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For Immediate Release:  
For Further Information:
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February 19, 2008  

Lee Moore, OAG
609-292-4791
Larry Hanover, SDA
609-292-5502

Office of The Attorney General
- Anne Milgram, Attorney General

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Attorney General Files Suit to Recover Cost of East Orange School Site Clean-Up

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TRENTON -- Attorney General Anne Milgram announced today that the state has filed a lawsuit in Superior Court seeking to recover the cost of cleaning up and restoring a contaminated property that is the site of a planned school for the arts in East Orange.

Filed on behalf of the New Jersey Schools Development Authority, the lawsuit focuses on contamination of an eight-acre property on North Arlington Avenue that once housed a dry cleaning business, Carriage Trade Cleaners. The property is currently the site of construction work on the East Orange school district’s Cicely Tyson School of Performing Arts and Fine Arts. An SDA-funded project, the school is scheduled for completion in 2009.

According to the state’s lawsuit, the property was contaminated over a period of years with tetrachloroethene (PCE), a chemical compound regularly used in dry cleaning, and required extensive clean-up and soil removal work that was paid for by the state. Named as defendants in the lawsuit are former property owners Joseph Marcantuone of Verona and Robert Gieson of Livingston and operator Sang Hak Shin of Paramus.

“We are seeking reimbursement from these defendants for what the state has had to spend to clean-up their property,” Attorney General Milgram said. “Public dollars should not be used to clean up and restore properties contaminated by private industry.”

Scott Weiner, chief executive officer of the SDA, said the lawsuit is part of an important initiative, launched in late 2006, to recover costs from responsible parties for environmental remediation, as well as for design errors and project delays.

“In collaboration with the Attorney General’s Office, the SDA will continue an aggressive effort in 2008 to recover costs that rightfully should be paid by those who bear responsibility, not New Jersey taxpayers,” said Weiner.

Also named as defendants in the state’s lawsuit are JRM LLC d/b/a Carriage Trade Cleaners, of Paramus, and a variety of “ABC” corporations and individual “John Does.” The ABC Corporations and John Doe defendants are owners, operators or parties otherwise in control of the Carriage Trade Property at the time of the discharge of hazardous waste who could not be identified by name as of the filing of the lawsuit on February 1, 2008.

Attorney General Milgram noted that the lawsuit is being brought under the New Jersey Spill Compensation and Control Act. Under the Act, a governmental entity such as the state is exempt from liability for clean-up and removal costs related to pre-existing contamination at a property it acquires by eminent domain or condemnation for redevelopment purposes. The state’s lawsuit notes that $629,000 in SDA funding was used by East Orange to acquire the property via condemnation, and that a portion of that funding -- $182,000 – was ordered held in escrow by the court to cover the cost of any environmental remediation.

The lawsuit seeks to have the defendants held legally responsible for PCE contamination at the North Arlington Avenue property. It also asks that the $182,000 being held in escrow be released to the state.

The Cicely Tyson School of Performing Arts and Fine Arts is a demonstration project proposed by the East Orange School District and the City of East Orange. The project features a new, 280,095-square-foot pre-K through grade 12 performing arts/music magnet school on a 12-acre campus within the city’s Main Street redevelopment area. Students from the 100-year-old Washington School and the existing Cicely Tyson School will attend the school. A September 2009 opening is scheduled.

Demonstration projects are school facilities projects that incorporate community design features and are coordinated with wider community economic redevelopment. Six were authorized under the Educational Facilities Construction and Financing Act of 2000. The East Orange demonstration project is managed by the City of East Orange as the redevelopment entity and Joseph Jingoli & Son, Inc. as the redeveloper. Jingoli is also the construction manager/general contractor. The SDA provides 100 percent funding and oversight.

The SDA (then known as the SCC) awarded East Orange a grant for design and construction of the new school in December 2004. The Carriage Trade Cleaners property was subsequently acquired via condemnation, and a follow-up investigation revealed PCE contamination. The contaminated soil was excavated and properly disposed of in 2006. A subsequent consulting study found the remediation effort to have been sufficiently completed. The Department of Environmental Protection approved the consultant’s Remedial Action Report on the site in March 2007.

DAG Michael McMahon, of the Division of Law's Cost Recovery and Natural Resource Damages section, handled the lawsuit on behalf of the state.

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