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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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