Putting It All Together: The Loan Process from Beginning to End
Transcript of Putting It All Together: The Loan Process from Beginning to End
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NJIT TAB & USEPARLF Workshop
October 13 & 14, 2010
RLF 101The Loan Process from
Beginning to End
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The Loan Process from Beginning to End
• Purpose of RLF is to cleanup brownfields sites in accordance with redevelopment goalsCost-Effectiveness
Timeliness
Avoidance of adverse effects
Benefits local community
• RLF recipient responsible for all provisions of environmental cleanup
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The Loan Process from Beginning to End
• Sites will be cleaned up following state VCP
programs.
• Cooperative agreement requires specific steps
in planning, conducting and completing
environmental cleanups.
• This session is a review of these steps so you
and your borrowers and subgrantees will reach
your redevelopment goals.
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Site & Borrower/Subgrantee Eligibility
• The RLF recipient (Lead Agency) is responsible
for determining site & borrower/subgrantee
eligibility
• They must determine & document that:
The site is an eligible Brownfields site;
The cleanup activities funded by the loan/subgrant
are eligible;
The borrower/subgrantee is eligible to receive EPA
funds (not liable under CERCLA 107).
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Site & Borrower/Subgrantee Eligibility
• EPA will assist in this determination.
• State or EPA will make petroleum determination.
• The use of applications with ownership,
acquisition, and prior use questions can be
helpful in gathering the information needed to
determine the site & borrower/subgrantee
eligibility.
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Planning for Community Involvement
• Public participation is a critical element of all
brownfields cleanups.
• The public must be informed of the site cleanup
activities and be afforded the opportunity to
comment on the relevant cleanup documents.
• Community involvement activities must be:
Completed prior to the cleanup of sites
Continue through each step of the cleanup
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Planning for Community Involvement
• Designate a Community Relations SpokespersonEmployee of Lead Agency
Responds to inquiries
Provides information concerning the cleanup activities
• Establish an Information RepositoryPublic access location such as City Hall or Library
Contains public documents related to site and Administrative Record
• Prepare a Community Involvement PlanPrepare before public review period
Can be prepared by Lead Agency or borrower/subgrantee
Lead Agency responsible for ensuring compliance
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Planning for Community Involvement
• Community Involvement Plan Contents
Overview of Project
Spokesperson & Information Repository
Name & Contact Information of Spokesperson
Location, Address and Website of Information Repository
Site Description
Location & Address
History of Use and Ownership
Nature of Threats to Public Health
& Environment
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Planning for Community Involvement
• Community Involvement Plan Contents (continued)
Community Background
Community Profile
Past Community Involvement
Key Community Concerns
Benefits to Targeted Community
Continued Community Involvement
Current and Future Activities
Plans for 30-day comment period for
Administrative Record
Proposed Project Schedule
• Your plan must be reviewed and approved by EPA
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Establishing the Administrative Record
• Contains all relevant site information and
cleanup documents
• Placed in Information Repository for public
access
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Establishing theAdministrative Record
• Administrative Record may include:
Eligibility Determination
Community Involvement Plan
ABCA or equivalent
Phase I & II Reports
Cleanup Planning Reports
Remedial Action Plans (may include ABCA)
Loan and subgrant agreements
Other documents related to cleanup
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Analysis of Brownfields Cleanup Alternatives (ABCA)
• Ensures that appropriate cleanup method is selected for
the site
• Usually prepared by the borrower’s or subgrantee’s
Qualified Environmental Professional (QEP)
• Contains:
Site History & Contamination Issues
Cleanup Standards
Applicable Laws (Federal, State & Local)
Alternatives Considered
Proposed Cleanup Alternative
• May be part of or addendum to the Cleanup Plan
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Analysis of Brownfields Cleanup Alternatives (ABCA)
• Alternatives
Must include comparison of proposed cleanup action
and a “no action” alternative.
May include additional alternatives as appropriate.
Each alternative must discuss:
Effectiveness
Implementability
Cost
Ability to achieve cleanup standards
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Conducting Community Involvement
• Begins once Administrative Record is established and
ABCA is completed.
• Depending on circumstances, you or the
borrower/subgrantee will provide public notice of
availability of administrative record, including ABCA.
• Notice to be placed in:
Major Local Newspaper (This is a must)
Website
Cable TV
Newsletters
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Conducting Community Involvement
• The notice contains:Description of Project
Location of Administrative Record
Contact Information of Spokesperson
Request for comments
Method and location for receipt of comments
• Provides for a 30-day or adequate comment period.
• If appropriate, conduct a public meeting during the comment period to help solicit comments.
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Decision Document
• Identifies the selected cleanup alternative.
• Includes response to all relevant comments
during public comment period.
• Documents changes in final cleanup plan.
• Can be a letter, memo or included in final
cleanup plan.
• Usually prepared by the borrower’s
or subgrantee’s QEP.
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Loan & Subgrant Documents
• Make sure roles are clearFocus on roles of Lead Agency and
Borrower/Subgrantee
Not contractors or other parties
• Make sure process flows logicallyPay specific attention to cleanup steps
Make sure all cleanup and administrative requirements are clear
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Loan & Subgrant Documents
• Make sure you include everythingThis is where your legal support is key
Required clauses from the RLF Terms & Conditions
Applicable federal & state environmental requirements
Applicable federal cross-cutting requirements
Applicable local requirements
• Prepare a complete package that includes:Loan or Subgrant Agreement
Promissory Note or Mortgage
Cover memo, resolutions, agreements, etc.
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Loan & Subgrant Documents
• Creative Loan Terms & ToolsDeferred Payments
Can be useful for challenging projects but make sure it doesn’t create perception of looking like a subgrant
Loan Guarantee OptionsTraditional mortgage
For government entities as the borrower:
– Tax Increment Financing (TIF) $$
– Developer contribution
– General Obligation Funds
Grantee authorization for incurring eligible costs prior to execution of loan document
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Loan & Subgrant Documents
• Creative Loan Terms & Tools (continued)
Incorporate adequate contingency in the loan to cover
unexpected costs encountered during site cleanup
Evaluate Creative Loan Repayment Options
State Grant Funds
TIF $$
Balloon payments
Capture Percentage of Proceeds
from Post-Cleanup Sale of Property
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Meeting Federal & StateEnvironmental Requirements
• Federal RequirementsRLF Terms & Conditions
CERCLA 104(k)
Davis Bacon Act
Historic Preservation Act
40 CFR 31 & OMB Circular A-87 for government entities
40 CFR 30 & OMB Circular A-122 for non-profits
40 CFR 30 & OMB Circular A-21 for educational institutions
Executive Orders
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Meeting Federal & StateEnvironmental Requirements
• Federal Requirements (continued)
MBE/WBE
OSHA Worker Health & Safety
Uniform Relocation Act
Endangered Species Act
Clean Water Act
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Meeting Federal & StateEnvironmental Requirements
• State Environmental Requirements
State VCP program or equivalent
Other appropriate cleanup program (Asbestos &
Lead, Petroleum & USTs, etc)
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The Loan Process from Beginning to End
• Site & Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Performing an Environmental Cleanup
• Final Approved Cleanup Plan
• QAPP
• Cleanup Oversight
• Institutional Controls
• Monitoring
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Performing an Environmental Cleanup
• Final Approved Cleanup PlanBorrowers and subgrantees must adhere to
requirements contained in the final approved cleanup plan.
Any changes or variations must be coordinated with QEP and appropriate state program.
• Quality Assurance Project Plan (QAPP)Required for any confirmatory and/or post-cleanup
monitoring sampling.
Must be approved by EPA prior to start of cleanup.
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Performing an Environmental Cleanup
• Cleanup Oversight by the Lead Agency QEP
The QEP will make appropriate site visits to ensure that cleanup
is being completed in accordance with approved plans.
The QEP will document sites visits and cleanup progress
meetings.
The QEP will assess cleanup
progress to aid in making
payments for work completed.
The QEP will review the final cleanup
documentation for compliance with state
requirements
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The Loan Process from Beginning to End
• Site and Borrower/Subgrantee Eligibility
• Planning for Community Involvement
• Establishing the Administrative Record
• Analysis of Brownfields Cleanup Alternatives (ABCA)
• Conducting Community Involvement
• Decision Document
• Loan & Subgrant Documents
• Meeting Federal & State Environmental Requirements
• Performing an Environmental Cleanup
• Documenting the Environmental Cleanup
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Documenting an Environmental Cleanup
• The borrower’s or subgrantee’s QEP will complete closeout documentation and submit the following to the state: Cleanup actions completed and any modifications to the cleanup
plan
Confirmation that cleanup actions met the established cleanup levels documented in final cleanup plan, including results of confirmatory sampling
Resources committed to the cleanup actions
Any problems encountered and how they were resolved
• The state will review the documentation
and prepare a final approval letter
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Questions?