Brownfields Program
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News on Statutory FeesThe Brownfields Property Reuse Act requires that the Program collect a $2,000 initial entrance fee plus a second fee sufficient to defray all costs to the state. However, since its inception, the Brownfields Program has always defrayed the expenses of the Program by using purely federal funds without cost to state. These federal funds have grown from $100,000 in 1999 to nearly $1,000,000 in recent years. Therefore, in the past the Program could grow in capacity and not have to pass on any fees to the prospective developer other than the initial statutory $2,000 entrance fee. However, as the federal funding growth has limits under federal brownfields legislation, these funds have leveled off. In the face of these leveled funds, the Brownfields Program continues to see growth in demand for its services beyond this federal funding capability. Obviously, the increasing interest in the Program is a very positive thing for brownfields redevelopment in the state. However, it also means that the Program can no longer defray all costs with the federal funds it receives. The Program has always recognized that encouraging brownfields redevelopment means that it must maintain the capability to respond quickly and provide brownfields agreements within timeframes that help developers make time critical business decisions. To do this in face of increasing demand, the Program must once again hire additional staff. However, this time it must be without the likelihood of further federal brownfields funding increases on the horizon. To meet this challenge the Program must begin to recover more fees to defray costs of serving the increased demand. In effect we will be going from a 100 percent federally funded Program to a mostly federally funded Program that is supplemented by its statutory fees. DENR will be using these fees to hire additional staff to increase its capacity to serve developers' demand. Therefore, prospective developers are hereby notified that, after July 1, 2006, the Program may begin to impose such fees on both existing and new projects.
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Program Administrative RevisionsThe NC Brownfields Program is instituting some new procedures for applying to the program and for fees. Program Application Process: The Program is eliminating the Letter of Intent for entry into the Program. The Program is now requiring applications to be submitted using our new Brownfields Property Application form. In starting with a Letter of Intent, the Program believed that approach would allow for maximum flexibility, but over time the Program was seeing widely varying degrees of compliance with the submittal of necessary information. Regardless of how much guidance the Program provided, letters often had to be revised or supplemented with additional information requests. Utilizing a standardized form for submittals will ensure the Program receives the information it requires up-front and will expedite the eligibility determination process. Program Fees: As has been mentioned previously, it has become a necessity for the Program to add staff to meet increasing demand. In doing so, the statute requires we charge an additional fee to cover the cost of running the Program for the state. The statute requires an initial fee of $2,000 which has always been charged by the Program since its inception. However, this fee will now be due as soon as the project is deemed eligible by the Program. A second fee of $3,500 will be due prior to DENR executing the agreement. This second fee has always been in the statute but has not been charged previously because all Program costs to the state have been offset by funds from the US EPA. That is no longer the case, and these combined fees will now be required to offset the costs to the state. |
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Brownfields Program • Mail Service Center 1646, Raleigh, North Carolina 27699-1646 • (919) 707-8383 |
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