PILOT SNAPSHOT |
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Date of Announcement:
May 25, 1999
Amount: $500,000
| BCRLF Target Area: Three sites — a
former steel sales and fabrication business, a former foundry, and a former
meat-packing facility, located in the south side of the City. |
BACKGROUND
Cedar Rapids, Iowa has several neighborhoods that suffer from
comparatively high unemployment and below average household incomes, depressed
property values, conflicting land uses, and general urban decay. Cedar Rapids
has undertaken a rigorous brownfields redevelopment initiative that has been
recognized with a Brownfields Assessment Pilot and a $700,000 Special Purpose
grant from HUD for revitalizing brownfields within the south side area. Within
this area, 48 percent of the population live at or below the City`s median household
income level and 30 percent live below the poverty level. In addition, the unemployment
rate of 13 percent is double the rate for Cedar Rapids as a whole. The south
side area is a designated Enterprise Zone and the City is in the process of
completing an Urban Renewal/Tax Increment Financing Plan for the area.
BCRLF OBJECTIVES
The objective of Cedar Rapids' brownfields initiative is to encourage
renewed investment and economic development opportunities in blighted
neighborhoods. The Cedar Rapids BCRLF will provide gap financing
for eligible cleanup projects, enhancing the City's inventory
of incentives that lead to brownfield redevelopment. The BCRLF
will be integral in cleaning up and redeveloping the following
three brownfield sites located in the target neighborhood:
- Iowa Steel Site — formerly a steel sales and fabrication
business that has deteriorated due to lack of investment and use.
- Iowa Iron Works Site — formerly a foundry that
went bankrupt and become tax delinquent, now in a state of disrepair and subject
to chronic vandalism.
- Sinclair-Wilson Site — formerly a meat-packing facility
that has seen developer interest, but no action has occurred.
The site's assessed value has dropped from $4.3 million to $800,000.
FUND STRUCTURE AND OPERATIONS
The Cedar Rapids Department of Development will serve as lead
agency and is working with the U.S. Army Corps of Engineers, Rock Island District
Office to serve as site manager. The City is considering utilizing either the
Iowa Department of Economic Development or the City's Commissioner of Accounts
and Finance as fund manager. The BCRLF plans to fund relatively small cleanup
projects with the average loan size expected to be $40,000 to $50,000. Six or
seven loans will be issued in the initial round of lending.
LEVERAGING
The Cedar Rapids BCRLF plans to leverage property tax increments made
available through the planned tax increment financing district,
the HUD Special Purpose Grant, and Iowa Enterprise Zone tax credits.
Kirkwood Community College will provide in-kind technical assistance
and field training.
Use of BCRLF Pilot funds must be in accordance with CERCLA,
and all CERCLA restrictions on use of funding also apply to BCRLF
funds.
CONTACTS
City Planner
(509) 580-7113
Region 1 Brownfields Coordinator
(617) 918-1291
Visit the EPA Region 1 Brownfields web site at:
www.epa.gov/region01/remed/brnfld/
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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