Cranberry Creek
Financial and Technical A
Developed through the Federal Brownfields Partnership
Mine-Scarred Lands Initiative
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Cranberry Creek Financial and Technical Assistance Plan
Prepared for: Brownfields Federal Partnership Mine-Scarred Lands Initiative
Prepared by: SRA International
(Contract No. 68-W-01-048)
3434 Washington Boulevard
Arlington, VA 22201
National Association of Local Government Environmental Professionals (NALGEP)
1333 New Hampshire Avenue, NW
Washington, DC 20036
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Cranberry Creek Financial and Technical Assistance Plan
OVERVIEW
The Cranberry Creek Gateway Park site, located near the City of Hazleton, Pennsylvania, is one
of six national Mine-Scarred Lands Revitalization Demonstration Projects. An interagency effort
to explore opportunities for multiple federal and state agencies to coordinate and collaborate on
the cleanup and redevelopment of mine-scarred lands, the Mine-Scarred Lands Initiative is
supporting the Cranberry Creek Gateway Park Project (Cranberry Creek project) by developing a
financial and technical assistance plan for cleanup, reclamation, and beneficial reuse of the 360-
acre coal mining property known as the Cranberry Creek Gateway Park site. Ideally, this
financial and technical assistance plan will serve as a model for other communities seeking to
reclaim and reuse former mining properties.
The financial and technical assistance plan is intended to serve as a targeted strategy that details
how the Cranberry Creek project can optimize the available mix of federal, state, and local
technical assistance and financial resources to reclaim and reuse the site. The availability of these
resources to offset project costs and enhance project activities will help the Cranberry Creek
Board of Directors establish and implement a definitive redevelopment plan. The financial and
technical assistance plan is organized as follows:
1.0 Approach to Establishing the Plan
2.0 Financial and Technical Assistance Timetable
3.0 Project Specific Activities and Strategies
4.0 Federal, State, and Local Programs Matrix for Mine-Scarred Lands Revitalization
in Pennsylvania
5.0 Program Funding Examples
1.0 Approach to Establishing the Plan
In preparing the plan, the Federal MSL Working Group contracted with SRA (a community and
land revitalization consulting firm) and the National Association of Local Government
Environmental Professionals (NALGEP) to work closely with the Cranberry Creek Board to
develop the plan. The approach includes the following elements:
Background research: Conducted internet and literature research of various federal,
state, and local programs that are applicable to economic development and mine-
scarred lands revitalization.
Interviews with Program Representatives: Identified key members of each program
and conducted in-person or telephone interviews to gain more knowledge about the
specifics of the programs and its application the Cranberry Creek project.
Technical and Financial Assistance Workshop: Organized and facilitated a workshop
in Hazleton, Pennsylvania on May 23, 2006 to familiarize federal, state, and local
representatives with the Cranberry Creek project and discuss specific programs and
resources that are applicable to future reclamation and redevelopment activities, and
discuss key next steps.
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative June 2006
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Cranberry Creek Financial and Technical Assistance Plan
Development of a Targeted Funding and Technical Assistance Strategy: Prepared
this document that summarizes and focuses funding and technical assistance
information based on the specific needs and timeframes of the Cranberry Creek project.
2.0 Financial and Technical Assistance Timetable
The various activities for the Cranberry Creek project can be divided into three broad phases. As
the Cranberry Creek project moves forward, the following activities will require funding and
technical assistance. The timetable is organized in quarter years starting in Quarter 3 of 2007 and
ending in Quarter 3 in 2009 (QR 1: January - March; QR 2: April - June; QR 3: July -
September; QR4: October - December).
Phase I: Restoration and Reclamation of the Site (QR 3, 2006 - QR 4, 2008)
ฆ Site Reclamation and Compaction
ฆ Cleanup
ฆ Creek Restoration
Phase II: Planning for the Future of the Site (QR 3, 2006 - QR 1, 2008)
ฆ Marketability and Feasibility Study
ฆ Trails and Greenspace Planning
ฆ Community Outreach and Engagement
Phase III: Redevelopment of the Site (QR 2, 2007 - QR 3, 2009)
ฆ Site Access Road and Transportation Enhancements
ฆ Utility Construction
ฆ Recreational/Entertainment Facilities Development
ฆ Trails and Greenspace Development
ฆ Residential Development
ฆ Commercial Development
The financial and technical assistance plan includes a timetable that displays the federal or state
agency resource associated with each activity. The timetable, located on page 4, provides a guide
for applying for and utilizing financial and technical assistance resources. Only the programs that
have been identified as a strong fit for the Cranberry Creek project are included in the timetable.
As explained in Section 3, other programs may be pursued to meet the project's needs. Funding
and technical assistance opportunities and programs displayed in the timetable represent
timeframes for utilizing the resources, not the timeframes for applying. In addition, funding
programs may be listed multiple times in the timetable but it is assumed only one grant or loan
would be prepared to cover multiple activities. Specific information on application schedules
and funding levels is provided in Section 4.0.
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Cranberry Creek Financial and Technical Assistance Timetable
ACTIVITIES
PROGRAMS
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Cranberry Creek Financial and Technical Assistance Plan
3.0 Project Specific Activities and Strategies
As determined through research of relevant financial and technical assistance programs and the
discussions that occurred at the May 23, 2006 workshop, a range of assistance programs are
available to the Cranberry Creek project. The Cranberry Creek project is organized in the three
broad phases and accompanying activities identified in the timetable. Funding and technical
assistance programs are organized in terms of their relationship to the Cranberry Creek project
activities. Each need is briefly described and various federal, state, and local funding and
technical assistance sources are listed. Those sources that present the highest opportunity for the
Cranberry Creek project are signaled with a check mark (and represented in the timetable in
Section 2.0). Given the available funding and technical assistance programs, the recommended
approach, next steps, and timing considerations are presented for each funding need. This
funding and technical assistance strategy assumes some level of local and private investment and
that state and federal resources will support only portions of the Cranberry Creek redevelopment
project.
Phase 1: Restoration and Reclamation of the Site (QR 3, 2006 - QR 4, 2008)
The first phase of site redevelopment will involve addressing the restoration and reclamation
activities for the site. These activities will help prepare the site for future redevelopment to be
outlined in the feasibility study.
Site Reclamation and Compaction: This activity involves addressing the site's past mining and
quarry uses through reclamation and creek restoration and addressing future development
opportunities through compaction of reclaimed areas where building is likely to occur. Due to
the cost differences of performing compaction in tandem with reclamation, this activity may be
the most urgent for securing funding.
Possible Funding
and Technical
Assistance Sources
s PA BAMR/OSM Reclamation Funds
s HUD Section 108 Loan Program/CDBG
PA DCED - Industrial Sites Reuse Program
PA DCED - Growing Greener Funds
OSM/VISTAs for Acid Mine Drainage
Recommended
Approach
To avoid costly post-reclamation compaction costs, combine the $2.5 million reclamation and creek
restoration contracted by BAMR/OSM with funds to allow for compaction (e.g., HUD Section
108/CDBG) of portions of the site targeted for redevelopment.
Next Steps
Engage the BAMR's site reclamation contractor to determine the possibility of combining
compaction with reclamation.
Request that the site development consultants determine the most likely areas for development.
Generate estimated funding for compaction of those areas.
Set up initial meeting between CAN DO and EPCAMRto seek an OSMA/ISTA position for
Cranberry Creek.
Explore the following options for funding the estimated $500,000 to $1 million compaction costs:
ฆ Meet with Luzerne County Community Development Department and HUD on the use of a
Section 108 Loan to finance compaction costs for 1-3 year period before revenues are
generated to pay back the Section 108 loan. County CDBG funds could be used to pay 108
Loan interest during 1-3 year period.
ฆ Meet with Luzerne County Commissioners regarding the availability of Growing Greener
funds and funding priorities for the current funding cycle.
ฆ Investigate use of PA DCED Industrial Sites Reuse Program funds for compaction activities.
Meet with PA DCED representative Scott Dunkelberger to discuss program.
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Cranberry Creek Financial and Technical Assistance Plan
Timing
Considerations
Given the dramatic cost savings of performing compaction in tandem with reclamation, it is critical
that additional funds for compaction be secured to supplement BAMR's contractor so that
compaction can be integrated into the 500+ day timetable for site reclamation. Using Section 108
and/or CDBG presents a flexible, time-responsive form of gap financing. Secure compaction funding
by July 15, 2006. BAM R funds have already been allocated to this project. Restoration activities run
from June, 2006, through December, 2007.
No set timeframes for PA DCED programs as applications are accepted on a rolling basis.
Application submitted to DCED will be reviewed within 30 days.
No set application timeframes for Section 108 Loan program.
Cleanup: CAN DO has already incurred the cleanup costs for the property. However, if
additional environmental cleanup of contaminated soils is needed on portions of the site, several
other funding and technical assistance sources may be pursued.
Possible Funding
and Technical
Assistance Sources
HUD Brownfields Economic Development Initiative (BEDI) and Section 108 Loan
Luzerne County CDBGs
DEP Growing Greener funds (Watershed Grants)
Recommended
Approach
Define contaminated areas and design a cleanup approach that takes into account future land use and
redevelopment needs. Upon completion of the feasibility study, pursue HUD BEDI funding for
additional site cleanup, if needed, and other economic development enhancements (e.g., parking
facilities, infrastructures).
Next Steps
Schedule a meeting with Luzerne County, HUD, and CAN DO in November of 2006 to discuss the
site development plan (based on the feasibility study) and the appropriate activities for BEDI/Section
108 Loan Funds.
Explore the mechanics of the Section 108 loan component of BEDI funding including CDBG pledge
requirements by Luzerne County.
Timing
Considerations
BEDI Applications are typically due in the May to July timeframe of each year. If application
preparations are made beginning in November of 2006, a sound BEDI application can be developed
and submitted in 2007.
Meet with Luzerne County Commissioners regarding the availability of Growing Greener funds and
funding priorities for future funding cycles.
Creek Restoration: Creek restoration activities have begun on the southeastern portion of the
site and will continue through the northern portion. Creek restoration activities and associated
funding sources will primarily come from state agencies.
Possible Funding and
Technical Assistance
Sources
^PABAMR
^EPCAMR
Recommended
Approach
Rely on existing relationship with PADEP BAMR and associated expertise to conduct creek restoration
activities to restore the creek bed to historic placement. Supplement BAMR efforts with broader acid-
mine drainage cleanup efforts supported by OSMA/ISTA.
Next Steps
Discuss possibility of EPCAMR helping with innovative designs for acid-mine drainage system.
Set up initial meeting between CAN DO and EPCAMR to seek an OSMA/ISTA position for
Cranberry Creek.
Timing
Considerations
BAMR funds have already been allocated to this project. Restoration activities run from June, 2006,
through December, 2007.
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Cranberry Creek Financial and Technical Assistance Plan
Phase IE: Planning for the Future of the Site (QR 3, 2006 - QR 1, 2008)
Planning for the future of the site will occur concurrently with ongoing reclamation, compaction,
and creek restoration activities. The most critical planning activities will conclude in Quarter 4 of
2006 with the completion of the feasibility study.
Marketability and Feasibility Study: The current Cranberry Creek marketability and feasibility
study will characterize market conditions, solidify feasible development options, and establish a
business-oriented strategic plan for marketing and developing the Cranberry Creek site. During
the marketability and feasibility study, alternative concept plans will be created to help establish
reuse concepts and ultimately a definitive development plan for the site. The financial and
technical assistance information outlined in this plan should be combined with the results of the
marketability and feasibility study to provide a clear strategy for moving forward with
redevelopment.
Possible Funding and
Technical Assistance
Sources
s Commonwealth Financing Authority
s Luzerne County Office of Community Development
Recommended
Approach
The marketability and feasibility team (SRA) will finalize the marketability and feasibility study by
October 2006 and a definitive development plan will be established.
Next Steps
Cranberry Creek Board of Directors will review the marketability analysis and alternative concept
plans and prioritize a plan.
Site marketability will be analyzed.
Preferred development concepts will be determined.
The results of the marketability and feasibility study will be presented to federal, state, and local
partners as follow-up to the May 23rd meeting.
The approved business (strategic) plan will be marketed to interested developers and appropriate
public financing will be explored.
Timing
Considerations
The marketability and feasibility study, including the alternative concept plans, will be completed in
October 2006.
Trails and Greenspace Planning: This activity involves identifying portions of the site that lend
themselves to supporting trails and greenspace. Trails and greenspace areas will enhance
developed portions of the site and since compaction is generally not necessary for greenspace
and trails development, overall site development costs can be better managed.
Possible Funding and
Technical Assistance
Sources
s NPS - Rivers, Trails, and Conservation Assistance Program
PA DCNR
Recommended
Approach
Involve David Lange of NPS in concept and feasibility planning and combine NPS planning assistance
with the current marketability and feasibility study to lay out trails and greenspace components of the
property as well as linkages to other transportation and recreational offerings in the community.
Next Steps
Contact PA DCNR to identify which programs (e.g., acquisition/development grants, community
grants, PA Recreational Trails Program) are applicable to the Cranberry Creek site.
Involve David Lange in marketability and feasibility study meetings held by the Cranberry Creek
Board of Directors.
Investigate potential of linking trails on the site with larger trail development plans in the county and
surrounding region.
Timing
Considerations
Though the NPS Technical Assistance cycle has passed for 2006, NPS has agreed to provide
technical assistance to the project and participate in planning meetings.
Open application period for PA DCNR grants runs from May 6, 2006 through September 29, 2006.
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Cranberry Creek Financial and Technical Assistance Plan
Community Outreach and Engagement: This activity includes continuing community
involvement activities and building on the successes of the community engagement process laid
out by the Mine-Scarred Lands Initiative.
Possible Funding
and Technical
Assistance Sources
s EPCAMR/OSMA/ISTA- Technical assistance and expertise
s MSL Working Group- Community Engagement Plan
Recommended
Approach
Using the Community Engagement Plan as a starting point, work with EPCAMRto discuss potential
public outreach and education activities (e.g., including OSMA/ISTA support) during the
redevelopment process.
Next Steps
Cranberry Creek Board of Directors to set up a meeting with EPCAMR personnel about the
possibility of seeking an OSMA/ISTA position for Cranberry Creek.
Determine if historical or tourism components could be included in the site redevelopment as
EPCAMR has experience in these areas.
Continue to implement the community engagement plan created for the project.
Timing
Considerations
Community outreach and engagement should occur throughout the duration of the Cranberry Creek
project as described in the Cranberry Creek Community Engagement Plan. Technical assistance from
the MSL working group will end in August, 2006.
Phase III: Redevelopment of the Site (QR 2, 2007 - QR 3, 2009)
The third phase involves actual construction activities related to infrastructure, building, and
other development. While the specific composition of development components remains
unspecified prior to completion of the feasibility study, a preliminary list of development
components includes several important activities. In general, it is assumed that the Cranberry
Creek Board of Directions will serve as the master planner and initial site preparation entity and
that vertical development (e.g., residential and commercial facilities) will be performed by other
private or public entities.
Site Access Road and Transportation Enhancements: Site access and transportation
enhancements are necessary if the site is to achieve optimal reuse.
Possible Funding
and Technical
Assistance Sources
s ARC - Access Road Funding for primary access
s HUD -BEDI/Section 108 Loan for road construction related to initial commercial/economic
development program
s PA DCED - Infrastructure Development Program (IDP) for primary and secondary access through
potential grants or loans
s PA DCED - Business In Our Sites Program Infrastructure Development Program for primary and
secondary access through potential grants or loans
s PA Housing and Redevelopment Assistance Program
Recommended
Approach
Integrate a blend of road construction related programs in support of specific development
components (e.g., primary access, housing, commercial development) to offset private investment
needs. Calculate overall funding needs assuming the availability of approximately $250,000 in ARC
access road funds and then pursue additional road construction and transportation enhancements
through recommended funding programs.
Next Steps
After completion of the feasibility analysis, conduct a meeting with Scott Dunkelberger at PA DCED
to determine the composition of grant to loan funds that PA DCED would issue for the site given the
proposed development.
Through pro forma analysis and developer interest, the Cranberry Creek Board should determine
the need for grant versus a loan for pursuing the Business In Our Sites funding.
Meet with Luzerne County since the county would be the most likely entity to apply for funding with
Housing and Redevelopment Assistance Program.
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Cranberry Creek Financial and Technical Assistance Plan
Application for funding should be submitted for FY08 cycle (July 2007) with Housing and
Redevelopment Assistance Program.
Identify the most immediate commercial/economic development component for the site to be funded
through HUD's BEDI Program (coupled with HUD loan guarantee).
Follow up with NEPAto determine usability of ARC - Access Road Funding during the next fiscal
year cycle (July 2007).
Make a presentation to NEPA representatives to identify the Cranberry Creek project as a potential
funding priority.
Timing
Considerations
Meet with Luzerne County Community Development Department and HUD on the use of a Section
108 Loan Guarantee to finance road construction.
Application for funding should be submitted for FY08 cycle (July 2007) with Housing and
Redevelopment Assistance Program.
Cranberry Creek project funding needs should be articulated through the NEPA input and funding
decision-making process based on NEPA/ARC's funding calendar. N EPA/ARC funding priority
meetings occur in June 2007. Presentation to NEPA representatives should occur in November
2006.
No set timeframes for PA DCED programs as applications are accepted on a rolling basis.
Application submitted to DCED will be reviewed within 30 days. PA DCED loan terms vary but may
be structured for up to 15 years.
Utility Construction: There will be numerous utility infrastructure needs for the site once the
development plan is established. Utilities that need to be considered include, water, sewage,
cable, and power.
Possible Funding and
Technical Assistance
Sources
s HUD -BEDI/Section 108 Loan for utility construction related to initial commercial/economic
development program
s PA DCED - Infrastructure Development Program
s PA DCED - Business In Our Sites Program
s PA Housing and Redevelopment Assistance Program for utility construction related to affordable
housing options
s PENNVEST-Brownfields Remediation Funding
USDA - Community Facilities Program
PennDOT - Pennsylvania Infrastructure Bank (PIB)
Recommended
Approach
Integrate a blend of utility construction related programs in support of specific development
components (e.g., power to commercial development, housing) to offset private investment needs.
Next Steps
After completion of the feasibility analysis, conduct a meeting with Scott Dunkelberger at PA DCED
to determine the composition of grant to loan funds that PA DCED would issue for the site given the
proposed development.
Through pro forma analysis and developer interest, the Cranberry Creek Board should determine
the need for grant versus a loan for pursuing the Business In Our Sites funding.
Infrastructure Development Program may serve as gap financing during a transition period on the
redevelopment.
Meet with Luzerne County since county would be the most likely entity to apply for funding with
Housing and Redevelopment Assistance Program.
Meet with Luzerne County Community Development Department and HUD on the use of a Section
108 Loan Guarantee.
Apply for funding for FY08 cycle (July 1007) with Housing and Redevelopment Assistance Program.
Identify the most immediate commercial/economic development component for the site to be funded
through HUD's BEDI Program (coupled with HUD loan guarantee).
If public facility construction (e.g., community center, library) is identified as a potential
redevelopment option, investigate use of Community Facilities' Program loan, loan guarantee, or
grant.
Investigate use of PIB loans for drainage structures and roadway improvements.
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Cranberry Creek Financial and Technical Assistance Plan
Timing
Considerations
For the Housing and Redevelopment Assistance Program, if pre-appiication activities are completed
at the end of 2006, a sound application can be developed and submitted by July 2007.
BEDI Applications are typically due in the May to July timeframe of each year. If application
preparations are made beginning in November of 2006, a sound BEDI application can be developed
and submitted in 2007.
No set timeframes for PA DCED programs as applications are accepted on a rolling basis.
Application submitted to DCED will be reviewed within 30 days.
PENNVEST applicants will only apply for financing for projects that are expected to commence
within three years of the date of the application. PENNVEST currently takes action on applications
three times each year at Board meetings held in March, July and November. Applications are due
60 days prior to the date of the Board meeting.
No set timeframes for USDA program as pre-applications are accepted on a rolling basis.
Recreational Facilities Development: The Cranberry Creek site will provide an opportunity to
create valuable recreational facilities for the community. Aside from area golf courses,
recreational facilities, including team sports facilities, are limited throughout the region.
Possible Funding and
Technical Assistance
Sources
s USDA-Community Facilities Program
NPS - Rivers, Trails, and Conservation Assistance Program
Recommended
Approach
Work with USDA representatives to identify appropriate applicant (non-profit or municipality) for
Community Facilities Program and identify bank for loan administration.
Next Steps
Follow Congressional appropriations to ensure funding is allocated for next fiscal year.
Discuss application with Luzerne County and CAN DO Foundation to determine appropriate
applicant.
Work with David Lange to identify resources and assistance for trail development and greenspace
conservation.
Timing
Considerations
NEPA/EDA funding priority meetings occur in June 2007. Presentation to NEPA representatives
should occur in November 2006.
Utilize NPS Technical Assistance cycle for FY08. The national deadline for projects set to start the
following fiscal year (October 1 through September 30) is August 1. Upon completion of the
marketability and feasibility study, the Cranberry Creek project should identify the most efficient use
of the technical assistance.
No set timeframes for USDA program as pre-applications are accepted on a rolling basis.
Trails and Greenspace Development: Using the concept plan which identified the placement of
trails and greenspace, begin implementing development plans for these areas.
Possible Funding and
Technical Assistance
Sources
s NPS - Rivers, Trails, and Conservation Assistance Program
PA DCNR
EPCAMR
Recommended
Approach
Build upon relationship developed with NPS during the planning of trails and greenspace development
to ensure technical assistance remains available. Contact David Lange at NPS to discuss technical
assistance available.
Next Steps
Contact PA DCNR to identify which programs (e.g., acquisition/development grants, community
grants, PA Recreational Trails Program) are applicable to the Cranberry Creek site.
Investigate potential of linking trails on the site with larger trail development plans in the county and
surround region.
Work with EPCAMR and other community groups to assist with planting and trail development.
Timing
Considerations
NPS has agreed to provide technical assistance to the project and participate in planning meetings
during the current marketability and feasibility analysis stage. Utilize NPS Technical Assistance
cycle for FY08. The national deadline for projects set to start the following fiscal year (October 1
through September 30) is August 1. Cranberry Creek project should wait until after the marketability
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative June 2006
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Cranberry Creek Financial and Technical Assistance Plan
and feasibility analysis is complete to identify the most efficient use of the technical assistance.
Open application period for PA DCNR grants runs from May 6, 2006 through September 29, 2006.
Commercial Development: The development plan will include commercial and retail options
for the site. Commercial development could include office space, restaurants, conference space,
and retail options.
Possible Funding and
Technical Assistance
Sources
Private Developer
HUD BEDI/Section 108
NEPA
EDA - Economic Adjustment Assistance Program
EDA - Public Works and Economic Facilities Program
New Markets Tax Credits
Recommended
Approach
Use BEDI/Section108 for most immediate commercial/economic development component and
combine BEDI/Section 108 with private investment leveraged through New Markets Tax Credits
(NMTC).
Next Steps
Meet with Luzerne County officials to secure CDBG funds as collateral for Section 108 loan.
While applying for 108 loan, apply for BEDI Grant on the first portion of the site identified for
redevelopment.
Make a presentation to NEPA representatives in November 2006 for FY08 funding priorities.
Investigate potential use of NMTCs by identifying a Community Development Entity (CDE):
ฆ Three CDEs have identified PA a primary market for investing in projects. CDEs provide
capital to brownfields redevelopment projects. The three CDEs include:
- Chevron NMTC Fund, LLC from San Francisco, CA
- Telesis CDE Corporation from Washington, DC
- UA LLC from New York, NY
To satisfy EDA program requirements, cultivate entrepreneurship productivity into the site
redevelopment plans.
Strengthen community component through use of the Cranberry Creek Community Engagement
Plan to meet NEPA and EDA criteria.
Timing
Considerations
Upon completion of the marketability and feasibility analysis, identify the first portion of the site
where redevelopment activities will occur. Successful BEDI applications use funds for activities on
one portion/parcel at a time. Asecond Section 108 loan may be used for these activities, assuming
Luzerne County CDBG funds are available.
Cranberry Creek project funding needs should be articulated through the NEPA input and funding
decision-making process based on NEPA/EDA's funding calendar. NEPA/EDA funding priority
meetings occur in June. Presentation to NEPA representatives should occur in the fall/winter of
2007 for 2008 project funding.
Residential and/or Housing Development: Community development will be enhanced with the
planning of residential and housing development. Consideration will need to be placed on the
targeted markets for this development.
Possible Funding and
Technical Assistance
Sources
Private investment and residential developers
PA DCED - Housing and Redevelopment Assistance program
Recommended
Approach
Determine the market for residential development including marketable housing types, number of
units, average time of houses on the market, extent of housing supply in the area and the
corresponding demand. Housing information combined with the results of the marketability and
feasibility analysis will help determine likelihood of residential and/or housing development.
Next Steps
Complete the site market and feasibility study.
Based on results of marketability and feasibility study, market the site to residential developers.
Developed through the Brownfields Federal Partnership Mine-Scarred Lands Initiative June 2006
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Cranberry Creek Financial and Technical Assistance Plan
If marketability and feasibility study reveals a demand for low or moderate income housing in the area
and if this is a redevelopment option the Board would like to pursue, Housing and Redevelopment
Assistance program could be utilized for the construction of new rental or homeownership. Program
awards funds throughout the year although the beginning date for all contracts is July 1. All contracts
are for a three-year period. July 2007 may be too aggressive of a deadline to pursue for this activity
and Cranberry Creek project may wait until July 2008.
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4.0 Cranberry Creek Funding Matrix: Preliminary List of Potential Funding Sources
Funding &
Funding &
Eligible
Eligible
Funding
Restrictions
Program Facts &
Initial
Contact Information
Technical
Technical
Entity
Activities
Timeline
Additional Items
Application
Assistance
Assistance
Steps
Source
Levels
(Federal)
Economic
$1 million grants
Economic
Infrastructure
Funding
No grants available
NE PA district has priority
Pre-application to
Brian Eckert
Development
Development
Right of way
available for
to individuals
projects already identified
be filled out and
717-720-1400
Administration
Districts and
access
FY07 and
50/50 match
for current funding allocation
submitted to Ed
breckert@state.Da.us
(EDA)-
cities
(Community must
FY08
required (match
Hummel for
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review
Paul Raetsch
and Economic
or right of way)
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Second
EDA Regional Director
Facilities
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grant)
application is the
215-597-1063
Program
full application
Draetsch@eda.doc.aov
Ed Hummel
PA EDA Rep.
215-597-6767
ehummel@eda.doc.aov
Economic
Varies by
Nonprofit
Long-range
Proposals are
Only applicable for
Program tends to focus on
Meet with
Brian Eckert
Development
project
organizations
economic
accepted on a
geographic areas
projects that are unique
Economic
717-720-1400
Administration
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and state and
development
continuing
with: 1) An
initiatives and/or special
Development
breckert@state.Da.us
(EDA)-
50% of a
local
planning
basis and
unemployment rate
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organize and carry out a
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215-597-1063
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Draetsch@eda.doc.aov
create new,
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Ed Hummel
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215-597-6767
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downsizing
arising from actual or
Investments support one
threatened severe
or more activities identified
unemployment or
in an EDA-approved
economic adjustment
CEDS
problems
13
-------
Funding &
Funding &
Eligible
Eligible
Funding
Restrictions
Program Facts &
Initial
Contact
Technical
Technical
Entity
Activities
Timeline
Additional Items
Application
Information
Assistance
Assistance
Steps
Source
Levels
(Federal)
Department of
$4,385,920:
Metropolitan
Facilitate
Cranberry Creek
HUD requires
Non-competitive program
Contact local
Paul Webster
Housing and
Hazleton's
cities and
economic
Gateway Park
community's (i.e.,
Can be used
HUD office
HUD Section 108
Urban
2006
urban counties
development,
Project may
Luzerne County)
independently of BEDI
No 'formal"
Director
Development
allocation
(CDBG
including assisting
apply once the
CDBG funds as
Provides confidence to
application
202-708-1871
(HUD) -
$25,656,030:
entitlement
a for-profit
current year's
collateral on the loan
private lenders when
forms
Paul Webster@hud.
Section 108
Luzerne
recipients)
developer
CDBG funding
guarantee
issuing loans
After consulting
gov
Loan
County's 2006
Acquisition in
allocations are
Cranberry Creek
108 funds can be used by
with the local
Guarantee
allocation
whole or in part of
approved in the
Gateway Park
an investor organization
HUD office and
Andrea Edwards
real property
current year's
Project must show
as equity to invest in a
the preparation
Spence
Construction,
federal budget;
how loan would be
CDE
of the final
Regional Contact for
reconstruction,
Maximum
repaid if CDBG
Project must meet at
application, the
BEDI and 108
rehabilitation, or
repayment period
funds were
least one CDBG national
local office will
215-656-0626
installation of
is 20 years
unavailable (other
objective: 1) benefit low-
conduct a "due
andrea edwards-
public facilities
sources of financing
and moderate-income
diligence and
SDence@hud.aov
and improvements
for the project, site
persons; 2) eliminate
compliance
(including streets,
appraisals, etc.)
slums or blight; or 3)
review"
sidewalks, etc.)
address imminent threats
and urgent needs
Department of
$10 million
CDBG
Facilitate
Applications
Can only be used in
Cranberry Creek
Cranberry
David Kaminsky
Housing and
allocated
entitlement
economic
must be received
conjunction with
Gateway Park Project
Creek project
HUD BEDI Specialist
Urban
nationally for
and non-
development,
by June 15*1
Section 108 loan
should focus on one
would work with
202-708-0614x4612
Development
2006 with
entitlement
including assisting
guarantee
portion or site of the
local HUD office
David Kaminskv@hu
(HUD) -
maximum of $1
communities
a for-profit
Minimum Section
overall project with each
on BEDI grant
d.gov
Brownfields
million award
eligible to
developer
108-to-BEDI ratio of
application
Request for a
Economic
per applicant
receive
Acquisition in
1:1 (higher ratio
Project must meet at
new Section
Andrea Edwards
Development
Section 108
whole or in part of
demonstrated by
least one CDBG national
108 loan
Spence
Initiative
Applicant
real property
applicant will be
objective: 1) benefit low-
guarantee
Regional Contact for
(BEDI) Grant
must be a
Construction,
scored higher)
and moderate-income
authority must
BEDI and 108
unit of local
reconstruction,
persons; 2) eliminate of
accompany
215-656-0626
government
rehabilitation, or
slums or blight; or 3)
each BEDI
andrea edwards-
Luzerne
installation of
address imminent threats
application
SDence@hud.aov
County and
public facilities
and urgent needs
City of
and improvements
Hazleton
(including streets,
may apply
sidewalks, etc.)
jointly
14
-------
Funding &
Funding &
Eligible
Eligible
Funding
Restrictions
Program Facts & Additional
Initial Application
Contact
Technical
Technical
Entity
Activities
Timeline
Items
Steps
Information
Assistance
Assistance
Source
Levels
(Federal)
Appalachian
Approximately
State and
Funds are
Cranberry Creek
Cranberry
Projects need to be completed
Contact the state
Eric Stockton
Regional
$200-250 K per
local
awarded to
Gateway Park
Creek Gateway
in conjunction with other
ARC program
ARC
Commission
local
agencies,
projects that focus
Project should
Park Project
agencies
manager (Neil
202-884-7752
(ARC) -
development
government
activities on one of
focus
has to line up a
Projects go through an in-depth
Fowler) to request a
estockton(ฎarc.aov
General
district
entities, and
four strategic plan
applications on
50:50 match
ranking process during
pre-application
Funding
nonprofit
goals for the
July/August 2007
ratio for funds
evaluation
package
Neil Fowler
organizations
Appalachia region
funding
Northeastern Pennsylvania
Dir. Appalachian
identified by ARC:
Alliance (NEPA) identifies
Dev. Center
1) increase job
projects and submits project
717-214-5395
opportunities; 2)
rankings for the Hazleton area
nfowler(ฎstate.pa.us
strengthen the
for ARC; Cranberry Creek
capacity of the
Project should work closely with
Tom Pelligrini
people; 3) develop
NEPA
NEPA
and improve
570-655-5881 x241
infrastructure; or 4)
toellea ri n i(ฎ neoa -
build the
allicance.ora
Appalachian
Development
Highway System
Appalachian
Approximately 4
State and
Funds are
Cranberry Creek
Cranberry
Same ranking process as
Projects can only
Eric Stockton
Regional
projects per year
local
awarded for road
Gateway Park
Creek Gateway
general funding, but not as
be submitted to
ARC
Commission
at $250K each
agencies,
planning and
Project should
Park Project
competitive
ARC by the state
202-884-7752
(ARC) -
government
construction,
focus
has to line up a
Cranberry Creek Gateway Park
member of ARC
estockton@arc.aov
Access Road
entities, and
including
applications on
80:20 match
Project needs to engage PA
ARC'S
Funding
nonprofit
recreational,
July/August 2007
ratio for funds
DOT for this application
Transportation staff
Neil Fowler
organizations
residential, and
funding
(with ARC
Northeastern Pennsylvania
review local access
Dir. Appalachian
commercial road
funding the
Alliance (NEPA) identifies
road project
Dev. Center
use
80% portion)
projects and submits project
submissions and
717-214-5395
rankings for the Hazleton area
make
nfowler(ฎstate.pa.us
for ARC; Cranberry Creek
recommendations
Gateway Park Project should
to the ARC's
Tom Pellig rini
work closely with NEPA
Federal Co-Chair
NEPA
570-655-5881 x241
toellea ri n i(ฎ neoa -
allicance.ora
15
-------
Funding &
Funding &
Eligible
Eligible Activities
Funding
Restrictions
Program Facts & Additional
Initial
Contact
Technical
Technical
Entity
Timeline
Items
Application
Information
Assistance
Assistance
Steps
Source
Levels
(Federal)
U. S. Department
Maximum
Corporations,
Buildings and real
N/A
Business is judged
Applicant applies directly to the
Rural
M ike Angerson
of Agriculture
loan
partnerships,
estate
on a scoring
participating bank
Development
Rural Development
(USDA) -
guarantee is
nonprofit
system (minimum
USDA coordinates with the
forms found
Specialist
Business &
$25 million up
entities,
number of jobs
banker for the loan
online at
570-836-4157 x118
Industry
to 80% of a
municipalities,
created is not a
Multiple banks participate in this
http://www.sc.ea
Michael. Anaerson@p
Guaranteed
loan
counties, or
requirement)
program; USDA contacts are
ov.usda.aov/
a.usda.aov
Loan Program*
other local
governments
available to provide names of
specific banks
Program may lower the interest
rate and lengthens the term of
For information
on which forms
to fill out, contact
Mike or Linda at
Linda Taylor
Rural Development
Manager
the loan for the applicant
Wyoming Local
570-836-4157 x120
Office,
Tunkhannock,
PA
Linda.Tavlor@Da.usd
a. gov
U. S. Department
Average
Public entity
Primarily available to
N/A
N/A
Program would only assist small
Rural
M ike Angerson
of Agriculture
maximum of
or nonprofit
conduct regional and
and emerging businesses
Development
Rural Development
(USDA) - Rural
$50K per
corporations
community economic
Cranberry Creek Gateway Park
forms found
Specialist
Business
applicant
development
Project must have significant
online at
570-836-4157 x118
Opportunity
planning and related
expertise in the activities it
hto://www.sc.ea
Michael. Anaerson@p
Grant Program
training, including
marketability and
feasibility studies
proposes to carry out with the
grant funds
ov.usda.aov/
For information
on which forms
to fill out, contact
Mike or Linda at
Wyoming Local
Office,
Tunkhannock,
PA
a.usda.aov
Linda Taylor
Rural Development
Manager
570-836-4157 x120
Linda.Tavlor@oa.usd
a. gov
*USDA programs more applicable to CAN DO
16
-------
Funding &
Funding &
Eligible
Eligible Activities
Funding
Restrictions
Program Facts &
Initial
Contact
Technical
Technical
Entity
Timeline
Additional Items
Application
Information
Assistance
Assistance
Steps
Source
Levels
(Federal)
U. S. Department
Maximum of
Nonprofits,
To facilitate the
After pre-
Small and emerging
Program would only assist
Rural
M ike Angerson
of Agriculture
$99K per
local
development of
application is
businesses must
small and emerging
Development
Rural Development
(USDA) - Rural
applicant
governments,
small and emerging
submitted,
have fewer than 50
businesses
forms found
Specialist
Business
public
for-profit and
USDA will
employees and less
online at
570-836-4157 x118
Enterprise Grant
agencies
nonprofit small
determine
than $1 million in
http://www.sc.ea
Michael. Anaerson@p
Program*
businesses
Grants may be
used for funding
infrastructure
development,
including roads,
utility extensions,
and water supply
eligibility and
inform
Cranberry Creek
Gateway Park
Project to
assemble and
submit formal
application
revenue
ov.usda.aov/
For information
on which forms
to fill out, contact
Mike or Linda at
Wyoming Local
Office,
Tunkhannock,
PA
a.usda.aov
Linda Taylor
Rural Development
Manager
570-836-4157 x120
Linda.Tavlor@Da.usd
a. gov
U. S. Department
PA received
Private
Buildings and real
N/A
All of the IRP loan
Program capitalizes
Rural
M ike Angerson
of Agriculture
$500 K in
nonprofit
estate
funds received by
locally-run revolving loan
Development
Rural Development
(USDA) -
FY04 for
corporations
an intermediary
funds for small businesses;
forms found
Specialist
intermediary
distribution as
and public
must be re-loaned
Cranberry Creek Gateway
online at
570-836-4157 x118
Relending
loans
agencies
to ultimate
Park Project could be the
hto://www.sc.ea
Michael. Anaerson@p
Program (IRP)*
recipients
administrator of the RLF
ov.usda.aov/
a.usda.aov
All loans to
Excellent way of assisting
For information
Linda Taylor
intermediaries must
small businesses or
on which forms
be adequately
business incubators
to fill out, contact
Rural Development
secured
Loans to intermediaries
are scheduled for
repayment over a period of
up to 30 years
Interest rates on loans is
1% annually
Mike or Linda at
Wyoming Local
Office,
Tunkhannock,
PA
Manager
570-836-4157 x120
Linda.Tavlor@oa.usd
a. gov
U. S. Department
Varies by
Certified
Land acquisition
NMTC
M ust serve, or
CDE receives an allocation
Identify potential
NMTC Support Line
of Treasury:
applicant
Community
Site preparation
applications due
provide investment
of tax credits and CDE
CDEs investing in
202-622-6355
New Markets
Development
Construction
in September
capital, for low-
secures investors
projects in PA
httD://www.cdfifund.a
Tax Credits
Entity (CDE)
Infrastructure
income communities
CDE uses investor equity
ov/what we do/over
(NMTC)
to make investments in
view, asp
Program
low-income investments
*USDA programs more applicable to CAN DO
17
-------
Funding &
Funding &
Eligible
Eligible
Funding
Restrictions
Program Facts &
Initial
Contact
Technical
Technical
Entity
Activities
Timeline
Additional Items
Application
Information
Assistance
Assistance
Steps
Source
Levels
(Federal)
Department of
Technical
Nonprofit or
Assist with
RTCA receives
Technical assistance
RTCA may be able to
Application
David Lange
Interior (DO!) -
assistance
government
regional
applications in
support
commit staff consultation
instructions on
RTCA Program
National Park
and trail
entities
recreational
August and makes
resources during the
RTCA web site:
Manager
Service: Rivers,
planning
planning
decisions in
upcoming marketability
http://www.nps.ci
215-597-6477
Trails, and
support
Opportunities
Sept./Oct. for
assessment process
ov/ncrc/proaram
david a lanae(ฎnps.
Conservation
may exist to
support during that
without completing formal
s/rtca/contactus/
gov
Assistance
make linkages
fiscal year
application process
cu applv details
(RTCA) Program
with Cranberry
Should try to tie the
.html
Ruth Lodder
Creek site and
recreational and
Contact David
DOI Office of
2004 Luzerne
greenspace aspects of the
Lange for
Environmental Policy
County Open
site into the community
possible staff
and Compliance
Space and
consultation
Ruth Lodderฎios. do
Greenway Plan
resources
i.qov
Department of
State
Nonprofit
Projects that
Applications
Federal, state, and
Applicants must have
Download an
T. Allan Comp, Ph.D.
Interior (DOI) -
Reclamation
organizations,
eliminate acid mine
accepted until all
local governments
financial management and
application fact
202-208-2836
Office of Surface
Grants of
especially
drainage from
available funds are
are not eligible to
internal control systems
sheet (SF-424
TCOMP@osmre.aov
Mining: Clean
various
small
abandoned coal
awarded
receive funding
adequate to manage federal
Form) from OSM
Streams
amounts
watershed
mines
directly
funds
web site
David Hamilton
Initiative
groups
Clean Streams
Coordinator
717-782-2285x15
dhamil(ฎosmre.aov
Department of
Full-time
Local
Organize water
N/A
Non-federal cost-
OSM/VISTA position is for 3
Complete
T. Allan Comp, Ph.D.
Interior (DOI) -
OSM/VISTA
watershed
quality
share required
years
extensive VISTA
202-208-2836
Office of Surface
position
groups
monitoring
($5500)
application that
TCOMP(ฎosmre.aav
Mining:
Community
Sponsoring
documents the
OSM/VISTA
outreach and
organization must
poverty of the
Watershed
awareness
demonstrate its
watershed, the
Development
Engage in
capacity for
support of local
Team
economic
effective
agencies,
revitalization
supervision and
adherence to Core
efforts
support of
Goals for
Assist in finding
OSM/VISTA and
OSM/VISTA Team,
funding for
adherence to the
and a work plan
revitalization
Core Goals for
efforts
OSM/VISTA
18
-------
Funding &
Funding &
Eligible Entity
Eligible
Funding
Restrictions
Program Facts &
Initial Application
Contact
Technical
Technical
Activities
Timeline
Additional Items
Steps
Information
Assistance
Assistance
Source (State)
Levels
PA Business
Grants and
Public entities
Reuse and
Rolling
A 25% match is
Cranberry Creek Gateway
Cranberry Creek
Scott Dunkelberger
Assistance
loans up to
Private
redevelopment
applications
required for grant
Park Project should
Gateway Park
PA DCED
Programs:
$200 K for
nonprofit
of former
and loan projects
highlight Hazleton's
Project must
717-787-7120
Industrial Sites
environmental
economic
industrial land
Interest rates of 2%
distressed climate
submit a Letter of
sdunkel(ฎdoc. state
Reuse Program
assessments
development
and sites
up to 5 years for
As Governor is prioritizing
Intent (LOI)to PA
.pa.us
Grants and
groups
Phase I, II and
assessments and
this type of reuse,
DCED
loans up to $1
III
15 years for
Cranberry Creek Gateway
www.newPA.com
million for
environmental
remediation
Park Project should
remediation
assessments
Remediation of
hazardous
substances
projects
highlight that the site is a
brownfield and mine-
scarred land
Program administered
through PA Dep. Of
Community and Economic
Development who was an
initial project stakeholder
PA Business
Loans and
Municipalities,
Public and
Application
Loans at 3%
Cranberry Creek Gateway
Cranberry Creek
Scott Dunkelberger
Assistance
grants up to
industrial
private
submitted to
interest rate (up to
Park Project should
Gateway Park
PA DCED
Programs:
$1.25 million
development
infrastructure
DCED will be
15 year term) for
highlight Hazleton's
Project can apply
717-787-7120
Infrastructure
authorities, or
improvements,
reviewed
eligible privately-
distressed climate
through the local
sdunkel(ฎdoc. state
Development
local
including water
within 30 days
owned
As Governor is prioritizing
Redevelopment
.pa.us
Program (IDP)
development
and sewer
infrastructure
this type of reuse,
Authority,
districts may
systems
improvements
Cranberry Creek Gateway
Municipality, or
apply on behalf
Transportation
2:1 private to public
Park Project should
Development
of eligible
facilities
match required
highlight that the site is a
District
private
Land
$25,000 cost per
brownfield and mine-
www.newPA.com
companies
remediation
job to be created
scarred land
engaged in:
within 5 years or 10
Program administered
Agriculture
new full-time
through PA Dept. of
Industrial
equivalent jobs
Community and Economic
Manufacturing
(whichever is
Development who was an
Research and
greater)
initial project stakeholder
Development
Export
companies
19
-------
Funding &
Funding &
Eligible
Eligible
Funding
Restrictions
Program Facts &
Initial Application
Contact
Technical
Technical
Entity
Activities
Timeline
Additional Items
Steps
Information
Assistance
Assistance
Source (State)
Levels
PA Business
Business
Non-taxable
Land acquisition
PEDFA Board
Loans through bond
Cranberry Creek
All applications
Scott Dunkelberger
Assistance
development
funding for
New construction
meets to review
issue
Gateway Park Project
submitted by
PA DCED
Programs: PA
for projects
manufacturing
Tax-exempt
projects in Jan,
Weekly variable rate
should highlight
Industrial
717-787-7120
Economic
requiring a
and nonprofits
bond refinancing
March, May,
tied to market for tax-
Hazleton's distressed
Development
sdunkel(ฎdoc. state
Development
minimum of
July, Sept., and
exempt bonds
climate
Authority or
.pa.us
Financing
$400 K
Nov.
Up to 30-year term
As Governor is
Corporation to
Authority
Borrower must
prioritizing this type of
PEDFA Board
(PEDFA)
secure letter of credit
reuse, Cranberry Creek
www.newPA.com
Taxable and
from bank
Gateway Park Project
Exempt Bond
$500 application fee
should highlight that the
Program
(to be credited
site is a brownfield and
against the issuance
mine-scarred land
fee when project
Program administered
closes)
through PA Dept. of
Community and
Economic Development
who was an initial project
stakeholder
PA Business
Grant and
Communities
All site
Applications
Grants may not
Program is available to
Single application
Scott Dunkelberger
Assistance
loans for
Developers
development and
received on first
exceed 50% of the
build an inventory of
through
PA DCED
Programs:
construction
(for
infrastructure
Wednesday of
total amount of the
ready sites, or "spec"
www.newPA.com
717-787-7120
Business In Our
No minimum
construction
activities
the month for
financing provided, or
properties (not for
sdunkel(ฎdoc. state
Sites
or maximum
loans only)
required to make
Commonwealth
$5 million, whichever
primary residential or
.pa.us
$300 million
a site shovel-
Financing
is less
recreational purposes)
program pool
ready (including
Authority Board
Must get loan before
No repayment on loans
grading,
consideration
grant will be
required until property is
infrastructure,
considered
sold or leased.
municipal
Single project funding
services, etc.)
cannot exceed 15%
Planning grants
of the funds available
for the program
20
-------
Funding &
Funding &
Eligible Entity
Eligible
Funding
Restrictions
Program Facts &
Initial
Contact Information
Technical
Technical
Activities
Timeline
Additional Items
Application
Assistance
Assistance
Steps
Source (State)
Levels
Housing &
Typical
Local
Community
Rolling
If funds are used
Funding can also be
Single application
Mike Morin
Redevelopment
grants
governments
revitalization
applications
for sewer or water
used for gap financing
through
PA DCED
Assistance
average
Redevelopment
Economic
system activities,
for projects
www.newPA.com
570-963-4597
Program
between
Authorities
development
all properties in the
Important to
mmorinfiistate.pa.us
$150K and
Housing
Infrastructure
area must be
demonstrate strong
$200 K
Authorities
improvement
tapped into the
community support
Cindy Campbell
No minimum
Nonprofits
system
for this project before
PA DCED
or maximum
applying
Ccampbellfiistate. pa. us
$30 million
budget in
2005
PA Bureau of
Funds for site
N/A
N/A
Tentatively
N/A
N/A
N/A
M ike Ferko
Abandoned Mines
reclamation
scheduled to begin
BAMR District Engineer
Reclamation
activities
activities in July,
570-826-5486
(BAMR)
2006 at Cranberry
Creek site
mferko(ฎstate.oa.us
Eastern
Several areas
CAN DO
Developing
Cranberry Creek
For OSM/VISTA
Depending on the
N/A
Robert Hughes
Pennsylvania
of non-
innovative
Gateway Park
Volunteer,
redevelopment type,
rhuahes(ฎepcamr.ora
Coalition for
financial
drainage
Project would need
Cranberry Creek
EPCAMR may also be
570-674-7993
Abandoned Mine
support
techniques and
to work with
Gateway Park
able to advise the
Reclamation
designs for the
EPCAMR on the
Project would
project on incorporating
(EPCAMR)
site
Community
outreach
(including local
schools)
OSM/VISTA
position
GIS mapping
timelines for re-
assigning an
OSM/VISTA
position to
Cranberry Creek
need to help with
federal cost
share
educational, historical,
or tourism features into
the site
21
-------
5.0 Program Funding Examples
Four real-world examples of projects that have utilized various federal funding sources are provided to help illustrate how project stakeholders
addressed redevelopment financing needs.
HUD Section 108 Funds:
Bucks County, PA
Dial Corporation
Wheeling, WV
Stamping Building
Section 108 amount
$2.5 million
$2.25 million Section 108 & $1 million BEDI
Purpose of Loan
Property acquisition
Interim construction financing
Parties
Bucks County Community & Business Development
Dept.
Redevelopment Authority of Bucks County (RABC)
Preferred Real Estate LP
City of Wheeling
Regional Economic Development Partnership (REDP)
Nature of Deal
Bucks County transferred administrative tasks
(collection of payments, etc.) for its $2.25 million
Section 108 to RABC. RABC did not enter into a loan
agreement with the County
Preferred Real Estate LP entered into a loan
agreement with the County to use the Section 108
funding and RABC administered loan
Loaned the same $2.5 million to Preferred Real
Estate to buy the Dial Corporation property from
RABC
Preferred Real Estate could have entered deal
directly with the County if they wanted but since
RABC typically administers the County programs,
they dealt with them instead
City of Wheeling "re-loaned" Section 108 to REDP. REDP
entered into a loan agreement with City that mirrored its loan
with HUD
Original term for REDP to pay back City was 20 years with
variable interest rate until bonds sold. Rate based on 10-year
Treasury note (+/- 0.5 %)
Although a 20-year term, REDP paid back the City in about 3
years using its $3 million infrastructure loan from the State of
West Virginia. When it secured Section 108 loan with City,
REDP had other loans in place but the WV loan could not be
used up front for construction, so REDP used Section 108 for
interim construction financing and when construction was half
complete then could use WV loan to pay back City Section 108
Payback Terms
Preferred Real Estate:
10 year term: First 4 years interest only; Can pay in
full in 4 years
If over 4 years, have to keep for 10
City of Wheeling:
20 year term
Annual principle of $100,000 at first
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HUD collateralfor party borrowing from local government or administrator:
HUD requires security from the borrower and/or the local government to adequately collateralize the loan. If the third party borrower's loan to
value ratio is less than .80, or its debt service ratio is less than 1.15, HUD will always require additional collateral, either from the business,
individuals, or from the local government. Depending on the activity or project, HUD may require additional collateral from "deals" that meet
these ratio thresholds. If a local government fully supports a project questioned by HUD, it may always pledge real estate, specific revenue
streams (tax increment, sales tax, etc.), or the full faith and credit of the local government as collateral. Terms for third party loans are typically
matched to the useful life of the collateral, with up to 20 years on real estate.
HUD Section 108 Interest Rates:
Interest on the loan from HUD to the local government is pegged to yields on U.S. Treasury obligations of similar maturity to the principal
amount. A small additional basis point spread, depending on maturity, will be added to the Treasury yield to determine the actual rate. This
interest rate typically runs 0.5% above treasury obligations of comparable maturity. Each annual principal amount will have a separate interest
rate based on the obligation that must be retired by HUD that year.
If the local government or its administrator is loaning the funds to another party for interim financing, the local government/administrator may
add an additional spread to the loan rate to cover servicing costs over the life of the loan as well as require the borrower to pay the loan closing
costs and other local government administrative costs. These costs can be included in the loan. Typically, interest rates on interim borrowing
are priced at the three-month London Interbank Offered Rate (LIBOR) plus 20 basis points (0.2%).
USDA Intermediary Relending Program:
Central Oregon Intergovernmental Program (COIC)
Loan amount
COIC manages a $2.9 million USDA Intermediary Relending Program (IRP)
Purposes of Loan
COIC Business Loan Department manages business loan programs throughout Central, South Central and North Central Oregon that
provide term financing to small businesses for projects that create new jobs or retain existing jobs. Loan funds can be used to purchase
or build new facilities, purchase equipment or provide working capital.
Parties
COIC serves Crook, Deschutes, and Jefferson counties
COIC serves the Cities of Bend, Culver, Madras, Metolius, Prineville, Redmond, and Sisters
The15-member board is made up of elected officials appointed by each of the member governments and appointed
representatives of key economic sectors - business and industry, tourism and recreation, agribusiness and agriculture, timber
and wood products, and the unemployed/underemployed
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Nature of Deal
The IRP offers loans of up to $150,000 or 75% of the total project for a variety of uses including building construction, land
acquisition, machinery and equipment, and permanent working capital
IRP borrowers ("intermediaries") must place the IRP loan proceeds in an RLF for re-lending to eligible, rural businesses, and
community groups ("ultimate recipients")
Example of a COIC Deal
Diesel Power NW ("ultimate recipient') in Prineville, OR:
Owner wanted to open a new facility
Owner received a $184,000 loan from the bank, and was then referred to the COIC IRP
Owner received a $123,800 IRP loan which rounded out the financing package for Diesel Power NW to relocate to a new 5-
acre site
Payback Terms
1% fixed rate, 30 years, fully amortized (though interest-only payments may be permitted for the first 3 years)
ARC General Funding Grants:
Information Technology in West Virginia
Grant amount
Upper Kanawha Valley Economic Development Corporation, Inc., received a $1 million ARC grant
Purposes of Grant
To assist with the construction of Montgomery Technology Community Project Phase I, a technology business center, which consisted
of the demolition of some existing buildings, the construction of a 35,000-square-foot, three-story, technology-ready office building, and
the acquisition of three smaller buildings. The Montgomery Technology Community includes the housing of high-tech jobs and related
industry; the creation of high-technology training and development center for industries related to the expertise of West Virginia
University Tech; and the servicing of government and private research and development contracts in the same selected areas of
expertise.
Parties
ARC
Upper Kanawha Valley Economic Development Corporation, Inc., a nonprofit corporation
Nature of Deal
This ARC grant helped the organization leverage $1,325,500 from the Economic Development Administration; $575,000 in the
loan from the State of West Virginia, and $300,000 from the grantee for a total investment of $3,200,000.
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