United States
Environmental
Protection Agency
Washington, D.C. 20460
Solid Waste
and Emergency
Response(5101)
EPA500-F-99-041
May 1999
www.epa.gov/brownfields/
&EPA Brownfields Cleanup
Revolving Loan Fund Pilot
Detroit, Ml
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
Over the years, commercial and industrial properties
have become abandoned, underutilized, and vacant.
Many of the sites have real or perceived environmental
contamination that pose a barrier to their reuse and
redevelopment. These abandoned and underutilized
sites represent wasted economic potential for the
city. The City of Detroit BCRLF plans to target
specific areas that have been designated by the State
of Michigan as Renaissance Zones. These zones
have been identified as targets loans due to various
community distress indicators.
BCRLFOBJECTIVES
Using the incentives available through the Brownfield
Redevelopment Authority, Renaissance Zone
program, and the BCRLF Pilot, city officials believe
that many of Detroit's distressed brownfields sites
can be restored to productive use. The BCRLF
funding will provide gap financing for brownfields
cleanup for developers who may not have anticipated
the high cost of environmental cleanup in their
redevelopment plans. These loan funds will be made
available at a low interest rate, with repayment terms
designed to foster reuse and redevelopment of the
city's brownfields.
PILOTSNAPSHOT
Date of Award:
September 1997
Amount: $350,000
BCRLF Target Area :
Brownfields in Detroit's state
Renaissance Zones.
Detroit, Michigan
Contacts:
Department
(xxx) xxx-xxxx
Regional Brownfields Team
U.S. EPA - Region 5
(312) 886-7576
Visit the EPA Region 5 Brownfields web site at:
http://www.epa.gov/R5Brownfields/
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/
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The city anticipates that the BCRLF Pilot program
will enhance other brownfields redevelopment proj ects
by providing the necessary access to cleanup funds,
and will advance the goals and obj ectives of other city
programs already in place. The cumulative effect of
these efforts will be the revitalization of brownfields
sites within the city. The city also anticipates that
redeveloping these sites will also benefit the
community, help restore the city's tax base, and
create and/or expand employment opportunities.
FUNDSTRUCTUREANDOPERATIONS
The city's Department of Environmental Affairs
(DBA) will serve as the Lead Agency. DBA will
partner with other city agencies (e.g., Finance
Department, Planning and Development Department,
Law Department) to design and manage the BCRLF.
The responsibilities of each agency will be delineated
as needed by formal agreements.
LEVERAGINGOTHERRESOURCES
The city anticipates that the BCRLF Pilot will work
together with the Renaissance Zone program, the
Brownfield Redevelopment Authority, and various
site assessment programs to increase the number of
brownfields sites redeveloped within Detroit. Site
assessment funds can be used to identify sites where
the revolving loans can then be successfully used for
cleanup needs.
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 Detroit, Michigan
May 1999 EPA500-F-99-041
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