What is the TBRA?
The Tax Base Revitalization Account (TBRA) is one of three voluntary grant programs provided by the Metropolitan Council’s Livable Communities program. TBRA can help pay for the costs of finding contamination coming from below ground or hazardous materials in existing buildings. Property and buildings that cannot be used or redeveloped are often called ‘Brownfields’. The grants support community or economic redevelopment projects that increase the local tax base and support adding or helping keep jobs in a community and/or the production of affordable housing.
How and when are TBRA funds available?
TBRA funds are raised by a legislatively authorized levy capped at $5 million annually.
Applications are typically accepted on the first business day in May and November.
Advance preparation is a key to a successful application. The TBRA is coordinated with complementary programs at the Minnesota Pollution Control Agency (MPCA). It can take 60-75 days to compile all the environmental information and approvals of the local real estate development entitlements needed to complete a contamination cleanup grant application. In addition, if your project is in Minneapolis or Saint Paul it can take up to 2 months advance notice to get a city resolution of support required for a grant application.
What types of redevelopment projects are eligible for TBRA grants?
TBRA grants may be used for affordable and market rate residential, commercial or industrial redevelopment projects. Sites may be privately or publicly owned at the time of application.
However, the project must be in a city participating in the Livable Communities program. In addition, a party that is likely responsible for the contamination is not eligible to apply. (If you think there may be a responsible party, we encourage you to contact the grant program coordinator.)
Applications may also be determined ineligible for funding if:
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the project requires extensive new (regional) infrastructure beyond that which is already planned
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the proposal is not consistent with the redevelopment component of the municipality's comprehensive plan (Minn. Stat. section 473.859, Subd. 5).
Which type of TBRA grant should I apply for?
TBRA offers three types of grants:
What kinds of investigation costs are eligible for TBRA grants?
Investigation costs eligible for reimbursement by TBRA grants include:
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Phase II environmental site investigations,
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preparation of a remedial action work plan,
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preparation of Response Action Plans (RAPs) developed in conjunction with the MPCA for hazardous waste or Development Response Action Plans (DRAPs) developed in conjunction with the PCA for petroleum,
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hazardous materials surveys,
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preparation of abatement plans and specifications that meet AHERA (Asbestos Hazard Emergency Response Act) and Minnesota Department of Health (MDH) standards for asbestos, and/or
- preparation of lead-based paint abatement plans that meet MDH standards and the Toxic Substances Control Act (TSCA).
What specific cleanup costs related to soil and ground water contamination are eligible for TBRA funds?
TBRA funding can help pay for much of the cost difference between building on a contaminated site and building on a clean site. Grants may be used to pay for contamination found underground such as
Underground cleanup activities must be required as part of a Response Action Plan (RAP) approved by the Minnesota Pollution Control Agency. Only soil remediation costs directly related to contaminated soil and ground water are eligible for TBRA grant funds. Examples of ineligible soil remediation costs:
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Excess contaminated soil that does not exceed the appropriate cleanup standards (Tier I Residential or Tier II Industrial) but does not meet the standard for “clean fill” is eligible for reimbursement of disposal costs only. (The standard costs for excavating, loading and transporting of mildly contaminated soil are not eligible.)
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The costs related to improving the geotechnical qualities of the soil for building purposes are not eligible.
Grants can also be used to pay for selected contaminants found within buildings such as asbestos and/or lead-based paint.
Activities paid using grants must be incurred after a grant has been awarded. Grant funds are paid on a reimbursement basis. (We may make an exception for projects that have previously been awarded grant. In situations like this, funds must be for the same redevelopment project and must meet the conditions outlined below.)
Projects seeking an additional grant for a previously funded project with a RAP amendment and received approval from the MPCA must submit the updated documents to the TBRA coordinator prior to submission of the corresponding payment request for soil or groundwater remediation.
Can TBRA grant funds be used to clean up petroleum-based contamination?
Yes. Costs for remediation of contamination related to above and below ground petroleum storage tanks and other petroleum-based contamination that has leaked into the soil are eligible for consideration but only after all available Petrofund sources have been utilized. The Petrofund is administered by the Minnesota Department of Commerce.
A petroleum cleanup must be required as part of a Development Response Action Plan approved by the Minnesota Pollution Control Agency. Grant funds are paid on a reimbursement basis.
Are the disposal costs of other hazardous wastes, non-hazardous wastes and debris eligible for TBRA funding?
Only some hazardous wastes can be paid using grants. Remediation funds for abatement of asbestos or lead-based paint during renovations for adaptive reuse or pre-demolition of an existing building are eligible. Costs for abating other types of hazardous contamination found in buildings such as mercury in thermostats, oils in door closers, and other contamination related to HVAC systems are generally not eligible for reimbursement. Household waste and solid waste including construction debris and old tires are not eligible for TBRA grant funding.
If a redevelopment project includes a housing component, is a portion of that housing required to be affordable?
No, there is no minimum number of affordable residential units required to apply for a TBRA grant. However, adding new ownership or rental units affordable to households earning 60% of the area median income (AMI) or lower is one of the primary criteria used in evaluating TBRA applications. Redevelopment projects that include housing are evaluated on the number and type of affordable housing units to be provided relative to the amount of TBRA funding requested for the project.
Is funding for site acquisition eligible?
No. Site acquisition costs are not eligible.
Is funding for building demolition eligible?
Sometimes. Building demolition costs are eligible when the removal of a structure is necessary to gain access to remediate soil and ground water contamination and is identified in a MPCA approved Response Action Plan (RAP). You will need to provide soil borings with levels of contamination above soil reference values within the building footprint for us to consider reimbursement of the cost of demolition. Demolition costs requested must be proportionate to the footprint of the soil contamination removed. Limited pre-demolition costs related to accessing or removing asbestos or lead-based paint are eligible. All other interior demolition costs are not eligible.
Can a project be funded if eminent domain was used for acquisition?
Generally, no. If a property was acquired through eminent domain it is not eligible for a TBRA grant. But if eminent domain was used for a “public use or public purpose.” The term “public use or public purpose” as it pertains to this policy includes
as the terms above (italicized) are defined in Minnesota statute. (For definitions see Minnesota Statutes Chapter 117.025)
Can funds be requested for cleanup costs incurred between grant rounds?
The cost of cleanup activities that occurred prior to a grant award are not eligible for reimbursement unless the applicant has previously been awarded cleanup funding for the same redevelopment project in a prior funding cycle and the costs are expressly authorized by the Council. (For information on investigation activities, above.)
In order for contamination cleanup activities incurred prior to the TBRA funding award date to be considered eligible for funding, applicants must meet the following four conditions:
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The cleanup work for which funding is being requested must have been done no earlier than 180 days before the TBRA application deadline (first business day on or after November 1 or May 1).
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For soil and ground water remediation work, the MPCA must approve a RAP for the project prior to commencing work; for asbestos abatement, a Minnesota Department of Health (MDH) licensed inspector/contractor must complete an asbestos evaluation and plan according to Asbestos Hazard Emergency Response Act (AHERA) standards; for lead-based paint abatement an MDH licensed inspector/contractor must complete a lead-based paint evaluation according to MDH standards and the Toxic Substances Control Act (TSCA).
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The applicant must contact the Metropolitan Council TBRA staff prior to commencing any cleanup work. A site visit with the applicant and TBRA staff is recommend so there is clear understanding of the project and the proposed remediation.
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Before starting the cleanup work, the applicant must provide a letter to Council TBRA staff with a cost estimate for the complete scope of work and explain why the cleanup work needs to start prior to the TBRA application deadline. The letter must also clearly state:
- The applicant is going to start project cleanup work before the next TBRA application deadline; and the applicant has the appropriate approvals (see second bullet above on soil and ground water remediation projects).
- The applicant understands that while this notification process makes the work done after the Council receives the letter eligible for consideration in the next TBRA grant round, it does not commit the Council to funding the project.
Can previously funded projects get additional TBRA funding if they encounter additional cleanup costs?
Applicants that have already been awarded TBRA grant funds are eligible to apply for additional funds for a project if during the clean up
Applicants requesting supplemental funding for soil remediation must provide an amended RAP or provide documentation that the MPCA has approved the changes for which additional funding is being requested. Applicants requesting supplemental funding for asbestos and/or lead-based paint abatement must provide documentation that a licensed inspector/contractor has been involved in assessing the additional abatement needed and that the additional cleanup work (if any) was done according to Asbestos Hazard Emergency Responses Act (AHERA), MDH standards for asbestos and the Toxic Substances Control Act (TSCA) for lead-based paint.
Additional contamination cleanup activities incurred prior to the TBRA funding award date for the grant cycle in which funding was requested must also meet the conditions described in the question above to be eligible for reimbursement.
How can I learn more about brownfield cleanup funding opportunities?
Workshops are held prior to every spring and fall grant cycle to provide information on brownfield cleanup funding programs and opportunities available in Minnesota. The workshops are co-hosted by the Metropolitan Council and the Minnesota Department of Employment and Economic Development For details about future workshops, contact the TBRA grant coordinator or check
Met Council Upcoming Events. Additional information on brownfields is provided by the non-profit
Minnesota Brownfields.
If a TBRA application is funded, what are the obligations that accompany the grant?
Recipients of a TBRA grant are expected to draw funds within the first year of funding and must complete the cleanup and begin construction of the redevelopment before the end of the grant term. Like other Livable Communities Act grant programs, grant funds are a reimbursement for work completed. In addition, status reports are required within the grant term and annual progress reports are required for up to four years after the end of the grant term this includes information on jobs, net tax capacity, property taxes and other development outcomes.
Applicants that are unable to start construction within the grant term will have an opportunity to request a grant extension. For information on grant extensions, contact the program coordinator.