Short Shorts

Phoenix Awards
Brownfields in the News
Social Fund to Raise Private Capital to Revitalize Communities

Phoenix Awards
Nominations are now being accepted for the Phoenix Awards, which recognize excellence in brownfield redevelopment. One winner will be selected from each of EPA’s ten regions, plus one international winner. Additional special winners also will be selected, including projects that have a significant impact for small communities.
The awards are open to any individual, group, company, organization, government body or agency. Criteria for the awards focus on the magnitude of the project, innovative techniques, solutions to regulatory issues and impact upon the community.

The 2006 Phoenix Awards deadline is Friday, June 30. Winners will be honored at the Brownfields 2006 conference held in Boston on November 13 through 15.

Enter the Phoenix Award competition

Brownfields in the News
Inside EPA reported that EPA is developing a model agreement that could give real estate developers and investors additional certainty that they are exempt from Superfund liability if they qualify as bona fide prospective purchasers (BFPP).

The language is intended to address developer concerns that Superfund liability exemptions do not provide enough legal certainty to foster redevelopment. The model agreement will provide a prospective purchaser with a “covenant not to sue” from EPA, as well as cleanup oversight from the agency. Agency sources, according to Inside EPA, say the model language will likely be released within the next six months.

The Toxics Law Daily Banner published an article about a coalition of supporters of the EPA’s brownfield program urging the Senate to fully fund the effort while warning that the fiscal 2007 appropriations process is starting out ominously.

Paul Connor, executive director of the National Association of Local Government Environmental Professionals, told Toxics Law Daily Banner that in recent years, the Bush administration would request an amount close to the full funding level for brownfields, which is $250 million, and Congress would agree on a lower amount.

For fiscal 2007, the administration’s funding request for the overall brownfields program is $163.2 million, nearly identical to the 2006 appropriated amount. The coalition said EPA is able to fund only about one-third of the applicants for federal brownfield grants with current funding levels. There are 11 member organizations in the brownfields coalition. BFN

Social Fund to Raise Private Capital to Revitalize Communities
Enterprise Community Partners and Deutsche Bank have launched the Enterprise Social Fund, an investment fund to raise and invest $15 million from socially responsible corporations and affluent individuals that have not traditionally invested in efforts to revitalize low-income communities. The fund will primarily benefit community-based organizations engaged in the development of affordable housing.

The fund offers investors a unique opportunity to invest directly in community development by providing capital for proven organizations to acquire sites and buildings, while providing near-market returns.

The fund is expected to attract $12 million from institutional investors and $3 million from affluent individuals. Deutsche Bank is guaranteeing 20 percent of the fund’s total capitalization. In addition, the fund will set aside one percent of the principal for loss reserves. The fund will be liquidated at the end of five years.

The Enterprise Social Fund credit committee will make loan decisions, which will be overseen by an advisory board of distinguished business professionals and experts in community development finance. BFN