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Financing for Small Cities, Rural Communities and Tribes Brownfields 2003: Growing A Greener America October 28, 2003
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Financing for Small Cities… Legislative History Funding Programs Funding Process Project Examples
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Financing for Small Cities… Legislative History HB 3352 1995 (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
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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
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Financing for Small Cities… Funding Programs
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Financing for Small Cities… Funding Programs Brownfields Redevelopment Fund Special Public Works Fund Community Development Block Grants
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Financing for Small Cities… Brownfields Redevelopment Fund Direct loan and grant program Funds environmental actions on brownfields –Brownfield defined in statute (ORS 285A.185)
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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
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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
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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
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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
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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
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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
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Financing for Small Cities… Brownfields Redevelopment Fund Private grant match –1:1 ratio or 100% of award –Must be cash
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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
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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
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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
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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
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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
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Financing for Small Cities… Other Funding Sources Port Revolving or Planning & Marketing Fund Credit Enhancement Fund Targeted Brownfields Assessments (DEQ) EPA Cooperative Agreements
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Financing for Small Cities… Funding Process
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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
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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
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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
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Financing for Small Cities… Project Examples
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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
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Financing for Small Cities, Rural Communities and Tribes Brownfields 2003: Growing A Greener America October 28, 2003
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