Presentation on theme: "CALReUSE C A L I F O R N I A R E C Y C L E U N D E R U T I L I Z E D S I T E S P R O G R A M Providing Loans & Grants to Cleanup California’s Brownfields."— Presentation transcript:
CALReUSE C A L I F O R N I A R E C Y C L E U N D E R U T I L I Z E D S I T E S P R O G R A M Providing Loans & Grants to Cleanup California’s Brownfields California Redevelopment Association Legal Issues Symposium “Show me the Money” August 6, 2008 Presenter: Deana Carrillo Program Manager
Presentation Overview Overview of the California Pollution Control Financing Authority (CPCFA) and CALReUSE CALReUSE/Prop 1C Remediation Program (NEW) Program Update/Timeframe Site Assessment Program Q&A
California Pollution Control Financing Authority (CPCFA) Programs: Tax Exempt Bond Financing CalCAP – small business loans CALReUSE Sustainable Communities Grant and Loan Program (currently not funded) 915 Capitol Mall, Room 457 Sacramento, CA 95814 Tel. 916/654-5610 FAX 916/657-482 C A L I F O R N I A P O L L U T I O N C O N T R O L F I N A N C I N G A U T H O R I T Y
California Pollution Control Financing Authority (CPCFA) Board Members State Treasurer Bill Lockyer State Controller John Chiang Director of Department of Finance, Michael Genest
California Recycle Underutilized Sites Program What is CALReUSE? Provides financing to assist with the reuse and redevelopment of underutilized sites with real or perceived hazardous material contamination issues (brownfields).
California Recycle Underutilized Sites Program CALReUSE Remediation Program -- grants and loans up to $5 million Site Assessment Program – forgivable loans up to $500,000 Strategic Partners
CALReUSE Remediation Program AUTHORIZING STATUTE Proposition 1C (2006) …cleanup that promotes infill housing development and other related infill development… Budget Act of 2007…brownfield cleanup that promotes infill residential and mixed-use development consistent with regional and local land use plans.
Remediation Program Overview Eligible Applicants: Any : non-profit, for-profit government entity Responsible Party excluded from grants (defined by 42 U.S.C. Sections 9607(a)(2), 9607(a)(3) and 9607(a)(4))
Remediation Program Overview Eligible Projects : Development Project that promotes residential or mixed-use development. Located in an Infill Area Consistent with regional and local land use plans Cleanup Plan approved by Oversight Agency
Remediation Program Overview Loans & Grants: $50,000 to $5 million (Board may waive limits)
Remediation Program Funding Grant Eligibility. Infill Development Project must meet the following criteria: At least 15% of the project includes affordable units as defined in Health and Safety Code Sections 53545.13(c)(2)(C) and 53545.13(c)(2)(D). Density requirements set forth in Health and Safety Code Section 53545.13(c)(3)
Remediation Program Funding Loan Terms 6 Month LIBOR Rate (3.15% as of 7/21/08) and not less than 2% Fixed upon entering into loan agreement for the term of the loan
Remediation Program Funding Term of the Loan/Grant 6 years from the first draw to clean up and develop the site. 2-year extensions available. Secondary lien placed on the property until development project complete.
Remediation Program Funding Application eligible upon submittal of Cleanup Plan to Oversight Agency. Commitment Letter valid for 12 months. Cleanup Plan must be approved by Oversight Agency to enter into loan/grant agreements. First draw must take place within 12 months of executing the loan/grant agreement. Reimburse costs on a monthly basis, retroactively to the date the application is deemed complete.
Remediation Program Overview Eligible Costs: costs associated with the removal or abatement of Hazardous Materials and Remedial Work related to the Cleanup Plan, pursuant and in accordance with Health and Safety Code Section 4526(h)(1), including, but not limited to:
Remediation Program Overview Eligible Costs: Cleanup, mitigation, remediation, mid- project assessment and characterization, and other costs including development costs as required by the Cleanup Plan. Technical Assistance; The Costs of the Oversight Agency As much as twenty percent (20%) of the financial award may be spent on environmental insurance.
Remediation Program Overview Geographical targets that parallel TCAC allocation of funds: Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare Counties – ten percent (10%); Los Angeles, Imperial, Orange, Riverside, San Bernardino and San Diego Counties – fifty-nine percent (59%); All other counties – thirty-one percent (31%).
Remediation Program Overview Priority Sites Sites that are not on the National Priority List (NPL). NPL sites that do not have a viable responsible party.
Remediation Program Overview Scoring Criteria Readiness to Proceed Location within an Economically Distressed Community Location within a priority development area of a local government
Remediation Program Overview Scoring Criteria Depth of Affordability Percentage of Affordability Green Building Methods Project Cleanup Plan does not require Ongoing Operation and Maintenance
Remediation Program Overview Program Administration Application submitted to Local and Statewide Strategic Partners (SPs) Points awarded based on public benefits. SP recommends projects to the Board for financing. Board makes all financial awards and decisions. Board will determine whether financing will be available continuously or through funding rounds.
Program Development Process Staff conducted 9-month public process with stakeholders. CPCFA Board approved Emergency Regulations in 2007. RFP for Strategic Partners April - July.
Program Development Process Recommended Strategic Partners approved by Board in July. Contracting process with Strategic Partners anticipated to be completed in September. Anticipate Initial Financings in Fall 2008 – November.
Remediation Program Strategic Partners Local City of Oakland Targhee Consulting Team (LA County) Statewide Center for Creative Land Recycling (CCLR) National Brownfield Association (NBA)
Program Development Process What’s Next: Notice of Funding Availability once SPs under contract. Board to determine if funding in rounds or on a monthly basis.
What should I do if I have an eligible Project? Contact CALReUSE and inform us of your interest at: Calreuse@treasurer.ca.gov (916) 654-5610 Monitor the website for additional information and sign up for email notifications at: www.treasurer.ca.gov/cpcfa
Summary of Assessment Program Program provides forgivable loans,with a priority for projects in economically distressed communities. Eligible Costs: Brownfield site assessment and characterization Technical assistance Remedial action plans, and Site access
Summary of Assessment Program Financing Terms Maximum of $300,000 per site generally; $500,000 per site for housing projects 25% Match requirement from borrower 3-year loan term Interest based on 6-month LIBOR (but not less than 2%)
Summary of Assessment Program Forgivable? The loan may be forgiven if the borrower in good faith, and in cooperation with the SP, determines that the project cannot move forward due to remediation costs.
Summary of Assessment Program Program administered and loans allocated by Strategic Partners : City of Bakersfield City of Berkeley City of Emeryville City of Oakland City of San Diego Statewide Partner-- Center for Creative Land Recycling
For Additional Information (1) Monitor our website at: www.treasurer.ca.gov/CPCFA (2)Sign-up for CPCFA email notifications online (3) Contact: firstname.lastname@example.org email@example.com Ph: (916)654.5610