1. Revolving Loan Fund Department of Toxic Substances Control Brownfields and Environmental Restoration Program Stewart W. Black Acting Deputy Director Brownfields and Environmental Restoration Program April 5, 2011

2. DTSC’s RLF Program Purpose: Facilitate the reuse and/or redevelopment of contaminated sites Facilitate the reuse and/or redevelopment of contaminated sites Provide low-cost financing for Brownfield cleanups Provide low-cost financing for Brownfield cleanups

3. Program Overview DTSC, City of Los Angeles and San Francisco Redevelopment Agency formed the California Urban and Rural Brownfields Coalition (CURB) DTSC, City of Los Angeles and San Francisco Redevelopment Agency formed the California Urban and Rural Brownfields Coalition (CURB) U.S. EPA awarded CURB Total $5.8 M U.S. EPA awarded CURB Total $5.8 M $3 M RLF Grant (initial) $3 M RLF Grant (initial) $1.8 M Federal Stimulus (ARRA) Funds $1.8 M Federal Stimulus (ARRA) Funds $1 M addition RLF Grant $1 M addition RLF Grant CURB Loans and Sub-grant CURB Loans and Sub-grant $3.2 M loans (RLF & ARRA) Funds $3.2 M loans (RLF & ARRA) Funds $2.6 M sub-grants $2.6 M sub-grants

4. Loans & Subgrants Five Housing Projects - $3.815 million Five Housing Projects - $3.815 million Low Income Housing Low Income Housing $613,000 sub-grants, $277,000 loan $613,000 sub-grants, $277,000 loan Private Housing Projects Private Housing Projects $1.25 million RLF; $1.675 million ARRA Funds loan $1.25 million RLF; $1.675 million ARRA Funds loan Five Open Spaces Projects Five Open Spaces Projects $1.76 million sub-grants $1.76 million sub-grants Two Community Redevelopment Projects Two Community Redevelopment Projects $250,000 sub-grant $250,000 sub-grant

5. Selection Process DTSC Processes the RLF Application Site eligibility, review cleanup plan and cost estimate Site eligibility, review cleanup plan and cost estimate Underwriting by independent Loan Fund Manager Underwriting by independent Loan Fund Manager Projects Submitted to CURB Loan Committee Committee member from each partner Committee member from each partner CURB RLF Prioritization Criteria Threshold Criteria Threshold Criteria Applicant/Remediation Criteria Applicant/Remediation Criteria Redevelopment Criteria Redevelopment Criteria

6. RLF Program Marketing Funding Workshops around the State Funding Workshops around the State Partner with U.S. EPA and other State agencies Partner with U.S. EPA and other State agencies Key Stakeholders Key Stakeholders Redevelopment Agencies Redevelopment Agencies Local Government Agencies Local Government Agencies Environmental Consultants Environmental Consultants

7. 178 Townsend Street San Francisco, CA Former Automotive/Machine Repair Shop $1.25M RLF Loan (Repaid in 12 months) Project Benefits 94 new rental housing 25% below market value 100 new construction jobs 60 new permanent jobs $500K increase in sale tax revenue $200K increase annual property tax revenue

8. 2235 Third Street Project San Francisco, CA Former Scrap Iron & Metal Yard 1924 to 1999 Illinois Street Perspective Third Street Perspective $1.675M RLF (ARRA) Loan (Repaid in 12 months) Project Benefits 196 new housing units, 39 affordable units 200 new construction jobs for 2 years $800K annual increase in sales tax revenue $400K annual increase in property tax revenue Restored 2 historic brick buildings

9. Contact Information Stewart Black Brownfields and Environmental Restoration (916) 324-3148 sblack@dtsc.ca.gov

10. Delaware Brownfield Revolving Loan Fund Melissa Leckie Management Analyst Site Investigation & Restoration Branch April 5, 2011

11. General Overview DE BRLF loan/subgrants: DE BRLF loan/subgrants: decrease funding needed to cover remediation costs after Brownfield grant dollars are expended. decrease funding needed to cover remediation costs after Brownfield grant dollars are expended. can only be used for remediation activities. can only be used for remediation activities. In the past 3 years all the Brownfield's State Grant dollars have been expended months before the end of the year. In the past 3 years all the Brownfield's State Grant dollars have been expended months before the end of the year.

12. Delaware Brownfield Program State Brownfield Grant Dollars are $5 million each year. State Brownfield Grant Dollars are $5 million each year. Divided up equally between public and private entities on a first come first serve basis Divided up equally between public and private entities on a first come first serve basis Public entities receive: Public entities receive: $500K per property @ 100% match $500K per property @ 100% match $125k per property @ 50% match. $125k per property @ 50% match. Private entities receive: Private entities receive: $125K per property @ 100% match $125K per property @ 100% match $75k per property @ 50% match. $75k per property @ 50% match.

13. Site Eligibility for Delaware BRLF Must be a certified Brownfield property Must be a certified Brownfield property Property must be in remediation phase Property must be in remediation phase Collateral is required for all loans Collateral is required for all loans Available to public and private entities Available to public and private entities

14. BRLF Loan Loans may range from $10,000 up to $400,000. Loans may range from $10,000 up to $400,000. Lower or higher amounts may be available but are at the discretion of the Department Lower or higher amounts may be available but are at the discretion of the Department Maximum loan term is 10 years Maximum loan term is 10 years Full repayment is required when the property is refinanced or sold. Full repayment is required when the property is refinanced or sold.

15. What the DE Program Offers For Non Profit Entities Interest rates are 0.00% up to 1%. For Non Profit Entities Interest rates are 0.00% up to 1%. To qualify for 0.00% Interest rate your project must meet the following criteria To qualify for 0.00% Interest rate your project must meet the following criteria Affordable/Inclusionary Housing for low to middle income purchaser/renters; Affordable/Inclusionary Housing for low to middle income purchaser/renters; Is a LEED Certified Green Building; or Is a LEED Certified Green Building; or Is consistent with the smart growth principles of “Livable Delaware” goals (is located in a Level 1or 2 Investment Area). Is consistent with the smart growth principles of “Livable Delaware” goals (is located in a Level 1or 2 Investment Area). Projects that do not meet the above criteria will get a 1% interest rate. Projects that do not meet the above criteria will get a 1% interest rate.

16. What the DE Program Offers For Public Entities Interest rates are 1% up to 2%. For Public Entities Interest rates are 1% up to 2%. To qualify for a 1% interest rate you must meet the same criteria as an Non Profit. To qualify for a 1% interest rate you must meet the same criteria as an Non Profit. Projects that do not meet that criteria will get a 2% interest rate. Projects that do not meet that criteria will get a 2% interest rate. Public Entities consist of State Agency or body, county or local government, or housing authority. Public Entities consist of State Agency or body, county or local government, or housing authority.

17. What the DE Program Offers For Private Entities Interest rates are 2% up to 3%. For Private Entities Interest rates are 2% up to 3%. To qualify for a 2% interest rate you must meet the same criteria as an Non Profit and Public entity. To qualify for a 2% interest rate you must meet the same criteria as an Non Profit and Public entity. Projects that do not meet that criteria will get a 3% interest rate. Projects that do not meet that criteria will get a 3% interest rate.

18. Unique Policies Delaware BRLF can be used as a bridge loan for Non-Profit entities Delaware BRLF can be used as a bridge loan for Non-Profit entities There must be strong evidence to prove why funding is needed if all state grant dollars are not expended. There must be strong evidence to prove why funding is needed if all state grant dollars are not expended.

19. 1 st Loan for Delaware 38 Vandever Ave 38 Vandever Ave 1 st recipient of the BRLF Loan 1 st recipient of the BRLF Loan Community center in the city of Wilmington, DE Community center in the city of Wilmington, DE Loan amount $120,261.00 Loan amount $120,261.00 Loan will be used for the installation of the approved cap on the property Loan will be used for the installation of the approved cap on the property

20. BRLF Grant Dollars $149K available in grants $149K available in grants 3 properties received grants 3 properties received grants Only for Public & Non Profit entities. Only for Public & Non Profit entities. No more than $200K can be given to any one allowable site. No more than $200K can be given to any one allowable site.

21. 38 Vandever Ave (Before)

22. 38 Vandever Ave (After)

23. Challenges Meeting EPA requirements Meeting EPA requirements Approval of documents Approval of documents Approval of the project Approval of the project Davis Bacon Davis Bacon Meeting State requirements Meeting State requirements Mortgage, loan agreement, & promissory note Mortgage, loan agreement, & promissory note

24. Contact Information Melissa Leckie Site Investigation & Restoration (302) 395-2600 Melissa.Leckie@state.de.us

25. Redevelopment Authority of the City of Milwaukee Revolving Loan Fund Program Karen Dettmer, P.E. April 5, 2011 Brownfields 2011 Philadelphia, PA

26. Milwaukee Revolving Loan Fund Program Goals Goals Provide qualified applicants the necessary capital to conduct cleanups of contaminated properties Provide qualified applicants the necessary capital to conduct cleanups of contaminated properties Establish a revolving loan fund that is self- sustaining Establish a revolving loan fund that is self- sustaining

27. Milwaukee Revolving Loan Fund Program Eligibility Eligibility The entity is authorized to enter into a loan agreement The entity is authorized to enter into a loan agreement The entity carried out all appropriate inquiries to meet the definition of “innocent landowner”, or “bona fide prospective purchaser” The entity carried out all appropriate inquiries to meet the definition of “innocent landowner”, or “bona fide prospective purchaser” The entity is NOT using the funds to pay for response costs at a property for which they are a responsible party The entity is NOT using the funds to pay for response costs at a property for which they are a responsible party

28. Revolving Loan Fund Portfolio $7,950,000 portfolio $7,950,000 portfolio $6 million regular program $6 million regular programfunding $1 million in ARRA funds $1 million in ARRA funds $950,000 in supplemental $950,000 in supplementalfunding 5 Cooperative Agreements since 2002 5 Cooperative Agreements since 2002 8 loans, 1 subgrant, 2 pending loans 8 loans, 1 subgrant, 2 pending loans

29. Milwaukee Revolving Loan Fund Program $274 million invested in redevelopment $274 million invested in redevelopment 176 acres of contaminated land remediated 176 acres of contaminated land remediated $35 million in clean up costs $35 million in clean up costs 2,000 jobs (expected) created 2,000 jobs (expected) created

30. Thank you! Questions: Karen Dettmer karen.dettmer@milwaukee.gov (414)286-5642

31. CONTACTS Stewart Black sblack@dtsc.ca.gov (916) 324-3148 www.dtsc.ca.gov/SiteCleanup/Brownfields Melissa Leckie Melissa.Leckie@state.de.us (302) 395-2600 www.awm.delaware.gov/SIRB Karen Dettmer karen.dettmer@milwaukee.gov (414)286-5642 www.mkedcd.org/racm 31