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File #: 16-077-O    Name:
Type: Ordinance Status: Passed
File created: 12/2/2016 In control: Planning and Economic Development
On agenda: 12/12/2016 Final action: 1/9/2017
Enactment date: 1/9/2017 Enactment #: 10487
Title: AN ORDINANCE ADOPTING THE U.S. ENVIRONMENTAL PROTECTION AGENCY ("EPA") BROWNFIELD REVOLVING LOAN FUND PROGRAM GUIDELINES.
Attachments: 1. Exhibit A, 2. BRLF Process Diagram
Title
AN ORDINANCE ADOPTING THE U.S. ENVIRONMENTAL PROTECTION AGENCY ("EPA") BROWNFIELD REVOLVING LOAN FUND PROGRAM GUIDELINES.

Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1: That the city of Duluth hereby adopts the EPA Brownfield Revolving Loan Program Guidelines, substantially in the form of that attached hereto as Exhibit A.
Section 2. That this ordinance shall take effect 30 days after its passage and publication.


Statement of Purpose
STATEMENT OF PURPOSE: The Brownfield Revolving Loan Fund Program, funded by a $650,000 grant from the U.S. EPA, is an economic development tool designed to assist brownfield redevelopment projects within the City of Duluth. Program goals include job creation, increased tax base, creation of affordable housing and the expansion, connection and improvement of city trails, parks, and open spaces.
The Brownfield Revolving Loan Fund will be managed by City of Duluth. Applicants will be eligible for loans of up to $200,000 for remediation work in connection with brownfield sites with economically viable reuse plans. Applicants will be required to provide no less than a 20% match of the loan funds. Collateral on the loans may include but not be limited to shared mortgages or lien positions and personal guarantees. The loan rates will generally be less than market rate and will typically be amortized over 15 years with a 5-year balloon payment.
The remediation project will be implemented in consultation with the EPA and the MPCA. The City of Duluth will contract Northspan Group to underwrite the loans. A public meeting will be held with neighborhood partners and there will be a 30-day public comment period on the remediation plans. The City's Internal Loan Review Committee will approve or disapprove the loans and impose such conditions as deemed necessary and appropriate to achieve the program goals.
If this program is found to be in demand, the City will be eligible to apply to the EPA for supplem...

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