The following section identifies and briefly discusses the broad range of grant funds, low-interest loans, and other City, State, and federal policy-based funding sources the may apply to the WIP. Funds listed in the first section require a public-sector applicant and/or partner. Additional incentives and assistance can be found at the Community Development Department's website at http://www.lacity.org/CDD/business/.

Environmental Protection Agency (EPA) Assessment Grants: Up to $200,000 is available per site for brownfield Phase I or Phase II assessment, the development of cleanup plans, outreach to stakeholders and community involvement, as well as the purchase of environmental insurance. Funds can be used for petroleum contaminated sites as well. The federal Environmental Protection Agency (EPA) is a major potential source of funding for brownfields assessment and cleanup as well as potential funds to generally improve the feasibility of redevelopment at the WIP. As a result of federal legislation passed in January 2002, the EPA is now providing brownfields funds for petroleum contaminated sites in addition to expanding funding options for cleanup. In general, there are three sources of funds available through the EPA for brownfields on a per site basis. It should be noted that the phasing strategy proposed in this report creates an estimated three separate sites that could be created over time for funding:

• Assessment grants for petroleum other contamination (up to $200,000 - with additional funds available for more complicated sites)
  
  
• Grants to capitalize a revolving loan fund (RLF), including petroleum contaminated sites (up to $1,000,000). Funds from the RLF can be attached to fund clean up.
  
  
• Cleanup grants, including petroleum contaminated sites (up to $200,000).
  
  
• EPA Cleanup Grants: Up to $200,000 available per site for brownfields cleanup. Funds can be used for petroleum contaminated sites as well. These grants require a 20 percent local match. The EPA Region 9 Brownfields Coordinator has indicated interest in discussing with the CRA their eligibility for EPA funds and the application process.

Other major sources of grant funding and low interest loans include:

• Economic Development Administration (EDA) Economic Adjustment Program (Title IX): Funds available to communities that experience sudden and severe economic dislocation or long-term economic deterioration. Economic adjustment funds can be used for design and implementation of redevelopment strategies. As of 2001, the average grant made under Title IX was $281,000.
  
  
• EDA Public Works and Development Facilities Programs (Title I): Grant funds are available to eligible organizations located within an EDA-designated Redevelopment Area or Economic Development Center. Funds can be used to fund roads, water and sewer facilities, port improvements, and other infrastructure enhancements. The average grant awarded in 2001 under Title I was $1.0 million.
  
  
• Housing and Urban Development (HUD) Section 108 Loan Guarantees: Communities that participate in the CDBG program are eligible to receive Section 108 loan guarantee funds in return for pledging future CDBG allocations as collateral. The Section 108 loan guarantee funds can be used to acquire and redevelop brownfield sites within blighted communities. In 1999, the Section 108 program administered $1.26 billion in loan guarantee funds.
  
  
• HUD Brownfield Economic Development Initiative (BEDI): HUD BEDI grants are part of HUD's Economic Development Initiative (EDI), which provides financial assistance to recipients of Section 108 guaranteed loans. The BEDI program targets grants to brownfield redevelopment. In 1999, the average BEDI award was $1.1 million. The CRA is currently a recipient of BEDI funds.
  
  
• HUD Community Development Block Grant (CDBG): The Los Angeles CDGB entitlement can be used to fund brownfields redevelopment at the WIP.
  
  
• Army Corps of Engineers Cost-Shared Services: Provides technical assistance to assess and cleanup brownfields sites.
  
  
• U.S. Department of Transportation Federal Highway Administration (FHWA): Through their Transportation and Community and System Preservation Pilot Program (TCSP), the FHWA awards grants for planning transportation improvements either through improved streets and highways as well as transit. The program is authorized to award a total of $120 million between 1999 and 2003.
  
  
• State of California Infrastructure Economic Development Bank (CIEDB or the State Infrastructure Bank): Through the Infrastructure State Revolving Loan Fund (ISRLF), the State Infrastructure Bank provides low-interest loans to any local government, including redevelopment authorities for infrastructure improvements. Improvements to streets and highways, drainage, environmental mitigation measures, port facilities, and other infrastructure projects are considered eligible activities under ISRF. Loan amounts range from $250,000 to $10 million per request, and interest rates were estimated at 3.19 percent as of September, 2002.

Funds available to the private sector include:

• Small Business Administration (SBA) Section 504 Financing: SBA 504 financing is a type of second mortgage that can be used to support up to 40 percent of project costs with private lenders and either business owners or the public sector financing the remaining costs. Funds can be used for land, building, and machinery acquisition as well as construction and renovation of existing facilities. A typical Section 504-supported loan is $300,000.
  
  
• SBA Section 7(a) and Low-Doc Programs: The SBA Section 7(a) program is a loan guarantee available to small businesses in order to improve credit. The Low-doc (low documentation) program expedites the SBA approval process for loan guarantees under $100,000.
  
  
• EPA Brownfields Revolving Loan Fund: Through a local organization, EPA funds can be funneled to the private sector via a revolving loan fund (RLF) capitalized by the EPA. These funds can be lent out at reduced rates to eligible parties and can also be made available as grants. The CRA would administer these funds.
  
  
• Targeted expensing of cleanup costs (through 12/31/03): This tax incentive can by used to enhance a project's cash flow. It allows taxpayers to fully deduct environmental cleanup costs for properties in targeted areas.
  
  
• Industrial development bonds: IDBs are a financing option that can assist the CRA in effectively targeting manufacturing firms for the WIP as identified in the market study. Eligible manufacturing companies can use the proceeds from bond sales to construct facilities and acquire property. The State of California offers IDBs through the California Industrial Development Financing Advisory Committee.
  
  
• California Pollution Control Financing Authority (CPCFA) Cal ReUSE Program: The CPCFA administers the California Recycle Underutilized Sites (Cal ReUSE) program which provides forgivable loans to fund site assessment as well as technical assistance and the development of cleanup plans $10 million in loan funds was made available as of May 2002. The Cal ReUSE program provides a maximum loan amount of $125,000 per site.

Source: Wilmington Industrial Park Economic Adjustment Strategy, Final Report, February 12, 2003, pgs. 122-124