Technical Assistance Success Stories | EPA #560F23303 March 2023 Planning for Sustainable Brownfield Redevelopment PROJECT DESIGN AND FUNDING ANALYSIS - RED OAK, IA (EPA REGION 7) SITE STATISTICS • Community: Red Oak, Iowa • Local project lead: City of Red Oak, Iowa • Former use: Public Middle School • Future use: 25-unit Low-income Apartment Complex • Brownfields technical assistance: Funding and financing analysis I architectural analysis PROJECT BACKGROUND The former Red Oak Public Middle School is a brownfield site that is located approximately one block from the historic downtown of Red Oak, IA. Based on the City of Red Oak's goal of making additional low-income housing available to the community, the City has initiated a revitalization project to turn the former middle school into a 25-unit apartment complex for low- income occupants. An environmental assessment performed at the site identified asbestos and lead contamination in the building. PROJECT CHALLENGE Figure 1: Former Red Oak Middle School The City of Red Oak needed assistance conducting a financial feasibility review of the project to support the Low-Income Housing Tax Credit (LIHTC) application process. The City also requested assistance identifying and recommending alternate funding sources for the project as well as a high-level review of design opportunities to maximize use of the buildings' common spaces HOW EPA HELPED In 2022, the U.S. EPA's Office of Brownfields and Land Revitalization (OBLR) provided technical assistance (TA) for the Red Oak redevelopment project. The TA included the following support: • Identification of Alternative Funding Sources: An evaluation of the financial needs of the project was conducted, and a detailed list of potential funding opportunities and sources was identified. Potential funding sources included federal, state, and local opportunities, as well as regional philanthropic foundations. • Evaluation of Project Design: All common spaces were evaluated to optimize their potential reuse, and cost savings measures were assessed. An options assessment was completed that provided options to modify the common space to create stand-alone rentable space, and a list of potential tenant types was generated. • Budget Analysis: A detailed Sources and Uses analysis was conducted to identify potential savings and optimize the low-income and historic tax credit applications. COMMUNITY'S NEXT STEPS • Identify key stakeholders and use targeted messaging to connect with unique and non-traditional funding sources. • Develop relationships with identified groups and contacts that may be interested in using and generating income from the common spaces. Engage the local community as the project progresses to promote the project benefits Questions? Please contact EPA Region 7: David Doyle ------- |