1. Public Financing Strategies to Leverage Private Investment in Brownfields Hennepin County Brownfield Program USEPA Brownfields 2015 Chicago, Illinois September 3, 2015 Hennepin County Environment and Energy Department Land and Water Unit John Evans

2. Future Brownfield Opportunities

3. Early Recycling Efforts

4. Hennepin County, MN 25% of MN contaminated sites 1,364 Voluntary Cleanup sites (41% of MN sites) 3,066 LEAK sites (19%) 20 Superfund sites (14%) 278 dump sites (8%) 4,708 sites of concern Hennepin County Largest in population - 1.2 million 22% of the state population 611 sq. miles 45 cities One third of all state jobs

5. Minnesota Public Financing for Brownfields Assessment and Cleanup Grants available from: MN Department of Employment and Economic Development (DEED) – Approximately $8M/yr. 1995 - 2014 – Granted $142M to 450 projects – Private Investments - $4.6B Metropolitan Council (7 county metro area) - Tax Base Revitalization Account (TBRA) – Approximately $5M/yr. 1996 to 2014 – Granted $107.5M to 396 projects – Private Investments - $3.5B Ramsey County - Environmental Response Fund (ERF) – Approximately $0.7M/yr. 2005 to 2014 – Granted $7.0M to 28 projects – Private Investments - $40.6M Hennepin County - Environmental Response Fund (ERF) – Approximately $3M/yr. 2001 to 2014 – Granted $47.3M to 337 projects – Private Investments - $1.76B

6. Hennepin County Brownfield Program Other Funding Sources EPA Brownfield Revolving Loan Fund (BRLF) 7 Loans to date $3.6M (currently have $1.45M available) Memorandum of Agreement (MOA) Principal/Interest Funded by 5 RLF loan repayments ($1.9M) – 4 of 5 paid in full Five areas of funding including Gap Financing for assessments Close Out Agreement (COA) Principal/Interest Funded by 1 RLF loan ($1.1M) - returns $77K/yr. (until 2025) Assist municipal partners on assessments EPA Assessment Grant - $400K awarded in 2014

7. Hennepin County Brownfield Program Environmental Response Fund (ERF) Mortgage Registry and Deed Tax Revenue Source: 1/100 th of 1% of property transaction amount and principal Currently generates approximately $2.4M/year

8. ERF Program - Metrics to date Grants by activity: Cleanup - $37.2 M (79%) Asbestos/lead paint abatement - $6.1 M (13%) Assessment - $3.9M (8%) Grants by Project type: Commercial /Industrial - $11.8M (25%) Mixed residential/commercial - $7.7M (16%) Residential - $17.2M (37%) Open Space / Infrastructure - $10.5 M (22%)

9. ERF Program - Metrics to date Leveraged $1.7B in private development costs $437M+ increase in property values $65M+ increase in property taxes Created or retained more than 12,000 jobs 3,500 affordable and 6,500 market rate housing units (created or renovated) $53M in public investment from DEED, TBRA, and EPA

10. Hennepin County RLF Summary LoanProjectAgreement Date AmountRate and TermMaturity Date Fire BarnEast St. Anthony Village, Minneapolis December 2000 $425,000 (MOA) 1%; P& I due in a single balloon payment upon sooner of sale of 46 of 48 units or in 10 years. Loan refinanced in June 2004 with regular interest payments and remaining P&I due April 2006 April 2006 PAID Housing Partners III East St. Anthony Village, Minneapolis October 2001$450,000 (MOA) 1%; P & I due in a single balloon payment due upon sale of all units or in 5 years. January 2007 PAID East River Mews East River Mews, Minneapolis October 2002$390,027.84 (MOA) 0.75%; P & I due in a single balloon payment due 6 months after sale of final unit or in 5 years September 2007 PAID Edgewood Investors Edgewood Business Center, St. Louis Park November 2003 $450,000 (MOA) 1.7%; monthly interest only payments until February 2006; semi-annual P & I payments through August 2015 August 2015 Ryan Companies Midtown Exchange, Minneapolis December 2004 $250,000 (MOA) 1.75%; monthly P & I payments through December 2011 December 2011 PAID Real Estate Recycling Golden Auto/NL Industries, St. Louis Park April 2007$1,100,000 (COA) 1%; first loan payment deferred until February 2008; monthly interest payments February 2008 - July 2009; semi-annual principal and interest payments August 2009 - August 2024 August 2024 Pants Optional LLC Surly Destination Brewery, Minneapolis November 2013 $500,0001%; first loan payment deferred until January 2015; monthly interest-only payments January 2015 – December 2016; monthly principal and interest payments January 2017 – January 2027 January 2027

11. East St. Anthony Village, Minneapolis 150 years of commercial use; former quarry $3.6M cleanup; $875,000 RLF (2 loans) 175 units of affordable and market rate housing

12. Edgewood Investors Demolition and cleanup of a vacant, lithium processing facility $1.7M cleanup; $450,000 RLF New 79,000 sf multi-tenant industrial building 150 new jobs; $140,000 tax-base increase

13. National Lead/Golden Auto Former lead smelter and salvage yard $5.4M cleanup; $2.2M RLF (2 loans) 80,000 sf multi-tenant office bldg. 300 new jobs; $300,000 tax-base increase

14. Surly Destination Brewery Total Environmental Budget - $3,500,000 Henn Cty funded assessment - $40,000 State cleanup grant - $1,000,000 Regional cleanup grant - $500,000 ERF cleanup grant - $450,000 Henn Cty RLF - $500,000 Henn Cty TOD Loan - $500,000 Redevelopment of 8-acres of vacant industrial land Filled former swamp; linseed oil manufacturing facility $30M project Increase in tax base/yr. - $193,064 200 new jobs Transit-oriented Location (near bus line and light-rail stop) 20,000 tons of contaminated soil removed 15,000 cy of demolition debris reused on-site Renewable and recyclable building material

15. Surly Destination Brewery

16. Information www.hennepin.uswww.hennepin.us - search for ERF John Evans Hennepin County Environment and Energy Department Land and Water Unit 701 Fourth Avenue South, Suite 700 Minneapolis, MN 55415-1842 612-348-4046 john.evans@hennepin.us