tim sullivan, deputy commissioner revitalizing connecticut’s brownfields

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Tim Sullivan, Deputy Commissioner Revitalizing Connecticut’s Brownfields

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Tim Sullivan, Deputy Commissioner

Revitalizing Connecticut’s Brownfields

Office of Brownfield Remediation and Development

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Table of Contents

I. The Brownfield Imperative

II. Program Updates

III. OBRD Programs and Funding Opportunities

IV. Q&A / Discussion

Office of Brownfield Remediation and Development

The Brownfield Imperative

Office of Brownfield Remediation and Development

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The Challenge

Connecticut’s – and America’s – economy is in constant transition, and our built environment must adapt as well• The development of factories and mills drove the creation and growth of

Connecticut’s cities and towns• Many of these facilities operated before modern environmental laws

existed, leaving behind significant contamination and hazardous waste• In many cases, properties have been left abandoned for decades, and

the original polluter is long, long gone• There are thousands of abandoned or underutilized properties

languishing in nearly every city and town in Connecticut

These Sites are Market Failures Requiring Public Investment to Be Resolved

Office of Brownfield Remediation and Development

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Why Brownfield Development?

Pollution Cleanup &

Public Health

Job Creation & Economic

Growth

Downtown Revitalization

Less Development Pressure on Open Land

Brownfield Development

More Properties On The Tax Rolls

Historic Preservation

“Cleaning up Connecticut brownfields is an important component of our economic development agenda.” – Gov. Dannel P. Malloy

Office of Brownfield Remediation and Development

Program Updates

Office of Brownfield Remediation and Development

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Connecticut has made an unprecedented commitment to investing in brownfield redevelopment• Since FY2012, the State has invested $138m in 100+ projects to

remediate and redevelop contaminated sites across the State

• In FY2015, $41.5m was contracted with cities, towns, non-profits and developers

• For every dollar invested by the State, $4.53 has been or will be invested by non-State partners

• FY2015 projects: $6.29 for every $1 invested by the state

• $40m of new funding was authorized for FY16-17, up from $30m in previous biennium

An Historic Commitment to Brownfields

Office of Brownfield Remediation and Development

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DECD worked closely with DEEP and the Brownfields Working Group to advance several program improvements

• New program: Brownfield Areawide Revitalization (BAR) Grants

• Loan/Grant programs:• Equalizing maximum loan and grant sizes• Ending municipal authority to pass grants through as loans• Enabling DECD to award additional grant funds for legitimate

unexpected cost overruns• Exempting HBM-only loans from VCP requirements

• Expanding State-owned brownfield initiative to include formerly State-owned sites

2015 Legislative Changes

Office of Brownfield Remediation and Development

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Success Stories: Two Roads Brewery, Stratford

Office of Brownfield Remediation and Development

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Success Stories: Two Roads Brewery, Stratford

$500K OBRD Grant; $20m+ total private investment

Office of Brownfield Remediation and Development

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Capewell Horse Nail Company - Hartford

Built 1902, 170,000 Sq. Ft., Vacant Since the 1980s

Office of Brownfield Remediation and Development

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Capewell Horse Nail Company - Hartford

Groundbreaking, July 22 2015

Office of Brownfield Remediation and Development

OBRD Programs and Funding Opportunities

Office of Brownfield Remediation and Development

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OBRD: How Can We Help?

Connecticut has developed a suite of tools to encourage the remediation and redevelopment of brownfields

Grants (Municipalities and Economic

Development Agencies)

Low-Interest Loans (Developers,

Municipalities, Agencies)

Liability Relief

Tax Increment Financing

Office of Brownfield Remediation and Development

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Connecticut statute provides several opportunities to relieve potential liabilities associated with brownfields• Municipal Brownfields Liability Relief: Provides state and third party

liability relief, exemption from Property Transfer Act; not required to fully investigate or clean up but required to serve as good stewards of the land

• Brownfield Remediation and Revitalization Program (BRRP): Up to 32 properties per year that enter into the VCP and pay 5% of the property’s assessed value to DEEP are eligible for relief from offsite liability

• Abandoned Brownfield Cleanup (ABC) Program: Properties that have been unused or underutilized for 5 years or more can apply to be held harmless for offsite contamination resulting from conditions onsite

• Properties must enroll in DEEP’s Voluntary Cleanup Program (VCP)

Liability Relief for Brownfields

“Responsible Parties” are ineligible for liability relief and State funding

Office of Brownfield Remediation and Development

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OBRD administers a Municipal Grant Program (MGP)

• Eligible Applicants: Municipalities and economic development agencies

• Funding Amounts: Grants of up to $4 million• Grants are reimbursement-based

• Application Process: Municipal Grants are awarded on a competitive basis through periodic funding rounds

• Next round: Applications posted September 28, due November 9

• New Program: Brownfield Areawide Revitalization (BAR) Grants

OBRD Financial Assistance: Grants

• Comprehensive planning, moving from traditional site-by-site to area-wide approach

• Modeled after EPA’s Area-Wide Planning Program

• Pilot round: $1 MM funding availability• Application published September 16, due November 16• Maximum grant: $200,000 (10% local match)

• Eligible entities - Municipalities, Economic Development Agencies, and COGs

• Eligible activities: community visioning, existing conditions analysis, limited ESAs, GIS mapping, market studies, marketing to developers, site portfolio, local zoning revisions and other actions to spur investment

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Brownfield Areawide Revitalization Grant

Office of Brownfield Remediation and Development

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OBRD administers a Targeted Brownfield Development Loan Program (TBDLP)• Eligible Applicants: Potential brownfield purchasers and current

owners (including municipalities)

• Funding Amounts: Loans of up to $4 million

• Terms: Low-interest, flexible/deferred interest; maximum 20-year term

• Application Process: Loans are awarded in a “rolling rounds” process• Applications are batched and reviewed on February 1, April 1,

July 1, October 1• At the discretion of the Commissioner, applications will be

considered for funding outside of this schedule

OBRD Financial Assistance: Loans

Office of Brownfield Remediation and Development

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Costs associated with the investigation and re-development of a brownfield, including but not limited to:

• Soil, groundwater and infrastructure investigation

• Assessment

• Remediation

• Abatement

• Hazardous materials or waste disposal

• Long-term groundwater or natural attenuation

Eligible Uses of DECD Funding

• Other institutional controls

• Attorneys fees

• Planning, engineering and environmental consulting

• Building and structural issues

• Environmental insurance

Office of Brownfield Remediation and Development

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Please reach out to us with any questions on any element of a brownfield project

Follow us: @CTBrownfields

www.ctbrownfields.gov

[email protected]

OBRD Contact Information

Office of Brownfield Remediation and Development

Q&A / Discussion

Tim Sullivan, Deputy Commissioner

Revitalizing Connecticut’s Brownfields