New law provides $40 million for clean-ups, Urges passage of constitutional amendment

(BURLINGTON CITY)—Reinforcing his commitment to smart growth planning, Governor James E. McGreevey today announced funding for municipalities and businesses to perform environmental investigations and cleanups at brownfield sites. 

At the site of the former Burlington Mart, the Governor signed Senate Bill 696, which provides $40 million to replenish the Hazardous Discharge Site Remediation Fund (HDSRF). The Governor also called on the Legislature to pass a Constitutional Amendment providing additional funds for brownfields remediation.

“All across New Jersey, there are places like Burlington Mart, which were once sources of jobs and opportunity, but are now nothing more than contaminated, abandoned properties,” said McGreevey. “With this new law, we are not only bringing brownfield sites back to life, but we are also steering new development away from precious open space.  Clearly, when we invest in brownfields, we are investing in New Jersey’s future.”

Sponsored by Senators Henry McNamara and Bob Smith, and Assemblymen Jack Connors and Herb Conaway, the fund provides grants and loans for brownfield projects to municipalities and private parties. The New Jersey Department of Environmental Protection (DEP) and Economic Development Authority (EDA) partner to administer the funding program and provide environmental and financial review of remediation projects.

“Restoring thousands of sites where the landscapes have been blighted by improper use of hazardous waste is a key component of the Governor’s smart growth agenda,” said Commissioner Bradley M. Campbell. “New funding initiatives will help us restore those tainted sites and spur needed revitalization in many parts of the state.”

"Brownfield revitalization goes hand-in-hand with economic rejuvenation," said Conaway (D-Burlington).  "This appropriation will go a long way in rehabilitating sites like Burlington Mart."

"The money appropriated to the Hazardous Discharge Site Remediation Fund will help create jobs and tax ratables from otherwise unsafe, unhealthy lands," said Conners (D-Camden). "Brownfield redevelopment of toxic filled lands is crucial to further investment along the Route 130 corridor."

"It is quite simple.  We have one fund that has been tapped one too many times and another that has plenty of life left in it," said Smith (D-Middlesex and Somerset).  "Both funds are intended to help clean up contaminated sites and reduce public health risks.  Transferring the money from one fund to the other cuts out the red tape and gets the money to where it is most needed."

“The timing of this new law could not be better,” said Burlington City Mayor Herman Costello, who received a proclamation from the Governor for his public service. “Our town contains the largest parcel of unused land on the Route 130 corridor. Now, thanks to Governor McGreevey, the possibilities for this contaminated land are endless, and once remediated, will provide housing and jobs for the residents of Burlington City.”

The former Burlington Mart site was used for industrial purposes from before 1924 until 1980.  These included textile and fiberglass manufacturing and chrome plating. It then operated as a retail center until 1993 but was destroyed by fire in 1994. Burlington City hired an environmental consultant in 1998 with a HDSRF grant to perform a site investigation at Burlington Mart that later found contamination at several locations due to the historic industrial activities at the site. Soil and ground water contamination included industrial cleaning solvents, fuel oils and metals.

A more complete remedial investigation at the Burlington Mart property is needed to quantify the extent of the contamination and to incorporate cleanup work into future development plans for the site. Burlington City is applying for a second HDSRF grant to complete the work and then market the property with the complete environmental assessment. The site is zoned commercial and potential redevelopment could include residential and mixed uses.

In 2002, EDA closed on 156 loans and grants totaling more than $15 million. Currently, another 200 projects requesting state funds are in the review process. Since its inception in 1993, $95 million has been provided to assist municipalities, businesses and individuals reclaim polluted sites.

"By signing this legislation, the Governor is standing by his commitment to provide developers, municipalities and businesses with the financing tools they need to clean up contaminated, underutilized sites, and make them viable again," said EDA Executive Director Caren Franzini.

"NJ-NAIOP applauds the Governor for identifying $40 million to be used for the cleanup of contaminated sites,” said Mike McGuinness, Executive Director. “This, we hope, is the first of a number of initiatives by this Administration that will help encourage economic development to turn these idle and contaminated sites into clean revenue-generating properties for the benefit of communities such as Burlington City".

The Administration has worked to create programs that promote brownfields redevelopment. The Governor signed legislation that expands reimbursement provisions to include residential redevelopments as eligible for funding. EDA created two programs to assist developers and municipalities with preparation costs.

Municipalities may apply for grants and loans up to $2 million per year for investigation and cleanup activities. Private parties required to perform remedial activities and individuals who want to conduct such actions voluntarily may qualify for loans of up to $1 million per year if they are unable to obtain private funding. Towns and businesses work under memorandums of agreement with DEP to perform remedial work ensuring proper oversight of the activities.