State Identifies Brownfields Successes
The New Jersey Commerce and Economic Growth Commission ("CEGS") has released economic projections for the first two Brownfields projects under the state's Brownfields Redevelopment Incentive Program. The program allows redevelopers to recover up to 75% of remediation costs out of certain state tax revenues generated by the project.
The Edison Crossroads Centre, a 285,000 square foot big-box retail shopping center proposed in Edison along Route 1, is expected to generate 800 new jobs and $4 million in new state tax revenues, and to increase the site property value from approximately $8 million to $31 million. On the site of a former industrial plant in Holmdel, a new residential, retail and office park development is expected to generate 1,500 new jobs, $82.3 million in annual retail sales, $1.7 million in annual property taxes and $5 million in annual state sales tax revenue.
In addition to these projects, two other redevelopment agreements have been executed, six redevelopment agreements have been approved, and over 70 applications have been submitted, according to CEGS.
New Brownfields Grant Program Announced
In her recent State-of-the-State address, Governor Whitman announced the creation of a new program to assist municipalities in the cleanup of brownfields sites and their return to productive use. To encourage redevelopment, the $15 million program will, for the first time, offer grants to municipalities for brownfields cleanups.
The Governor praised the progress that has been made to date on reclaiming New Jersey's brownfields, specifically citing Waterfront Park baseball stadium in Trenton and the Jersey Gardens Outlet Mall in Elizabeth as commendable projects. These projects have helped city residents gain jobs and enjoy a higher quality of life.
The Governor noted, however, that some brownfields remain untouched by redevelopers due primarily to the high cost of the cleanups. Through this program, municipalities can assist in the cleanup of contaminated sites and make them more attractive to private redevelopers.
Low Priority for Redeveloping Rural Sites
A study published in January 2000 by the National Association of Development Organizations ("NADO"), in cooperation with the Environmental Protection Agency ("EPA"), has found that brownfields sites in rural areas face obstacles to cleanup that are distinct from those of brownfields in urban areas. The obstacles include a low priority placed on site redevelopment, confusion regarding the difference between superfund sites and brownfields sites, concerns about potential liability, and a lack of private capital available for redevelopment.
The study found that even if officials in rural areas are aware of brownfields in their communities, they lack access to information on state and federal assistance for site assessment, cleanup and redevelopment. In addition, the study found that rural areas have limited technical, personnel and other resources to undertake brownfields assessment, cleanup and redevelopment. Finally, the study found that regional development organizations and rural local governments received limited state and federal funds for brownfields redevelopment. A second study will survey all NADO members to estimate the number of brownfields in rural and small-town areas. Copies of the first study, Reclaiming America's Rural Brownfields, are available from the NADO.
