njdep
site remediation program
2001 Brownfields Update

SRP Publications Brownfields Reports 2001

Reimbursement of Remedial Costs Key to Redevelopment Agreement Process Popularity within Development Community

With the opportunity to recover up to 75 percent of remedial costs and receive liability protections by performing a state approved cleanup, development companies are moving forward with purchasing tainted properties and conducting small and large scale cleanup and reuse projects.

A developer can enter a Redevelopment Agreement with the New Jersey Commerce and Economic Growth Commission and New Jersey Department of Treasury that provides up to a 75 percent reimbursement of remedial costs. This new aspect of the Brownfield and Contaminated Site Remediation Act allows the state to use tax revenue from operations at the redeveloped site to pay a portion of remedial costs.

Thirteen developers have active Redevelopment Agreements with the state for brownfield projects and reimbursements have been issued since the program began. More than 100 other projects are in the preliminary approval stages.

New Jersey is the only state in the nation with this type of reimbursement structure for private parties conducting voluntary cleanups at brownfield sites. Clearly, the state has set an example of how government can partner with the private sector to encourage more cleanups that result in economic growth.

The reimbursement program was established after passage of the Brow-field and Contaminated Site Remediation Act in January 1998. The first reimbursement under the program was announced at the National Brownfields conference in Atlantic City in October 2000 when the same project also received a national Phoenix award for its outstanding brownfield reuse, named the Edison Crossroads Retail Center. Private developers must operate under NJDEP oversight at a brownfield site and receive a No Further Action determination after all remedial work is completed to allow the Redevelopment Agreement reimbursement process to move forward.

Redevelopment Agreements Executed

Project NameEstimated Remediation Costs
Eligible for Reimbursement
Bogota Golf Center $611,000
BTS Woodbridge $1,385,000
Closter Redevelopment Project $568,000
Denville Station Plaza $200,000
Duraport Marine Rail Terminal $8,555,000
East Coast Redevelopment Project$546,000
Edison Crossroads Redevelopment Project $1,600,000
Holmdel Redevelopment Project $1,000,000
Ocean City Redevelopment Project $359,000
Salerno Duane Automotive Group $360,000
SnowBird Water Corp. $200,000
Sybra Inc.-Arby’s Woodbury $152,000
Willingboro Town Center $950,000
  
Total $16,486,000

 

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