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Brownfields Cleanup
Revolving Loan Fund
Pilot
Kansas Department of Health and
Environment
BACKGROUND
Kansas, unlike many heavily industrialized states, has an
abundance of undeveloped land that is attractive to
developers. Although much of Kansas' historical industrial
development occurred in the two large metropolitan areas
of Kansas City and Wichita, industries also located in small
towns across the state. Many small towns grew up around
a major industry and have been adversely impacted by
facility closures. Unemployment in the state is three
percent, but many of the available jobs are low paying.
Almost 11% of the state's residents live in poverty, though
up to 19% live below the poverty level in some
neighborhoods of the state's major cities. These
metropolitan areas have a high percentage of brownfields
and are often located in downtown areas where
unemployment rates tend to be highest. Kansas City has
been designated a federal Enterprise Community.
Municipalities throughoutthe state are making substantial
investments in the redevelopment of their historical central
cores. However, contamination often is discovered late in
aproperty transaction, which delays or stops such projects.
Access to low-interest loans for municipalities and other
qualified applicants to conduct cleanups would increase
participation in the state Voluntary Cleanup and Property
Redevelopment Program.
BCRLF OBJECTIVES
The primary goals of the BCRLF Pilot are to provide
qualified applicants with the necessary capital to conduct
appropriate cleanups of contaminated properties. It is
hoped that successful cleanups conducted with the use of
BCRLF loans will encourage private lending institutions to
reevaluate their lending policies and provide financial
assistance for environmental cleanups.
Properties throughout the state that are contaminated with
hazardous substances will be eligible for BCRLF loans.
PILOT SNAPSHOT
Date of Announcement:
May 2002
Amount: $1,000,000
BCRLF Target Area:
Municipalities throughout the
State of Kansas
State of Kansas
Contacts:
Kansas Department of Health
and Environment
(785)291-3246
Region 7 Brownfields
Coordinator
(913)551-7593
Visit the E PA Region 7 Brownfields web site at:
http://www.epa.gov/region07/brownfields/
Forfurther information, including specific Pilot contacts,
additional Pilot information, brownfields news and events, and
publications and links, visit the EPA Brownfields web site at:
www.epa.gov/brownfields
Priority will be given to sites in the Enterprise Community
and other economically distressed areas of the state.
Potential borrowers will be both public and private entities
butitis believed thatthe typical loan will be to municipalities.
Many municipalities have acquired properties through
foreclosure or land donation only to find that the properties
are contaminated.
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FUND STRUCTURE AND OPERATIONS
The Kansas Department of Health and Environment is the
cooperative agreement recipient and will serve as the lead
agency, site manager, and fund manager.
LEVERAGING OTHER RESOURCES
The BCRLF Pilot will be added to Kansas' package of
existing financial incentives, which include various state
trust funds, Community Development Block Grants, and
the federal brownfields tax incentive. A complementary
source of funding is the Clean Water State Revolving
LoanFund, which makes funds available to municipalities
for cleanup activities when there is a potential to pollute the
waters of the state. Other potential federal funding sources
include Economic Development Administration grants
and HUD Brownfields Economic Development Initiative
grants. The U.S. Army Corps of Engineers can assist with
community planning. In addition, the BCRLF is expected
to stimulate additional financial assistance from private
owners and developers.
Use of BCRLF Pilot funds must be in accordance with CERCLA, and all
CERCLA restrictions on use of funding also apply to BCRL F funds.
Solid Waste EPA 500-F-02-005
and Emergency May 2002
Response (5101) www.epa.gov/brownfields/
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