 |  SRP Publications Brownfields Reports 2001
Reimbursement
of Remedial Costs Key to Redevelopment Agreement Process Popularity
within Development CommunityWith 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 Name | Estimated
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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