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2/10/2016 1 Milwaukee’s Brownfield Program: Turning Challenging Properties into Assets for the Community Milwaukee’s Brownfield Program: Turning Challenging Properties into Assets for the Community Wisconsin Economic Development Association February 5, 2016 Where three rivers came together and flowed into Lake Michigan Where three rivers came together and flowed into Lake Michigan
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Page 1: Milwaukee’s Brownfield Program: Turning Challenging ...c.ymcdn.com/sites/€™s Brownfield Program: Turning Challenging Properties into Assets for the ... •104 East Nash Street

2/10/2016

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Milwaukee’s Brownfield Program: Turning Challenging Properties into Assets for the Community

Milwaukee’s Brownfield Program: Turning Challenging Properties into Assets for the Community

Wisconsin Economic Development AssociationFebruary 5, 2016

Where three rivers came together and flowed into Lake Michigan

Where three rivers came together and flowed into Lake Michigan

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A First-Rate Location for Global CompaniesA First-Rate Location for Global Companies

8 Fortune 500 headquarters (5th highest per capita in U.S.)

7 Fortune 501-1,000 headquarters, plus U.S. headquarters for GE Healthcare

4 Forbes 500 companies (largest closely-held businesses)

Manufacturing Defines Our PastManufacturing Defines Our Past

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Original Uses: Shipping

© 1995 John N. Angelos

Manufacturing Defines Our PastManufacturing Defines Our Past

Manufacturing Defines Our Past…Manufacturing Defines Our Past…

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But has created hundreds of Brownfields

But has created hundreds of Brownfields

History of Milwaukee’s Brownfields Program

History of Milwaukee’s Brownfields Program

• Prior to 1988 City foreclosed on any and all tax delinquent properties

• Once foreclosure occurs, City has to manage properties –public safety

• Drums, ASTs, & USTs full of hazardous materials, acids, chromium, & PCBs

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• Protect the City from unknowingly acquiring environmental liability

• In-rem screenings

• Do Not Acquire List

• Real estate transactions

• 104 East Nash Street

History of Milwaukee’s Brownfields Program

History of Milwaukee’s Brownfields Program

• Protect public health, safety and the environment

• Facilitate redevelopment projects

• Increase tax revenue for the city

History of Milwaukee’s Brownfields Program

History of Milwaukee’s Brownfields Program

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Redevelopment Authority of the City of Milwaukee (RACM)

Redevelopment Authority of the City of Milwaukee (RACM)

• Mission

– “…eliminate blighting conditions that inhibit neighborhood reinvestment, to foster and promote business expansion and job creation, and to facilitate new business and housing development.”

• Tools for Economic Development

– Acquisition and disposition of property, preparation and implementation of redevelopment plans, issuance of bonds, and approval of TIF Districts

Brownfield Financial ToolsBrownfield Financial ToolsCity:

CDBG, MEDC Matching Grants, TIF Districts

State:

WDNR – WAM, RLF, 75.106

WEDC - Brownfield Grants, Site Assessment Grants

Federal:

USEPA - Assessment & Cleanup Grants, BCRLF, Areawide Planning, Workforce Training

HUD – BEDI, EDI

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Valley SettingMenomonee Valley – The Heart of Our City

Valley SettingMenomonee Valley – The Heart of Our City

MENOMONEE VALLEYMVIC Site

Decades of decay……Decades of decay……

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Renewal MissionRenewal Mission

• Implement an innovative development plan that is…– Environmentally protective

• Protective Remedies

• Green Demolition / Beneficial Reuse

• Sustainable Building Guidelines (33% site coverage, LEED-like construction)

– Economically sustainable• Job creation (1.5 jobs per 1,000 ft2 of building, family-supporting wages)

• Tax base addition

– Socially responsible• Natural, aesthetic, and recreational resource enhancement

• Small, disadvantage business participation

Menomonee Valley Industrial Center (MVIC) and Community Park

Menomonee Valley Industrial Center (MVIC) and Community Park

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Tax Incremental Financing District #53Tax Incremental Financing District #53

• TID #53 for the Menomonee Valley was created in 2003 to:– Rehabilitate developable real estate and establish

necessary infrastructure in the area including demolition, remediation, filling, storm water improvements, and installation of roads, utilities, and landscaping.

– Authorized expenditure (excluding interest): $21,800,000– Projected TID dissolution: 2029 (Feasibility study showed

23 years) – Maximum legal life: 2031– Base property value: $4,752,300

• Grants - $12.4 MillionState of Wisconsin Grants

Grant Dollar

Blight Elimination & Brownfield Redevelopment

3 totaling $2.2 million

Brownfield Greenspace and Public Facilities

$200,000

Brownfield Site Assessment Grant $100,000

Wisconsin Coastal Management Grant

2 totaling $200,000

Sustainable Use Development Zone $400,000

Financial Tools used in the MVIC

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• Grants - $12.4 MillionFederal Grants

Grant Dollar

Brownfield Economic Development Initiative (BEDI)

$2 million

Great Lakes Basin Protection 2 totaling $70,000

Federal Earmarks 3 totaling $2.9 million

Federal Brownfields Cleanup Grant

$200,000

Federal Brownfields Revolving Loan Fund Subgrant

$200,000

Economic Development Administration

$1.9 million

Financial Tools used in the MVIC

• Two Loans - $10.5 Million– Federal Brownfields Revolving Loan Fund

- $500,000• Redevelopment Authority to Milwaukee

Economic Development Corporation• Repaid with grant

– Section 108 Loan Guarantee - $10 million• Signed Agreement – 08/06 • $10 MM wired to City – 10/06 • Repaid with TIF 11/06 (solely to receive $2

million BEDI)

Financial Tools leveraged by TID #53Financial Tools leveraged by TID #53

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• Other Sources• Soil Brokering - $1.5 million• Non-profit Connection (Menomonee Valley Partners)

– 3 Federal Earmarks - $650,000– State Commerce Grant - $400,000– Stewardship Grant

• Tax Credits and Incentives– Business Improvement District– New Market Tax Credits – 6 of 7 end users– Stormwater Maintenance Agreement

Financial Tools leveraged by TID #53Financial Tools leveraged by TID #53

Environmentally ProtectiveSustainable Solutions to Complex Problems

Environmentally ProtectiveSustainable Solutions to Complex Problems

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Environmentally ProtectiveSustainable Solutions to Complex Problems

Environmentally ProtectiveSustainable Solutions to Complex Problems

Economically SustainableJob Creation & Tax Base Addition

Economically SustainableJob Creation & Tax Base Addition

Caleffi Hydronics

Derse

BadgerRailing

Charter Wire

Taylor Dynamometer

Palermo Villa

Ingeteam

J.F. Ahern

Solaris

J.F. Ahern

Rishi Tea

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Economically SustainableJob Creation & Tax Base Addition

Economically SustainableJob Creation & Tax Base Addition

Socially ResponsibleNatural & Recreational Resource Enhancement

Socially ResponsibleNatural & Recreational Resource Enhancement

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Socially ResponsiblePedestrian and Bike ConnectionsSocially Responsible

Pedestrian and Bike Connections

Keys to SuccessKeys to Success

• Staying true to the vision– Environmentally protective – Economically sustainable– Socially responsible

• Stakeholder collaboration throughout– The City– Valley stakeholders– Regulatory agencies– The public

• Continuous value engineering• Leveraging the model across the city

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Financial Creativity Can Take This:Financial Creativity Can Take This:

To the 2009 Phoenix Award Winner for Environmental LeadershipTo the 2009 Phoenix Award Winner for Environmental Leadership

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Brownfield Project

Loan and/or Subgrant Amount

Projected Redevelopment

Investment

Projected Jobs Created/ Retained

Acres Made Ready for Development

Total Cleanup Cost New Development

Solar Paints and Varnishes

$760,000 $1,400,000 65 6 $900,000 Marshall Erecting

Milwaukee RoadShops

$690,000 $60,000,000 1,300 130 $20,000,000 Menomonee Valley Industrial Center

Ampco Foundry $420,000 $10,000,000 200 17 $2,300,000 Stadium Business Park

KramerInternational

$650,000 $6,500,000 213 1 $812,000 Affordable Housing/Retail and Office Space

Stockyards $1,250,000 $16,000,000 200 10 $1,300,000 Ziegler Bence/Proven Direct - Industrial Space

Pfister & Vogel $1,100,000 $175,000,000 90 8 $7,900,000 Retail Space and The North End Condos

Aelco Foundries $500,000 $5,000,000 55 3 $1,500,000 National Headquarters/Office

Space 5th and Cherry $550,000 n/a n/a 1 $862,000 MEDC-owned property to

be sold for redevelopment

Milwaukee Fix Project

$565,000 $7,500,000 20 1 $765,000 Mixed use/commercial/retail

Bay View Apartments

$680,000 $13,000,000 20 1 $1,300,000 Affordable housing/commercial

developmentCentury City $700,000 $34,500,000 700 84 $7,000,000 Light

Industrial/Commercial Business Park

The Brewery Works

$1,250,000 $26,000,000 600 2 $2,500,000 Office building redevelopment

Park East Two $1,000,000 $22,000,000 60 2 $1,800,000 Mixed use/commercial/retail

$10,115,000 $376,900,000 3,523 266 $48,939,000

Brownfield RLF Program

• DemolitionandnewconstructionforcompanyheadquartersatformerAelco Foundry.

• Sitewascontaminatedanddeveloperincurredconsiderableenvironmentalcleanupcoststoredevelopthesite

• RACMEPABrownfieldsRevolvingLoanFund

Brownfield RLF Program

Paul Davis Restoration:$5 million total project investment

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Before

After

Brownfield RLF Program

Paul Davis Restoration:$5 million total project investment

• Newconstructionformulti‐tenantcommercial/officeandlightmanufacturingbuilding

• Greenbuildingtechnologiesthroughout• MilwaukeeEconomicDevelopmentCorporationSiteAssessmentGrantforassessment($15,650)

• RACMEPABrownfieldsRevolvingLoanFund

Brownfield RLF Program

Milwaukee Fix/Clock Shadow Building$7.5 million total project investment

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Before

After

Brownfield RLF Program

Milwaukee Fix/Clock Shadow Building$7.5 million total project investment

Dave Misky, Assistant Executive Director,

Redevelopment Authority of the City of Milwaukee

[email protected]

414-286-8682