Brownfields Cleanup Revolving
Loan Fund Pilot Fact Sheet

BACKGROUND

Over the past 30 years, the City of Yonkers has witnessed a rapid decline in its manufacturing base. The most affected parts of the City are located in the southwest section. This area is characterized by higher unemployment and poverty rates than the City as a whole. It includes the Nepperhan Valley, the Downtown area, and the Hudson River Waterfront. The Yonkers BCRLF will focus on these southwest communities, although it will be available to cleanup and redevelopment projects throughout the city.

BCRLF OBJECTIVES

The City of Yonkers aims to use its BCRLF to facilitate the cleanup and redevelopment of industrial properties. Most of the targeted sites have a high potential for redevelopment due to excellent rail, water, and road transportation access. The overall goals of the BCRLF are to:

• Assess, cleanup, and return the city's brownfields to productive uses, i.e., to create jobs, contribute to the tax base, and reclaim public enjoyment of natural resources;
• Protect rivers and other natural resources from further environmental degradation;
• Leverage public and private funds to create jobs and economic growth;
• Involve community groups and organizations in the decision making process; and
• Improve the quality of life in environmental justice neighborhoods near the brownfields.

FUND STRUCTURE AND OPERATIONS

The City's Office of Economic Development will serve as the lead agency. The City is currently negotiating with a potential site manager. The City will either serve as the fund manager itself or seek the services of a third party through proper procurement procedures. Interest rates are expected to be at 7 percent, with loan amounts ranging from $50,000 to $100,000. No principal repayments will be required during the cleanup period and a maximum 5 year amortization period will be utilized thereafter. The City's plans to target its lending efforts to its southwest sections.

LEVERAGING

Properties in the Nepperhan and Downtown Waterfront areas are eligible for property tax abatements and are entitled to wage tax credits, investment tax credits, and New York State sales tax refunds on building materials under the State's Economic Development Zone Program. The City will use funding under the State's Environmental Bond Act, which provides 75 percent reimbursement for cleanup costs, at adjacent municipally-owned properties. The City will encourage private investment in brownfields cleanup by educating landowners and developers on the Brownfields Tax Incentive and will make local banks aware of provisions contained within the City of Yonker's Community Reinvestment Act. The City will provide in-kind services in the form of fund tracking, monitoring, accounting, auditing, legal services, community outreach coordination, and public promotion.

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

Office of Economic Development
(914) 377-6797

Region 2 Brownfields Coordinator
(212) 637-4314

Visit the EPA Region 2 Brownfields web site at:
http://www.epa.gov/region02/superfund/brownfields/

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/