Title
Authorization to Apply for, Accept, Disburse Funds and Enter into Agreements for U.S. Environmental Protection Agency Brownfields Revolving Loan Fund Grant (Ordinance S-46154)
Description
Request approval for the City Manager, or his designee, for the City of Phoenix Office of Environmental Programs (OEP) to submit a grant application to the U.S. Environmental Protection Agency (EPA) for a $1,000,000 Brownfields Revolving Loan Fund Grant and, if awarded, to execute all contracts and Memorandums of Agreement (MOA) necessary to accept and disburse the grant funds. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, grant funds in accordance with the terms of the aforementioned grant and agreement.
Report
Summary
The EPA Brownfields program provides grants to assess, safely clean up and sustainably reuse contaminated properties. The goal of the program is to put underused and abandoned properties with contamination or the perception of contamination back into productive use. The Brownfields Revolving Loan Fund (RLF) Grant provides funding to capitalize an RLF program to provide low interest rate loans and subgrants to eligible entities to carry out cleanup activities at brownfield sites contaminated with hazardous substances and/or petroleum. The RLF would be available to projects city-wide with a focus on targeted areas, including, the Rio Reimagined Project, designated Redevelopment Areas, Neighborhood Initiative Areas, and special projects, such as the Edison-Eastlake Choice Neighborhood. The fund is termed revolving because it will use the loan and interest repayments to provide new loans to additional borrowers.
A total of $1 million is available with a minimum of 50 percent to be used for loans and the remaining may be awarded as grants to eligible entities, such as nonprofit organizations. OEP is responsible for overall administration of the RLF program, including community relations, public involvement activities and marketing of the loan fund to eligible applicants. OEP informed the Community and Economic Development Department of this grant opportunity and they are supportive of applying for these funds, are aware of potential projects that could benefit from the RLF, and will coordinate with OEP to promote the program.
LISC Phoenix, through the MOA, will be the Fund Manager and responsible for activities related to evaluating borrower applications and distributing funds in accordance with the grant requirements, as well as accepting payments. LISC is a national organization focused on interconnected national objectives of strong growth and widespread economic well-being. LISC Phoenix' strategy to invest in businesses, housing and other community infrastructure to catalyze economic, health, safety and educational mobility for individuals and communities fits well within the goals of this RLF program and the overall goals of the Phoenix Brownfields Land Recycling Program. LISC has extensive experience in managing loan funds and they also have experience through their national organization in administering Brownfields RLFs.
The grant application deadline is Dec. 3, 2019. Award of funds is anticipated in Spring 2020, with funding available in October 2020.
Contract Term
The grant and resulting contracts or MOAs are for five years.
Financial Impact
A 20 percent cost share or $200,000 is required and will be met through in-kind services from OEP and other City staff that may be involved in specific projects and from other available and eligible incentives that may be awarded to applicants.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Office of Environmental Programs.