8. HRSR 08-02-2010 - Laserfiche WebLink

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Proposed Demolition Loan Program Page 1 of 2 ~~~I~ ~~.~ it t'1' €?~~~~tm~.~r~~ft:rrrl , .~r:;~~n~~c~r~rnicG~_v~I~Rc~ent Proposed Demolition Loan Program DEED is proposing an amendment to the Redevelopment Grant Program that would provide funds for demolition activities on sites even when there is no imminent redevelopment opportunity or plan. The following information is for a program that is being proposed to the Legislature but has not been approved, funded or implemented. For proposed language click here. Program Purpose Our traditional Redevelopment Grant Program works well on sites where there are costly impediments to a planned or proposed redevelopment project. But sometimes communities need assistance with demolition and other redevelopment activities on sites where there is no current development plan or where future development visions are hindered by current blight. In some cases, communities may need to address more immediate public safety concerns or hazardous conditions on a site before considering future redevelopment options. To meet those needs, DEED has proposed a Demolition Loan Program to assist development authorities with the costs of demolishing blighted buildings on sites that have future development potential but where there are no current development plans. In the event that the Legislature approves the proposed program, the following criteria would apply: Eligible Applicants Development authorities,including cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities. Eligible Costs These loans would assist with demolition activities, including interior remediation such as asbestos abatement. Loans would pay up to 100 percent of demolition costs for a qualifying site. Loan Parameters Property and buildings must be publicly owned. The following terms would apply: • Loans would be low-interest (2 percent) • Loans would be interest-free for first two years • Principal and interest payments would start in year three if the site has not been developed • If the site is developed, the remaining principal and interest (up to 50 percent of the loan) could be forgiven based on development benefits Potential Project Application Funding for this proposed program is not yet available and would only become available if the program is approved by the Legislature. To gauge the level of interest in and secure future funding for the Redevelopment Grant Program and the newly proposed Demolition Loan Program, we are requesting project information from potential applicants. Download and complete this one-page Potential Project Aoolication. We'll use the information to show the Legislature the level of public support for the programs and to gauge the level of funding they will need. Submit the Form Send your completed Potential Project Application form to: Kristin Lukes Office of Brownfields and Redevelopment Minnesota Department of Employment and Economic Development 1St National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101-1351 For More Information Contact Kristin Lukes at 651-259-7449 or toll free at 1-800-657-3858 or email kristin.iukesCc'~state.mn.us or fax 651-296-1290. © 2010 Minnesota Department of Employment and Economic Development http://www.positivelyminnesota.com/Government/Financial Assistance/Site_Cleanup_Redevelopment_Fun... 7/22/2010