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Threshold Criteria for RLF Grants
A. Applicant Eligibility
The City of Shelby is a legally incorporated entity in the State of Montana
pursuant to Section 7-5-201, Montana Code Annotated (MCA). The City of Shelby
has the legal jurisdiction and authority to finance, operate and maintain
community property and services. The City of Shelby is an eligible applicant for
a Revolving Loan Fund Grant as a government entity created by the State
Legislature.
B. Description of Jurisdiction
The City of Shelby is applying for funding for areas within the municipal limits
of the City of Shelby.
C. Community Notification
Community notification of the potential for remediation and redevelopment of
various sites within Shelby has been critical to the economic vision of the
community. The identified sites have thus far limited economic development and
created a potential hazard to human and environmental health within our
community. The citizens of Shelby are very proud of the community and are
therefore invested in its future. Community involvement began several years ago,
when the former Rainbow Hotel was abandoned and citizens voiced their concern
for public safety in regard to unauthorized entry into the old hotel by children
and now for the redevelopment of this Main Street structure. The community has
also stepped forward in their support of revitalizing the two abandoned
elementary schools vacated in 2003 when a new K-6 elementary school was
constructed. The City of Shelby has also been working with property owners in
remediating the Shelby Refinery, area service stations and fuel distribution
sites identified within the community
Of recent, the City of Shelby has held four public meetings, including two
combined open meeting and city council meetings, a Shelby Area Chamber of
Commerce meeting and a Shelby Merchant Association meeting to inform the
community of the Brownfields program and provide copies of this application for
their review. Last year, the City conducted five public meetings in regard to
Brownfields projects in our community.
These public meetings have been advertised through the Shelby Promoter, our
local weekly newspaper, KSEN/K96 Radio, Mayor Larry Bonderud’s weekly radio
program and the City’s quarterly newsletter. Public comment, input and ideas
have been incorporated into this proposal. The City of Shelby has partnered with
the Toole County Commissioners, Shelby Area Chamber of Commerce, Port of
Northern Montana, North Central RC&D and several local groups to promote public
support and seek additional funding for these projects. (Attachment A- Community
Notification)
Comments from the community and elected officials have been included in this
proposal. The following individuals and organizations support this proposal as
evidenced by their letters attached. (Attachment B – Letters of Support)
• Toole County Commissioners
• Sweetgrass Economic Development District
• State Senator, Jerry Black
• Shelby Area Chamber of Commerce
• Falcon Construction
• Port of Northern Montana
• North Central RC&D
D. Letter from the State Environmental Authority
The Montana Department of Environmental Quality Director, Richard Opper, has
provided a letter of support, dated December 8, 2005, for the City of Shelby
Revolving Loan Fund Grant proposal. (Attachment C – DEQ)
E. Cleanup Authority and Oversight Structure
1. A flow chart demonstrating the cleanup authority and oversight structure for
management of RLF funds is included as Attachment D. RLF funds will be available
to a borrower or subgrantee for site cleanup in accordance with all applicable
local, state and federal regulations. The City of Shelby will follow the
guidelines of the Montana Department of Environmental Quality (MDEQ) in
determining a loan or subgrant recipient enroll in a state response program. All
loan and grant applications will be reviewed by a qualified environmental
professional (QEP) retained by the City of Shelby. The QEP will review
applications for compliance with Montana Department of Environmental Quality
regulations and will coordinate with them on the review, where appropriate, to
ensure that the cleanup proposed will allow for site closure at the state level.
In addition, the borrower or subgrantee will be required to sign a written
agreement to clean up the site in accordance with local, state and federal law.
When the Montana Department of Environmental Quality is the lead enforcement
agency, borrowers or subgrantees will be required to prepare a Voluntary Cleanup
Plan or other state-approved cleanup plan to meet the closure requirements of
the Department. Technical expertise retained for the grant will be acquired
through a competitive RFP process in conformance with the State of Montana
acquisition standards for professional services. The City of Shelby follows all
procurement provisions according to State of Montana acquisition requirements.
(Attachment D – Flow Chart)
2. The legal opinion that demonstrates that the City of Shelby has the legal
authority
to access and secure sites in the event of an emergency or default of a loan
agreement or non-performance under a subgrant is attached. (Attachment E)
F. Cost Share
The City of Shelby has secured approximately $357,000 in matching costs with
in-kind services for this project. The in-kind services will be the landfill
costs and in-fill materials associated with anticipated cleanup projects.
G. Legal Authority to Manage a Revolving Loan Fund
The legal opinion that demonstrates the City of Shelby’s legal authority to
perform the
actions necessary to manage a revolving loan fund is attached. (Attachment E)
Ranking Criteria for RLF Grants
A. RLF Grant Proposal Budget
Hazardous Substances
Budget Categories Project Tasks for Loans
(programmatic costs) Task 1
Community Involvement Task 2
Establishing, Marketing, Servicing Loans/Subgrants Task 3
Cleanup Planning Task 4
Cleanup Oversight Task 5 Remediation Loan/Subgrants Total
Personnel $1,500 $2,500 $1,000 $1,000 $6,000
Fringe Benefits $ 375 $ 625 $ 250 $ 250 $1,500
Travel $5,000 $5,000
Supplies $ 500 $ 500
Contractual $2,000 $2,500 $2,000 $6,500
Other (loan) $463,500 $463,500
Subtotal $2,375 $10,125 $3,750 $3,250 $463,500 $483,000
Budget Categories Project Tasks for Subgrants
(programmatic costs) Task 1
Community Involvement Task 2
Establishing, Marketing, Servicing Loans/Subgrants Task 3
Cleanup Planning Task 4
Cleanup Oversight Task 5 Remediation Loan/Subgrants Total
Personnel $1,500 $2,500 $1,000 $1,000 $6,000
Fringe Benefits $ 375 $ 625 $ 250 $250 $1,500
Contractual $1,000 $1,250 $1,000 $3,250
Supplies $ 500 $ 500
Other (subgrant) $213,750 $213,750
Subtotal $2,375 $4,125 $2,500 $2,250 $213,750 $225,000
Total $4,750 $14,250 $6,250 $5,500 $677,250 $708,000
Cost Share $108,000 $108,000
Petroleum
Budget Categories Project Task for Loans
(programmatic costs) Task 1
Community Involvement Task 2
Establishing, Marketing, Servicing Loans/Subgrants Task 3 Cleanup Planning Task
4 Cleanup Oversight Task 5 Remediation Loans/Subgrants Total
Personnel $1,500 $1,250 $1,000 $1,000 $4,750
Fringe Benefits $ 375 $ 315 $ 250 $ 250 $1,190
Contractual $1,000 $1,250 $1,000 $ 3,250
Other (cleanup loan) $414,810 $414,810
Subtotal $1,875 $2,565 $2,.500 $2,250 $414,810 $424,000
Budget Categories Project Task for Loans
Task 1 Community Involvement Task 2
Establishing, Marketing, Servicing Loans/ Subgrants Task 3 Cleanup Planning Task
4
Cleanup Oversight Task 5 Remediation Loans/Subgrants Total
Personnel $1,000 $1,250 $1,000 $1,000 $4,250
Fringe Benefits $ 250 $ 315 $ 250 $ 250 $1,065
Supplies $ 500 $ 500
Contractual $1,000 $1,250 $1,000 $3,250
Other (subgrant) $216,435 $216,435
Subtotal $1,250 $2,565 $ 2,500 $2,250 $216,435 $225,000
Total $3,125 $5,130 $5,000 $4,500 $613,245 $649,000
Cost Share $249,000 $249,000
Explanation of Budget Items:
Task 1 – Community Involvement: Consistent with the City of Shelby’s current
Brownfields program, RLF funds will be used for programmatic and contractual
expenses in community relations. This includes planning for and attending public
meetings and workshops, preparation of fact sheets on potential sites and the
Brownfields RLF Program, information inclusion in the City’s newsletter,
updating the City’s web page and working with the media to continue stories on
the project.
Task 2 – Establishing, Marketing, & Servicing Loans/Subgrants: The City of
Shelby estimates a cost of $19,380 of programmatic and contractual costs to
establish and market the fund, including $5,000 for travel expenses to send RLF
personnel to EPA Brownfields conferences. The City of Shelby will design a
brochure describing the Brownfields RLF Program, distribute them to private
lenders and other interested parties. Staff of the City’s Revolving Loan Fund
will help potential borrowers prepare loan and subgrant applications. The loan
application package will model the City’s existing format and application
requirements will be consistent with the policies and procedures developed for
the City’s existing RLF program. Applications will be reviewed by the RLF Review
Committee, which will make recommendations to the Shelby City Council. The
Brownfields RLF will reimburse costs incurred by the City related to preparing
loan and subgrant applications, review of information submitted by borrowers,
and credit analysis.
City of Shelby RLF personnel will prepare loan documents, arrange for loan
closing procedures, and service all loans made from the RLF. The Brownfields RLF
Program will reimburse the City of Shelby for these programmatic services. To
cover costs of preparing loan documents, filing security instruments, and
maintaining files and records, a 0.5% to 1% loan fee will be charged to
borrowers.
Subgrants of up to 40% of grant award minus programmatic and contractual
expenses will be made available to eligible applicants. The City of Shelby will
manage the subgrants in accordance with EPA RLF criteria.
Task 3 – Cleanup Planning: A total of $11,250 is budgeted for contractual and
programmatic costs associated with cleanup planning. Final contractual costs
will be subject to procurement procedures and negotiations.
Task 4 – Cleanup Oversight: $10,000 has been estimated for contractual and
programmatic costs for oversight of site cleanup activities. Final contractual
costs will be subject to procurement procedures and negotiation.
Task 5 – Remediation Loans/Subgrants: Initial capitalization for the Brownfields
Program will be $1,382,000, consisting of a $382,000 match by the City of
Shelby. No more than 40% will be available to eligible subgrantees. The $200,000
limit per site will be strictly followed on this project.
B. Community Need
1. The City of Shelby is a rural community with a population of 3,306. Of that
population, 39.2% are considered low and moderate income individuals and 8.6%
are at the poverty level. (U.S. Census 2000) Our community relies heavily on
agriculture and oil and gas production for economic viability. In past years,
land values have deteriorated, crops dried up, and oil and gas activity
plummeted, leaving the community to feel the effects of their tremendous impact.
Just as many rural agricultural communities are facing, young people are leaving
the community and often times, the state, in search of job opportunities not
available at home. Our population is aging, setting more incomes at fixed
levels. All these factors translate into limited financing mechanisms for the
city for general provisions, maintenance and upkeep of public facilities. The
City struggles to find sufficient funding for viable economic projects within
the community which have the potential to keep young people in the community and
bring new families to the area.
The City of Shelby believes diversity is the key to economic survival for our
small Montana community. Shelby is in a unique position for economic development
potential. School District #14 constructed a new K-6 elementary school in 2003
leaving three schools abandoned in neighborhoods throughout Shelby. In an effort
to revitalize these structures, the City of Shelby purchased these properties
and set to work development plans. The City was very fortunate to receive an EPA
Brownfields Cleanup Grant for the Shelby Middle School for the removal of
hazardous substances within the building and will begin work in the near future
with the ultimate goal of converting the school into a multi-faceted community
center with a Boys & Girls Club, expanded Head Start program, adult education
and satellite learning center and alternative education classrooms as funding
becomes available. This facility will create jobs, expand our tax base, improve
property values and most importantly, provide an invaluable education source for
the benefit of the entire community.
Unfortunately, the Meadowlark and Bitterroot schools did not receive funding for
asbestos and lead-based paint cleanup, but hope is that through RLF loans, the
City of Shelby will proceed with cleanup activities and redevelopment of the
properties. The intention of the City of Shelby is to demolish the majority of
the Meadowlark building, leaving a partial footprint to construct a new fire
station for the City of Shelby. Our current station is inadequate in space and
located in the middle of a residential neighborhood, making fire calls very
dangerous for citizens. The Meadowlark site has the necessary space requirements
as well as close proximity to a major roadway. The former fire station will then
be sold for economic development as a potential purchaser has already made a
verbal commitment to the property.
Creating further economic opportunity in tourism dollars, the City of Shelby
will convert the Bitterroot School into The Montana Gun and Western Art Museum.
Within our community is an avid antique gun enthusiast with a collection of over
900 pieces dating from the 1840’s to 1960’s, ready to display his collection at
no cost to the city. The Montana Gun and Western Art Museum will also feature
local artwork from area artists and an artist’s gallery for on-site work. The
museum will provide a source of education, rich in history, deep in the roots of
the “Old West” as well as add another leg in the economic development strategy
of the City of Shelby.
Of prime concern to the City and greatest economic potential, is the former
Shelby Refinery site, now abandoned for failure to pay taxes. The plant,
originally built in 1940 was designed for production of crude oil into gasoline.
The plant showed a spotty record of operation through the 50’s, with a
reactivation in the early 1970’s for a very brief period. The potential of a fat
government contract to produce jet fuel for the Glasgow Air Force Base never
materialized and the refinery was abandoned. Since that time, multiple
assessments and cleanups have been conducted on the site, but remediation
estimates show over $440,000 necessary to fully remediate the site. HiLine Redi-Mix,
a concrete batch plant facility, has committed to relocating and redeveloping
this site when remediation is complete, creating additional jobs, expanding
business services, generating business through support services and increasing
property values. In addition to addressing environmental concerns on the site,
it will address the potential health threat from the concrete dust in the
residential neighborhood in which HiLine Redi-Mix is now located. At the same
time, it will address the safety concern for citizens with the great number of
large trucks and equipment traveling to and from the plant in this residential
area. The City will seek ownership of the property if funding is awarded.
Another brownfields site has been identified in the abandoned Rainbow Hotel. At
the present, this historic landmark scars Main Street, Shelby. This majestic
3-story building was once a thriving hotel with street level shops; welcoming
passengers off the railways and those traveling the four directions. Sadly,
today the upper windows are broken out and boarded up, interior walls decaying
and the condition steadily deteriorating. The City sees the tremendous potential
for a private investor or group to renovate the property and create additional
retail, housing and/or office space. The City of Shelby has also identified
another potential brownfields site in the former Hannah/Holmes complex. This
former agriculture implement dealership operated a service area for farm trucks
and machinery. The adjacent property served as the sale lot for farm equipment.
This prime real estate has tremendous redevelopment value. These properties have
been on the market for a number of years, but are unmarketable because of the
contamination issues and remediation costs.
These identified properties have invaluable redevelopment potential. RLF funds
will be used to clean up the properties; creating job opportunities, increasing
property values, generating business within Shelby and providing tremendous
potential for economic redevelopment.
2. The City of Shelby is continually working to improve the community and well-
being of all its residents. The mission and objective of city leaders is to
continue to make Shelby a great place to live, work and raise families. This is
what drives city officials in seeking resources to assist in that mission. The
entire community will benefit from the assistance of an EPA Brownfields
Revolving Loan Fund. Abandoned schools will be renovated and revitalized,
creating viable jobs, improving property values and increasing the tax base. At
the same time, old playgrounds will become new safe city parks. Abandoned Main
Street property will once again open its door to retail space, additional
housing units and office space through private development and prime real estate
will be remediated for potential development. These projects will benefit the
community in providing additional components in the City’s economic development
base. They will address the threat to human health and the environment, and
provide safe, efficient facilities for the benefit of all the community.
3. Historically, Shelby was the heart of a tremendous oil boom in the 1920’s.
Headlines sited Shelby as the fastest growing city in the U.S, calling it the
“Tulsa of the West”. With the oil discovery, came a refinery, gas and oil
distributors and gas stations on nearly every corner. Now some 85 years later,
Shelby has addressed many of the potential threats to human health and safety,
assisting the private sector in tank removals and site cleanups, but much is yet
to do. In addition, many of the older buildings have not been renovated, leaving
asbestos and lead-based paint issues. Shelby has taken a progressive approach to
these sites in applying for Brownfields funding to begin revitalization. Through
identification and assessment, Shelby was fortunate to receive a 2005 EPA
Brownfields Cleanup Grant on one of the several identified brownfields sites,
the Shelby Middle School. The City is waiting on the completion of a Targeted
Brownfields Site Assessment before a RFP is issued for the contract work. The
City hopes to have the cleanup project completed by summer of 2006, when
renovation can begin. At the same time, the City has identified several other
potential brownfields sites. Assessments have been completed on the abandoned
Bitterroot and Meadowlark school identifying asbestos substances and lead-based
paint. The former Rainbow Hotel has also been identified with asbestos and
lead-based paints. Petroleum wastes have been identified and assessed on the
Shelby Refinery site, while the City hopes to work with the Montana Department
of Environmental Quality in determining the nature and extent of petroleum waste
that is present on the Hannah/Holmes property.
In the recent past, Toole County has taken a proactive approach to brownfields
sites within the community. Commissioners, working in cooperation with the City
of Shelby, corrected asbestos contamination in the old hospital and former job
service office. County commissioners did not request a cleanup grant on either
of these properties, but did conduct a cleanup and removal before renovating
these buildings. These brownfields properties have now become viable, public
facilities in conversion of the former hospital into an assisted living facility
and city office space and the job service office conversion into the public
health office. County officials issued a general bond for the renovation of the
hospital . The job service office was funded through PILT (payment in lieu of
taxes).
Revitalizing brownfields sites within our small community has been an efficient,
economic use of viable property while retaining the roots of the community in
these historic buildings and properties.
C. Business Plan for RLF Program
1. It is a primary goal of the City of Shelby Brownfields Revolving Loan Fund
Program to provide a long-term source of financial assistance for redevelopment
of Brownfields sites. The City will apply for intra-governmental loans for the
city-owned brownfields sites as well as seek private investors/developers and
nonprofits who are deemed not potentially liable at a site under CERCLA 107 in
offering low-interest loans for remediation of brownfields properties. The City
of Shelby RLF Committee will determine the interest rates for all loans made by
the City of Shelby Brownfields RLF Program. The minimum interest rate will be
one percent and the maximum rate of five percent. Subject to approval by the RLF
Committee, interest and /or principal payments may be in whole or partially
deferred for a period not to exceed four years. The projected cost flow of the
development project and the defined financial gap must support the need for a
deferral. It will be a requirement of the City of Shelby Brownfields RLF,
however, that at least nominal payment is made each year by the borrower from
the time of the loan principal when amortized payments commence. The maximum
term of any loan from the Brownfields RLF will be 25 years, and interest rates
will be fixed during the term of the loan.
To ensure a long-term source of financial development assistance for
redevelopment of brownfields sites, the review and underwriting process will
keep defaults to a minimum and promote the sustainability of the RLF. The RLF
Program will make loans to developers that are secured by collateral and/or
personal guarantee, banks and other institutions. However, because redevelopment
of brownfields can substantially increase the value of property pledged as
collateral, RLF loans can be adequately secured despite subordination to other
lenders. Current appraisals performed by certified appraisers will be required
to demonstrate the value of real property pledged as collateral.
The long-term availability of loans from the City of Shelby RLF Program will be
achieved only if loans made in the initial phase of the project are repaid in
accordance with loan agreements. To maximize the payment of interest and
principal, the fund manager will contact borrowers when a loan repayment is 30
days late. Loans that become 90 days delinquent will be declared in default and
the lender will pursue all recovery options allowable under Montana law.
In assurance of long-term availability of loans, the City of Shelby will use
only interest payments to meet long-term operation costs. All principal repaid
to the RLF by borrowers will be deposited in the Revolving Loan Fund and used
for lending to new borrowers.
Subgrants are an important component of the City of Shelby’s proposed RLF
program. Carrying significant debt to clean up contamination in redeveloping
properties is not feasible for private developers. As stated earlier, the
privately owned properties identified have been on the market for many years.
These brownfields sites are unmarketable because of the contamination issues and
remediation costs. With potential development opportunities limited,
redevelopment costs high, and current market rate of return on redeveloped
property low, subgrants will reduce the overall debt a developer will incur to
clean up and redevelop property. Subgrants will be made in compliance with EPA
Brownfields Program rules and guidelines. In situations where the City receives
land from a private developer for the purpose of being an eligible subgrantee,
the developer will be required as a condition of the agreement to repurchase the
land after cleanup at the reappraised higher value. Profit seen from this
conveyance and re-conveyance scenario would be directly added to the RLF for
future cleanup of Brownfields projects.
2. The City of Shelby RLF Program will loan and/or grant funds to government
entities, developers, property owners and nonprofits that have eligible
properties within the corporate city limits of Shelby in hopes of reducing the
debt burden and advancing remediation efforts of these sites. The City has
identified several brownfields sites including several abandoned buildings, a
refinery site and an abandoned agriculture implement dealership, but other
brownfields sites may also be identified and the City of Shelby will consider
investing in these sites where eligible and the potential for redevelopment and
job creation are proposed. The City of Shelby will disseminate information about
the City’s RLF Program to all lending institutions in the area and will sponsor
a workshop for lenders, developers and property owners regarding the Brownfields
RLF Program. In addition, the City of Shelby will provide information on the
Brownfields RLF Program to local media, and will include information in the
City’s quarterly newsletter and on its website at www.shelbymt.com.
3. Shelby, like most rural communities does not have the advantage of multiple
developers looking for potential properties. The degree of isolation from major
metropolitan areas and the trade opportunities they bring pose hurdles for
economic development in our small community. With that in mind, City officials
have taken a pro-active approach to address the potential of redevelopment and
economic viability in acquiring brownfields sites and developing funding
strategies. The City has identified and prioritized projects for the benefit of
the entire community. The City will seek intra-governmental loans to address the
hazardous substances identified in the Bitterroot and Meadowlark School sites as
well the petroleum waste/ hazardous substances at the Shelby Refinery site. The
City will also approach the private sector in several potential brownfields
sites identified, relying on the Brownfields law to determine eligibility,
potential for redevelopment and commitment to job creation, preservation of
greenspaces, use of existing infrastructure and sustainability. The City will
develop specific criteria including an environmental review and mitigation
measures relying on the Brownfields guidelines. Staff of the City of Shelby will
help potential borrowers prepare loan applications upon inspection of
eligibility requirements. The loan application package will model the City of
Shelby’s existing RLF format and application requirements will be consistent
with the policies and procedures developed by existing, successful Brownfields
RLF Programs. Applications will be reviewed by the RLF Loan Review Committee,
which will make recommendations. The City of Shelby will prepare loan documents,
arrange for loan closing procedures, and service all loans made by the RLF.
a. The City of Shelby Brownfields RLF Committee will be comprised of the Mayor
of the City of Shelby; a City Council designee, the City Attorney, the City’s
Chief Financial Officer, Shelby Fire Chief, City Planning/Building Inspector and
the City’s Economic Development Director. Their responsibilities will be to
oversee and implement all phases of work including grant management and
environmental cleanup responsibilities. Mayor /project manager will oversee the
management of the RLF relying on the City’s Chief Financial Officer, City
Attorney and Economic Development Director for operation of the RLF including
loan preparation/documentation and disbursement of funds. The Fire Chief and
City Planning/Building Inspector will oversee contract work, control measures
and address safety concerns in the cleanup process. The Mayor/Project Manager
and Chief Financial Officer are familiar with RLF lending practices and will
provide prudent lending standards in the administration of the RLF. Other
committee members will work within the Project Manager’s and technical expert’s
guidance in the administration and operation of the RLF Program.
D. Sustainable Reuse of Brownfields
1. The City of Shelby is pro-active in its approach to cleanup and sustainable
reuse of brownfields sites. City officials seek workable solutions to concerns
of human health and the environment while assisting in whatever capacity they
are able to revitalize the property for productive, sustainable reuse. The City
has assisted former brownfields cleanups in waivers of disposal fees in the City
of Shelby Class II landfill and provisions of clean fill-dirt to restore sites
to the original ground surface elevations. The City of Shelby is now diligently
pursuing funding for the removal of hazardous substances and petroleum waste
found in targeted buildings and properties, creating environmentally safe
buildings, play areas and industrial sites for the community. Buildings will be
renovated, adhering to Shelby Municipal Code-Title 15, Building and
Construction, addressing new construction energy efficiency requirements. Former
playgrounds will become new, safe city parks providing recreation and enjoyment
for the entire community. Contaminated sites will become productive components
in the economic redevelopment and revitalization of the community utilizing
native landscapes and the natural beauty of the prairies surrounding them.
2. Renovation and revitalization of these Brownfields sites will create numerous
jobs; providing employment in the cleanup phase and redevelopment of the
property as well as in business expansion. The projects will generate revenue to
area businesses in providing supplies, materials and subcontracting services as
well as increase our local tax base and increase property values through
improvements to the buildings and greenspaces surrounding them. These sites also
have the potential to spur further development in complimentary businesses,
service industries, and population growth through job creation.
3. The City of Shelby is continually working to promote a vibrant community
characterized by economic diversity, appropriate housing and transportation,
recreation opportunities and safety for all citizens. The renovation of these
identified properties will create an incredible opportunity for the community of
Shelby. These projects will have invaluable neighborhood renewal effects. The
City of Shelby has been awarded funding for an urban recreational trail which
would link to the newly created Montana Gun and Western Art Museum (former
Bitterroot brownfields site), creating an incredible tourism development and
recreation component for the community. On the other side of the city, creating
a new fire station complex (former Meadowlark brownfields site) will also
revitalize a neighborhood surrounded with two abandoned schools, giving the
neighborhood new greenspaces and updated playgrounds and the community, an
efficient, safe fire facility. Revitalizing property on Main Street will also
reap great rewards in potential private investment in the community in the
creation of space for housing and retail development. Petroleum sites will be
also be revitalized for business expansion and redevelopment. Remediation and
redevelopment will promote a vibrant community with accessible business sites,
safe neighborhoods and a tremendous business mix that strengthens and fortifies
the economic base of the community of Shelby.
4. The City of Shelby will use existing infrastructure, including water/sewer,
roads, sidewalks and landscaping. All identified sites have appropriate
infrastructure which the City continually maintains and updates for the benefit
of the community as demands fluctuate and grow. The City has spent much of the
last decade updating the water and sewer infrastructure throughout the City.
Within that time period, the City has also annually repaired, repaved and
updated city streets as well as addressed sidewalk concerns. The City also
enforces a tree ordinance and is in the process of developing the Wild Turkey
Tree and Turf Farm to provide appropriate trees and hardy grasses for replanting
in public areas throughout Shelby.
5. The City of Shelby is committed to the well-being of all citizens of the
community. City officials are continually working with the community to prevent
future brownfields and identify and rectify any potential brownfields sites. The
City has developed a partnership with the Montana Department of Environmental
Quality to identify and inventory brownfields sites within the community and has
committed to workable remediation solutions. At the same time, through
appropriate zoning and urban planning, the City is promoting safe and
appropriate development, blending recreational, commercial and residential use.
The City is committed to renovation, revitalization and sustained use of city
properties identified for generations to come. The buildings will remain viable,
functional facilities that provide for the benefit of the entire community. The
City of Shelby will provide for the long-term management of the Montana Gun and
Western Art Museum through the Shelby Area Chamber of Commerce as well as the
Fire Station, which will be a public facility serving the entire community. The
Shelby Parks Department will care for the surrounding properties, ensuring the
community of an environmentally safe, viable community property that will be
enjoyed for generations to come. Other properties identified will be held
accountable to prevent any future brownfields sites and provide sustainable use
for generations to come.
6. The City of Shelby is committed to smart use of energy efficient,
economically sound building in the renovation of these sites. Shelby Municipal
Code-Title 15 addresses new construction energy efficiency requirements and will
follow all guidelines in the redevelopment of these properties.
E. Creation and/or Preservation of Greenspace/Open Space or
Nonprofit Purpose
With the funding, work can begin to revitalize the property and with that
improvements of greenspaces and play areas. The City plans to expand the
community park system with the addition of the Bitterroot and Meadowlark
greenspaces and playgrounds and an urban recreational trail. Play structures
will be maintained and improved, park benches and picnic tables will also be
incorporated into the greenspaces surrounding these areas. The City of Shelby,
through the Parks Department, will provide the long-term management and care of
property, ensuring the community of environmentally safe, viable community
property that will be maintained and enjoyed for generations to come. The
potential Main Street building has no greenspaces but street-scaping (trees,
trash receptacles, benches) will be maintained by the City. The City of Shelby
will also partner with the private properties remediated to develop appropriate
greenspaces capitalizing on the abundance of prairie grasses and natural beauty
surrounding the sites.
F. Community Involvement
1. With the awarding of a 2005 EPA Brownfield award, the community of Shelby is
very aware of the potential reward a project such as this could have in the
economic development of a community. The City of Shelby Brownfields
Revitalization Project has been and will continue to be a community effort
involving the city council, business leaders and citizens alike. Local citizen
input and ideas have been incorporated into this revitalization project. Local
support and input has been integral in the assessment of property, plans for
revitalization and this grant application. As stated earlier in the proposal,
four public meetings have been held to inform the local community about this
proposal. Mayor Bonderud has also utilized his weekly radio program to inform
the community of the project as well as speaking informally with individuals and
groups throughout the community.
The City of Shelby will utilize a public meeting process to inform
neighborhoods, borrowers, nonprofits, developers and other stakeholders if
awarded funding for Brownfields cleanup loans/grants. The City will also publish
an information brochure available to all interested parties as to the
eligibility requirements, term agreements, and other pertinent information.
Brownfields information will also be made available through the City of Shelby
quarterly newsletter and on the City of Shelby website at www.shelbymt.com.
2. The City of Shelby has been working closely with the Montana Department of
Environmental Quality; Toole County Commissioners; Toole County Health
Department; Northern Express Transit Authority; and Sweetgrass Development
District to ensure appropriate and sustainable cleanup and redevelopment of the
potential sites.
3. The progress of this project will continue to be communicated through public
meetings with local citizen’s groups, the economic development district, Shelby
Area Chamber of Commerce and Shelby Merchant Association. Information will also
be disseminated through weekly radio addresses by Mayor Bonderud, the City of
Shelby quarterly newsletter and our local media outlets. The grant application,
project plans and updates will also be available on the City’s website at
www.shelbymt.com. Quarterly reports will also be made available for the city
council, commissioners and state and federal agencies involved in the project.
4. The following community groups have reviewed and discussed this proposal and
are in support of this effort.
• Toole County Commissioners: Alan Underdal, Chairman
(406) 424-8310 (County governing body)
Working in partnership with the city to revitalize brownfields affected
buildings and promote economic growth.
• Shelby Area Chamber of Commerce: Sean Pahut, President
(406) 434-7184 (Local business group)
Working in partnership with the city to reutilize abandoned property.
• Northern Express Transit Authority: Larry Bonderud, Executive Director
(406) 434-5203 (Local economic development authority)
Coordinating efforts with the city to develop and expand economic diversity for
Shelby and Toole County.
• Shelby Merchant Association: Diana Adamson, President
(406) 434-7106 (Local retail business group)
Working to promote local merchants and encourage local business.
• Sweetgrass Economic Development: Kelley Shepp, Executive Director
(406) 873-2828 (Certified regional economic development corporation)
• Crossroads Correctional Center: Jim MacDonald, Warden
(406) 434-7055 (Private prison which is the major private employer)
• North Central RC&D: Dennis DeVries, Coordinator
(406) 434-9161 (Area conservation district)
G. Reduction of Threats to Human Health and the Environment
1. The funds will be used to eliminate any threat to human health and the
environment through the removal and proper disposal of hazardous substances and
petroleum waste and make the properties viable, reusable sites for continued
local economic development and community enrichment. In accordance with EPA
guidelines, RLF funds will be used only for allowable cleanup actions. As a
matter of loan processing, each borrower requesting RLF funds must demonstrate
how threats to human health and the environment will be reduced and cleanup
actions will directly address site contamination and move toward regulatory
closure.
2. The City of Shelby will work with the Toole County Health Department and MDEQ
to ensure that the proposed cleanup action will meet the necessary requirements.
Applications will be reviewed by a contracted environmental professional,
knowledgeable of site contaminant issues and state and federal environmental
regulations. RLF loans or grants will not be provided where there is minimal
reduction of threats to human health and the environment, or where the actions
would not result in movement of the site toward regulatory closure, unless the
actions provides a significant overall benefit to the community.
An Environmental Review will be completed by the City of Shelby describing
direct, indirect and cumulative environmental impacts before RLF funds are
provided. The City of Shelby will use established RLF program procedures,
following the guidelines established.
The City of Shelby will also work with the owner/developer to identify
mitigation measures to reduce or eliminate impacts. This may include downsizing
the action, timing, or additional institutional controls to reduce noise, dust,
etc.
3. The City of Shelby has the capability and capacity to communicate the
requirements of applicable federal and state programs to potential borrowers
and/or subgrantees. The City of Shelby will announce the program through local
media efforts. The City will utilize the weekly newspaper and radio station for
initial information on the program as well as the Mayor’s weekly radio address,
city newsletter and website. Special public meetings will be held to inform
interested citizens of the program, eligibility and funding requirements and
rehabilitation/redevelopment opportunities possible. Brochures will be published
communicating the requirements of the program and procedures to follow. The
Mayor/Project Manager will also follow up with one-on-one conferences to fully
explain the program to potential participants.
H. Leveraging of Additional Resources
1. The City of Shelby will utilize the resources of the Community Economic
Development Director to assist the Mayor/Project Director in successfully
managing the RLF program. The City will commit the necessary time required to
initiate and sustain the program through this office as well as utilize the
services of the Chief Financial Officer, City Attorney and Planning/Building
Inspector.
2. The City of Shelby has committed in-kind services to meet the cleanup and
redevelopment needs not met through this grant. The City of Shelby operates a
Class II landfill allowing for disposal of contaminated materials. The City will
waive disposal fees as the funding requirements of this project. At the same
time, the City also has available clean fill-dirt and personnel and equipment to
assist in restoring sites to original ground surface elevations. The City also
has on staff legal services, accounting services and administration to oversee
the program utilizing general funds for these personnel costs not financed
through the grant.
3. As stated earlier, the City of Shelby will utilize its landfill to provide
the matching
funding for the program. The publicly-owned brownfields properties will utilize
state, federal and private funding sources to redevelop the properties after
remediation is complete. The City will seek funding through federal arts and
museum programs, Montana public facility grant programs and private foundations
for revitalization of these publicly-owned properties including a bond issue for
the construction of the new fire hall. In the private sector, RLF loans, and
grants in particular, will be used to limit overall developer debt and make the
redevelopment projects viable. The City of Shelby will assist private
development in technical/programmatic assistance, landfill costs, in-fill
materials and assist in seeking outside funding sources to ensure the success of
cleanup projects under the RLF program.
I. Programmatic Capability/Management Structure
1. The City of Shelby is a legally incorporated entity in the State of Montana,
pursuant to Section 7-5-201, MCA. As such, the City of Shelby has the legal
jurisdiction and authority to finance, operate and maintain community property
and services. At the same time, the City of Shelby has successfully managed well
over $80 million in grants and loans over the past decade. The City has the
capability to manage a RLF grant, as they currently manage a Community
Development Block Grant Revolving Loan Fund. The City has on staff the services
of legal counsel, financing and administration and will retain environmental
expertise in execution of the project. Technical expertise retained will be
acquired through a competitive RFP process in conformance with the State of
Montana acquisition standards for professional services.
2. In 2005, the City of Shelby was awarded an EPA Brownfields Cleanup Grant for
the remediation and removal of hazardous substances (asbestos and lead-based
paints) in the former Shelby Middle School. The City has successfully managed
and completed numerous state and federal grants and loan packages within the
prescribed time periods. The City of Shelby has successfully managed local,
state and federal grants and loans valued at over $80 million in the last
decade. Included in those are grants and loans for our local hospital, water and
sewer infrastructure, fire trucks and equipment and infrastructure for the
Crossroads Correctional Center. Most recently, the City was awarded a housing
rehabilitation grant (HOME) totaling $450,000, which is successfully drawing to
completion in the next several months.
3. The City of Shelby was just recently awarded a 2005 EPA Brownfields Cleanup
Grant. The City has met all EPA requirements including a workplan, budget and
necessary documentation. With the workplan complete, a Request For Proposal
(RFP) is waiting issuance pending the Targeted Brownfields Assessment for
inclusion in the RFP.
4. The City of Shelby was awarded an EPA Brownfields Cleanup Grant in 2005 for
the Shelby Middle School site in the amount of $200,000. Funds have not been
drawn on the grant as of yet because of the delay in completion of the Targeted
Brownfields Assessment at the school site. The City has not asked for any
reimbursement as of yet in anticipation of the RFP process and awarding of the
cleanup contract, but project officials have gained invaluable knowledge of the
program and community impact in attending the Regional and National Brownfields
Conferences.
5. The City of Shelby has gained invaluable information in the strength and
focus of
the Brownfields program and commitment to a community like Shelby through the
Brownfields workshops and conferences attended. Larry J. Bonderud, Mayor of the
City of Shelby was honored to act as a moderator in one of the sessions at the
2005 National Brownfields Conference and felt the experience invaluable in the
information presented, partnerships developed and hopes shared in working to
continue to make Shelby a great place to live, work and raise families. Awarding
of a Brownfields Cleanup Grant has also enabled the City to seek leveraging
funds for other economic development projects for the benefit of the community
of Shelby.
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