Redevelopment Grant Program

1. Redevelopment Grant Program December 2013

2. Redevelopment Grant Program

3. Program Purpose • Level the playing field by removing or assisting with extra costs of development on previously used sites • Create jobs, increase taxes

4. Eligible Applicants • Cities • Counties • HRAs • EDAs • Port Authorities

5. Eligible Sites • Previously been developed • End use which will create jobs, taxes, or other public benefits • Resolution from applicant body and municipality (if different) • Bond-Financed Projects must have public component

6. Eligible Costs

7. Previously Incurred Costs • Eligible costs are those incurred after grant award date • Eligible costs incurred up to 12 months prior to application due date can be eligible as match

8. Match Requirement • Up to 50% of eligible redevelopment costs • Match can be from any available source

9. Funds Available Total funds in account: $4,000,000 approximately GENERAL FUND!!! Approximately $125,000 Bond Funds remain 50% to Greater Minnesota 50% to Metro Area

10. Competitive Grants • Grants are competitive • Compete against other applications (no thresholds)

11. Competitive Scoring Categories • Contamination remediation need (15 points) • Qualifies for and uses TIF (25 points) • Redevelopment potential (90 points) • Proximity to public transit (5 points) • Multi-jurisdictional projects that take into account affordable housing, transportation and environmental impact (15 points)

12. Minimum Score • Total points available = 150 • Applications must score at least 50 points to be eligible for funding

13. Project Readiness • Apply when project is ready • Projects must begin by date listed in grant agreement – generally within 12-18 months of award • Grant terms are becoming increasingly more difficult to extend

14. Blended Financing • Can use both General Fund and Bond funds for the same project • General fund on activities on a private site • Bond funds on public infrastructure

15. Eligible Bond Expenses • Publicly-Owned (by applicant) • Public Infrastructure

16. Application Due Dates Applications are due on February 1 (3), 2014 by 4:00 pm to DEED offices (Electronic copies of application are not accepted)

17. Applications Applications and instructions may be found on the DEED website: www.mn.gov/deed/ FOR LOCAL GOVERNMENT Financial Assistance Site Cleanup and Redevelopment Funding Redevelopment Grant Program or Demolition Loan Program

18. Application Reminders • Complete applications thoroughly by due date: • All questions answered • All attachments submitted (appraisals, Resolutions, etc.) • Closed Process • Only Assessor or Appraiser can determine value • Use Updated Application form

19. Application Reminders Please review the Program Requirements and Criteria

20. Awarding Grants • Grants are generally awarded approximately 6-8 weeks after submittal. • Funds awarded must be spent within grant term

21. Redevelopment Program Successes • First grant awarded in 1998 • Over $61.9 million in 133 Redevelopment grants Producing…….

22. Program Results • 1,209 acres redeveloped • 18,910 new jobs created or jobs retained • 4,423housing units developed • $26.6 million in tax base increases • $1.7 billion in non-state funds leveraged

23. Demolition Loan Program

24. Eligible Criteria • Same eligible applicants as Redevelopment Grants • Eligible sites must be owned by the applicant, must have been vacant for at least one year and cannot be listed on the National Register of Historic Places • Eligible costs include acquisition, demolition and interior remediation • Same application deadlines as Redevelopment Grants • Doesn’t have to be imminent development prospect

25. Other Loan Information • May pay up to 100% of costs, maximum loan amount of $1,000,000 • 2% interest rate for up to 15 years • Interest and payment free for first two years • If development occurs, up to 50% of the remaining principal and interest could be forgiven based on development benefits

26. Demo Loan Process • Application is different from Redevelopment grant • Applications are accepted at the same time • Awards might not be made concurrent with Redevelopment

27. Demolition Loan Application Details

28. Demolition Loan Application • Site Information • Site Evaluation • Map and Site Features • History • Current Conditions

29. Demolition Loan Application • Development Potential • Cost Analysis • Analysis of Loan Need • Financial Information

30. Demolition Loan Scoring Criteria • Extent to which the existing property conditions threaten public safety • Length of vacancy of the property • Development potential of the property • Proximity of the property to existing public infrastructure • Applicant’s financial condition and ability to repay the loan

31. DEED Assistance Brownfields and Redevelopment staff: Meredith Udoibok, Director 651-259-7451 Kristin Lukes, Assistant Director 651-259-7451 Irene Dassier, Administrative Support 651-259-7449 Project Managers: Terry Dalbec, 651-259-7448 Roy Murphy, 651-259-7452 Erin Welle, 651-259-7453

32. For more information on DEED Funding Programs, see DEED on the Web www.mn.gov/deed

33. Questions?