BARETT BUILDERS BUILDINGS


MR>BARRETT Why Contamination is No Longer a Dirty Word

By Thomas Barrett
Barrett Builders, LLC
Fort Lee, New Jersey


March 21, 2002


Fourteen years ago, the designation of a site as 'contaminated' was the kiss of death for developers. Builders wouldn't touch the property, and lenders would run for the hills.

But today's new urban environment laws, combined with opportunities for new construction in markets like New Jersey, have changed all that. The scarcity of open land suitable for development, especially in Northern New Jersey and throughout the New York Metropolitan Area, has made the revitalization of brownfield properties an acceptable and growing element in the development process. The challenge today is how to accomplish such site reclamation in a way that meets the complex federal and state requirements, boosts the local economy, improves the environment, and still provides a profitable opportunity for a developer.

The Evolution of the Brownfields Market Opportunities and Remediation
In 1976, New Jersey became the first state in the country to initiate a contaminated site cleanup program. In fact, the state has been credited with triggering the federal Superfund Act of 1980.

Barrett Builders - having been involved in residential and commercial development for more than 50 years - first became involved with property remediation (required investigation and cleanup activities) in 1983, after the passage of the state's Environmental Cleanup and Responsibility Act (ECRA) and the Bureau of Underground Storage Tank Act (BUSTA). At exactly that time, fuel tanks stored on a truck distribution facility site that we owned and operated in Carlstadt had to be excavated and surrounding contaminated soils removed. We were all novices in the remediation field in those days. We hired our own environmental scientists to certify the pedigree of soils, and we worked closely with members of the New Jersey Department of Environmental Protection (NJDEP) in negotiating our way through the maze of new Administrative Consent Orders and cleanup requirements.

In 1993, ECRA was replaced by the Industrial Site Recovery Act (ISRA), which clarified some procedural issues while elaborating on others. New Jersey set standards for allowable contaminant levels in both ground water and soil, site testing, investigation and workplan requirements.
It was at that same time that Barrett became a party to Administrative Consent Order Agreements for one of the first large-track brownfield sites in Jersey City. Approximately one-fifth of the more than 200,000 acres of land in Jersey City has been identified as potential or known brownfields. Greenville Yards, formerly a Conrail Penn Central area rail yard, lies in the heart of the city's industrial area. Preparing the site for new development meant, among other things, capping the site with two feet of certified clean fill and digging wells that would tap into ground water requiring ongoing testing and certification. Each area of the site had to be cleaned, tested and certified on a location-by-location basis.

Our involvement in all facets of property development and management in this area quickly introduced us to the new NJDEP jargon: Memorandums of Agreement (MOA) stipulating planned remedial activities; Preliminary Assessments (PA) to identify all potentially contaminated areas; Site Investigations; Remedial Investigations; Remedial Actions; and Remedial Action Work Plan (RAWP). In Jersey City, Carlstadt, Mahwah, Moonachie, North Arlington, Plainfield and Ramsey, we learned the processes involved in decontamination of parcels containing old oil tanks, gas pumps, in-ground fuel tanks, chrome-plating operations, lead plumes, and much more. We became involved in site testing, trenching, borings, open audits of property, and learned the processes of methane recapturing systems, mitigating hydrocarbon contamination, encapsulating sites with impervious pavement, and other means of reducing the threat of dangerous chemical seepage.

The Result: A Win/Win for Builders and New Jersey
Brownfield development is not for the faint of heart. But if done carefully and knowledgeably, it can be rewarding and profitable. We now have two light industrial warehouse and office facilities operating in Greenville Yards, which has both Urban Enterprise Zone (UEZ) and Foreign Trade Zone (FTZ) designation. A third cold storage warehouse is in the early stages of development.

Another one of our projects, Half Moon Harbour, a multi-family luxury apartment building on the Hudson River waterfront in North Bergen, also gives evidence to the rewards of a thorough and efficient site clean-up and is a good example of how the process can work.

At Half Moon Harbour, we instituted a self-drafted MOA - an agreement with the NJDEP about the remedial actions planned for the site. We then retained environmental professionals with whom we entered into a Sampling Plan to test ground water and soil conditions. Reports were generated reflecting the historic use of the site and documenting the type and depths of various strata of soil, silt and rock. Following the technical review of the samplings requested by the DEP, we produced a RAWP, and upon its approval, we instituted the required engineering controls at the site. Essentially, those requirements included the containment and removal from the property of a small quantity of materials that sat on the surface of the site. These materials were classified and approved for removal by the DEP and then the general earth work began, in compliance with the RAWP and the Health and Safety Plan. All utilities were buried in certified clean fill. A cap of 24" of certified clean fill was placed on all areas not covered by buildings or impervious improvements. The placement of all capping materials was witnessed by licensed professionals, including an environmental scientist and soil engineers. After certification by these professionals, the site was planted with lawns and foliage, a copy of the Remedial Action Report was filed and approved by the DEP, and the site was inspected and approved. Finally, a Deed of Environmental Restriction was filed, recording the nature, area and frequency of environmentally sensitive materials found on site, and delineating the requirements for the placement of engineering controls. With all these actions completed, the DEP issued a No Further Action Letter.

As this indicates, a proactive approach is key to the success of a brownfield development project, as is an understanding of both the practical details and the intent of the ISRA process. The developer's job involves working with investors, landowners, and environmental specialists, and focusing on the positive effects the project will have on the community.

Most importantly, brownfield developers must keep current with the most recent changes and advances in the field. The following web sites can be very helpful:

www.state.nj.us/dep/srp/publications/brownfields

www.epa.gov/region02/superfund/brownfields

The remediation process, in both its legal and technical aspects, continues to evolve. The Brownfield and Contaminated Site Remediation Act of 1998, for example, provides new provisions and new funding possibilities.

Each step in the remediation process increases the opportunity to put abandoned sites back into productive use, to increase the tax-base of a community, restore failing cities, and bring us closer to a world that is cleaner and safer for our children and all future generations.

Thomas Barrett, president of Barrett Builders, focuses on developing quality projects cost-effectively, with an emphasis on design and aesthetics. His background in real estate dates back to his initial interest in construction as a youth. For the past 26 years, Tom has been involved in a multitude of real estate projects involving all aspects of planning, design and construction. His unique ability to understand the technical challenges and methods involved in almost every facet of a building project have produced a wide range of exemplary developments. In addition, throughout his career, Tom has operated multiple companies involving diverse businesses such as manufacturing, export, restaurant management and construction.
With a strong base to build on, and an excellent series of financial relationships to draw upon, the company anticipates continued expansion to include building quality projects to service the growing and diverse real estate needs of the New York Metropolitan Area.


Based in Fort Lee, New Jersey, Barrett Builders is a full-service builder and developer with more than 50 years of experience in residential and commercial development, construction and property management. The firm is active in New Jersey and New York. Among its hallmark properties is Half Moon Harbour, a multi-family luxury apartment building on the Hudson River waterfront in North Bergen, and Greenville Yards, a multi-building industrial redevelopment project now underway in Jersey City, New Jersey. In addition, Barrett has built a number of prestigious developments utilizing concrete tilt wall construction, and multi-family residential properties, office buildings, distribution facilities, shopping centers and institutional buildings including public and private projects, schools, municipal buildings, churches and restaurants.


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