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Delta County EPA Brownfield Assessment Grant. Presented by: Delta County Brownfield Redevelopment Authority (DCBRA) Bittner Engineering, Inc. (BEI) Environmental Consulting & Technology, Inc. (ECT). EPA Brownfield Assessment Grant. $200,000 petroleum assessments
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Delta CountyEPA Brownfield Assessment Grant Presented by:Delta County Brownfield Redevelopment Authority (DCBRA) Bittner Engineering, Inc. (BEI) Environmental Consulting & Technology, Inc. (ECT)
EPA Brownfield Assessment Grant • $200,000 petroleum assessments • $200,000 hazardous substances assessments • Grant period – 3 years
EPA Site Assessment Grant Objectives • Identify and prioritize potential brownfields • Eliminate technical data gaps • Build interest to redevelop brownfields • Develop community participation and support
EPA Site Assessment Grant EPA Site Assessment Grants
The Big Picture Gap Financing $ Gap Financing $ • EPA Cleanup Grant • EPA RLF • MDEQ Grants/Loans • TIF • Bonds • Tax Credits • EPA Cleanup Grant • EPA RLF • MDEQ Grants/Loans • TIF • Bonds • Tax Credits EPA Site Assessment Grant EPA Site Assessment Grant Tax Rolls Tax Rolls
What is a Brownfield?United States Environmental Protection Agency “Brownfield site means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”
What is a Brownfield?Michigan Department of Environmental Quality • Contamination above Residential Cleanup Criteria (Part 201 of PA 451) • Blighted or functionally obsolete (core communities) • Tax reverted property owned/controlled by land bank
A Brownfield Site Can Be: • As small as a vacant ¼ acre corner gas stationor • As large as a several hundred acre abandoned industrial property
Former Automotive Manufacturing Facility – Southeast Michigan
Former Automotive Manufacturing Facility – Southeast Michigan
Obstacles to Redevelopment of Brownfield Properties • Environmental contamination • Liability • Costs • Financing • Market conditions • Community issues • Stigma
Elements of Brownfield Redevelopment Successful Project Development Threshold Developer interest Elimination of env./site hurdles Interest/Momentum Community interest Financing Time
Elements of Brownfield Redevelopment No Project Development Threshold Interest/Momentum Time
Advantages to Redevelopment of Brownfield Properties • Retain or create new jobs • Return abandoned properties to tax base • Utilize existing infrastructure • Cleanup environmental contamination
Advantages to Redevelopment of Brownfield Properties • Increase neighborhood economic vitality • Improve the appearance and pride of the surrounding community • Discourage urban sprawl and loss of greenspace
Tools and Incentives • Liability protection • Reasonable cleanup requirements/costs • Financial incentives
Regulatory Basis of Michigan’s Brownfield Program • Brownfield Redevelopment Financing Act-PA 381 of 1996, as amended • Michigan Natural Resources Environmental Protection Act-Part 201 of PA 451 of 1994, as amended -Part 213 of PA 451 of 1994, as amended
EPA Site Assessment Grant EPA Site Assessment Grants
Sites Eligible For Grant Money • Site needs to be in county • Priority site or site of interest • Publicly-owned preferred • In use or vacant • Meets EPA/MDEQ eligibility requirements
Identify Brownfield Properties • Gather existing lists • Meet with local units of government • Meet with key stakeholders • Meet with general public
Prioritize Brownfield Properties • DCBRA to establish ranking criteria • DCBRA to set policies and procedures
Complete Site Assessments • Phase I Environmental Site Assessments (ESAs) • Phase II ESAs • Baseline Environmental Assessments (BEAs)
Remediation Planning • Cleanup Plans • Brownfield Plans • Act 381 Work Plans
Community Outreach • Public meetings • Public hearings for Brownfield Plans • Printed materials • Website and Geographical Information System (GIS)
The Big Picture Gap Financing $ Gap Financing $ • EPA Cleanup Grant • EPA RLF • MDEQ Grants/Loans • TIF • Bonds • Tax Credits • EPA Cleanup Grant • EPA RLF • MDEQ Grants/Loans • TIF • Bonds • Tax Credits EPA Site Assessment Grant EPA Site Assessment Grant Tax Rolls Tax Rolls
Brownfield RedevelopmentFinancial Incentives • Grants and loans (Federal/State) • Bonds • Tax Increment Financing (TIF) • Michigan Business Tax Credits Brownfield Redevelopment Financing Act (PA 381 of 1996, as amended)
Tax Increment Financing (TIF) • Municipalities allowed to capture tax increment revenue for eligible brownfield activities • Municipalities allowed to establish local revolving loan fund
Tax Increment Financing (TIF) • Brownfield Redevelopment Authorities can capture TIF and apply the revenue to support eligible activity costs on eligible properties Current Value Redeveloped Value TIF Capture Base Taxes Base Taxes Current Tax Revenue
$300,000 $200,000 Local site remediation revolving fund capture CAPTURED TAX REVENUE (per year) Project reimbursement TIF capture Full return to tax rolls $100,000 Base taxes to taxing jurisdictions $0 2010 2015 2020 2025 2030 TAX YEAR Brownfield ProjectExample Tax Capture Scenario
Brownfield Redevelopment Financing ActPA 381 of 1996, as amended • Establish Brownfield Redevelopment Authorities to implement Brownfield Plans • Establish tax capture provisions for an eligible property • Determines how taxes can be used (eligible properties and eligible activities) • Provides framework for Act 381 Work Plans
Brownfield Redevelopment Authority • Established by local unit of government • Supervised and controlled by appointed board • Implements Brownfield Plans • Disburse funds for eligible activities/eligible properties
Brownfield Redevelopment Authority • Establish and manage a revolving fund • Accept grants and donations • Borrow money and issue bonds and notes • Own, lease or sell property
Brownfield Plan • Property description • Eligible activity expenses • Impact on property tax revenue • Property’s existing and estimated projected tax value • Recommended TIF process to address reimbursement for cost of eligible expenses
Act 381 Work Plan (School Tax Capture) • Historical and current use of each eligible property • Summary of existing site environmental conditions • Summary of proposed future development • Work Plan and estimated costs for eligible activities
Phase I and II Environmental Site Assessments Baseline Environmental Assessments Due Care Additional response activities Brownfield Plans and Work Plans Environmental insurance Act 381 Work PlanEligible Activities/MDEQ Approval
Act 381 Work PlanEligible Activities/MEGA Approval • Lead/asbestos abatement • Public infrastructure improvements • Demolition that is not a response activity • Site preparation that is not a response activity