VCTC http://www.dep.state.fl.us/waste/categories/vctc/default.htm Rule Development http://www.dep.state.fl.us/waste/categories/wc/pages/WCRuleDevelopment.htm

Visit Us on the Web Economic Development Council of Okaloosa County http://www.florida-edc.org/enterpriseZone.html Enterprise Florida http://www.floridaenterprisezones.com Office of Tourism, Trade & Economic Development http://www.flgov.com/otted_home

Brownfields Coordinator, DEP NW District Alex Webster, P.G. Brownfields Coordinator, DEP NW District alex.webster@dep.state.fl.us 850.595.8360 x1214 Kim Walker Florida Brownfields Liaison kim.walker@dep.state.fl.us 850.245.8934 Teresa Booeshagi Voluntary Cleanup Tax Credit Program Teresa.Booeshaghi@dep.state.fl.us 850.245.8933

EDC of Okaloosa County, Inc Larry Sassano EDC of Okaloosa County, Inc larrys@florida-edc.org 850-651-7374 Joseph Bell Enterprise Florida jbell@eflorida.com 407-956-5600