ERASE Commercial District Remediation Loan (ECDRL) Program
Offers low-interest loans to help property owners overcome barriers in securing traditional financing.
The program supports the remediation of historical environmental contamination on brownfield sites, supporting their redevelopment and reuse.
Offered by City of Hamilton (Invest in Hamilton)
Amount
Up to $400,000
Loans covering up to 80% of eligible remediation costs per site, with a maximum of $400,000, at 0% interest over a maximum term of four (4) years
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Who can apply
A Loan under this Program is intended to serve as a ‘bridge’ until such time as grant payments commence under either the ERASE Redevelopment Grant (ERG) or Revitalizing Hamilton Tax Increment Grant (RHTIG) Programs. As such, eligibility under this Program is contingent on, among other requirements contained herein, that the site has been the subject of an approved application under either the ERG or RHTIG Programs.
This Program will apply within Sub-Area 2 – Strategic Commercial Districts and Corridors of the Historically Developed Area as defined in the Environmental Remediation and Site Enhancement Community Improvement Project Area (ERASE CIPA) and which generally consists of the Ancaster, Barton Village, Binbrook, Concession Street, Downtown Hamilton, Dundas, Locke Street, Ottawa Street, Stoney Creek, Waterdown and Westdale commercial districts, the Mount Hope/Airport Gateway, the Barton Street and Kenilworth Avenue North commercial corridors and other strategic commercial corridors located throughout the city.
Loans provided under this Program shall be provided to the Applicant who is the registered owner of the site that is the subject of the Program application.
- Applications to this Program must meet the goals of the Environmental Remediation and
Site Enhancement Community Improvement Plan (ERASE CIP).
- This Program will apply within Sub-Area 2 – Strategic Commercial Districts and Corridors
of the Historically Developed Area as defined through the ERASE CIPA By-law.
Eligibility under this Program is predicated on the subject site and Applicant receiving
approval under either the ERG or RHTIG Programs.
- An Applicant to this Program must be the registered owner of the site with Loans only
being available to the successful Program Applicant and cannot be assigned or directed to any other payee unless otherwise provided for in the Program Administration section herein.
- Prior to any application approval and/or Loan advance being provided:
- Any outstanding Building Code, Fire Code or property standards orders or any
other order applicable to the site by any judicial, governmental or regulatory authority shall be rectified; and
- Any tax arrears on the subject site shall be paid.
About the funding
Loans covering up to 80% of eligible remediation costs per site, with a maximum of $400,000.
- The maximum Loan provided under this Program per site shall be 80% of the actual eligible
costs contained in Section C herein to a maximum of $400,000.
- The Loan interest will be at 0% for the repayment term.
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- The maximum Loan term shall be four (4) years (subject to prior termination on default).
Payments will commence on January 1st of the first full calendar year of reassessment by MPAC, post completion of the redevelopment.
- A minimum of 25% of the original loan amount is to be repaid annually as detailed in
paragraph 9.
- An approved Loan under this Program will be provided to the owner in s equal to 80% of
the eligible costs incurred as evidenced by paid invoices submitted to the City. Such advances will be provided within 30 days of submission of the Applicants request for a Loan advance.
- There will be a limit of six advances, spaced no less than 30 days apart.
Eligible costs under this Program consist of the following (excluding HST) but shall exclude in all cases any cost which would have been required for the development regardless of the need to remediate contaminated soil/groundwater and/or abate/remove Designated Substance and Hazardous Materials (DSHM), where applicable:
- Physical environmental remediation of soil and/or groundwater which includes the cost of
any action taken to reduce the concentration of contaminants on, in or under the eligible site required to meet the applicable SCS needed to facilitate the planned development/use and to permit the filing of a RSC by a Qualified Person, including costs of preparing and filing the RSC and Certificate of Property Use (CPU);
- Clean back fill, grading and compaction to replace contaminated soils, where required;
- Phase II ESAs, Remedial Action Plans and/or Risk Assessments not reimbursed, or planned
to be reimbursed, under the ERASE Study Grant (ESG) Program;
- Peer-reviews with respect to Risk Assessments where an RSC is not required by the MECP;
- Installation of environmental and/or engineering controls/works, related to environmental
remediation, as specified in the Remedial Action Plan, Risk Assessment and/or CPU;
- Testing of on-site excess soils for potential reuse but shall not include the excavation,
management, transportation or disposal of such soil except where the soil originates from the site and is found to be contaminated; and
- DSHM Survey and/or abatement/removal in accordance with the Occupational Health and
Safety Act and Ontario Regulation 278/05 (where applicable) on sites that:
- Contain a current/closed institutional use;
- Contain a building designated under Part IV or V of the Ontario Heritage Act; or
- Are being developed for use as a not-for-profit housing development.
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