Managing a Successful Brownfield RLF. Award History 2006$1million (Initial Capitalization) 2009$612,000 ARRA Funding 2010$400,000 Hazardous 2011$600,000.

Managing a Successful Brownfield RLF

Award History

2006 $1million (Initial Capitalization) 2009 $612,000 ARRA Funding 2010 $400,000 Hazardous 2011 $600,000 ($500,000 Hazardous and $100,000 Petroleum) 2012 $450,000 ($350,000 Hazardous and $100,000 Petroleum) 2014 $500,000 Hazardous

We have made over a dozen subgrants, including three ARRA awards

We have made seven loans and have three requests pending

The Team Approach to Success

In Vermont, the RLF is managed and administered by the Agency of Commerce and we work very closely with our Department of Environmental Conservation (DEC) team.

It is an economic development tool for developers, non-profits and municipalities. We are a small state and good news (read: availability of $$) travels quickly

We’ve contracted with our economic development lending authority to underwrite our loans.

Creation of the Brownfield Economic Revitalization Alliance (BERA)

Working with three other RLF Grantees, we can better leverage resources Southern Windsor County RLF Windham Regional Commission Northwest Regional Planning Commission

Selling the Loan Program

Working with our EPA partners, we’ve refined our loan program to ensure that borrowers see it as a critical piece of a capital stack. Negotiable loan terms Ability to turn around decisions and paperwork quickly Buy-in by banking community

First-dollar in on most projects which have jumpstarted some major redevelopment efforts in our state Revitalization of former mill buildings Enhancing our downtowns Enables creation of new housing and jobs

We market the RLF to a variety of different audiences – commerce and development folks, environmental professionals, lenders, etc.

Case StudyMaiden Lane, LLC

Background

• The property, prior to the turn of the 20th century, was home to a rail line and in approximately 1900, a two family dwelling was constructed. In 1945, a Dairy Queen was constructed.

• There was PAH, arsenic, lead and TPH present in the soil and PCE in soil gas

• Redstone Development saw an opportunity to redevelop this vacant site and build 28 units of housing, along with nearly 1500sf of commercial space.

• Capital sources include owner equity, bank financing, Vermont Community Loan Fund and Brownfield RLF funding.

Who is Redstone?

• Redstone has become one of the most innovative and progressive real estate firms in the region. Over the last 5 years, Redstone has been involved in real estate development and acquisitions totaling nearly $100 Million of value with more than 900,000 square feet of total building area spanning all sectors of real estate including residential, office, retail, industrial, warehouse, health care, hospitality, and recreation.

• The company has extensive experience working with environmentally sensitive sites in tight urban locations.

• Redstone often partners with municipalities and community development organizations in the shared goal of creating well-designed, sustainable and healthy communities.

• They are also working with us and our partners on redevelopment of other key sites in the City of Burlington

Progress!

Vermont Tissue Redevelopment

Vermont Tissue Redevelopment

• Carbon Zero is the brainchild of serial entrepreneur Bill Scully who had never dealt with a brownfield…or FERC…but succeeded with both

• Carbon Zero’s redevelopment of the Vermont Tissue Mill utilized:

– $168,951 in the form of a loan from the Brownfields Revolving Loan Program– $25,000 in grant funding from the Regional Economic Development Grant

Program– $8,750 in incentive funding from the Vermont Public Service Board– $801,609 loan from the Vermont Economic Development Authority– $751,306 loan from a local bank – $800,000 from private parties

Vermont Tissue Redevelopment

Managing Your RLF

Tips from Downriver Community Conference

Paula Boase Director, Economic Development

A. Description of Downriver Community Conference (DCC) Coalition

• DCC began in 1977 when unemployment in the area was 35% as a result of major plant closures. 17 Downriver communities joined together and applied for a Federal grant to help put people back to work. The DCC is a 501c3 with a board comprised of Mayors and Township Supervisors. The DCC is also a governmental agency organized under Public Act 7.

• It began in the basement of a member community City Hall with one desk and one phone.

A. Description of Downriver Community Conference (DCC) Coalition

The DCC today has 20 communities spanning 3 counties:

- The smallest is 10,000 residents - The largest 125,000 residents - Total service area is over 450,000 people

Flexibility is our greatest strength. The ability to respond to regional challenges has always been a priority.

DCC’s region is heavily industrial and brownfield sites are too numerous to list.

A. Description of Downriver Community Conference Coalition - History of Funding

History of funding:

1997 received a $150,000 pilot grant to develop a plan to redevelop brownfields.

1999 to 2014 received $6,400,000 from the RLF program.

A. Description of Downriver Community Conference Coalition - Funded Projects through 2014

Sub grants: 8 - $2,446,194 awarded

Loans: 5 - $3,871,000

Program Income: $175,000 (just started $ return 2014)

Total return by 2022: $4,000,000

Terms of A Loan : 15 years

• No repayment the first 5 years

• Total loan repayment occurs in last 10 years May be paid back annually, semi-annually or Quarterly.

• Private development incurs a 2% rate and is adjusted to match the State’s current rate.

B. VenTower Project

• Project description:To build a 115,000 square foot state of the art facility on 38 acres that was once a land fill for steel slag. It sat vacant for many years. The intent was to redevelop a brownfield site that previously provided no tax base.

• Regional Benefits and prioritizing projects: The goal was to bring new manufacturing jobs to this region. This project would create 200 jobs over the next two years. The jobs starting pay is $18.00 per hour with a very good benefit package.

• The new plant will make VenTower among a handful of U.S. firms that manufacture wind towers. They are 240 feet high and as big as 14 feet in diameter.

B. VenTower Project (Continued)• DCC saw this as high economic impact that all communities would benefit from over time. Growth potential is tremendous with a U.S. goal to make wind power 40% of our energy output over then next 10

years. In addition this is evidence of Michigan’s plan for diversification of its manufacturing base.

• Leveraging of dollars - a $19 million project coming from a variety of resources and a group effort:

– $4,000,000 SBA 504 Loan– $2,252,000 EPA RLF Loan– $2,500,000 federal advanced-Energy manufacturing tax credit– $3,700,000 state employment credit – $5,800,000 brownfield redevelopment credit

B. VenTower Project (Continued)

• City of Monroe will provide some infrastructure improvements to the Port of Monroe to support the industry as well as 50% property tax break.

• Monroe County Community College issued bonds to help pay for specific worker training for the company

• There will be a first source agreement for job postings through “Michigan Works”

C. Factors for Success

• Regional approach and goals

– DCC Brownfield Consortium acts as a unit.

– The goal is to advance projects that will bring economic development to the region.

– Each member community has a vote.

– Each project is weighed on economic impact and job creation that it will bring to the region.

C. Factors for Success

• One-stop shopping for brownfields issues and funds (leveraging); catalyst role

DCC is a resource that covers many areas of brownfield redevelopment as one stop:

– EPA assessment/RLF funds – SBA 504 Loan program– Michigan Works Employment Service– Community/Federal/State and locally elected Officials

support

C. Factors for Success

• Partnering and participation - “all for one” vs. “what’s in it for me”

• There is no “i” in DCC’s brownfield team. • All projects are supported if they benefit the region.

• The DCC does not have a set budget for each member community nor is there a set number of projects in an individual community.

Project pictures

Questions:

• Contact: Paula Boase

• Downriver Community Conference

• 734-362-3477

• [email protected]