Brownfields Cleanup Revolving
Loan Fund Pilot Fact Sheet

BACKGROUND

Several hundred contaminated sites are located throughout the county. As part of the upper mid-west rail and river corridors, Hennepin County is experiencing the effects of the contamination of these former commercial and industrial sites. Many parcels of land in Hennepin County are unavailable for redevelopment because of the existence of contaminated soil. Most of this contamination relates to industrial land uses earlier this century. These sites reduce the County's property tax valuation, its overall quality of life, and inhibit efforts to retain and attract commercial and industrial businesses. Hennepin County's BCRLF targets sites throughout the County, with priority consideration for sites within the Minneapolis Empowerment Zone (EZ), and brownfields sites designated as special districts such as hazardous waste districts, tax increment financing districts. The unemployment rate in the Minneapolis EZ is 14 percent and 45 percent of residents are not in the labor force. Hennepin County is a Brownfields Assessment Pilot.

BCRLF OBJECTIVES

Hennepin County will use BCRLF as an incentive to stimulate the cleanup of the underutilized properties scattered throughout the county. The BCRLF will provide gap financing flexibility that will be used to leverage additional private and public funding. The BCRLF loans also will be used in aid of projects where non-tax generating uses including greenspace redevelopment are planned, and as a funding source for non-profit organizations to cleanup brownfields. Eligible borrowers may include private for-profit businesses, private non-profit businesses, and local public entities.

FUND STRUCTURE AND OPERATIONS

Hennepin County will serve as lead agency and will contract with the Community Reinvestment Fund (CRF) as fund manager. The CRF has been providing financial services to government entities for the past decade. The Minnesota Pollution Control Agency will assist the pilot in carrying out its site management responsibilities.

LEVERAGING

Hennepin County is partnering with the State of Minnesota's Department of Trade and Economic Development (DTED), the Metropolitan Council, the Minneapolis Community Development Corporation, and other interested organizations to enhance the leveraging possibilities of the BCRLF. The DTED has a contamination cleanup grant program that awards up to 75 percent of the cleanup costs to eligible public jurisdictions. Hennepin County will use BCRLF loans in conjunction with the State program.

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

Region 5 Brownfields Coordinator
(312) 886-4071

Program Director, Hennepin County Training and Employment Assistance
(612) 348-5859

Visit the EPA Region 5 Brownfields web site at
www.epa.gov/R5Brownfields/

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/