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N.J. Brownfields Law May Spur Development of Old Farms
The "brownfields" bill that New Jersey Gov. Whitman signed into law
in January has been billed as an effort to encourage developers to clean
up abandoned factory sites in the cities. Participants in a panel on the
new law at Monmouth University yesterday said it will also help spur development
of former farm sites and other areas in the suburbs, such as in Monmouth
and Ocean counties.
Brownfields are vacant, inactive or underused commercial, industrial
or residential properties tainted by pollutants but potentially suitable
for environmental cleanup and redevelopment.
"A great deal of (Monmouth and Ocean counties) was farmland in the past
on which agricultural chemicals were used," said lawyer George J. Tyler,
of Giordano, Halleran & Ciesla P.C., a Middletown Township law firm.
"This law makes it easier and less risky for developers to clean up
these properties and use them."
The new law, The Brownfields and Contaminated Site Remediation Act,
S-39, is the latest effort by the state to strike a balance between the
desire to protect public health and the desire to see land developed and
used, so businesses will succeed and jobs and tax ratables will be created.
New Jersey has an estimated 3,000 to 5,000 brownfields sites out of
about 9,000 known contaminated sites nationwide. Tyler could not estimate
how many brownfields sites are in Monmouth and Ocean counties.
Since the 1970s, when events such as the oil spill off the coast of
Santa Barbara, Calif., inspired elected officials to protect the environment,
laws in New Jersey and elsewhere have sometimes tipped that balance too
far toward environmental protection and away from business, said Jim Sinclair,
an engineer and first vice president of the New Jersey Business & Industry
Association. The association represents business interests.
"Our espoused theory was `We want good clean industry!'" Sinclair said.
"The theory in use was `Screw you guys (land owners, developers and business
owners)!'"
The brownfields bill shows that the attitude of state government has
changed, he said.
In 1983, New Jersey enacted the Environmental Cleanup Responsibility
Act, requiring industrial and commercial sites to be clean before they
could be sold, transferred or closed.
That law created ambiguity and confusion, Sinclair said.
With The Industrial Site Recovery Act in 1993, legislators added language
that says the risk of getting cancer, after exposure to any contaminant
at a site, must not exceed one in a million.
The brownfields bill retains that standard, but it also gives businesses
immunity from being sued by the state for contamination at sites they acquire
and are willing to clean up. The state Department of Environmental Protection
will agree not to sue once it has declared a cleanup complete.
The law also provides financial incentives for developers. The state
could pay them as much as three-quarters of the
cost of cleaning a site if state tax revenue the site will generate exceeds
that amount. In practice, only large commercial sites would likely generate
that much sales tax, Tyler said. The state also will provide cash for innovative
cleanup techniques.
The panel was sponsored by Giordano, Halleran & Ciesla P.C., the
New Jersey Business & Industry Association, Professor George Korfiatis
of the Center for Environmental Engineering, Stevens Institute of Technology,
Hoboken, and Professor Donald M. Moliver, director of the Real Estate Institute
at Monmouth University. Copyright 1998, Asbury Park (N.J.) Press. Knight
Ridder/Tribune Business News., All Rights Reserved
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