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

2. 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

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

4. 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 (4) F.A.C.

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

6. 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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

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

18. 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

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

20. BSRA Liability Protections
Owners and Redevelopers (PRFBSRs)
Relief from further liability for site rehabilitation Section (2)(a), F.S.
Does not limit third party rights for damages Section (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

21. 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.

22. 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

23. 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

24. 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.

25. 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.

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

27. 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

28. Other Brownfields Opportunities

29. 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.

30. 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)

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

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

33. 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 

34. 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

35. 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.

36. Local Success Stories

37. 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

38. 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

39. 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

40. Visit Us on the Web Brownfields VCTC Rule Development
VCTC
Rule Development

41. Visit Us on the Web Economic Development Council of Okaloosa County
Enterprise Florida
Office of Tourism, Trade & Economic Development

42. Brownfields Coordinator, DEP NW District
Alex Webster, P.G.
Brownfields Coordinator, DEP NW District
x1214
Kim Walker
Florida Brownfields Liaison
Teresa Booeshagi
Voluntary Cleanup Tax Credit Program

43. EDC of Okaloosa County, Inc
Larry Sassano
EDC of Okaloosa County, Inc
Joseph Bell
Enterprise Florida