United States Environmental Protection Agency Washington, D.C. 20460 Solid Waste and Emergency Response(5101) EPA 500-F-99-033 May 1999 www.epa.gov/brownfields/ &EPA Brownfields Cleanup Revolving Loan Fund Pilot Baltimore, MD Outreach and Special Projects Staff (5101) Quick Reference Fact Sheet EPA's Brownfields Economic Redevelopment Initiative is designed to empower states, communities, and other stakeholders in economic redevelopment to work together in a timely manner to prevent, assess, safely clean up, and sustainably reuse brownfields. A brownfield is a site, or portion thereof, that has actual or perceived contamination and an active potential for redevelopment or reuse. EPA is funding: assessment demonstration pilot programs (each funded upto $200,000 overtwo years), to assess brownfields sites and to test cleanup and redevelopment models;job training pilot programs (each funded up to $200,000 over two years), to provide training for residents of communities affected by brownfieldstofacilitatecleanupofbrownfieldssites and preparetrainees for future employmentintheenvironmental field; and, cleanup revolving loan fund programs (each funded up to $500,000 over five years) to capitalize loan funds to make loans for the environmental cleanup of brownfields. These pilot programs are intended to provide EPA, states, tribes, municipalities, and communities with useful information and strategies as they continue to seek new methods to promote a unified approach to site assessment, environmental cleanup, and redevelopment. BACKGROUND Baltimore was built upon the strength of its port and its traditional manufacturing industry. However, between 1970 and 1990, Baltimore lost more than 50 percent of its manufacturing j obs. Old manufacturing facilities and properties were left behind. The Baltimore City Department of Planning estimates that 1,000 acres of industrially zoned land are either vacant or underused. For many of these sites, revitalization is blocked by environmental contamination, and Baltimore continues to have difficulty in finding funds for the pre-development costs of site cleanup. Without the revolving loan fund, the land will remain vacant and underutilized. BCRLFOBJECTIVES With the BCRLF Pilot, the city will continue to focus its brownfields efforts on the federally-designated Empowerment Zone (EZ) and other distressed areas of the city (e.g., southeast Baltimore), although loans will be available to fund cleanup on properties anywhere in the city. The main goal of the Baltimore BCRLF Pilot is to fund cleanup of at least two properties with potential or perceived environmental contamination and return the land to productive use. PILOTSNAPSHOT Date of Award: September 1997 Amount: $350,000 BCRLF Target Area : Economically distressed areas of Baltimore. Baltimore, Maryland Contacts: Baltimore City Department of Planning (410) 396-8356 Regional Brownfields Team U.S. EPA - Region 3 (215)814-3129 Visit the EPA Region 3 Brownfields web site at: http://www.epa.gov/reg3hwmd/brownfld/hmpage1.htm For further information, including specific Pilot contacts, additional Pilot information, brownfields news and events, and publications and links, visit the EPA Brownfields web site at: http://www.epa.gov/brownfields/ ------- By funding the cleanup of brownfields, the Pilot aims to: increase job opportunities for lower-income populations; stimulate economic growth; remove long- standing potential threats to public health and the environment; revitalize affected communities; promote environmental protection; increase city tax revenues; and work toward more efficient land use patterns. FUNDSTRUCTUREANDOPERATIONS The city plans to finance cleanup for up to four sites, depending on the cost of the individual sites, during the initial round of loans. Generally, the terms of the loan will include a four-percent to seven-percent interest rate, and a relatively short payback period of 18 to 36 months. The types of borrowers expected to benefit from BCRLF Pilot financing are those property owners and developers who are planning projects on brownfields sites in Baltimore, and who face environmental cleanup obstacles to redevelopment. Baseline eligibility for borrowing from the BCRLF will include: acceptance into the Maryland Voluntary Cleanup Program (VCP); presentation of a financial plan demonstrating the borrower's ability to repay the loan, including sufficient collateral; and a history, on the part of the developer, of responsible development that takes the surrounding community into account. The Baltimore City Department of Planning (BCP) will act as the Lead Agency to ensure that all activities are carried out in accordance with the program guidelines and the cooperative agreement. The Baltimore Development Corporation (BDC) will serve as Fund Manager to underwrite, close, and administer the loan funds. Maryland Department of the Environment (MDE) will provide regulatory oversight of cleanup through its VCP. Use of BCRLF Pilot funds must be in accordance with CERCLA, andallCERCLA restrictions on use of funding also apply to BCRLF funds. Brownfields Cleanup Revolving Loan Fund Pilot Baltimore, Maryland May 1999 EPA500-F-99-033 ------- |