City will get $500K loan for old Reid clean up

• A $500,000 interest-free loan will help clean up contamination at the former Reid Hosipital site.
• Funds come from the U.S. Environmental Protection Agency through the Indiana Brownfields Program.
• There is no timetable yet for when cleanup might begin.

Richmond officials will get a $500,000 interest-free loan for cleanup of the former Reid Hospital property.

The money is part of a supplemental award from the U.S. Environmental Protection Agency to the Indiana Brownfields Program's Revolving Loan Fund.

The fund "often serves as critical gap financing to jump start the redevelopment process on a brownfield site," said a press release from the state program, which is part of the Indiana Finance Authority's environmental efforts.

"Brownfield" refers to land contaminated with hazardous waste or pollution.

Subsurface contamination detected at the former Reid site at 1401 Chester Blvd. includes arsenic, chromium, lead, thallium, Aroclor 1232, petroleum aromatic hydrocarbons, dioxin, lithium and radionuclides, according to the release.

The loan will cover only a small portion of the expense of getting the property ready for redevelopment. The total cost of taking care of the contamination and demolition of the buildings on the 74-acre site could cost as much as $6 million, according to city estimates quoted in the release.

Tony Foster, executive director of the city's Department of Metropolitan Development, didn't want to give a timeline for when cleanup might begin.

"There's a lot of details to still iron out," he said. "We still have to figure out how we're going to pay for the rest of it."

But Foster was pleased to hear about the loan. "It's an incredible honor ... to get this kind of incentive," he said.

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Richmond received a similar loan to help clean up the former Carpenter bus plant property, now Rose City Business Park near Interstate 70 on the city's northwest side.

When the loans are repaid, the amount will be returned to the state fund for use by other borrowers, providing an ongoing source of capital for brownfield cleanup.

"Brownfield redevelopment is a vital component to improving the economy, providing jobs, cleaning up neighborhoods and enhancing the quality of life for Indiana residents," said Jim McGoff, director of environmental programs for the Indiana Finance Authority in the release. "Helping Indiana communities fund these efforts continues to be a challenge and a priority for the IFA."