pulling all the pieces together: mixing & matching …...case study potosi wi (700) • brewery...
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Pulling all the Pieces Together: Mixing & Matching
Resources for Brownfields Success
Oklahoma Workshop - March 2013 Ignacio Dayrit
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It’s like doing a Puzzle …
• Early money EPA grants only act as a bridge to assessment,
cleanup some planning • Other Federal, State, and local initiatives for:
Infrastructure Development – commercial, industrial, housing etc.
• This presentation shows how cities and communities have combined different funding and resources to achieve their goals
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Public Sector Finance Role
• Provide resources directly • Competitive or formula grants; forgivable loans • In-kind technical assistance
• Reduce private financing risk and costs • Loan guarantees; companion loans • Interest-rate reductions or subsidies
• Improve the borrower’s financial situation • Re-payment grace periods; tax abatements and
incentives; training credits and funding • Promote Public-Private Partnerships
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Commonly used (non-EPA & ODEQ) resources especially in smaller communities
• USDA – rural development/community facilities loans and grants
• HUD – CDBG • EDA – public works,
economic dislocation • DOT – enhancement,
construction, system rehab/modernization
• Tax code incentives – for housing, cleanup, structural rehabilitation
• State funds • Local tools
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Outlook for Federal Funds
• State of the economy Real estate market State revenues Impacts to local government
• Uncertainty on Federal Budget Declining executive branch budgets Realigning programs and new priorities Sequester, cliff, shutdown…
• Prognosis
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Housing and Urban Development (HUD) Entitlement and State/Small Cities CDBG Programs
Entitlement communities (> 50,000) receive annual allocations Small cities’ (less than 50,000 population) community
development needs – OK Commerce CDBG funds must meet one of HUD’s 3 objectives:
• address needs of low- & moderate-income people • address slum & blight • meeting an urgent community need
Eligible Activities • Demolition & removal • Rehabilitation of public & private buildings • Planning • Construction or reconstruction of infrastructure, neighborhood
centers, recreation/public works facilities • Can manage contamination as part of site preparation or
infrastructure development Can be lent to private companies in some circumstances
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Economic Development Administration (EDA)
• EDA typically puts 50%+ of its resources into small/mid-sized towns and rural areas
• Key EDA investment Priorities Collaborative Regional Innovation Public/Private Partnerships National Strategic Priorities Global Competitiveness Environmentally-Sustainable Development Economically Distressed and Underserved
Communities • Must be included in CEDS – contact your EDD
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• Transportation funds can be used for cleanup integral to transportation system development/upgrades
• Must work through state / local transportation agencies • DOT highway/transit construction programs can
support related revitalization by: helping upgrade existing facilities offer transportation amenities that improve access to and
marketability of Brownfield sites fund facilities and structures that serve as part
of the remedial solution
Transportation Programs
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OK Department of Commerce
• Rural CDBG • Site Ready Program • Main Street Program
Training, resources, and technical assistance for preservation-based commercial district revitalization
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OK Housing Finance Agency
• Affordable Housing Tax Credits (AHTC) • Home Investment Partnerships Program
(HOME) • Housing Trust Fund (HTF) • Rural Housing Linked Deposit (LD) • Multi-Family Bonds (MFB)
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New Markets
Tax Credit • The NMTC program provides a tax incentive for private sector
investment into economic development projects and businesses located in low-income communities.
• Program overseen by U.S. Department of the Treasury and directly administered by the Community Development Financials Institutions (“CDFI”) Fund.
• NMTCs are allocated by the CDFI Fund to community development entities (“CDEs”).
• CDEs offer NMTCs to investors in exchange for qualified equity investments (“QEIs”) for the purpose of a making loans to qualified active low-income businesses (“QALICBs”)
• Sweet spot - $5-10M loans • Examples: Stigler Health & Wellness, Durant; First Wave Aviation, Bristow
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Rehabilitation Tax Credits • Historic Preservation Credit
Federal Limited application State credit
• Taken the year renovated building, in service
• Credit for certified rehabilitation work done on historic structures 20% Federal credit 20% State credit
• 10% Federal credit for work on “non-historic” structures build before 1936; no certification required
• State Historic Preservation Office & National Parks Service
Gaylord-Pickens Oklahoma Heritage Center
Meadow Gold sign, 11th Avenue, Route 66, Tulsa
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Tax Increment Financing Uses the anticipated growth in property and/or sales taxes
generated by a development to finance eligible expenses
Base Tax Taxes distributed to districts in project area
Incremental tax belongs to TIF authority to pay for eligible expenses
New Post-Project Taxes
Total taxes now belong to all
entities receiving taxes in project
area
Taxe
s R
ecei
ved
- $
Taxes over Project Life
Created Terminated
5 10 15 20 25 Year TIF
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Case Study Omaha NE
• Abandoned Ford Motor factory • New Market Tax Credits–
$12M instrumental in attracting private capital from US Bank to close the $24.5M deal
• 96 moderately priced apartments, ground floor commercial space with 138 jobs
• Significant additional private investment in surrounding area
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Case Study Richmond CA • Ford Motor Plant: 520,000 sq. ft. • Built in 1930; closed 1953 • Rehabilitation work began in 2004
Included seismic retrofits, green performance measures, including solar panels on roof
• $11M in rehab tax credits • HUD Section 108 / BEDI • Manufacturers of sustainable
products, park, meeting and entertainment venue
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Case Study Milwaukee WI
• Menomonee Valley • Areawide plan • Partnerships • EPA ARC grants • Redevelopment assistance • Sustainable development
guidelines • Business Improvement District • Jobs-housing links • 4000+ new jobs,
30+ companies, parks, trails, linkages
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Case Study Coralville IA $293M in Public & Private Reinvestment • Property acquisition and demolition • IRL infrastructure • Conference Center and Hotels • Housing, retail and commercial, brewery • Parking Garage with sustainable features • University of Iowa Ambulatory Care • Regional LEED™ Transit Facility (in planning) • Interchange Improvements (in design/funding) Partners / Funding • EPA Brownfields • U.S. Army Corps of Engineers • FEMA • U.S. DOT Bus Livability Program • Federal Highway Administration • Responsible Party-Leveraged Cleanups • HUD – CDBG Pumping Stations • Iowa Dept. of Transportation, National
Resources , Economic Development • I-Jobs Stormwater Control Features
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Case Study Eugene OR
• Broadway Commerce Center • $0.68m EPA Brownfields • Section 108/BEDI 2006 • Acquired early 2008
$2.7m 108 $0.7M BEDI
• Construction $5.1M 108 $1.3 M BEDI
• $1m Regional Planning
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Case Study Rosalia WA (600) • 1923 vintage Texaco station, vacant 21
years • “Heritage tourism” main street revitalization • Converted to “gateway” retail, craft/farmers
market, visitor center for nearby Steptoe Nat’l Battlefield, national forest
• Public financing sources include: • USTfields pilot grant • WA Dept of Ecology grant • Whitman County • “community development ’08” grant
• Partners include: • Grant sharing from surrounding counties • Lions Club and “Gifted Grannies” • Retired Texaco Executives Assn. • Pro bono legal, remedial services • Utility incentive rates • Community sweat equity • State Dept. of Corrections
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Case Study Plainview AR
• Lumber/pressure treating facility, shut down in 1986
• Declared superfund site in 1999.
• Redeveloped as specialty steel plant.
• EDA public works - $763,000 for site preparation, construction, infrastructure as part of $1.1 million financing package
• 25 new jobs, significant tax revenues for community
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Case Study Potosi WI (700)
• Brewery built 1852, abandoned 1972. • Asbestos, lead paint, etc. • WI DNR seed grant • USDA $3.3 million guaranteed loan • Department of Commerce, American
Breweriana Association, FHWA National Scenic Byways Program, Jeffris Family Foundation
• Transformed Potosi’s main street; community involvement key
• Refurbished as micro-brewery, brewing museum and library
• 50 new jobs, 4 new beers
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Lessons
• Partnerships • Patience • Perseverance • Planning early
Student, Professional and Contractor in-kind labor to “help the kids”
$40,000
Building dozens of pro-Brownfield
citizens annually; PRICELESS
Ignacio Dayrit •Center for Creative Land Recycling • [email protected]