Financial resources for cleaning up & redeveloping contaminated properties

Grants

Grants and reimbursement programs

State resources

DNR

• Wisconsin Asssessment Monies (WAM)
• Ready for Reuse Loan and Grant Program
• Dry Cleaner Environmental Response Fund (DERF)
• Petroleum Environmental Cleanup Fund (PECFA)
• Stewardship Program (may be used at brownfields, but not those that have been condemned)

Wisconsin Economic Development Corporation (WEDC)

• Brownfields Site Assessment Grant [exit DNR]
• Brownfield Program (formerly the Blight Elimination & Brownfield Redevelopment (BEBR) Program) [exit DNR]

Department of Administration

• Wisconsin Coastal Management Grants [exit DNR]
• Community Development Block Grant Program (CDBG) [exit DNR]

Department of Agriculture, Trade, and Consumer Protection

• Agricultural Chemical Cleanup Program (ACCP) [exit DNR]

Department of Transportation

• Transportation Economic Assistance Program (TEA) Grants [exit DNR]
• Local Transportation Enhancement [exit DNR]

Federal resources

U.S. Environmental Protection Agency

• EPA Brownfield Grants:
  • assessment grants;
  • revolving loan fund grants; and
  • cleanup grants.

U.S. Department of Housing and Urban Development

• Brownfields Economic Development Initiative (BEDI) [exit DNR]

Loans

Loans & loan guarantee programs

State resources

DNR

• Ready for Reuse Loan and Grant Program

Board of Commissioners of Public Lands

• State Trust Fund Loans [exit DNR]

Federal resources

U.S. Environmental Protection Agency

• Revolving Loan Fund [exit DNR] - This federal grant of up to $1 million allows a government to establish a local fund, 60% of which will capilitize a revolving loan fund. 40% may be used for local brownfields grants.

U.S. Department of Housing and Urban Development

• Section 108 Loan Guarantee Program [exit DNR] - This section of HUD's Community Development Block Grant Program allows local governments to borrow five times their block grant allocation.

U.S. Small Business Administration (SBA)

• SBA Loans [exit DNR]

Tax credits & incentives

Tax Incremental Financing (TIF) - Department of Revenue

Tax Incremental Financing (TIF) [exit DNR] is a tool for local governments to increase their property tax base, address blighted areas and promote development, redevelopment and job creation. After creating a TIF district (sometimes referred to as “TIDs”), the municipality may borrow to fund infrastructure improvements and land acquisition within the TIF district. The base (original) value of property in the TIF district continues to fund county, school and municipal needs. Revenues generated by the increase in property values in the TIF district are applied toward development expenses and debt service on the loan during the TIF period, up to 27 years, depending on type of TID.

Environmental Remediation Tax Incremental Financing (ERTIF) - Department of Revenue

Environmental Remediation Tax Incremental Financing (ERTIF) [exit DNR] differs from other tax incremental financing districts in several ways. They are created specifically to address brownfields, and environmental expenses may be recovered through the increase in property values. Also, ERTIFs are not included in the 12 percent limit on a local governmental unit's (LGU) equalized value, and unlike other TIFs, the base value of an ERTIF may be $0. In addition to cities and villages, counties and towns may establish an ERTIF.

ERTIFs may fund:

• planning;
• property acquisition;
• Phase I and Phase II environmental site assessments;
• environmental investigation;
• removal of underground storage tanks and abandoned containers;
• environmental cleanup; and
• demolition, including asbestos abatement.

There is no limit on the value accrued in the ERTIF, as long as the costs incurred are eligible. The DNR must approve the site investigation report and the remedial action plan before the Department of Revenue (DOR) certifies the base value of the property in the ERTIF. The local government can incur some eligible expenses before the DOR certifies the base value and those costs can be paid back by the ERTIF.

Tools for managing delinquent taxes (75.105, 75.106, & 75.17 Wis. Stats.)

There are several state tools local governments can use to manage delinquent taxes for a contaminated property, including cancelling all or portions of the taxes.

New market tax credits

U.S. Department of the Treasury

• New Market Tax Credits [exit DNR] - New Markets Tax Credits are awarded to community development entities in order to attract private capital investment in rural and urban low-income areas. The credits reduce federal income taxes for qualified investments in census tracts with median household income of 80% or less of state or federal median income (see the Dept. of Treasury web site [exit DNR] for census information).

Local Initiatives Support Corporation

• LISC New Market Tax Credits [exit DNR] - The Local Initiatives Support Corporation (LISC) administers federal New Market Tax Credits through their regional programs. Funds can be applied in a wide variety of ways, including small business lending, financial counseling and real estate development. LISC covers portions of rural Wisconsin and the Milwaukee area.

Historic preservation tax credits - Wisconsin Historical Society

• Historic Preservation Income Tax Credits [exit DNR] are available on both state and federal income taxes for rehabilitation expenses at qualifying properties. Owners of income-producing historic property are eligible following approval from the National Park Service, based on a recommendation from the Historical Society's Division of Historic Preservation.