1. Redevelopment Grant Program December 2013

2. Redevelopment Grant Program

3. Program Purpose Level the playing field by removing or assisting with extra costs of development on previously used sites Create jobs, increase taxes

4. Eligible Applicants Cities Counties HRAs EDAs Port Authorities

5. Eligible Sites Previously been developed End use which will create jobs, taxes, or other public benefits Resolution from applicant body and municipality (if different) Bond-Financed Projects must have public component

6. Eligible Costs Ineligible Costs Acquisition (match only)Project/Grant Administration Infrastructure ImprovementsAppraisal or other application costs Soil StabilizationDevelopment Costs DemolitionEnvironmental Remediation Ponding or other Environmental Infrastructure Contingencies Interior Remediation for Re-useStreetscape - Landscaping, benches, planters, etc.

7. Previously Incurred Costs Eligible costs are those incurred after grant award date Eligible costs incurred up to 12 months prior to application due date can be eligible as match

8. Match Requirement Up to 50% of eligible redevelopment costs Match can be from any available source

9. Funds Available Total funds in account: $4,000,000 approximately GENERAL FUND!!! Approximately $125,000 Bond Funds remain 50% to Greater Minnesota 50% to Metro Area

10. Competitive Grants Grants are competitive Compete against other applications (no thresholds)

11. Competitive Scoring Categories Contamination remediation need (15 points) Qualifies for and uses TIF (25 points) Redevelopment potential (90 points) Proximity to public transit (5 points) Multi-jurisdictional projects that take into account affordable housing, transportation and environmental impact (15 points)

12. Minimum Score Total points available = 150 Applications must score at least 50 points to be eligible for funding

13. Project Readiness Apply when project is ready Projects must begin by date listed in grant agreement – generally within 12-18 months of award Grant terms are becoming increasingly more difficult to extend

14. Blended Financing Can use both General Fund and Bond funds for the same project –General fund on activities on a private site –Bond funds on public infrastructure

15. Eligible Bond Expenses Publicly-Owned (by applicant) Public I nfrastructure

16. Application Due Dates Applications are due on February 1 (3), 2014 by 4:00 pm to DEED offices (Electronic copies of application are not accepted)

17. Applications and instructions may be found on the DEED website: www.mn.gov/deed/ FOR LOCAL GOVERNMENT Financial Assistance Site Cleanup and Redevelopment Funding Redevelopment Grant Program or Demolition Loan Program Applications

18. Application Reminders Complete applications thoroughly by due date: –All questions answered –All attachments submitted (appraisals, Resolutions, etc.) –Closed Process Only Assessor or Appraiser can determine value Use Updated Application form

19. Application Reminders Please review the Program Requirements and Criteria

20. Awarding Grants Grants are generally awarded approximately 6-8 weeks after submittal. Funds awarded must be spent within grant term

21. Redevelopment Program Successes First grant awarded in 1998 Over $61.9 million in 133 Redevelopment grants Producing…….

22. Program Results 1,209 acres redeveloped 18,910 new jobs created or jobs retained 4,423 housing units developed $26.6 million in tax base increases $1.7 billion in non-state funds leveraged

23. Demolition Loan Program

24. Eligible Criteria Same eligible applicants as Redevelopment Grants Eligible sites must be owned by the applicant, must have been vacant for at least one year and cannot be listed on the National Register of Historic Places Eligible costs include acquisition, demolition and interior remediation Same application deadlines as Redevelopment Grants Doesn’t have to be imminent development prospect

25. Other Loan Information May pay up to 100% of costs, maximum loan amount of $1,000,000 2% interest rate for up to 15 years Interest and payment free for first two years If development occurs, up to 50% of the remaining principal and interest could be forgiven based on development benefits

26. Demo Loan Process Application is different from Redevelopment grant Applications are accepted at the same time Awards might not be made concurrent with Redevelopment

27. Demolition Loan Application Details

28. Demolition Loan Application 1)Site Information 2)Site Evaluation 3)Map and Site Features 4)History 5)Current Conditions

29. Demolition Loan Application 6)Development Potential 7)Cost Analysis 8)Analysis of Loan Need 9)Financial Information

30. Demolition Loan Scoring Criteria Extent to which the existing property conditions threaten public safety Length of vacancy of the property Development potential of the property Proximity of the property to existing public infrastructure Applicant’s financial condition and ability to repay the loan

31. DEED Assistance Brownfields and Redevelopment staff: Meredith Udoibok, Director 651-259-7451 Kristin Lukes, Assistant Director 651-259-7451 Irene Dassier, Administrative Support 651-259-7449 Project Managers: Terry Dalbec, 651-259-7448 Roy Murphy, 651-259-7452 Erin Welle, 651-259-7453

32. For more information on DEED Funding Programs, see DEED on the Web www.mn.gov/deed

33. Questions?