Division of Waste Management FLORIDA S BROWNFIELDS REDEVELOPMENT PROGRAM Brownfields 101 Florida s 2017 ANNUAL BROWNFIELDS CONFERENCE 20 th Anniversary of Florida s Brownfields Program Carrie L. Kruchell, P.G. Track A, Session 1A October 2, 2017
What Are Brownfields? Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination. Section 376.79(4) Florida Statutes
What Is A Brownfield Area? Brownfield Area means a contiguous area of one or more brownfield sites (some of which may not be contaminated), and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprived communities and areas, and EPA-designated brownfield pilot projects. Section 376.79(5) Florida Statutes
Florida s Brownfields Redevelopment Program Benefits Florida s Program helps to promote: Economic development Community development Residential projects, and Open-Space/ Green-Space projects and Reduction of public health and environmental hazards Removal of stigma Effective use of community resources Orlando City Soccer Stadium
Florida s Brownfields Redevelopment Program Who are the Brownfields people at DEP and how are they organized?
Florida s Brownfields Redevelopment Program The Program is managed by DEP staff in Tallahassee who act as liaisons between Brownfield Coordinators in the: Six (6) DEP Districts across the State, and Three (3) Designated Local Program Counties (Broward, Miami-Dade & Hillsborough).
Brownfield Program Manager Carrie L. Kruchell, P.G. (850) 245-8765 Carrie.L.Kruchell@dep.state.fl.us Department Brownfields Contacts Northwest District, Pensacola Sally Cooey, P.G. (850) 595-0558 Sally.Cooey@dep.state.fl.us Northeast District, Jacksonville Darrin McKeehen, P.G. (904) 256-1545 Darrin.McKeehen@dep.state.fl.us Central District, Orlando Kim Rush, P.E. (407) 897-4314 Kim.Rush@dep.state.fl.us Voluntary Cleanup Tax Credit Program Manager Scott L. Sweeney (850) 245-8958 Scott.L.Sweeney@dep.state.fl.us DEP District Brownfield Coordinators South District, Ft. Myers Patricia Goense (239) 344-5608 Patricia.Goense@dep.state.fl.us Southwest District, Tampa Yanisa Angulo, P.E. (813) 470-5757 Yanisa.Angulo@dep.state.fl.us Southeast District, West Palm Beach Diane Pupa (561) 681-6782 Diane.Pupa@dep.state.fl.us
Designated Local Program Contacts Local Program Brownfield Coordinators David Vanlandingham, P.E. Broward County (954) 519-1478 dvanlandingham@broward.org Allison Amram, P.G. Hillsborough County (813) 627-2600, ext. 1294 amrama@epchc.org Sandra Rezola Miami-Dade County (305) 372-6700 sandra.rezola@miamidade.gov
BF Coordinators Panel Discussion 3:35 4:55 p.m., Session 7A: DEP & Delegated Local Programs Brownfield Coordinators Panel Discussion: Frequently Asked Questions Immediately followed by Lisa Duchene s presentation on: Institutional Controls
Other Important Brownfields Contacts Which other agencies can help?
Other Important Brownfields Contacts JOB BONUS REFUND Enterprise Florida, Inc. Heather Shubirg (407) 956-5696 hshubirg@enterpriseflorida.com LOAN GUARANTEE Department of Economic Opportunity Maureen Smith (850) 717-8978 maureen.smith@deo.myflorida.com SALES TAX REFUND Department of Revenue Andrea Hunter (850) 717-7773 andrea.hunter@floridarevenue.com
Florida s Brownfields Redevelopment Program What is the Brownfields Process here in Florida?
Florida s Brownfields Process BROWNFIELD AREA DESIGNATION By Local Government IDENTIFICATION OF PRFBSR Acronym Key PRFBSR Person Responsible for Brownfield Site Rehabilitation EXECUTION OF BSRA By FDEP and PRFBSR BSRA SRCO Brownfield Site Rehabilitation Agreement Site Rehabilitation Completion Order IMPLEMENTATION OF BSRA By PRFBSR SRCO
Brownfield Area Designation by Local Government Outside Specified Redevelopment Areas Local government must consider whether the area: Warrants economic development and has a reasonable potential for such activities; To be designated represents a reasonably focused approach and is not overly large in geographic coverage; Has potential to interest the private sector in participating in rehabilitation; and Contains sites or parts of sites suitable for limited recreational open space, cultural or historical preservation purposes.
Brownfield Area Designation by Local Government Inside Specified Redevelopment Areas Local governments can propose Brownfield Area designations inside: Community Redevelopment Areas (CRA); Enterprise Zones (No new EZs as of 2015); Empowerment Zones; Closed Military Bases; or Designated Brownfield Pilot Project Areas
Brownfield Area Designation Requested by Individual Local government shall designate if: Owner/controller agrees to site rehabilitation and redevelopment 5 new permanent jobs will be created Redevelopment is consistent with comprehensive plan Designation is properly noticed Reasonable assurance of financial viability
State vs. Federal Program Comparison What are the differences between the State and Federal Brownfields Programs?
State vs. Federal Program Comparison State Program Federal Program Incentive based Grant based Can be used with EPA grant Available to public sector and private sector Subject to state cleanup rules No requirement to participate in State program Incentives encourage reuse and redevelopment Funded seed amount to emphasize leveraging
Why participate in the Florida Brownfields Program?
Brownfields Economic Incentive Options Loan guarantee program o 50% loan guarantee on site rehabilitation and development o 75% for affordable housing/health care providers o $5 million dollars available Effective July 1, 2013 In order to be eligible for the following incentives, the site must also have an executed BSRA or adjoin/abut a property with an executed BSRA Bonus refund for job creation o Up to $2,500 per job Sales tax exemption on building materials for affordable housing or mixed-use affordable housing projects
Brownfields Program Benefits Brownfield Sites (executed BSRA) Regulatory Framework for Cleanup (Rules 62-780 and 62-777, F.A.C.) Dedicated staff expedited technical review Liability Protection Voluntary Cleanup Tax Credits (for eligible costs) All benefits of the Memorandum of Agreement (MOA) with EPA
BSRA Liability Protections Owners and Redevelopers (PRFBSRs) o Relief from further liability for site rehabilitation and property damage Section 376.82(2)(a), F.S. o Does not limit third party rights for personal injury damages Section 376.82(2)(b), F.S. o Available if BSRA terms met Lenders o Serving in fiduciary capacity - loan o Did not Cause/contribute to contamination Control/manage site rehabilitation o Economic incentives do not apply during the lender s ownership Government, non-profit, charitable organizations
Voluntary Cleanup Tax Credits Tax Credit Type Application Frequency % Allowed / Maximum Credit for Costs Incurred and Paid after 12/31/07 Site Rehabilitation Annually 50% $500,000 No Further Action Bonus (i.e., SRCO) Once 25% $500,000 Affordable Housing Bonus Once 25% $500,000 Health Care Facility Bonus Once 25% $500,000 Solid Waste Once 50% $500,000
Voluntary Cleanup Tax Credits Credits used to offset Florida corporate income taxes May be transferred once; must be used/transferred within a 5-year period $10 million annual cap as of July 1, 2017 o If exhausted, first-come, first-served prioritized backlog rolls over to next year s authorization Credits awarded for eligible work o Site rehabilitation o Solid waste removal, transport and disposal Bonus credits only awarded for: o Site rehabilitation (NFA/SRCO) o Affordable housing o Healthcare provider/facilities
Voluntary Cleanup Tax Credits Millions $24 $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Figure 4 Voluntary Cleanup Tax Credits Approved Since Program Inception Year Brownfield Sites Drycleaning Sites Carryover Estimated VCTCs Estimated Carryover Annual Authorization Note: Effective July 1, 2017, the annual authorization was increased from $5 million to $10 million. Excerpted from the August 2017 Brownfields Annual Report
Status of Program as of June 30, 2017
Status of Program 2016, and Jan 2017- June 2017 Number of Designated Brownfield Areas Number of SRCOs 15 10 5 0 80 60 40 20 0 Figure 1 Designated Brownfield Areas Per Calendar Year 0 0 1 2 21 14 6 1 1 0 6 18 22 19 26 18 23 1 1 2 6 Year 4 4 61 8 11 Figure 3 SRCOs Per Calendar Year 10 25 32 33 29 7 8 11 16 18 28 4 7 10 9 Number of Executed BSRAs 5 40 30 20 10 0 0 1 1 Figure 2 Executed BSRAs Per Calendar Year 5 8 18 16 9 13 15 23 Year 16 13 13 12 17 21 25 27 38 4 Year Data as of June 30, 2017
Status of Program 2016, and Jan 2017- June 2017 Period Table 1 Brownfields Redevelopment Bonus Refund New Direct Jobs Projected Indirect Jobs Projected Investment Projected January 1, 2016 - December 31, 2016 120 261 $32,312,475 January 1, 2017 - June 30, 2017 125 278 $29,000,000 1997 - June 30, 2017 24,544 39,389 $2,695,817,573 Confirmed Net New Direct Jobs Investment Confirmed to Date 1997 - December 31, 2015** 12,990 $329,775,824 **Applicants for job bonus refund submit their requests in the January following the year the jobs were created. Applications for 2016 jobs were received in January 2017 and are currently being evaluated and confirmed. Therefore the most recent confirmed jobs data is for the period ending December 31, 2015. Excerpted from the August 2017 Brownfields Annual Report
Program Highlights 1997-2017 One hundred and five (105) brownfield sites have received SRCOs. The total number of designated Brownfield Areas statewide is 436. The total number of executed BSRAs since 1997 is 299. DEP has received 829 VCTC applications, and approved tax credits totaling approximately $81.6 million. Of this total, approximately 95 % was allocated for tax credits for brownfield sites. 12,990 confirmed net new direct jobs have been created. Between 1997 and December 2015, more than $329 million dollars in confirmed capital investment can be attributed to the Program.
Another Brownfield Resource
State and Tribal Response Program (SRP)Grant State and Tribal Response Program (SRP) Grant EPA funding Administered by DEP Independent of the Florida Brownfields Program Grant of services, performed by DEP contractors Up to $200,000 for assessment tasks Up to $200,000 for remediation tasks (including source removal) Eligibility considerations Meet federal definition of brownfield Applicant did not cause or contribute to contamination No viable responsible party Project provides public benefit Applicant has willingness and ability to complete project
Visit Us on the Web Brownfields http://www.dep.state.fl.us/waste/categories/brownfields/default.htm VCTC http://www.dep.state.fl.us/waste/categories/vctc/default.htm