United States
Environmental
Protection Agency
Washington, D.C. 20460
Solid Waste
and Emergency
Response (5101)
EPA500-F-99-066
May 1999
www.epa.gov/brownfields/
>>EPA Brownfields Cleanup
Revolving Loan Fund Pilot
Des Moines, IA
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
up to $200,000 over two 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 brownfields to facilitate cleanup of brownfields sites and prepare trainees for future employment in the environmental
field; and, cleanup revolving loan fund programs (each funded up to $500,000 over five years) to capitalize loan funds
to make loans forthe 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
In 1996, a beef processing facility abruptly closed in
Des Moines, and approximately 1,300 workers lost
their jobs. To spur business growth, the City of Des
Moines, lowahas designated aportion of its southeast
region area as the Agribusiness Enterprise Zone. The
State of Iowa certified the area as an enterprise zone.
The area contains deteriorated structures, vacant lots,
and environmental contamination, and has high poverty
levels, and unemployment rates. Part of the zone —
the 1,200-acre Des Moines Agribusiness Park — is
designated as a Brownfields Assessment Pilot. A
Phase I environmental assessmenthas been completed,
highlighting the need for further investigation of 230
acres, and the City is obtaining Phase II environmental
results. In January 1998, the City adopted an urban
renewal plan and created atax increment finance (TIP)
district forthe Agribusiness Enterprise Zone.
BCRLF OBJECTIVES
The City's BCRLF will provide loans for the
environmental cleanup of sites within the Agribusiness
Enterprise Zone. Information from public meetings
and interviews with agribusinesses, the State of Iowa,
and Iowa State University will assist in creating a
comprehensive redevelopment plan for agribusiness
PILOT SNAPSHOT
Date of Announcement:
May 25,1999
Amount: $500,000
BCRLF Target Area:
The Des Moines Agri-
business Enterprise Zone.
Des Moines, Iowa
Contacts:
Office of Economic Development
(515) 237-1351
Region 7 Brownfields
Coordinator
(913) 551-7786
Visit the EPA Region 7 Brownfields web site at:
www.epa.gov/region07/specinit/brown/brownfields.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/
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reuse. The City hopes to addre ss barriers to brownfield
redevelopmentand develop aprocess in which residents,
businesses, and the City work together to facilitate
community growth, create development sites that
discourage sprawl; attract additional seed capital for
redevelopment; assume a leadership role in Iowa's
new VCP;andassistother communities implementation
ofsimilarprograms.
FUND STRUCTURE AND OPERATIONS
The City's Office of Economic Development, which
currentlymanagestwo other City revolving loan funds,
will serve as the lead agency and fund manager. The
City's Engineering Departmentwill serve as the BCRLF
site manager. The maximum loan amount will be
$ 100,000 with the term and interest rate negotiated on
a case-by-case basis.
LEVERAGING
Des Moines will provide in-kind environmental, bank-
ing, and legal resources for the BCRLF program. In
addition, the City has leveraged up to a $ 1 million of
State resources from the Iowa Physical Infrastructure
Assistance Fund. The lowaPIAF is a loan and/or loan
guarantee program that canbeusedfor environmental
remediation projects involving substantial capital
investment, the creation ofhigh wage, quality jobs, and
positive statewide impact. The City also will explore
the potential of leveraging funds with the local banking
community. In addition, the Des Moines Action Loan
Fund and the Iowa Community Economic Betterment
Account will provide long-term fixed asset financing.
The Enterprise Zone Program offers job training,
corporate tax incentives, and arefund on sales, service,
and use taxes on materials used in construction contracts.
Community Reinvestment Act objectives will be
stressed. Finally, the City has established atax increment
financing district forthe Agribusiness Enterprise Zone.
Use of BCRLF Pilot funds must be in accordance with
CERCLA, and all CERCLA restrictions on use of funding
also apply to BCRLF funds.
Brownfields Cleanup Revolving Loan Fund Pilot Des Moines, Iowa
May 1999 EPA 500-F-99-066
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