Brownfields: On the Road to Redevelopment
- 1. BROWNFIELDS ROADTO REDEVELOPMENT PRESENTED BYTHE NATIONALTECHNICAL ASSISTANCETO BROWNFIELDS COMMUNITIES (TAB) PROGRAM OCTOBER 2020 Maggie Egbarts, Kansas State University (KSU) Mary Hashem, Adaapta; CCLR; RE | Solutions Colette Santasieri, New Jersey Institute ofTechnology (NJIT)
- 2. AGENDA Welcome and Introductions ‒ Presenters ‒ TAB Program Brownfields Redevelopment Recap Funding Sources & Financing Options − How to think about financing a brownfield deal − Finding the right money at the right time Redeveloping for Resilience − Transforming brownfields sites for social equity, economic rebound, and climate change Q&A 2NADO CONFERENCE 10/21/2020
- 3. PRESENTERS NADO CONFERENCE 3 Maggie Egbarts is a KSUTAB services coordinator assisting communities, tribes and local governments in U.S. EPA regions 5, 6, 7, and 8 navigate the waters of reuse and redevelopment of underutilized, vacant, blighted properties. Maggie has a Bachelor’s degree in Environmental Studies from the University of Kansas and over 16 years of experience in environmental assessment, cleanup, regulatory compliance and property revitalization, grant management, and technical writing. Colette Santaiseri, PhD: Dr. Santaiseri is the Executive Director of the New Jersey Institute of Technology'sTAB Program. She possesses over 35 years of environmental, infrastructure, land use, and community revitalization planning experience, with an expertise in the planning and design of sustainable and resilient communities, properties, and civil infrastructure systems. Dr. Santasieri holds a PhD in Urban Systems, an MS in Civil Engineering, and a BS in Environmental Planning and Design Mary Hashem is the President ofAdaapta, a woman-owned small business serving local governments and non-profits at the intersection of economic development, planning and brownfields revitalization. Mary is also a Principal with RE | Solutions, a brownfields acquisition and development company, and serves as the Board Chair for the Center for Creative Land Recycling. Mary has 30 years experience in land revitalization. 10/21/2020
- 4. TECHNICAL ASSISTANCETO BROWNFIELD (TAB) COMMUNITIES Assist communities and tribes with the brownfields redevelopment process A national program funded by U.S. EPA grant Services provided are FREE and tailored to specific needs Planning, environmental & economic development expertise Webinars, workshop, e-tools (e.g., BiT,TAB EZ) & online resources EPA Regions Three TAB service providers Kansas State University (KSU) assists in EPA Regions 5, 6, 7 & 8 Center for Creative Land Recycling (CCLR) assists in EPA Regions 2, 9, and 10 New Jersey Institute ofTechnology (NJIT) assists in EPA Regions 1, 3, and 4 NADO CONFERENCE 410/21/2020
- 6. TAB SERVICES MAY INCLUDE Help identifying and inventorying brownfields Strategic planning and redevelopment visioning Economic feasibility and sustainability analysis Educational workshops and webinars Community outreach and input Help identify funding sources Review of U.S. EPA Brownfields grant applications Help finding and evaluating environmental consultants Review of plans and technical reports Fact sheets and information Other assistance, as needed and agreed upon 10/21/2020NADO CONFERENCE 6
- 7. LEGAL DEFINITION OF BROWNFIELDS “…real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” (Public Law 107-118 (H.R. 2869) - “Small Business Liability Relief and Brownfields Revitalization Act”, signed into law January 11, 2002). 710/21/2020NADO CONFERENCE
- 8. TYPICAL RURAL BROWNFIELDS SITES Abandoned Railroad Property Abandoned Gas Stations Agricultural Buildings (elevators, silos, flat storage) Automotive Repair Shops Abandoned Buildings Old Schools 10/21/2020NADO CONFERENCE 8
- 9. BROWNFIELDS FURTHER DEFINED Not just any contaminated site A brownfield project is a redevelopment project that is often impeded by environmental concerns − Old industrial or commercial sites, vacated downtown corridor, abandoned school building, etc. − Range of sizes big to small 910/21/2020NADO CONFERENCE
- 10. THE BROWNFIELDS REDEVELOPMENT PROCESS AND KSUTAB ASSISTANCE Plan Investigate Redevelop Assist with the environmental consultant or qualified environmental professional Guidance through regulatory process Review of environmental reports and other documents Identify Brownfields Engage the Community Set Redevelopment Goals Stakeholders & Partners Financial Resources Reuse Strategies 10/21/2020NADO CONFERENCE 10
- 11. IDENTIFY BROWNFIELDS Make a list (inventory) of potential sites – Look for red flags (former gas station, dry cleaner, industrial). – Are environmental unknowns a barrier to redevelopment? – Ongoing environmental actions? How can these sites meet your redevelopment goals? KSUTAB Brownfields Inventory Tool 10/21/2020NADO CONFERENCE 11
- 12. ONLINE DATA MANAGEMENTTOOL Stores & Manages Site Data: Site survey & inventory Mirrors the brownfields redevelopment process − Site details − Assessment, cleanup, institutional controls − Redevelopment Upload photos and documents Generate maps Access anytime Access anywhere (mobile app) YOU OWNTHE DATA 10/21/2020NADO CONFERENCE 12
- 13. COMMUNITY ENGAGEMENT Engagement with community is a two-way street – to inform and gather input Use input received to help inform redevelopment goals Synergies and partnerships being to form Ensure engagement continues throughout the project. Community Input Information Sharing 1310/21/2020NADO CONFERENCE
- 14. IDENTIFY STAKEHOLDERS Local non-profits, community groups, church groups Community Development Corporations Local leadership – mayor, town manager, county commissioner Local planners Regional Planning Commission Economic Development interests Financial Institutions All interested residents 10/21/2020NADO CONFERENCE 14
- 15. 10/21/2020NADO CONFERENCE 15 COMMUNITY ENGAGEMENT ACTIVITIES
- 16. SET REDEVELOPMENT GOALS Define the vision for the site, area, and/or region − Involve all stakeholders − What are the economic, community, and environmental needs & opportunities to DRIVE redevelopment − Do community plans exist? If so, review for already established goals. If these plans do not exist , work with stakeholders to create them. TAB Assistance to Communities − Strategic planning and reuse visioning − Economic feasibility and sustainability analysis − Facilitate meeting to help refine redevelopment goals − Educational workshops 10/21/2020NADO CONFERENCE 16
- 17. VILLAGE OF EASTTROY, WI 10/21/2020NADO CONFERENCE 17
- 18. INVESTIGATION Help find and evaluate environmental consultants Review and explain to the community technical plans and reports Guidance through regulatory framework Review grant proposals for funding sources Review Analysis of Brownfield Cleanup Alternatives (ABCA) NADO CONFERENCE 10/21/2020 18
- 19. REDEVELOPMENT Key to success for any redevelopment project is public involvement and having the right players on board Refer back to master plans, community input, and established goals TAB Assistance to Communities − Resources Roadmaps − Feasibility study; Market analysis − Facilitate Resource Roundtables Jobs and services Transportation options Housing, schools, parks Other 10/21/2020NADO CONFERENCE 19
- 20. OTHERTAB RESOURCES EducationalWorkshops Webpage full of resources ‒ www.ksutab.org ‒ https://www.cclr.org/technical- assistance ‒ https://www.njit.edu/tab Other assistance as needed and agreed upon TAB EZ Grant-writingTool ‒ User friendly and can be accessed anytime at the user’s own pace ‒ User name/password – PRIVACY PROTECTION ‒ Primary user can give access to collaborators ‒ Helpful Hints for grant criteria to be addressed ‒ Integrates Brownfield education with online support: definitions, proposal guidelines, pertinent federal/state web links, and past successful proposals 10/21/2020NADO CONFERENCE 20
- 21. FUNDING SOURCES & FINANCING OPTIONS • How to think about financing a brownfield deal • The right money at the right time • Funding sources and financing options
- 22. HOWTOTHINK ABOUT FINANCING A BROWNFIELD DEAL Debt vs. Equity Sources & Uses Building the Capital Stack The Right Money at the RightTime October 21, 2020NADO CONFERENCE 22
- 23. SOURCES & USES October 21, 2020NADO CONFERENCE 23 Sources Equity Developer equity Private equity Grants Public Financing Debt Loans Bonds Public Financing Uses Community Outreach Planning Environmental & Geotech Assessment Purchase Price Legal,Title, Survey Insurance Cleanup Development Costs
- 24. October 21, 2020NADO CONFERENCE 24 FUNDING SOURCES Entity Role Funding ASARCO Multi-State Custodial Trust Dispose of ASARCO Assets / Property Owner $14.5 million CDPHE + ASARCO National Trust Grants $500,000 Globeville I, LLC Developer / Equity $2.25 million HUD Section 108 (Adams County) Debt $10.0 million HUD CDBG (Denver) Grant $750,000 Total Project $28 million PROJECT USES Use Amount Abatement, Demolition, & Remediation $16.9 million Over lot Grading, Onsite & Offsite Infrastructure $10.0 million Planning, Approvals, Fees, Overhead, & Other Soft Costs $1.1 million Total Project $28 million Example Sources and UsesTable
- 25. THE CAPITAL STACK Capital Stack is a term used to describe the layers of funding of different types and sources that go into financing a real estate deal. When properly depicted, it also represents the relative risk that each investor holds in the deal, with sources at the bottom of the stack being more secure, and those at the top bearing the most risk. October 21, 2020NADO CONFERENCE 25
- 26. October 21, 2020NADO CONFERENCE 26 Examples of Capital Stacks Equity Preferred Equity Junior/ Mezz Debt Senior/ Secured Debt Equity Junior Debt (2nd Mtg) Senior/ Secured Debt Equity Secured Debt (1st Mtg) Equity Senior/ Secured Debt Junior Debt Home Loan w/2nd Mtg. Commercial Real Estate Brownfield
- 27. THE RIGHT MONEY ATTHE RIGHTTIME Plan and structure the Capital Stack with an eye to how and when the dollars will be used. Early stages of a project need funding or in-kind services for planning, assessment and community outreach. Later stages of a project need funds for cleanup, infrastructure, and construction. Assess and plan for long-term care. October 21, 2020NADO CONFERENCE 27
- 28. FUNDING SOURCES & FINANCING OPTIONS October 21, 2020NADO CONFERENCE 28 Public Sources EPA Grants (Cleanup, Assessment, Planning) Revolving Loan Funds Tax Increment Financing (TIF) Bonds Special Districts State or Regional Sources Federal Agencies (other than EPA) Private Sources Developers Private Sector Investors (“private equity”) Banks Foundations Corporate Philanthropy In-Kind Support TBA assistance TAB support
- 29. FUNDING SOURCES & FINANCING OPTIONS October 21, 2020NADO CONFERENCE 29 Examples of Non-EPA Federal Program Funding Sources • Housing and Urban Development (HUD) 108 loans, CDBG and Choice Neighborhood grants • Tax Credit Programs New MarketTax Credits HistoricTax Restoration Credits Opportunity Zones Low Income HousingTax Credits Energy Efficiency and Renewable EnergyTax Credits • USDA Grants • Economic Development Administration Grants
- 30. RESOURCES EPA Publications Setting the Stage for Leveraging; Resources for Brownfields Revitalization, April 2016 2019 Federal Programs Guide, September 2019 Available at www.epa.gov/brownfields Technical Assistance to Brownfields Communities (TAB) October 21, 2020NADO CONFERENCE 30
- 31. REDEVELOPING FOR RESILIENCE: TRANSFORMING BROWNFIELDS SITES FOR SOCIAL EQUITY, ECONOMIC REBOUND, AND CLIMATE CHANGE Colette Santasieri, PhD Executive Director New Jersey Institute ofTechnology Technical Assistance to Brownfield Communities Program (NJIT TAB) October 21, 2020 10/21/2020NADO CONFERENCE 31
- 32. Resilience the ability of a community to respond to and recover from adversity 10/21/2020NADO CONFERENCE 32
- 33. Wilmington Delaware, Southbridge neighborhood Photo courtesy of Bryan P. Lennon
- 34. South Wilmington Wetlands Park Rendering courtesy of Kimley-Horn
- 35. Rendering courtesy of Kimley-Horn South Wilmington Wetlands Park 10/21/2020NADO CONFERENCE 35
- 36. Photo courtesy of Green Mountain Power Stafford Hill Solar Farm Rutland, VT
- 37. Sparta, Tennessee Photo courtesy of Tennessee Department of Environment and Conservation 10/21/2020NADO CONFERENCE 37
- 38. Jackson Kayak Photo courtesy of Tennessee Department of Environment and Conservation
- 39. Source: Seth McConnell, The Denver Post Aurora, Colorado
- 41. Pawtucket, Rhode Island 10/21/2020NADO CONFERENCE 41
- 42. Farm Fresh Rhode Island
- 44. Burns Street Nutrition Center
- 45. Tips on Building Community Resilience by Redeveloping Brownfields It will take a village- Create a Collaborative Planning Team. Potential team members • Government representatives, such as: • Elected officials • Health Department • Police or Public Safety Department • Engineering Department • Planning Department • Economic Development Authority • Redevelopment Agency • Housing Department • Community Development Department • Environmental Commission • Parks Department Determine the mission and goals of your team. • Environmental Justice Organization • Chamber of Commerce • Faith Based Organization • Local Business Owners • University 10/21/2020NADO CONFERENCE 45
- 46. Tips on Building Community Resilience by Redeveloping Brownfields Understand the community’s vulnerabilities.
- 47. Tips on Building Community Resilience by Redeveloping Brownfields Inventory your brownfield sites.
- 48. Tips on Building Community Resilience by Redeveloping Brownfields Match your brownfield sites with the vulnerabilities, but take a systems approach. 10/21/2020NADO CONFERENCE 48
- 49. Tips on Building Community Resilience by Redeveloping Brownfields 10/21/2020NADO CONFERENCE 49
- 50. NJIT TAB Colette Santasieri, PhD Executive Director, NJIT TAB santasieri@njit.edu 973-642-4165 www.njit.edu/tab EPA Regions 1, 3, 4 10/21/2020NADO CONFERENCE 50