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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