News Release

HUD AWARDS $24.6 MILLION IN GRANTS TO REDEVELOP BROWNFIELDS AND TO CREATE THOUSANDS OF JOBS IN 17 COMMUNITIES
$119 million in loan guarantees to further stimulate revitalization and employment

WASHINGTON - A metal scrap yard, a landfill and contaminated industrial sites will soon become hotels, office buildings and even a high tech silicon wafer factory because of $24.6 million in grants and nearly $119 million in loan guarantee assistance announced today by Housing and Urban Development Secretary Alphonso Jackson.

The grant funding is provided through HUD's Brownfields Economic Development Initiative (BEDI) to 17 communities and is expected to stimulate nearly 7,000 jobs (see attached list). In addition to the grant funding and loan guarantees, these abandoned, underutilized and contaminated areas will benefit from $49 million in other public and private investment.

"Today we join local communities to make another investment in areas some may have forgotten," said Jackson. "Together, we will not only breathe new life into these distressed areas, we will restore economic vitality in surrounding neighborhoods and create thousands of jobs for those who live there."

The funding and the guaranteed loan assistance announced today help local governments to redevelop abandoned, idle or underutilized facilities where redevelopment is complicated by environmental contamination. By combining grants with a low-interest guaranteed-loan program, HUD helps communities to convert abandoned or underutilized sites into useful commercial and industrial developments, thereby increasing the area's tax base and creating new job opportunities where none existed.

Often perceived as unproductive eyesores in their communities, these brownfields hold tremendous potential as sites for community revitalization. Many of these brownfield sites are strategically located in or around key areas and were, in many cases, the economic centers of their communities. Redevelopment of these sites is both a challenge and an opportunity and returning them to productive use can serve as a catalyst for local economic recovery. Complex financial, legal and environmental risks and uncertainties are some of the biggest barriers to owners and developers.

Since 1998, HUD has made an investment of more than $177 million in BEDI grants and $845 million in companion Section 108-guaranteed loans in 137 communities. These funds have leveraged another $1.1 billion in other public and private funds.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

NOTE TO EDITORS: Detailed project summaries can be found at www.hud.gov/news/index.cfm.

FY 2004 Brownfields Economic Development Initiative Awards

California

The City of Alameda will receive $800,000 in BEDI funds and $7.0 million in Section 108-guaranteed loan funds to assist in the development of a downtown revitalization project in which a 325-space parking structure will be built to support the restoration of the historic Alameda Theater and other commercial development as part of the city's overall effort to revitalize the downtown area. Total project costs will be approximately $22 million; the Section 108 funds along with $1.25 million in taxable bond proceeds will be used to construct the parking to serve the multiplex theaters, new retail adjacent to the seven screen theater and other underutilized retail space in the central business district within a two block radius. BEDI funds will be used to defray interest costs on the 108 loan during the initial years. The project is expected to create approximately 335 new jobs. Contact: Leslie A. Little (510) 749-5800.

Alameda County will receive $300 thousand in BEDI funds and $1.2 million in Section 108-guaranteed loan funds to assist in the Transit Center project located at Horton and 59th in the City of Emeryville. The project is composed of two elements: construction of a parking structure, bus bays and associated service and retail space on a 69,000 square foot parcel of land, and construction of a 150,000 square foot commercial building above the transit station. Wareham Development will lease the land from the current owner. Wareham will clean up the site and construct the commercial facilities with its own funds. Both the BEDI grant and 108 loan will be used for site preparation and construction of public improvements, while the developer will contribute approximately $50 million in debt and equity funds, along with another $7 million total being contributed by the city's Redevelopment Agency and the county's Congestion Management Agency. Within five years of project commencement, 615 new jobs are expected to be produced. Contact: Ignacio Dayrit (510) 596-4356.

The City of Berkeley will receive $2 million of BEDI funds and $6 million in Section 108-guaranteed loan funds to assist in the development of the Ed Roberts Campus, an 80,000 square foot commercial facility providing jobs and services to the area's disabled community. The site is a former auto repair shop and is located adjacent to facilities of Bay Area Rapid Transit. The city estimates that the campus will serve approximately 160,000 low- and moderate-income residents of the area and create 60 new jobs. The BEDI grant will be used for acquisition, clearance, site preparation and construction, as well as for interest payments on the Section 108 loan. The Section 108 loan will be used for construction. Approximately $26.9 million in other private and public funds will be leveraged for the project. The total project costs are estimated at $34.9 million. Contact: Ruth Nazario (510) 981-5450.

The City of Los Angeles will receive $1.05 million of BEDI funds and $6.05 million in Section 108-guaranteed loan funds for the expansion of the L.A. Design Center and of Cisco Brothers Furniture in the South Central area of the city. The project will create an additional 130,000 square feet of showroom space for the Design Center, as well as 180,000 square feet of manufacturing space and 30,000 square feet of showroom space for Cisco Brothers. The site is an abandoned rail spur and former bus company repair facility. The city estimates the creation of 425 jobs as result of the project. The BEDI grant will be used for land acquisition. The Section 108 loan will be used for land acquisition and remediation. Approximately $20.2 million in other private and public funds have been leveraged for the project. The total project costs are estimated at $27.8 million.
Contact: R.D. Lottie, Jr. (213) 978-0670.

The City of Sacramento will receive $2 million of BEDI funds and $5.5 million in Section 108-guaranteed loan funds for the rehabilitation of the Globe Mills in the Alkali Flat Redevelopment Project Area. The site is a former grain and cereal mill complex that operated until 1970. The city will rehabilitate the historic mill buildings and create 110 units of affordable senior housing and 31 units of market rate housing. The BEDI grant will be used for clearance and site preparation. The Section 108 loan will be used to rehabilitate the mill complex for housing. Approximately $17.2 million in other private and public funds have been leveraged for the project. The total project costs are estimated at $25.2 million. Contact: Jim Hare (916) 440-1313.

The City of San Diego will receive $225,000 of BEDI funds and $1.35 million in Section 108-guaranteed loan funds to assist in the development of a 125,000 square foot business park in the Mid-City community. The site is on both sides of the Chollas Parkway, and has been home to illegal auto repair and recycling operations. The city estimates that up to 500 new jobs will be created as a result of the project. The BEDI grant will be used as a loan loss reserve and for interest payments on the Section 108 loan. The Section 108 loan will be used for demolition, construction and site improvements. Approximately $16.3 million in other private and public funds will be leveraged for the project. The total project costs are estimated at $17.9 million. Contact: Hank Cunningham (619) 236-6550.

The City of San Jose will receive $2 million in BEDI funds and $26 million in Section 108-guaranteed loan funds to assist in the first phase of an expansion of the Norman Y. Mineta San Jose International Airport. The City will purchase land immediately adjacent to the airport with the Section 108 funds for staging the construction and other critical commercial development uses, and the BEDI funds will be used to make interest payments on the 108 loan in the early years of the loan and also to pay for a portion of the off-site costs of the project. This first phase of what is projected to be a half-billion dollar overall expansion project will cost nearly $100 million and produce over 800 new jobs. Contact: Paul Krutko (408) 277-5880.

Massachusetts

The City of Attleboro will receive $1.9 million in BEDI funds and $2,850,000 in Section 108-funds to acquire and clean up a six-acre parcel of land and rehabilitate an existing 200,000 square foot building and three parking lots to create a full service manufacturing facility to be owned and operated by Cookson Precious Metals, Inc. The project will be completed in 18 months and will result in the creation and retention of approximately 1,200 jobs combined. The total project cost is $11,081,074. In addition to the BEDI and 108 funds, the city has received a grant from the U.S. Environmental Protection Ageency (EPA) to address petroleum contaminates found on the site; the balance of the project will be financed through other public and private sources. The HUD grant and loan funds will be used to remediate the site and conduct the building rehabilitation.
Contact: Michael Milanoski (508) 223-2222.

New York

Dutchess County will receive $300,000 of BEDI funds and $1.5 million in Section 108-guaranteed loan funds to assist in the development of a 140-unit hotel and conference center on the Hudson River in Beacon. The site is owned by Scenic Hudson, a nonprofit environmental organization and land trust, which will lease the site for the hotel and conference center and develop an adjacent 15 acres as an ecological park. The site is comprised of a former oil depot, salt storage facility and metal salvage yard. The county estimates that the project will create 287 new jobs. The BEDI grant and the Section 108 loan guarantee will be used for construction of the hotel and conference center. Approximately $38.9 million in other private and public funds have been leveraged for the project. The total project costs are estimated at $40.7 million. Contact: Elizabeth Doyle (845) 486-3600.

Ohio

Cuyahoga County will receive $2 million in BEDI funds and $4 million in Section 108-guaranteed loan funds to assist in the remediation and redevelopment of a 50-acre vacant former industrial property, located in the city of Bedford, into the new Tinker's Creek Commerce Park. The new industrial park will consist of 300 thousand square feet of commercial and industrial space costing a total of $34 million. BEDI funds will be used to help clean up the site and for part of the construction costs, as well as a debt service reserve in the early stages of the project. Section 108 funds will be used to pay for part of the clearance and demolition, site preparation and construction costs. Both the state and the county governments have also committed funds to the project, as has the private developer, The Taylor Companies. The project is expected to generate 500 new jobs upon completion. Contact: James Herron (216) 443-8064.

Oregon

The City of Portland will receive $2 million of BEDI funds and $26 million in Section 108-guaranteed loan funds to assist in the expansion of the Siltronic silicon wafer manufacturing facility. The site is a former oil gasification plant. The city estimates the retention of 300 jobs and the creation of up to 500 jobs as a result of the project. The BEDI grant will be used to reduce the interest costs of the Section 108 loan. The Section 108 loan will be used to finance the purchase of manufacturing equipment. Approximately $416 million in other private and public funds have been leveraged for the project. The total project costs are estimated at $444 million. Contact: Howard Cutler (503) 823-2384.

Pennsylvania

The City of Allentown will receive $2 million of BEDI funds and $2.5 million in Section 108-guaranteed loan funds to assist in the construction of 150,000 square feet of retail space for the location of a Wal-Mart store on Lehigh Street. An automotive battery manufacturer formerly occupied the site. The city estimates the creation of 155 jobs as a result of the project. The BEDI grant will be used for remediation. The Section 108 loan will be for remediation and demolition. Approximately $12.8 million in other private and public funds have been leveraged for the project. The total project costs are estimated at $21.8 million. Contact: Cyndi Romero (610) 437-7546.

Chester County will receive $1 million of BEDI funds and $4 million in Section 108 funds to acquire and clean up a 46-acre vacant parcel adjacent to a former landfill in the city of Coatesville. After the site is remediated, it will be tranferred to the Oliver Tyrone Pulver Corporation which will construct a 125-room hotel, along with a 5,000 square foot restaurant and a 90,000 square foot office building as the first phase of a larger development. The first phase is estimated to create 333 full-time jobs and cost in excess of $36 million. The 108 funds will be used to offset construction costs and all the BEDI funds will be put into a debt reserve account to provide security for the Section 108 loan. Contact: Thomas McIntyre (610) 344-6900.

Chester County will also receive $2 million of BEDI funds and $5 million in Section 108-guaranteed loan funds for Phase I of the Whitebrooke Hills brownfields redevelopment project, entailing the development of 112,000 square feet of retail space and a 250-car parking garage in East Whiteland township. The site is the location of a former Worthington Steel processing and manufacturing facility. The county estimates that the project will create 280 new jobs. The BEDI grant will be used for site clearance and preparation, as well as for construction. The Section 108 loan will be used for demolition and construction. Approximately $24 million in private funds have been leveraged for the project. The total project costs are estimated at $31 million. Contact: Thomas McIntyre (610) 344-6900.

The City of Harrisburg will receive $1.5 million in BEDI funds and $6.795 million in Section 108-guaranteed loan funds to assist in the proposed relocation and expansion of the facilities of the Advanced Communications Agency, a private printing company, into a new 500,000 square foot printing facility to include both office and industrial space. The project entails the remediation of a highly contaminated former steel manufacturing plant site, and the construction of site improvements for a new 500,000 square foot building, including 350,000 square feet of manufacturing space for Advanced Communications' printing operations and another 150,000 square feet of office space. Total cost of the project is expected to be nearly $28 million, with the developer, city and state all committing funds toward its completion. Both the BEDI and 108 funds will be used for remediation, site preparation and improvements, as well as construction of the building, and there will be two 108 loans, one from the city and another from Dauphin County, provided as one grant to the developer. A total of 265 new jobs will be created by the expansion and 65 existing jobs will be retained, for a total of 325 jobs in all.
Contact: Richard Heaney (717) 255-6590.

Montgomery County will receive $1.5 million in BEDI funds and $3.0 million in Section 108-guaranteed loan funds to assist in the cleanup of the heavily contaminated Nicolet industrial site located in the city of Norristown into 120,000 square feet of light industrial and commercial space to be developed by the O'Neill Properties Group, L.P. Total cost of the project at completion is expected to be $6.9 million. Both the BEDI and 108 funds will be used for infrastructure improvements, site preparation and building construction. A total of 120 new jobs will be created as a result of the project. Contact: John F. Nugent, III (610) 275-5300.

Washington

The City of Seattle will receive $2 million of BEDI funds and $10 million in Section 108-guaranteed loan funds to establish a brownfields loan fund to assist in the redevelopment of brownfields throughout the city. Since 2002, the city has administered a brownfields loan fund with previous BEDI and Section 108 loan funds, providing more than $12.9 million in assistance to five brownfield redevelopment projects in the Pioneer Square district. The city estimates the creation of 350 new jobs as a result of this new award. The BEDI grant will be used as a loan loss reserve and to reduce the interest on Section 108-financed loans from the fund. The Section 108 loan will be used for loans to assist in the redevelopment of brownfield sites. Contact: Karin Zaugg (206) 733-9810.