Relaunching NJDEP’s Brownfield Development Area Program

The New Jersey Department of Environmental Protection (NJDEP) recently announced its relaunching of the Brownfield Development Area (BDA) Program as a commitment to advancing the remediation and redevelopment of brownfield sites in New Jersey. Owners of brownfield properties within designated Brownfield Development Areas are eligible to receive up to $4 million dollars of state funding that are transferable and can be redeemed for 75% to 85% of their value. This two-part process starts with obtaining a BDA designation from the NJDEP. Once the BDA designation has been obtained, developers can apply for funds through the Brownfield Redevelopment Incentive.

What qualifies as a Brownfield Development Area? A “brownfield” is defined as any former or current commercial or industrial site, currently vacant or underutilized and on which there has been, or there is suspected to have been, a discharge of contaminant, or on which there is contaminated building material. A “Brownfield Development Area” is defined as multiple “brownfield” sites that are in close proximity to one another.

Who can apply for the BDA Designation? Municipalities, redevelopment agencies or authorities, and other public entities authorized to exercise redevelopment powers pursuant to the local redevelopment and housing law C.40A:12A-4 are eligible to voluntarily apply for Brownfield Development Area designation through the BDA Program. The application deadline has been extended to July 31, 2024 and applications must include:

• Applicant information;
• Project information including a list of brownfield sites within the proposed Brownfield Development Area;
• Baseline information for each brownfield site including current use, known past use, and a summary of any remediation activities;
• Steering Committee information including a letter of interest from each prospective committee candidate. The Steering Committee should be comprised of, but not limited to, representatives from the municipality, county, redevelopment agency, housing authorities, residents, property owners, potential developers, community organizations, local business leaders, and environmental groups and commissions;
• Community overview including justification for the Brownfield Development Area boundaries and area population, demographics, and economic and public asset information; and
• Redevelopment vision and community benefits description and statement or purpose.

What happens next? Following designation of a BDA, applicants (e.g., owners/developers of brownfields within the BDA) are eligible to apply for the Brownfield Redevelopment Incentive for remediation grants to fund their brownfield redevelopment projects. Currently, New Jersey Economic Development Agency (NJEDA) is not accepting applications; however, the application process is anticipated to open soon.

What can Roux do to help? The professional staff at Roux have extensive experience providing timely and cost-effective consulting services to the real estate industry, particularly at brownfield sites. Roux’s many Licensed Site Remediation Professionals (LSRPs) are very familiar with the regulatory programs and challenges that redevelopments may encounter and are available to support remediation of brownfields in the BDA Program. Roux’s team of engineers, scientists, and geologists are available to support municipalities or developers in preparation of applications for the BDA designations in advance of the July 31, 2024 deadline and subsequent Brownfield Redevelopment Incentives. To connect with one of our experts regarding brownfields remediation and redevelopment, please contact us below: