Missoula Brownfields meeting will introduce $1.2 million fund

Economic development and environmental cleanup will walk into the room together Thursday night. And sit down side-by-side.

On the agenda: a presentation on Missoula’s $1.2 million Brownfields Cleanup Revolving Loan Fund.

By SHERRY DEVLIN of the Missoulian

http://missoulian.com/articles/2004/07/29/news/local/news06.txt

The intent, said brownfields coordinator Jenifer Blumberg, is to help finance the cleanup of commercial or industrial property that is abandoned, idle or under-used because of environmental troubles – real or perceived.

"We’re looking at sites that aren’t moving because of environmental considerations," she said.

Two major brownfields sites have already been identified locally: the former White Pine Sash site on the Northside and the former Champion International sawmill property just west of downtown.

Loans can go to cleanup and development of those sites, or to other, not-yet-designated brownfields sites.

At Thursday night’s informational meeting, Blumberg will explain the brownfields program – a national effort of the U.S. Environmental Protection Agency – and Missoula’s loan fund.

To apply for a loan from the fund, a business or individual must either own or have access to a brownfields site, and have a plan for its cleanup and subsequent development.

"We do want people to have a redevelopment plan in place, not just a cleanup plan," Blumberg said. "Since it’s an economic development initiative, we want to see the creation of jobs or housing.

"We need to know the project’s going somewhere."

The EPA started the loan program because banks were sometimes reluctant to participate in brownfields developments – because of the many uncertainties involved with environmental cleanup.

Loan terms are negotiated on a case-by-case basis, Blumberg said. "We can look at interest-only payments for a while, or for three years with no payment, or other sorts of special conditions.

"But again, these loans are really for sites with a development plan in place, where the loan can jump-start the project and leverage other financing."

Interest on the loans is at below-market rates. A limited number of grants are also available, although only to qualifying governmental entities and nonprofit groups.

The loans are being coordinated by Blumberg in Missoula’s Office of Planning and Grants and managed by the Missoula Area Economic Development Corp.

Reporter Sherry Devlin can be reached at 523-5268 or at [email protected]