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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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
• 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
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