1. Brownfields and Redevelopment Programs
Minnesota GreenStep Cities Workshop
February 1, 2017
Introduce yourself and organization.
Thank for invitation
Who is in audience?
Feel free to ask questions

2. Brownfields and Redevelopment Unit
Contamination Cleanup and Investigation Grant Program
Cleanup Revolving Loan Program
Redevelopment Grant Program
Demolition Loan Program
Focus on Cleanup Grant Programs and Revolving Loan.
Shamelessly plug our other programs - Briefly discuss Redevelopment and Demo.

3. Program Purpose
The purpose of these programs is to reduce the costs of developing previously used sites. Contamination cleanup and demolition costs would not be present on a site with no prior history.
Purpose is to level the playing field between previously developed sites and sites with no prior use, greenfields.
The goal is to reduce or eliminate the extra costs associated with developing a previously used site, while reducing sprawl and reusing sites with existing infrastructure.

4. Contamination Cleanup and Investigation Grant Program
Eligible applications are:
Cities
Counties
HRAs
EDAs
Port Authorities
Private developers, townships, and others not listed can work with these eligible applicants to submit an application.
It’s a good idea to meet with the eligible entity early on – since they may have deadlines as well – city site and zoning approvals, adopting resolutions, etc.

5. Contamination Cleanup and Investigation Grant Program
Eligible sites include:
Both privately and publicly-owned sites
Known or suspected contamination
Development plan will create jobs, increase tax base, or result in other public benefits
Resolution from applicant body and municipality (if different)
Cleanup Grant applicants need MPCA approved Response Action Plan (RAP)
Contamination in soil and/or groundwater. No asbestos unless in soil, no solid waste, no tank or barrel removal
DEED’s purpose is economic development, increase jobs and taxes
Applicant body must pass a resolution to submit an application.
Applicant is the legal sponsor
Authority to apply
Commits local match
Authorizes execution of grant agreement if awarded
Sample resolution in application, just make sure to include all sections in sample
RAP should be submitted at least 45 days prior to grant application due date. Type of contamination will likely dictate which regulatory group you work with (VIC, petroleum brownfields, AgVIC)

6. Contamination Cleanup and Investigation Grant Program
Eligible Costs
Ineligible Costs
Investigation
- Phase I, Phase II, RAP Development
Project/Grant Administration
Cleanup
- Contaminated soil removal and disposal, vapor systems, groundwater treatment, etc.
Appraisal or other application costs
Public Acquisition*
Development Costs
Environmental Consulting Fees*
Asbestos Abatement in Buildings
Public Improvements*
Contingencies
Demolition*
Landscaping
- Seeding, sod, trees, etc.
Acquisition not a detriment, but if applicant needs to purchase property to facilitate cleanup and development, we could consider it as match
Costs must be in your approved RAP for DEED to consider them
Consulting fees include your testing, lab, analytical, and report generation
Public improvement does not mean we’ll pay for your sidewalks and infrastructure – it’s public improvements necessary to implement the RAP.
What does this mean?
With a few past projects, due to the complexity of the site and/or contamination,
required to install sophisticated stormwater systems to eliminate the potential for storm water contact with residual contamination.
Demolition (can include asbestos abatement) – only if contamination is under the building and the building must be demolished to cleanup the contamination. Must be in RAP and approved by MPCA.

7. Contamination Cleanup and Investigation Grant Program
Grant Awards
Up to 75% of eligible cleanup/investigation costs
Required match = 25% of eligible cleanup/investigation costs
12% must come from unrestricted source
$50,000 max award for investigation grants
Applications are competitive
Request what you need
Unrestricted match includes general funds from the applicant and developer funds. Does not include TIF or other grant funds. Want to see either applicant or developer is committed to the project.
Investigation grants are maxed out at $50,000, but not maxed out with Cleanup grants. If investigation costs are significant, additional investigation costs can be reimbursed under Cleanup grant
Ask for what you need – request amount should be for your cleanup budget gap.

8. Contamination Cleanup and Investigation Grant Program
Applications
Due at DEED office May 1st and November 1st by 4:00 PM
Template and instructions can be found at mn.gov/deed
Apply when project is ready to start
Start date will be what you put in application
Developer needs to be committed to project
More competitive projects will have financing in place. Attach documentation
TBA workshop mid March – we’ll talk about what we look at when we review and provide some tips and tricks for how you can strengthen applications. This will be held in St. Paul, so stay tuned for that announcement.

9. Cleanup Revolving Loan Program
Eligible applicants are:
Cities
Counties
HRAs
EDAs
Port Authorities
Private entities
Non profits
Cleanup revolving loan fund – funds we received from the EPA to start this program. So EPA/federal requirements apply.
Recognize a lot of the same players in Cleanup and Investigation grants
Big difference here is private developers and non-profits are eligible loan applicants

10. Cleanup Revolving Loan Program
Eligible sites include:
Completed “All Appropriate Inquiries”
Own or have ownership interest in property
MPCA-approved RAP
Cannot be responsible for the contamination
Ability to repay the loan
Prior to purchasing the property, you must have done all appropriate inquiries. What this means is you must have completed a Phase I investigation
Repayment – payment source and security
Don’t want the property itself or snow plow as collateral
Typically public entities bond for this
Private entities in the past have given us TIF notes, personal guarantee with promissory note
Combined with payment source, it all depends on the whole underwriting package

11. Cleanup Revolving Loan Program
Eligible costs
Cost already incurred are not eligible for loan funds
Costs only eligible after project is determined eligible and the cleanup plan is “accepted” by the appropriate agencies
Same eligible costs as Cleanup Grant program, but in some regards we can be more flexible. Things that we wouldn’t pay for under the grant program could be considered eligible under the loan.
To apply you need an MPCA approved RAP. While consider the application and supporting documentation, the EPA will determine if the project/site is eligible and if the cleanup plan in adequate. Once they have accepted the cleanup plan, you can begin incurring costs.
These things can take time, Best to start working with DEED early

12. Cleanup Revolving Loan Program
Loan Awards
Applications are accepted throughout the year
Loan can reimburse up to 78% of eligible costs
22% match requirement from non-federal source
Rate and term negotiable
Portion forgiveable if borrower is local unit of government
Rates generally 1-2%
Prefer shorter terms 10 years or less, but have done 15 year term
Possible for small portion of loan to be forgiven depending on borrower

13. Redevelopment Grant Program
Eligible applicants are:
Same as Contamination Cleanup Grant
Local units of government
Eligible sites include:
Previously developed site
End use creates jobs, taxes, or other public benefits
Resolution from applicant body and municipality (if different)
Eligible projects are on sites that have been previously developed and have existing infrastructure. A cornfield doesn’t meet the intent of the program.
DEED’s purpose is economic development – the site’s end use should increase taxes, create jobs, or have other public benefits associated with it.
Other public benefits include blight reduction, crime reduction, and affordable housing.
Like Cleanup, need to submit a adopt a resolution.

14. Redevelopment Grant Program
Eligible costs include:
Demolition
Interior asbestos abatement
Soil stabilization
Ponding or other environmental infrastructure
Infrastructure improvements
Costs must be incurred after grant award date
Costs incurred up to 12 months prior eligible as match
A previously used site should have a demolition and / or abatement need and already have existing infrastructure
In some cases that infrastructure needs updating, and that’s okay
Acquisition could be match eligible if the applicant needs to purchase in order to facilitate redevelopment

15. Redevelopment Grant Program
Grant Awards
50% match requirement
Match can be from any available source
Split awards 50/50 between Metro and Greater
Applications are competitive – apply when ready to start work
Applications due February 1st by 4:00 PM
If sufficient applications are received from both Metro and Greater, we split awards 50/50.
Readiness – developer commitment, development financing in place, and funds will be drawn once awarded.
February 1st grant round – about $1,000,000 available
Future grant rounds – wait to see if we’re appropriated money

16. Demolition Loan Program
Part of Redevelopment Grant Program
Created to assist local units of government struggling with vacant, blighted properties that are a safety hazard and costly to secure
Does not require an immediate development plan
Same statute, same pot of money, same eligible applicants, same application deadlines

17. Demolition Loan Program
Eligible sites include:
Applicant must own property and structures
Structures vacant at least 1 year
Not listed on National Register of Historic Places
Constitute a threat to public safety
Expectation of future development with economic benefits
Acquisition is an eligible cost, so borrower can be reimbursed for these costs
However it’s important to note that eligible costs must be incurred after the loan is awarded
DEED can’t reimburse on costs incurred prior to the loan award date
Signed purchase agreement sufficient to show eligibility
Immediate development plans are not needed

18. Demolition Loan Program
Loan Awards
100% of acquisition, demolition, and asbestos abatement costs
Max loan amount of $1,000,000
2% interest rate
15 year term max
Interest and payment free first 2 years
Costs must be incurred after loan award date
Statute sets interest rate at 2% with a maximum term of 15 years
Typically we like to see terms of a shorter duration
First 2 years of loan term are interest and payment free
Interest accrual and semi-annual payments begin the 3rd year

19. Demolition Loan Program
If development occurs, up to 50% of the remaining principal and interest could be forgiven based on development benefits.
If development occurs and there are jobs, taxes, or other public benefits as a result…
50% forgiveness basically results in a Redevelopment Grant

20. Administrative Support
DEED Assistance
Brownfields and Redevelopment staff:
Kristin Lukes,
Director
Irene Dassier,
Administrative Support
Project Managers:
Ian Kushner,
Erin Welle,
Sam Claeson,
Thank you for hosting and listening to my presentation
If any programs seem like they’d be a good fit and you have any questions feel free to give us a call.