The fact is that most of New Jersey's 566 municipalities have probably at least one site that could be considered a brownfield site. As do many communities in the country. Brownfield sites include that long abandoned gas station, the out of business dry cleaner on the corner, in addition to the industrial complex that closed up years ago and is now abandoned and overgrown. These sites do not always pose an immediate threat to public health, so it is not surprising that many of our cities find other problems of a higher priority than brownfields redevelopment.

We need to stop thinking of brownfields as "contaminated sites" that burden a town and drain the tax roles, and to start viewing them as valuable real estate for that new business that wants to relocate to your town. Or perhaps as a recreational opportunity that can benefit the community.

Brownfield sites are attractive opportunities for redevelopment because in most instances there is existing infrastructure. Many brownfield sites can become choice real estate when incorporated into a municipal redevelopment plan and you utilize the tools such as the state of New Jersey has to offer.

The State of New Jersey has many incentives and dedicated resources to stimulate environmental cleanup at identified sites. A good example, which demonstrates our commitment to this effort, is the New Jersey Phoenix Award Winner Berger Industries site in Edison Township, New Jersey. This cleanup resulted in the protection of public health and also expanded the region's economic base. As a former steel tubing manufacturing facility the Berger property lay abandoned due to financial hardship of the responsible party. The site had soil and groundwater contamination present. Contaminants included petroleum hydrocarbons, base neutral organic compounds, chemical solvents and residuals, chlorinated hydrocarbons and volatile organic compounds. The former areas of environmental concern included underground storage tank systems used for waste oil and fuel oil, above ground storage tank systems, exterior hazardous substance drum storage areas, interior sumps, drains and trenches, underground concrete basins, electrical transformers, underground tunnels, and dry wells all used for operational purposes by the former owner and operator. This was in addition to the operational discharges that took place on site. The developer, Marc Parell from ARC Properties Inc. entered into a cleanup and redevelopment agreement with the New Jersey Commerce and Economic Growth Commission and the Department of Treasury that was endorsed by New Jersey Department of Environmental Protection. This agreement allowed him to be reimbursed for 75% of the total cleanup costs from the new taxes generated from the site. It should be noted that this New Jersey cash incentive is the first in the nation. Project costs were approximately $29 million, with $2.1 million in remediation costs with community benefits of hundreds of new full time and part time jobs, as well as the developers repayment of over $1 million in back taxes to the municipality.

As the first site in New Jersey to complete the "redevelopment agreement process" the redeveloped site, now known as Edison Crossroads, has generated over $2 million in new state tax revenues in the first nine months of operation. We expect that the site will generate approximately $4.4 million in new taxes its first year of complete operation. In addition, more than the $4.4 million will be generated each year as new businesses open and existing ones grow. It is important to note that these taxes were not being generated as the site sat idle, abandoned and contaminated for the previous 8 years.

Additional incentives include an immediate third party defense for a prospective purchaser of a contaminated property who voluntarily enters into a Department cleanup oversight document prior to taking ownership. Moreover, the Department issues with every no further action letter a covenant not to sue. The covenant not to sue contains provisions releasing the non-responsible party who conducted the cleanup from all civil liability to the state to perform additional remediation under certain conditions.

New Jersey has also established a "one-stop" approach to acquiring permits. This innovative regulatory and compliance assistance process is based on a single point of contact in the Department of Environmental Protection. The one stop approach is a total facility approach to permitting. One stop's benefits include a thorough identification of all regulatory requirements and coordination among the various NJDEP programs for major construction, development and remediation projects which are complex in number, requiring a variety of permits and the specific timing of those permits. This assures better customer service to the public and regulated entities. In addition, it provides more opportunity to integrate pollution prevention concepts early on in the permitting process, that may in turn reduce costs and improve the efficiency of the facility.

New Jersey's goal is simple: solving environmental problems and providing businesses a place to locate, create jobs, to build new housing and entertainment opportunities all without having to go into farmlands, open space and other areas of the state which lack existing infrastructure.

However, additional resources need to be brought to bear on assisting all municipalities in their brownfield cleanup and redevelopment efforts. Municipalities need assistance in addressing demolition and disposal costs at sites where the demolition is necessary to assist in the cleanup and redevelopment effort. In addition, many state programs may provide low interest loans and grants to municipalities and private entities but usually for conducting the preliminary assessment, site investigation and remedial investigation. Financial assistance needs to be provided to non-responsible parties for the completion of the remediation. Moreover, there is a need for financial assistance to municipalities who want to turn that abandoned, contaminated property into open space, perhaps a playground or park. This not only takes a brownfield site from an eyesore or blotch on the community but also actually improves that town's quality of life.

We need to encourage cleanup and redevelopment efforts at the Federal level as well. By streamlining some of the federal processes regarding the cleanup of contaminated brownfield sites as well as putting some predictability and finality into the process, additional brownfield site cleanups could happen in our states. These initiatives could greatly enhance the programs that currently exist at the state level. This is a huge largely untapped national investment opportunity for both the public and private sector!

Many of the municipalities in New Jersey have already taken the initiative and identified brownfield sites in their communities in the hopes of putting them back on the tax roles. Many of these sites can be found on the Department of Environmental Protection's GIS website where we have established an interactive listing of brownfields called I-Map. This unique computer application allows for the identification and potential marketing of brownfield sites to interested parties via the web. It gives you critical screening data like population density, per capita income and aerial photography.

This may be another tool that could be used in other states to further enhance the cleanup and redevelopment efforts within their communities.

This is an exciting time for the brownfield marketplace and urban redevelopment its truly a rare government win-win. Brownfield sites that have been previously overlooked for years in New Jersey are now seen as some of the most exciting investment potential.

I would like to take this opportunity to thank you for you allowing me to address this Committee and hope that this provides an opportunity to answer questions and promotes interest in the continued success of the states brownfield cleanup and redevelopment efforts.