EPA Grant Recipient:

City of Hernando, Mississippi

Grants:

Brownfields Assessment Grants

Additional Funding Sources:

•	Tax incentives from the Mississippi
Department of Environmental Quality
under the Mississippi Economic
Redevelopment Act and Brownfields
Incentive Act

•	Tax incentives from the Mississippi
Development Authority

Site Assessments Spur Property
Redevelopment Across the City

Hernando, Mississippi

Hernando is a growing city of 17,000 people on the northwest border of
Mississippi. Looking to revitalize the historic downtown area and other sites around
the city, community planners knew they needed funding and other assistance
to attract developers. Some properties were at high risk of environmental
contamination, making it difficult for owners to sell or lease, particularly when they
did not have the funds to clean up the site,

"We're a small city that's growing rapidly," says Gia Matheny, who has been
a community developer for the city since 2013. "Our community is made up of
small-property owners. We don't have funds to incentivize developers to
revitalize the downtown."

Environmental assessments, local education and two state tax incentive
programs helped attract investors and developers. The U.S. Environmental
Protection Agency (EPA) awarded the city two $400,000 Brownfields Assessment
Grants, one each in 2012 and 2016, which the city used to assess numerous sites
across the area.

The city hosted public meetings with local nonprofits, investors, brokers,
developers and property owners, and brought in consultants and representatives
from EPA and the Mississippi Department of Environmental Quality (MDEQ) to
discuss the value of environmental assessments.

"We had to get the word out that EPA and MDEQ were there to help, not hinder,
property owners," Matheny say's. "Better use of property leads to business, jobs
and added value to the community in many ways."

The public outreach paid off, generating significant interest and excitement by the
end of the first three-year Brownfields Assessment Grant. Matheny adds, "Instead
of our having to call property owners, they were calling us."

wEPA

EPA Brownfields Grant funds are not used for redevelopment of
sites assessed or cleaned up with Brownfields funds, and projections
Ert5rcm?n£i Protection	fc/ future reuse and redevelopment of sites and anticipated benefits

A(j®ncy	are subject to change based on local conditions.

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This residential community in historic
downtown stands on a parcel of the
old Reliable Equipment site.

Reliable Equipment

One site that benefitted from federal and state support was a former tractor
dealership and repair shop called Reliable Equipment, located just outside the
historic town square, along a main highway leading downtown The owner had
leased the property to Reliable Equipment, which was moving its operations
elsewhere. The city wanted to ensure the property wouldn't be left vacant.

The owner was reluctant to assess the site for contamination because petroleum
products were used there, and cleanup would be required for new development.
Through public outreach and individual meetings with the owner, city officials
helped build trust and drew the interest of a local resident who wanted to invest in
the downtown area where he lived. City officials hosted a special meeting with the
resident, the property owner and a consultant to discuss potential contamination
at the site, any needed cleanup and how to redevelop the property in a way that
benefitted the community.

In early 2015. Phase I and Phase II Environmental Site Assessments revealed
petroleum contamination in the soils at two of three parcels at the site. Replacing the
contaminated topsoil cost $60,000, which a new investor paid. MDEQ later certified
that the parcels were appropriate for commercial use. In 2016, third parcel test results
came back clean, and a local developer purchased the site for residential use-

Two state tax incentive programs helped spur the remediation and redevelopment
of the Reliable Equipment property. The first were tax incentives from MDEQ under
the Mississippi Economic Redevelopment Act: (MERA). Under the agreement, the
developer covers the cleanup costs and then receives 2.5 times that amount back in
income, sales and franchise taxes over 15 years.

The second were tax incentives under the state Brownfields Incentives Act, which
is intended to stimulate the cleanup and redevelopment of brownfields. Under this
incentive, costs paid for assessment, investigation, remediation, monitoring and
related activities at a brownfield agreement site are eligible for a 25% tax credit for
the tax year in which the costs are incurred.

Reliable Equipment Redevelopment Timeline

Historic components of the Reliable
Equipment building were preserved
during redevelopment into a
restaurant and retail store.

May 2012

January 2015

April 2015

May 2016

July 2016

Summer 2017

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Timeline continues on the next page.

For more information:

Visit the EPA Brownfields website at www.epa.qov/brownfields or
contact Brian Gross at 404-562-8604 or Gross.Brian@epa.qov.

EPA.S60-R23-282
April 2023

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Without the
original assessment
grants we would
not have had the
public engagement
to get people
excited about
these properties
and to get the
redevelopment
started in the
downtown area. 39

—Gia Matheny,
Community Developer;

City of Hernando

While the developer gets the income, sales and franchise tax returns, the city gets
property taxes, which increase once the site is redeveloped. Prior to redevelopment,
annual property taxes for the Reliable Equipment property were approximately
$6,000. Now, the taxes draw closer to $17,500 annually for the city.

Today, the Reliable Equipment property houses an Italian restaurant and ice cream
shop. Together, the restaurant and store employ approximately 40 people.

"It's a beautiful building now," says Matheny. "It's had a major impact on
redevelopment. We needed a restaurant and to clean up that property, which is
the first thing that people see when they come downtown. All the surrounding
businesses and residential communities benefitted."

The third parcel is now Ivy Lane Town Homes, an upscale, walkable and fully leased
community in the historic downtown area. The development spurred interest for
more revitalization projects. Another new, upscale residential project a block away
was completed in 2022.

"We've touted the Reliable Equipment redevelopment project quite a bit in our
city," says Matheny. "We're getting the word out on the value of Brownfields
Assessments and MERA for recouping redevelopment costs. It's been very good for
the community and the state."

Reliable Equipment Redevelopment Timeline

February 2018

Spring 2018

February 2019

June 2019

October 2019

July 2020

Developer and

Mississippi

Development

Authority sign

reimbursement

agreement

Renovations on
existing historical
buildings completed

City, owner and state
sign MERA agreement

Restaurant opens

Second retail
space opens

Housing

construction

completed

For more information:

Visit the EPA Brownfields website at www.epa.gov/brownfields or

contact Brian Gross at 404-562-8604 or Gross.Brian@eDa.aov.	EPA 560-F-23-282

April 2023

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Support from EPA's Brownfields
Program helped redevelop this site
of a former auto repair shop and gas
mart in Hernando, Mississippi.

r

Sayle Oil

The site of a former auto repair shop and gas mart, known as the Sayle Oil property,
also benefitted from federal and state redevelopment support. In 2014, Phase I and
Phase II Environmental Site Assessments revealed concentrations of volatile organic
compounds In the soils where fuel dispensers and piping were located.

After assessment, city officials used public education and outreach sessions to
grow interest in redeveloping the property. They prepared an analysis of brownfield
cleanup alternatives for the site under the Brownfields Assessment Grant,
considering site characteristics, the surrounding environment, land use restrictions,
potential future uses and cleanup goals for the site. Based on the findings, city
officials strongly recommended demolishing the old gas mart.

"The building itself was not pretty," Says Matheny,"lt was so old and had
stood vacant for a long time. The new lessees or owner would have to bring it
up to building codes. It was more efficient for the owner to simply demolish
the old building."

In 2015, the owner demolished the gas mart building and remediated the soils to
make the site more attractive to potential tenants. The owner also converted the
auto repair shop on the west side of the property into an oii lube shop.

The site of a former auto repair
shop and gas mart that the owner
converted into an oil lube shop after
environmental site assessments and
soil remediation.

Sayle Oil Redevelopment Timeline

August 2014	October 2014	November 2014	2015

o	o	o	o

¦Phase] Environmental Site	Phase II Environmental Site	City prepares an analysis of brownfield	Owner demolishes existing

Assessment performed	Assessment performed	cleanup alternatives for the site	building, remediates,soil

and converts auto repair
shop into oil lube shop

For more information:

Visit the EPA Brownfields website at www.epa.gov/brownfields or

contact Brian Gross at 404-562-8604 or Gross.Brian(a>eDa.aov.	pft?t»-F-23-282

2Q2f

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Dormant property before a Phase I
Environmental Site Assessment helped
prepare the site for interested buyers
and redevelopment.

The owner sold the site, which is visible from the nearby interstate highway, in
parcels. A local investor purchased one parcel In 2017. The buyer had a successful
crawfish catering company and wanted to start a new restaurant In the area.
Approximately $200,000 was required to gut and renovate the original building
into a new restaurant, which opened in 2022 and has been a success. The business
created 22 jobs and brought additional food diversity to the area. Another local
investor purchased a second parcel on the site and opened a new gas station and
gas mart there in 2018.

T and T Trucking and Warehouse

In November 2016, a Phase I Environmental Site Assessment determined that
although the original T and T Trucking and Warehouse building was in a state of
disrepair, there was no environmental contamination on the property. With that
reassurance, the owner could attract buyers.

Successful seafood restaurant built on
a parcel as part of the redevelopment
of the old T and T Trucking property.

New gas station and mart
constructed on another parcel of the
old T and T Trucking property as part
of the redevelopment.

2016

o—

Phase 1 Environmental Site
Assessment performed

2022

-O

Restaurant opens
on first parcel

First parcel purchased	Second parcel purchased; gas station

and gas mart open on second parcel

T and T Trucking and Warehouse Redevelopment Timeline

For more information:

Visit the EPA Brownfields website at www.epa.gov/brownfields or
contact Brian Gross at 404-562-8604 or Gross.Brian@epa.gov.

EPA.S60-R23-282
April 2023

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100 East Valley Street

Property on East Valley Street
previously housed a fabricator of lawn
care products and a manufacturer of
fiberglass moldings.

The redeveloped commercial site
increased visibility of this area in
Hernando, where there are also new
townhomes in walking distance of a
grocery store and historic downtown

Occupants of this property had included a fabricator of lawn care products in
the 1990s and a manufacturer of fiberglass moldings in the 2000s and 2010s. In
November 2018, a Phase I Environmental Site Assessment noted that waste related
to the former manufacturing operations may have' led to subsurface contamination
by general hazardous substances and/or petroleum products. The MDEQ later
determined that no further environmental assessment was necessary.

Today a property restoration services company occupies a renovated building on
the property. The redeveloped commercial site increased visibility of this area in
Hernando, where there are also new townhomes in walking distance of a grocery
store and the historic downtown.

The Takeaways

Reflecting on these and other redevelopment projects, Matheny says the process has
been fairly smooth. "Our biggest obstacle was the lack of awareness by owners and
developers." she says. "We prioritized public engagement and education."

Now that the word Is out, the city continues to hear from investors. "There are more
sites that would benefit from assessment and redevelopment," says Matheny. "and
we're receiving more and more calls about that."

WM//

For more information:

Visit the EPA Brownfields website at www.epa.gov/brownfields or
contact Brian Gross at 404-562-8604 or Gross.Brian@epa.gov.

EPA.S60-R23-282
April 2023

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