Brownfield Redevelopment Resources Financial Assistancemseca.org/media/2016-09-29_-_Brownfields.pdf · 2016-09-29 · 1 Brownfield Redevelopment Resources – Financial Assistance

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Brownfield Redevelopment Resources –

Financial Assistance

Michele Oertel

Federal Funding & Community Relations Coordinator

317-234-0235

moertel@ifa.in.gov

www.brownfields.in.gov

MSECA Environmental Solutions

Related to Real Estate Seminar

IndianapolisSeptember 29, 2016

Environmental Stewardship. Economic Development.

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Today’s Topics

What is good to keep in mind about brownfields?

Who needs financial assistance?

How can the Indiana Brownfields Program (IBP) help?

What funding incentives are available from IBP and/or others?

How can Comfort Letters and/or Site Status Letters

available from IBP serve as funding incentives?

What are some redevelopment success stories in Indiana?

What is the bottom line?

Brownfield? Problem Property?

Obstacle? Opportunity?

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What is a Brownfield?

Indiana defines a brownfield site as:

a parcel of real estate

abandoned, inactive, or underutilized

on which expansion, redevelopment, or reuse

is complicated because of the presence or

potential presence of a hazardous substance,

a contaminant, petroleum, or a petroleum

product that poses a risk to human health and

the environment.

Similar to U.S. EPA definition (real property)

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Why care about

Brownfield Redevelopment?

Retail (shopping center, grocery store)

Commercial (bank)

Industrial (single building or park complex)

Residential (houses, condos, apartments)

Public (government offices)

Greenspace (park, soccer field, golf course, trail,

greenway)

MixedKeep in mind:

Remediation can dictate reuse and reuse can dictate remediation.

Environmental Stewardship. Economic Development.

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What are Obstacles to

Brownfield Redevelopment?

Real or potential environmental contamination

Assessment / Cleanup costs

Liability issues for the lender, prospective purchaser, and

third parties

Economic development climate

Viability of re-use plans for the site

Lack of resources – knowledge, money, partners

Unknowns – risks, ownership, access

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Indiana Brownfields Program

Background

Created by 2005 legislation (SEA 578); IC 13-11-2-19.3

Housed under the Indiana Finance Authority (IFA)

Funded by state appropriations & federal funds

Allows for voluntary participation – not enforcement

Provides governmental assistance to address environmental issues

that impede brownfield redevelopment

Works in partnership with U.S. EPA et al.

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Indiana Brownfields Program

Background

Works typically with communities or prospective purchasers vs. RPs

Relies on existing laws/regs/policies to protect

human health and environment

Has different processes for different incentives

Uses consultants differently per incentive

Utilizes IDEM Remediation Closure Guide

Offers closure documents

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Indiana Brownfields Program

Lends a Hand

Helps stakeholders by providing/coordinating:

Educational Assistance

Financial Assistance

Legal Assistance

Technical Assistance

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Financial Incentives

Indiana Brownfields Program (IBP) – loan funding,

professional services

Revolving Loan Fund (RLF) Incentive (federally funded)

IFA State Revolving Fund (SRF) Loan Program coordination

IDEM Supplemental Environmental Project (SEP) coordination

Phase I Initiative

Petroleum Orphan Sites Initiative (POSI)

OCRA-IFA partnership program coordination (e.g., demo, PI/II)

DLGF Tax Waiver brownfield determinations

Misc. (e.g., U.S. EPA, IHCDA LIHTC) brownfield

determinations/support letters (e.g., PEDs)

Current/Future funding via U.S. EPA (e.g., 128(a), RLF)

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Financial Incentives

Revolving Loan Fund (RLF) Incentive - loans

Rolling applications: first come, first served

Political subdivisions, non-profit and for-profit organizations

eligible; can re-loan to eligible 3rd party

Cleanup activities

Hazardous substances & petroleum contamination

Low-to-zero interest rate loans

Current balance/project targets TBD (RLF Supplemental awards)

Site awards obtain IFA Board approval

Funding source: U.S. EPA

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Financial Incentives

Phase I Initiative - professional services

Rolling applications: first come, first served

Political subdivisions eligible to apply for award of services

Phase I Environmental Site Assessment (ESA) activities

Hazardous substances & petroleum contamination

Bids solicited from IBP-qualified consultant pool for site work

Site awards obtain IFA Board approval

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Financial Incentives

IBP in partnership with IDEM – Petroleum Orphan Sites

Initiative (POSI) - professional services

Assists/benefits political subdivisions

Addresses petroleum contamination on brownfield sites resulting

from leaking underground storage tanks that cannot be addressed

by the responsible party due to an inability-to-pay, bankruptcy, or

other factors (orphan sites)

Includes site assessment, UST removal, and remediation

Also covers hazardous substances or petroleum contamination

from other on-site sources (e.g., hydraulic lifts, etc.) if funding is

available

Funding source: $3M ELTF transfer to IBP for SFYs ’14 &’15;

$2.91M ELTF transfer for SFYs ‘16 & ‘17

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POSI Process

No application

Sites referred by IDEM Enforcement and LUST programs

Petroleum Eligibility Determination (PED) if necessary

Site awards obtain IFA Board approval

Bids solicited from IBP-qualified consultant pool for site work

Assigned IBP Project Manager works with stakeholders

throughout process to ensure needs are met

NFA letter by IDEM is goal of IBP

Financial Incentives

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Indiana Brownfields Program (IBP) –environmental technical oversight, letters at no cost via request

form; can be outside of or serve as financial assistance

Comment Letters

Environmental liability

clarification/closure letters

(per non-rule policy)

- Comfort Letters (include BFPP language)

- Site Status Letters

- No Further Action Letters (petro. sites)

Technical/Legal Incentives

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Comfort Letter:

Issued to a party that qualifies for an applicable

exemption to liability found in Indiana law or

IDEM policy, but is not a legal release from

liability.

Explains the applicable liability exemption or

defense, or IDEM’s exercise of enforcement

discretion under an applicable IDEM policy.

Phase I ESA prior to purchase for due diligence!

Phase II ESA (recommended) for due

care/continuing obligations/reasonable steps!!

Technical/Legal Incentives –Liability Clarification Letters

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Comfort Letter:

Conduct an All Appropriate Inquiries (AAI)-compliant Phase I

ESA in accordance with ASTM 1527-13

(Due Diligence)

Meet five Continuing Obligations (Due Care)

1. Legally required notices

2. Appropriate Care/Reasonable Steps

a) a.) Stop continuing releases

b) b.) Prevent any threatened future release

c) c.) Prevent or limit human, environmental, or natural resources

exposure to any previously released hazardous substance

3. Land Use Restrictions and Institutional Controls

4. Cooperation/assistance, and access

5. Requests and Subpoenas

Technical/Legal Incentives –Liability Clarification Letters

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Comfort Letter:

More than one type of liability exemption/defense might

apply.

As long as the AAI requirements are fulfilled, a Comfort

Letter is not needed to qualify for the BFPP defense.

CL can be issued after purchase.

If timing of the property transaction is an issue, and a

Lender is the driver of the transaction, then IBP

recommends a Lender Liability Letter that has a much

quicker turnaround. Title search is main requirement, and

no ERC generated.

Technical/Legal Incentives –Liability Clarification Letters

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Site Status Letter: Issued to a non-responsible party that can demonstrate that

current levels of contaminants of concern substantially meet

current risk-based cleanup criteria as established by IDEM per its

Remediation Closure Guide (RCG)

Does not address the potential liability of the party

requesting the letter

States that based on a technical analysis of information

submitted to IDEM pertaining to site conditions, IDEM

concludes that current site conditions do not present a

threat to human health or the environment and that IDEM

does not plan to take or require a response action at the

brownfield site

Technical/Legal Incentives –Closure Letters

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Environmental Restrictive Covenants (ERCs) Attached to letters as necessary

Recorded/attached to property deeds

Describe land use restrictions (residential, commercial, industrial,

wells)

Include maps and tables

Discuss site contaminants of concern

- Hazardous substances

- Petroleum

Discuss affected media

- Soil

- Ground water

- Surface water

- Soil Gas

- Indoor Air

Technical/Legal Incentives –Liability Clarification/Closure Letters

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Leesburg: Former Leesburg Elementary School

Community need: New Maple Leaf Farms Headquarters

Resources: Comfort Letter -- For more details:

http://www.in.gov/ifa/brownfields/files/Brownfields_Bulletin_Winter_2012.pdf

Teamwork leads to Success!

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Indianapolis: Former National Malleable Castings

Community need: Residential redevelopment – Lincoln Apts.

Resources: Multiple, including Brownfields Program Letters

Teamwork leads to Success!

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Jeffersonville: Former BP Ellis Gas Station

Community need: Gateway to City

Resources: Brownfield RLF loan funds; NFA letter

Teamwork leads to Success!

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Brownfields: embrace opportunities to overcome

obstacles/challenges!

The end: begin with this in mind – reuse/revitalization vs. “just”

remediation…economic growth…quality of life….

Success: develop partnerships, talk with other successful

stakeholders & don’t reinvent the wheel.

Indiana Brownfields Program: inquire about tools and access

to other resources (not just money) to address environmental

issues to facilitate brownfield redevelopment.

Next steps: determine needs and ask for appropriate

assistance….

Brownfields Bottom Line

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Meredith Gramelspacher, Program Director /General Counsel 317- 233-1430

mgramels@ifa.in.gov

Michele Oertel, Federal Funding & Community Relations Coordinator 317- 234-0235

moertel@ifa.in.gov

Bonny Elifritz, Financial Resources Coordinator 317- 234-1688

BElifritz@ifa.IN.gov

Andrea Robertson Habeck, Technical Staff Coordinator 317-234-0968

aroberts@ifa.in.gov

Kyle Hendrix, Redevelopment Coordinator 317-234-4860

lhendrix@ifa.in.gov

Nancy Dollar, Planning Measures & Compliance Coordinator 317-234-9764

NaDollar@ifa.IN.gov

Check out the Indiana Brownfields Program web site at: www.brownfields.in.gov

Environmental Stewardship. Economic Development

Contact Information