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NEW JERSEY
HDSRF Program Supports Brownfield Efforts
There is coordinated action to clean up an estimated 10,000 brownfield sites across New Jersey. The New Jersey Economic Development Authority (EDA) supports the state’s efforts by offering a variety of financing tools.
The most popular of these tools continues to be the state’s Hazardous Discharge Site Remediation Fund (HDSRF), which is administered by the EDA in conjunction with the New Jersey Department of Environmental Protection. The program provides grants and low-interest loans to municipalities, businesses, private developers and individuals for investigating and cleaning up contaminated properties.
More than 50 grants and low-cost loans totaling $4 million were approved through the program during the first nine months of 2004. Since the program began over a decade ago, more than 1,000 grants and loans totaling in excess of $100 million have been provided to help restore properties ranging from small abandoned gasoline stations to large vacant factory buildings.
The Victor/Nipper Building in the City of Camden is an excellent example of HDSRF funding at work. The fund provided more than $462,000 in support for the preliminary assessment and site and remedial investigation activities associated with readying the waterfront property for redevelopment.
After nearly a year of continuous remediation, the 550,000-square-foot building was ready for renovations. Today, it houses retail, residential and parking space along with a three-story fitness center. The first tenants began moving into the facility’s 341 luxury loft apartments in September 2003.
Following voter approval of a constitutional amendment, a measure permitting New Jersey to use a surplus of its Corporate Business Tax revenues dedicated to the state’s Underground Storage Tank Remediation, Upgrade and Closure Program (UST) for the HDSRF was signed into law this spring by Gov. James E. McGreevey.
The law frees up $15–$20 million per year for the program and ensures there will be a stable source of funding long into the future. This law, combined with the $40 million authorized last year to replenish the fund, illustrates the state’s strong commitment to services and make it easier for municipalities and developers to identify the many financing resources it makes available.
By Caren S. Franzini, CEO of the N.J. Economic Development Authority.