A large factor in determining the success of any brownfield redevelopment is attaining adequate funding. While this can be challenging, the Kentucky Brownfield Program is here to help you find funding sources for your site. Below are some options available to both the public and private sectors. The Brownfield Program realizes that each brownfield project is unique, and we encourage you to contact us in determining what funding sources are available to you.
The Commonwealth of Kentucky can provide TBAs to municipalities and nonprofit agencies free of charge. The brownfield program is currently looking for projects. A candidate site should have redevelopment potential, be underutilized or abandoned and suffer from the stigma of potential environmental liability. The applicant should either own the property, have a plan acquiring it or be working with another entity to redevelop it. Kentucky is limited in the number of TBAs it can perform each year, so sites are considered on a first-come, first-served basis.
Grants for cleanup projects are available to communities and nonprofits from a variety of sources. Grant eligibility varies depending on the type of project and planned end use of the property. Many grants are available on the U.S. Environmental Protection Agency (EPA) Web site http://www.epa.gov/swerosps/bf/cleanup_grants.htm. This is not a complete list of available grants. The brownfield program staff can help you find grant and loan opportunities that match your project. Check out our grant writing resources for EPA brownfield grants.
Revolving loan funds are another resource option. You can apply for an EPA grant to establish your own revolving loan fund for brownfield redevelopment. Check out the EPA's Revolving Loan Fund page for more information.
The Kentucky Infrastructure Authority administers the Clean Water State Revolving Loan Fund (CWSRLF). To be eligible to receive funds from the CWSRLF, the money must be used to address brownfields that have a current or potential impact upon surface or groundwater.
Tax increment financing is a tool that uses future gains in taxes to finance the current improvement projects that will create those gains. When a project, such as a road, school or hazardous waste cleanup, is carried out, there is an increase in value of the surrounding real estate. This is often followed by new development, which creates more taxable property, thus, more tax revenues. Those revenues are dedicated to finance debt issued to pay for the project. TIF creates funding for distressed areas where redevelopment might otherwise not occur and funding for projects that are unaffordable for municipalities. Development areas can be created in blighted, distressed areas if they meet two or more of the following criteria:
- Substantial loss of residential, commercial or industrial activity or use.
- Forty percent or more of the households are low-income households.
- More than 50 percent of the residential, commercial or industrial structures are deteriorating or have deteriorated.
- Substantial abandonment of residential, commercial or industrial structures.
- Substantial presence of environmentally contaminated land.
- Inadequate public improvements or substantial deterioration in public infrastructure.
- Any combination of factors that substantially impairs or arrests the growth and economic development of the city or county; impedes the provision of adequate housing; impedes the development of commercial or industrial property or adversely affects the public health, safety or general welfare due to the development area's present condition and use.
The Commonwealth of Kentucky offers tax incentives and credits to individuals or businesses that complete a cabinet-approved cleanup on a qualified property. For more information on this tax incentive, go to our tax incentive page.
The Cabinet for Economic Development offers incentives for companies that relocate or expand in Kentucky. Visit the cabinet's Web site to see what assistance is available to companies wishing to make Kentucky their home.
This site is for informational purposes only. It is not meant to replace the statutes regarding the cleanup of contaminated properties and incentives available for those cleanups. For more information on the statutes governing cleanups, visit the Division of Waste Management's Voluntary Cleanup Program page. For more information regarding income tax incentives available for brownfield properties, see KRS 141.418. Property tax information can be found at KRS 132.010, KRS 132.020 and KRS 132.200.