Independent-living project dealt setback

Discovery of contaminants halts Project Freedom Inc.’s construction plans in Lawrence

By: Lea Kahn
   Project Freedom Inc. is not ready to throw in the towel, but it has balled it up.
   The nonprofit group’s plans to build a 54-unit apartment complex for the physically handicapped suffered a major setback after contaminated soil was discovered last month on the 13-acre site off Princeton and Betts avenues. Reports show that the soil is contaminated with heavy metals, concrete and asphalt.
   Project Freedom Inc. leases the land from Lawrence Township, which bought it from the state Department of Transportation in 1998 for $250,000. The township leased the land to the nonprofit group for $1 per year.
   Project Freedom Inc. officials are disappointed with this turn of events, but they are searching for ways to salvage the $7.3-million project, said Tim Doherty, executive director of the Washington Township-based group.
   Lawrence Township officials also are disappointed. They would like the purchase of the property to be voided and for the DOT to take back the land if the project does not go forward.
   The 54-unit development is being financed by a combination of state tax credits and federal, county and state money, plus money from Project Freedom Inc. But the group is facing an Oct. 15 deadline to begin spending some of its tax-credit money on the project.
   Monday afternoon, the group was set to abandon the project after it met with its engineer and Lawrence Township officials to discuss the pollution issues, Mr. Doherty said. But after news that the project had been scrapped leaked out, the state Housing and Mortgage Finance Agency called Tuesday to offer its help, he said. This made Project Freedom want to take another look, he said.
   The HMFA, which manages the tax credit financing for the proposed development, said it might be able to help by providing hardship tax credits that would help to pay for the cleanup of the site, he said. Township officials also might be able to seek state money for the cleanup, he said. The cost of making the site suitable for building may exceed $1 million.
   The contaminated soil was discovered during preconstruction testing, Mr. Doherty said. Cleaning up the site likely would involve trucking in two feet of clean fill to put on top of the land and possibly installing monitoring wells to track the flow of underground water, he said, adding that the group has reached out to the state Department of Environmental Protection.
   "If the HMFA can come up with some assistance, it is possible we could resurrect the project. It could be viable if we could determine what the DEP wants (to clean up the site)," Mr. Doherty said, adding that Lawrence Township would have to be a partner in the cleanup because it owns the land.
   "But it gets to the point where you say, ‘What’s the prudent thing to do with taxpayers’ money?’ Certainly, the site will be sitting there for eons because it is not cost effective to do anything there. We are the ultimate losers," Mr. Doherty said.
   In the meantime, Mr. Doherty said, Project Freedom Inc. is searching for other sites in Lawrence. The township does not own any other properties that would be suitable for the project, according to Municipal Manager William Guhl.
   Project Freedom Inc. also owes more than $100,000 to the architect and other professionals involved in the planned development, Mr. Doherty said. It plans to ask state Sens. Peter Inverso and Shirley Turner to support a plan for the possible reimbursement of that money, he said. Because the project is not going forward, there is no money to pay the bills, he added.
   Mr. Guhl explained that the property had been used as an ash dump about 50 to 75 years ago. An engineering study commissioned by Project Freedom Inc. uncovered additional contaminants, he said.
   The DOT bought the land in 1961 for the proposed Route 31 Extension, but the road was never built, Mr. Guhl said. The DOT sold the land to the township in 1998. The township, in turn, leased the land to Project Freedom.
   "I am confident that the current DOT was not aware of the scope of the problem. Maybe contamination was not a problem for the road," Mr. Guhl said, adding that it does not present a public health problem.
   "I will discuss with the DOT some reasonable solution to the problem. I don’t think the state thinks it is reasonable to sell contaminated land. The just thing would be for the DOT to take it back," he said.
   The DOT did not know that the land was contaminated, said DOT spokesman Jim Berzok. There was never any reason for the state to test the soil because of the nature of the planned use of the property, he said.
   "We understand Lawrence Township is going to share some information with us. Then, we can have a continuing dialogue on how to solve this. We are hoping we can come to a reasonable resolution," Mr. Berzok said.