Brownfields seminar stresses the benefits of targeting previously contaminated sites for development.Related stories:New laws boost brownfields effortSeveral prime sites included on brownfield list
By: George Frey
Using space wisely is a new concept for many people in the United States, but the wisdom to restore previously developed sites is becoming more necessary as the population grows and open land vanishes, especially in small states such as New Jersey.
Recycling contaminated brownfield ground in the state and in urban areas for new uses could help rejuvenate cities and thwart sprawl, and state officials claim there are many incentives for investment into the brownfield areas.
Experts at a recent seminar, "Brownfields Marketplace: A Conference and Showcase for New Jersey Properties," highlighting brownfields remediation and redevelopment, said state agencies are there to help people interested in cleaning up and re- developing such properties, which commonly are contaminated with metals, solvents, asbestos and petroleum products.
Gregory Adkins, executive director of the urban enterprise zone program for the New Jersey Commerce and Economic Growth Commission, is a proponent of brownfields cleanup. He previously worked for 18 years at the state Department of Community Affairs.
"We agree about the money and then arrange a program for the property," Mr. Adkins said at the meeting. "We work with the state to clean up the site. We take care of things like the credit and taxes.
"Brownfields were being cleaned up in the past but at a slower pace," he said in a later interview. "We’re trying to clean them up to accelerate smart growth and to make the increase consistent with urban areas’ cleanup. The incoming tax revenue from new businesses on the sites will give us a relatively unlimited stream of funding. The projects pay for themselves."
Mr. Adkins said there are more than 20,000 brownfields sites in the state.
To expedite a project, a developer presents a plan to the Commerce Department, including costs for the cleanup and redevelopment. Mr. Adkins helps by coordinating support from the Department of Environmental Protection and the Department of the Treasury.
Mr. Adkins explained that once arrangements are made and approved, a developer executes its plan and pays for the remediation. The DEP supervises the cleanup and administers the costs, and the new business is constructed. (In a recent development, the state has said it also now will help developers who want to build housing on brownfield sites.)
"Then the state will reimburse them for the work. The taxes from a property are the source of the reimbursement of remediation costs, up to 75 percent. They get a check from the Treasury in two or three or four years. Sometimes the payback can be one to two years."
He said it is important to get the interested parties and all the governmental agencies together at the table at one point, and he thinks eventually the Economic Development Authority might participate, providing start-up money so developers won’t have to pay out of their pockets.
Mr. Adkins explained that as far as his agency is concerned, it’s better to clean a site up and move the process along than to worry about liability issues the DEP may seek indemnity from the parties responsible for the contamination later.
"People who live next to these things don’t want to wait 10 years till these things get settled. If you live next to a brownfield, you want it cleaned up now," he said.
Once a site is developed, there is really no restriction on use in the eyes of the state, which simply hopes the site will generate revenue. "The site is subject to local land use ordinances. It’s a zoning, land-use decision," he noted.
Dr. Judith Auer Shaw, a brownfields administrator with the Department of Environmental Protection, said though the DEP works to expedite the cleanup of sites, it also can offer technical assistance and can point a developer in the direction of financial assistance. Her department works with the other branches of government to keep projects rolling and on the same page.
"We talk to one another so that there is no lag time between the different pieces," Ms. Shaw said. "Instead of having to wait for some sort of permit from another agency, which might cost the developer a lot of money, other departments know where we stand. If a developer can’t do something in a timely fashion, they might lose funding."
She said the DEP has the expertise to help investors save money. She’s been with the DEP for 12 years and was with the Department of Community Affairs for three years.
Ms. Shaw advises investors to look at their plans with modesty. "It’s wise to be conscious of redevelopment and cleanup. Build into your plan your permitting process and losing some time there."
She noted that knowledge of what’s needed in terms of permits and what’s possible in terms of land use is vital to successful investment in a brownfields site. The variables that may be encountered at a contaminated site can make it hard to tell if the purchase price represents a bargain. But given the prime locations of the sites, coupled with the state incentives, they can be.
Investors interested in a specific brownfield property can contact the Department of Commerce, the Economic Growth Commission or other involved agencies to find out more. The commission can be reached at www.state.nj.us/ commerce. The phone number is (609) 777-0885.