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Panel to Hand Out Loans for Site Cleanup

Posted on: Friday, 23 June 2006, 21:00 CDT

By John Davis, Montgomery Advertiser, Ala.

Jun. 23--The state wants to recycle contaminated industrial sites in Alabama by helping municipalities and chambers of commerce pay for cleanup.

The Alabama Land Recycling Finance Authority, created in 2003, had its first meeting this week after being taken off the back burner by Trey Glenn, who took over as chief of the Alabama Department of Environmental Management last year.

The Environmental Protection Agency has given Alabama $1 million to pass out low-interest loans for site cleanup. By creating suitable sites, areas can sweeten deals for interested businesses.

"The main focus right now is understanding and getting a good handle on the financial resources that will be available to these parties," Glenn said Thursday.

Members of the finance authority include Glenn, Gov. Bob Riley, Lt. Gov. Lucy Baxley and Finance Director Jim Main.

Riley said the state will be "flooded" with applications once a process for lending the money becomes available.

Municipalities, nonprofits and economic development agencies can borrow funds from the authority at below the prime interest rate with a 10-year payback. The money is for "land that really has no responsible party associated with it," meaning that contaminated sites under litigation won't be considered, Glenn said.

Glenn said the program will help protect green spaces, keeping industry from building on undeveloped land.

ADEM has identified more than 7,000 contaminated commercial sites in Alabama, with 418 in Montgomery County. These sites are known as "brownfields."

In 2003, the city of Montgomery received a $250,000 federal grant to assess pollution on the riverfront. In its presentation this week to the authority, ADEM referred to Riverwalk Stadium as a "brownfield success story."

According to Glenn, the next six months will provide a clearer picture of how entities can apply for these loans. Also, ADEM is looking at ways to get more federal dollars for the revolving loan program, which at this point is expected to receive $1 million a year.

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Copyright (c) 2006, Montgomery Advertiser, Ala.

Distributed by Knight Ridder/Tribune Business News.

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Source: Montgomery Advertiser

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