Brownfield Assistance Program

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Loans (Public Sector)
Loans  (Private Sector)
Federal Loans and Programs
DNREC VCP
Tax Credits (Local)
Tax Credits (State and Federal)
Environmental Insurance
Environmental Consultants
Useful Resources

The Delaware Economic Development Office (DEDO) administers this Program designed to assist owners and developers and encourage the redevelopment of environmentally distressed sites within the State through a matching grant program.
The program is linked with DNREC’s Brownfield assistance program and offers the lesser of up to $100,000 or 50% of the costs associated with the investigation and remediation of a Brownfield site. Phase I costs are excluded from the Program and unlike DNREC”s Program, each project must have an employment impact of a minimum of 5 permanent full-time jobs.

To be eligible for DEDO’s Program, the owner, prospective owner or developer must first obtain a Brownfield Certification through The Department of Natural Resources and Environmental Control (DNREC) that recognizes the site as a Brownfield. After Certification has been obtained, an application can be sent to DEDO for evaluation and processing.

Reimbursement occurs upon receipt by DEDO of copies of paid receipts for the investigation and remediation costs incurred.

Why you should consider redeveloping a Brownfield.

• Many Brownfield properties have ideal business locations, central to existing markets and transportation modes.
  
• In most cases infrastructure is already in place, allowing for expedited real estate decisions.
  
• Brownfields represent hidden opportunities. Many of these have temporarily depressed real estate values. After remediation occurs, those values are allowed to react to normal market forces.
  
• A reclaimed Brownfield is good for the community and increases the value of surrounding properties.
  
• Recycling commercially and industrially zoned properties creates new opportunities for job creation.
  
• Protection from future liability is available through DNREC.

Frequently asked questions concerning DEDO’s Brownfields program:

Who can apply? Developers and businesses that own the Brownfield site or who have an expressed intent to ultimately own the property. Reimbursement can only be made to entities that hold title to the property.

What are the employment requirements to be eligible for DEDO’s program? The DEDO program for looks for an employment minimum of 5 jobs.

How does DEDO determine what assessment and remediation costs are reimbursable? DEDO looks to DNREC for a qualification of what costs are acceptable. For example, costs associated with the interior contamination of a structure may not be considered by DNREC as qualifying for reimbursement.

What is the maximum reimbursement amount that an applicant can receive through the DEDO program? The program allows reimbursement for either 50% of the qualified assessment and remediation costs or $100,000, whichever is less.

What can the funds be used for? For both the investigation and remediation of the Brownfields site. DEDO’s program does not allow for reimbursement of costs associated with a Phase I audit.

How does reimbursement take place? Through the submission of paid receipts to DEDO for the completed assessment and remediation work.

How to find out more information about DEDO’s Program? By contacting Shannon Marchman (302) 577-8742 or Shannon.Marchman@state.de.us

Funding Available for Property Acquisition, Investigation, Cleanup and Redevelopment

Loans (Public Sector)

Hazardous Substance Cleanup Act (HSCA)

• Provides up to $250,000 in low interest loans (not to exceed 3 percent) to businesses for environmental investigations and remediation activities.
• 10-year term.
  
  For more information on HSCA program contact:
  Jim Poling, DNREC-SIRB
  (302) 395-2636
  jpoling@state.de.us

FIRST Fund

• FIRST Fund provides financial assistance for the removal of orphaned or abandoned underground storage tanks and cleanup of the site.
• To qualify for the FIRST Fund an UST site must meet one of the criteria: 1) The previous owner of the UST is unknown or cannot be found, or 2) The current owner is known but financially unable to pay.

Program Loans for Underground Storage Tank Systems (PLUS)

PLUS provides low-interest (3%) loans for the removal or abandonment of existing UST systems, installation of spill containment, overfill protection, corrosion protection, and leak detection equipment for existing UST systems, and remediation of contamination resulting from a release from a UST.

• Minimum loan amount is $5,000, maximum $250,000.
• 10-year term.
  
  For more information on DNREC's FIRST Fund or PLUS program, contact:
  DNREC-UST Branch
  (302) 395-2500
  http://sirb.awm.dnrec.state.de.us/deusthom.htm

Brownfields Assistance Matching Grants

• Up to $1MM available each year to fund the Brownfields Assistance Program.
  
• Sites must be certified as a brownfield by DNREC before DEDO will process an application.
  
• Eligibility for brownfields assistance will be based on the projects potential to serve a public purpose by maintaining or expanding employment in the State, by maintaining, expanding, or diversifying business and industry in the State, and/or maintaining or increasing its tax base.
  
  For general questions about the Brownfields Assistance Program, contact Shannon Marchman (302) 577-8742 or Shannon.Marchman@state.de.us.For a copy of the Brownfields Assistance application, contact Lee Porter, (302) 739-4271, or lporter@state.de.us. Please note that an application will only be released when the applicant has provided DEDO with a copy of the brownfields certification letter issued by the Secretary of the Deparment of Natural Resources & Environmental Control.
  
  View a copy of DNREC's regulations pertaining to the certification of a brownfield site.
  View a copy of DEDO's regulations pertaining to the certification of a brownfield site.
  
  

Loans (Private Sector)

• PNC (302) 429-5657.
• Wilmington Trust Company, Joe Terranova, (302) 651-8333.

Government Grant & Loan Programs

State (see above grant and loan programs)

Federal

• Federal Highway Administration's Transportation and Community and System Preservation Pilot Program, www.fhwa.dot.gov/tcsp/
• EPA, www.epa.gov/swerosps/bf/mmatters.htm
• U.S. Department of Housing and Urban Development, www.hud.gov/nofa/suprnofa/supnofa2/bedi.cfm
• U.S. Department of Commerce,
  Economic Development Administration, doc.gov/eda/html/1d_fund_prog.htm
• U.S. Small Business Administration, www.sba.gov/

DNREC's Voluntary Cleanup Program (VCP)

• Sets standards for a site investigation, provides review of the adequacy and completeness of site investigations, approves and oversees cleanup plans.
• A Memorandum of Agreement (MOA) between the EPA and DNREC provides individuals who have remediated a Brownfield under the VCP with assurances that the EPA will not intervene as long as agreed upon cleanup standards and procedures have been followed.
  
  Since 1995, over 1,500 acres have been investigated, and over 250 acres have been returned to productive use under this program. Learn about DNREC's Voluntary Cleanup Program at http://sirb.awm.dnrec.state.de.us/brownfield1.htm
  
  For more information on DNREC's VCP program, contact:
  Jim Poling, DNREC-SIRB
  (302) 395-2636
  jpoling@state.de.us

Tax Credits (Local)

• Wilmington - Tax incentives are available for improvements to existing buildings or new construction in the Christina Gateway area, defined as bounded by the northerly side of the Christina River, the easterly side of Walnut Street, the southerly side of 6 ^th Street, and the westerly side of Tatnall Street. Five-year abatements are provided from real property taxation to the extent of 100 percent of the increase in assessed valuation.
  
  An additional ten-year exemption is provided on the assessed value of new construction, or increase in assessed value for improvements, of any structure where 40% or more of the floor area, exclusive of areas used in common, is for residential use.
  
  For more information contact Richard V. Pryor, Director, City of Wilmington Office of Economic Development (302) 571-4169.
   
• Dover - Property tax abatements are available to qualifying industries that invest in the City of Dover and hire a minimum number of employees. Abatement is provided over a ten-year sliding scale from 90% to 10%.
  
  The City of Dover also offers: a tax credit program for rehabilitation of historic properties; a 40% matching grant for façade improvements approved by the Main Street Design Committee; low-interest loans to small businesses; and waivers for building permit fees and city sewer impact fees for new mixed-use construction. Additional loan/grant moneys are available for projects with a significant economic impact.
  
  For more information contact the City of Dover Planning Office (302) 736-7010.

Tax Credits (State and Federal)

Brownfields Tax Credit Program

• Provides tax credits to any taxpayer that invests $200,000 in a qualified Brownfield facility and who has hired at least five qualified employees during any taxable year beginning on or after January 1, 1995.
• Companies which locate in a Brownfield are eligible to receive tax credits for: 1) New employees ($650 for each new employee); 2) Capital investment ($650 per each $100,000 of investment); and 3) A fifteen year graduated gross receipts tax credit.
• Credits for employees and investment are enhanced by $250 if business is located in a targeted area.
  
  For more information on the tax credit program, contact:
  Shannon Marchman, (302) 577-8742 or Shannon.Marchman@state.de.us

Federal Brownfields Tax Incentive

• Federal tax deduction for site assessment and investigation, site monitoring, cleanup costs, operations and maintenance costs, state VCP fees, removal of demolition debris.
• Any Brownfield site can qualify, but requires verification by DNREC.
  
  For more information visit EPA's website at:  www.epa.gov/swerosps/bf/html-doc/btaxguid.htm
  
  For more information on the tax incentive, contact:
  Jim Poling, DNREC
  (302) 395-2636
  jpoling@state.de.us

Environmental Insurance, Consultants, and Specialists

Environmental Insurance Products

• Helps manage the level of risk associated with liability claims, cost overruns, or future changes in cleanup standards.
• Protects against claims from ecosystem damage, health problems encountered by neighbors or workers, and loss of property value by nearby owners due to site contamination.
• Cleanup "cost-cap" or "stop-loss" coverage sets a maximum exposure for mitigation expense.
• Prospective liability and "reopener" coverages are available to address future liability claims for damage caused by contaminants left in place or changes in cleanup standards.
  
  Lowenstein Sandler - Law firm specializing in insurance law.  Advises clients on their rights, claims handling, and pursues coverage through litigation if necessary. www.lowenstein.com
  
  Lyons Insurance Agency, Inc. - Environmental insurance broker and risk advisor. Contact Rich Kavanaugh, Vice President. Greenville, Delaware (302) 658-5508, www.lyonsinsurance.com
  
  Marsh Environmental Group - Environmental insurance broker and risk advisor. Contact Alicia Baird Aristone, Vice President.  Philadelphia (215) 246-1252, www.mmc.com

Environmental Consultants

• Assess the level of contamination
• Develop a cleanup plan.
• Perform the cleanup.
  
  To find an environmental consultant, see your local Yellow Pages for a complete listing of environmental consultants.
  
  

Brownfields Redevelopment Specialists

• Greenfield Development - Buys, remediates, and sells contaminated properties. (206) 885-2897
• Land Bank - Acquires, restores, and redevelops environmentally impaired real estate. www.landbank.net
• North American Realty Advisory Services - Provide planning, packaging, marketing and divestment services for surplus or underutilized properties, including environmentally impaired assets. www.northamericanrealty.com

Useful Resources

The following links provide more information on brownfields redevelopment and other related programs and initiatives:

• Brownfields News, a trade magazine devoted to issues central to the redevelopment of brownfield properties. www.brownfieldnews.com/
• EPA's Brownfields Program
  www.epa.gov/brownfields/
  www.brownfieldstech.org (EPA Technology Innovation Office)
• Extensive List of Brownfields Links www.epa.gov/swerosps/bf/index.html#othrpgs
• International City/County Management Association Brownfields/Superfund Consortium, www.icma.org/go.cfm?cid=1&gid=3&sid=135
• Northeast Midwest Institute, a Washington-based, private, non-profit, and non-partisan research organization dedicated to economic vitality, environmental quality, and regional equity for Northeast and Midwest states. www.nemw.org/
• Urban Land Institute's mission is to provide responsible leadership in the use of land in order to enhance the total environment. www.uli.org/indexJS.htm
• DEDO Site Selection Guidance,Delaware Economic Development Office
• DNREC, Delaware Division of Natural Resources and Environmental Control (Brownfields and Site Remediation)
  and Delaware Underground Storage Tank Program
• Rutgers University, National Center for Neighborhood and Brownfields Redevelopment
• Brownfields Business Portal, www.brownsfields.com
• EDA, Economic Development Administration