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]

ER TIDs & tax credits

Tax Incremental Financing (TIF) - Wisconsin Department of Revenue (DOR)

TIF [exit DNR] is a public financing method authorized by Wis. Stat. § 66.1105, Wis. Stats. [exit DNR], and used by local governments to fund redevelopment and infrastructure improvement projects.

After a Tax Incremental District (TID) is certified by DOR [exit DNR], a municipality can issue debt (borrow money) to fund the acquisition of land, infrastructure improvements, building demolition, environmental work, and more, within the TID's geographical boundaries.

State law, sec. 66.1105, Wis. Stats., identifies the types of possible TIDs, which include blight; rehabilitation or conservation; industrial; mixed-use; town; environmental remediation (ER); and special legislation. Descriptions and conditions of the different types of TIDs are listed in the statute.

Tax revenue generated over the TID life by the increase in property values in a TID, as compared to the original (base) value when the TID was created, is called the “tax increment.” Over the lifespan of the TID (20-27 years depending on the TID type), tax increment revenue is used to pay the municipality’s TID debt. Tax revenue generated by the property's original (base) value in the TID is used during the TID life to fund all local taxing jurisdictions, such as the municipality, schools, county government, technical colleges, etc.

At the end of the TID's maximum life, or when tax increment revenue exceeds total project costs, the municipality must terminate the TID. Following termination, the new, presumably higher, value of the TID property is returned to the tax rolls of all local taxing jurisdictions and property taxes are levied on the new values.

Environmental Remediation (ER) TID - DOR

ER TID [exit DNR] are authorized by Wis. Stat. § 66.1105(20m) [exit DNR]. ER TIDs can be created when most of the territory in the TID boundary contains significant environmental pollution. “Environmental pollution" is defined in Wis. Stat. § 299.01(4) to mean “the contaminating or rendering unclean or impure the air, land or waters of the state, or making the same injurious to public health, harmful for commercial or recreational use, or deleterious to fish, bird, animal or plant life.”

Regular TIDs can fund environmental work and the definition of “project costs” under state law, sec. 66.1105(2)(f), Wis. Stats. [exit DNR], applies to both ER TIDs and regular TIDs, but ER TIDs are unique in a few ways. For example, DOR automatically sets the base value of an ER TID to $1 when it is certified. In addition, a municipality can designate one ER TID as excluded from the TIF value limit of 12 percent. An ER TID that is excluded from the TIF value limit can still be created even when a municipality is at or above its 12 percent value limit.

Another key difference between ER TIDs and regular TIDs is the statutory requirement that a municipality obtains a DNR certification of the site investigation report for the district before the municipality adopts an ER TID creation resolution, and before DOR can certify the district.

Use DNR Form 4400-237 to request DNR review and certification of the site investigation report per the requirements listed in state law, ch. NR 716, Wis. Admin Code [exit DNR].

Developing site investigation reports and remedial action plans can be complex and time-consuming. It is important to select a qualified environmental consultant to perform the tasks required. Information about selecting an environmental consultant is available at http://dnr.wi.gov/topic/brownfields/select.html.

New market tax credits

U.S. Department of the Treasury

• The New Market Tax Credit Program is managed by the U.S. Department of the Treasury, Community Development Financial Institutions Fund. This program incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities. Brownfield properties are often involved. More information is available at https://www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/default.aspx [exit DNR]

Other tax credit opportunities

• 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.

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.