Delta CountyDelta CountyEPA Brownfield Assessment GrantEPA Brownfield Assessment Grant

Presented by:Presented by: Delta County Brownfield Redevelopment Authority (DCBRA)Delta County Brownfield Redevelopment Authority (DCBRA)Bittner Engineering, Inc. (BEI)Bittner Engineering, Inc. (BEI)Environmental Consulting & Technology, Inc. (ECT)Environmental Consulting & Technology, Inc. (ECT)

EPA Brownfield Assessment GrantEPA Brownfield Assessment Grant

• $200,000 petroleum assessments$200,000 petroleum assessments

• $200,000 hazardous substances assessments$200,000 hazardous substances assessments

• Grant period – 3 yearsGrant period – 3 years

EPA Site Assessment Grant ObjectivesEPA Site Assessment Grant Objectives

• Identify and prioritize potential brownfieldsIdentify and prioritize potential brownfields

• Eliminate technical data gapsEliminate technical data gaps

• Build interest to redevelop brownfieldsBuild interest to redevelop brownfields

• Develop community participation and supportDevelop community participation and support

EPA Site Assessment GrantsEPA Site Assessment Grants

EPA Site Assessment GrantEPA Site Assessment Grant

The Big PictureThe Big Picture

TaxRolls

•EPA Cleanup Grant•EPA RLF•MDEQ Grants/Loans•TIF•Bonds•Tax Credits

EPA Site Assessment GrantEPA Site Assessment Grant

Gap Financing $Gap Financing $

•EPA Cleanup Grant•EPA RLF•MDEQ Grants/Loans•TIF•Bonds•Tax Credits

EPA Site Assessment GrantEPA Site Assessment Grant

Gap Financing $Gap Financing $

TaxRolls

What is a Brownfield?What is a Brownfield?United States Environmental Protection AgencyUnited States Environmental Protection Agency

““Brownfield site means real property, the expansion,Brownfield site means real property, the expansion,redevelopment, or reuse of which may beredevelopment, or reuse of which may becomplicated by the presence or potential presence complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.”of a hazardous substance, pollutant, or contaminant.”

What is a Brownfield?What is a Brownfield?Michigan Department of Environmental QualityMichigan Department of Environmental Quality

• Contamination above Residential Cleanup Criteria (Part 201 Contamination above Residential Cleanup Criteria (Part 201 of PA 451)of PA 451)

• Blighted or functionally obsolete (core communities)Blighted or functionally obsolete (core communities)

• Tax reverted property owned/controlled by land bankTax reverted property owned/controlled by land bank

A Brownfield Site Can Be:A Brownfield Site Can Be:

• As small as a vacant ¼ acre As small as a vacant ¼ acre corner gas stationcorner gas station

oror

• As large as a several hundred As large as a several hundred acre abandoned industrial acre abandoned industrial propertyproperty

Former Military Radar Base – Keweenaw County

Former Military Radar Base – Keweenaw County

Former Military Radar Base – Keweenaw County

Former Copper Mining Processing Facility – Houghton County

Former Copper Mining Processing Facility – Houghton County

Former Copper Mining Processing Facility – Houghton County

Portage Creek Restoration Project - Kalamazoo

Former Paper Mill Power Plant Demolition – Kalamazoo

Former Automotive Repair Shop – Ypsilanti

Former Newspaper Printing Press – Ypsilanti

Former Automotive Manufacturing Facility – Southeast Michigan

Former Automotive Manufacturing Facility – Southeast Michigan

Obstacles to Redevelopment of Brownfield Obstacles to Redevelopment of Brownfield PropertiesProperties

• Environmental contaminationEnvironmental contamination

• LiabilityLiability

• CostsCosts

• FinancingFinancing

• Market conditions Market conditions

• Community issuesCommunity issues

• StigmaStigma

Elements of Brownfield RedevelopmentElements of Brownfield Redevelopment

Development ThresholdDevelopment Threshold

Develo

per in

tere

st

Develo

per in

tere

st

Elimination of e

nv./site hurdles

Elimination of e

nv./site hurdles

Community interest

Community interest

FinancingFinancing

TimeTime

Inte

rest

/Mom

entu

mIn

tere

st/M

omen

tum

Successful ProjectSuccessful Project

Elements of Brownfield RedevelopmentElements of Brownfield Redevelopment

Development ThresholdDevelopment Threshold

TimeTime

Inte

rest

/Mom

entu

mIn

tere

st/M

omen

tum

No ProjectNo Project

Advantages to Redevelopment of Brownfield Advantages to Redevelopment of Brownfield PropertiesProperties

• Retain or create new jobsRetain or create new jobs

• Return abandoned properties to tax baseReturn abandoned properties to tax base

• Utilize existing infrastructureUtilize existing infrastructure

• Cleanup environmental contaminationCleanup environmental contamination

Advantages to Redevelopment of Brownfield Advantages to Redevelopment of Brownfield PropertiesProperties

• Increase neighborhood economic vitalityIncrease neighborhood economic vitality

• Improve the appearance and pride of the Improve the appearance and pride of the surrounding communitysurrounding community

• Discourage urban sprawl and loss of greenspaceDiscourage urban sprawl and loss of greenspace

Tools and IncentivesTools and Incentives

• Liability protectionLiability protection

• Reasonable cleanup requirements/costsReasonable cleanup requirements/costs

• Financial incentivesFinancial incentives

Regulatory Basis of Michigan’s Brownfield Regulatory Basis of Michigan’s Brownfield ProgramProgram

• Brownfield Redevelopment Financing ActBrownfield Redevelopment Financing Act--PA 381 of 1996, as amendedPA 381 of 1996, as amended

• Michigan Natural Resources Environmental Michigan Natural Resources Environmental Protection ActProtection Act--Part 201 of PA 451 of 1994, as amendedPart 201 of PA 451 of 1994, as amended--Part 213 of PA 451 of 1994, as amendedPart 213 of PA 451 of 1994, as amended

EPA Site Assessment GrantsEPA Site Assessment Grants

EPA Site Assessment GrantEPA Site Assessment Grant

Sites Eligible For Grant MoneySites Eligible For Grant Money

• Site needs to be in countySite needs to be in county

• Priority site or site of interestPriority site or site of interest

• Publicly-owned preferredPublicly-owned preferred

• In use or vacantIn use or vacant

• Meets EPA/MDEQ eligibility requirementsMeets EPA/MDEQ eligibility requirements

Identify Brownfield PropertiesIdentify Brownfield Properties

• Gather existing listsGather existing lists

• Meet with local units of governmentMeet with local units of government

• Meet with key stakeholdersMeet with key stakeholders

• Meet with general publicMeet with general public

Prioritize Brownfield PropertiesPrioritize Brownfield Properties

• DCBRA to establish ranking criteriaDCBRA to establish ranking criteria

• DCBRA to set policies and proceduresDCBRA to set policies and procedures

Complete Site AssessmentsComplete Site Assessments

• Phase I Environmental Site Assessments (ESAs)Phase I Environmental Site Assessments (ESAs)

• Phase II ESAsPhase II ESAs

• Baseline Environmental Assessments (BEAs)Baseline Environmental Assessments (BEAs)

Remediation PlanningRemediation Planning

• Cleanup PlansCleanup Plans

• Brownfield PlansBrownfield Plans

• Act 381 Work PlansAct 381 Work Plans

Community OutreachCommunity Outreach

• Public meetingsPublic meetings

• Public hearings for Brownfield PlansPublic hearings for Brownfield Plans

• Printed materialsPrinted materials

• Website and Geographical Information System (GIS)Website and Geographical Information System (GIS)

GIS Mapping ExampleGIS Mapping Example

The Big PictureThe Big Picture

TaxRolls

•EPA Cleanup Grant•EPA RLF•MDEQ Grants/Loans•TIF•Bonds•Tax Credits

EPA Site Assessment GrantEPA Site Assessment Grant

Gap Financing $Gap Financing $

•EPA Cleanup Grant•EPA RLF•MDEQ Grants/Loans•TIF•Bonds•Tax Credits

EPA Site Assessment GrantEPA Site Assessment Grant

Gap Financing $Gap Financing $

TaxRolls

Brownfield RedevelopmentBrownfield RedevelopmentFinancial IncentivesFinancial Incentives

• Grants and loans Grants and loans (Federal/State)(Federal/State)

• BondsBonds

• Tax Increment Financing (TIF)Tax Increment Financing (TIF)

• Michigan Business Tax CreditsMichigan Business Tax Credits

Brownfield RedevelopmentFinancing Act (PA 381 of 1996, as amended)

Tax Increment Financing (TIF)Tax Increment Financing (TIF)

• Municipalities allowed to capture tax increment Municipalities allowed to capture tax increment revenue for eligible brownfield activitiesrevenue for eligible brownfield activities

• Municipalities allowed to establish local revolving Municipalities allowed to establish local revolving loan fundloan fund

Tax Increment Financing (TIF)Tax Increment Financing (TIF)• Brownfield Redevelopment Authorities can capture TIF Brownfield Redevelopment Authorities can capture TIF

and apply the revenue to support eligible activity costs and apply the revenue to support eligible activity costs on eligible propertieson eligible properties

Base TaxesBase Taxes Base TaxesBase Taxes

TIFTIFCaptureCapture

Current Tax RevenueCurrent Tax Revenue

Current ValueCurrent Value Redeveloped ValueRedeveloped Value

Brownfield ProjectBrownfield ProjectExample Tax Capture Scenario

Project reimbursementProject reimbursementTIF captureTIF capture

Local siteLocal siteremediationremediation

revolvingrevolvingfund capturefund capture

Full return to Full return to tax rollstax rolls

Base taxes to taxing jurisdictionsBase taxes to taxing jurisdictions

20102020

20252030

2015

CAPT

URE

D T

AX R

EVEN

UE

(per

yea

r)CA

PTU

RED

TAX

REV

ENU

E (p

er y

ear)

TAX YEARTAX YEAR

$0

$100,000

$200,000

$300,000

Brownfield Redevelopment Financing ActBrownfield Redevelopment Financing ActPA 381 of 1996, as amended

• Establish Brownfield Redevelopment Authorities to Establish Brownfield Redevelopment Authorities to implement Brownfield Plansimplement Brownfield Plans

• Establish tax capture provisions for an eligible Establish tax capture provisions for an eligible propertyproperty

• Determines how taxes can be used (eligible Determines how taxes can be used (eligible properties and eligible activities)properties and eligible activities)

• Provides framework for Act 381 Work PlansProvides framework for Act 381 Work Plans

Brownfield Redevelopment AuthorityBrownfield Redevelopment Authority

• Established by local unit of governmentEstablished by local unit of government

• Supervised and controlled by appointed boardSupervised and controlled by appointed board

• Implements Brownfield PlansImplements Brownfield Plans

• Disburse funds for eligible activities/eligible Disburse funds for eligible activities/eligible propertiesproperties

Brownfield Redevelopment AuthorityBrownfield Redevelopment Authority

• Establish and manage a revolving fundEstablish and manage a revolving fund

• Accept grants and donationsAccept grants and donations

• Borrow money and issue bonds and notesBorrow money and issue bonds and notes

• Own, lease or sell propertyOwn, lease or sell property

Brownfield PlanBrownfield Plan

• Property descriptionProperty description

• Eligible activity expensesEligible activity expenses

• Impact on property tax revenueImpact on property tax revenue

• Property’s existing and estimated projected tax valueProperty’s existing and estimated projected tax value

• Recommended TIF process to address Recommended TIF process to address reimbursement for cost of eligible expensesreimbursement for cost of eligible expenses

Act 381 Work Plan (School Tax Capture)Act 381 Work Plan (School Tax Capture)

• Historical and current use of each eligible propertyHistorical and current use of each eligible property

• Summary of existing site environmental conditionsSummary of existing site environmental conditions

• Summary of proposed future developmentSummary of proposed future development

• Work Plan and estimated costs for eligible activitiesWork Plan and estimated costs for eligible activities

Act 381 Work PlanAct 381 Work PlanEligible Activities/MDEQ ApprovalEligible Activities/MDEQ Approval

• Phase I and II Environmental Site AssessmentsPhase I and II Environmental Site Assessments

• Baseline Environmental AssessmentsBaseline Environmental Assessments

• Due CareDue Care

• Additional response activitiesAdditional response activities

• Brownfield Plans and Work PlansBrownfield Plans and Work Plans

• Environmental insuranceEnvironmental insurance

• Lead/asbestos abatementLead/asbestos abatement

• Public infrastructure improvements Public infrastructure improvements

• Demolition that is not a response activityDemolition that is not a response activity

• Site preparation that is not a response activitySite preparation that is not a response activity

Act 381 Work PlanAct 381 Work PlanEligible Activities/MEGA Approval