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Stuart Lieberman
Stuart Lieberman, Esq.
liebermanblecher.com

*NJ Deputy Attorney General assigned to the State Department of Environmental Protection from 1986 - 1990.
*Partner in the environmental law firm of Lieberman & Blecher, P.C. in Princeton, New Jersey
*Lectures for the N.J. Institute for Continuing Legal Education (ICLE), and is available for other speaking engagements through the year.


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THE ENVIRONMENT
TURNING STEEL SCRAP INTO QUALITY HOUSING
Stuart Lieberman, Esq.,

Brownfields redevelopment was a pie in the sky idea when it first became an issue about six years ago, or so. The redevelopment of brownfields entails taking slightly contaminated properties and finding new productive uses for them. The government, at both the federal and state level, has been bending over backwards to encourage the redevelopment of these contaminated properties.

It started as pie in the sky because six years ago, developers would rather have their wisdom teeth extracted without anesthesia rather than consider buying dirty property. In fact, developers spent a lot of money testing purchase candidates to ensure they were clean.

We all know these properties. They are the old factories, warehouses, gasoline stations and the like which became slightly contaminated, often by companies that have not been around for many years. Or if they are, they are bankrupt.

Classically, they were avoided because often they were located in bad locations (remember location, location, location), and nobody could determine, in advance, how much money it would cost to clean these "challenged properties" up. And if people did buy them, they were afraid that they too would become liable for cleanup costs even though they had nothing to do with why the properties became dirty.

Laws and attitudes have changed in the last six years, and most would agree they have changed for the better. State and federal laws have been changed making it easier (and more cost effective) to clean these contaminated properties. Long gone are the days when every single molecule of dirty dirt always has to be removed.

And if no one is drinking the ground water, often more relaxed cleanup standards apply to that as well. Of course, this depends on what's in the drinking water and what concentration exists.

While there have been success stories, they have almost all been industrial success stories. Few people have tried to turn dirty sites into places where people actually live. That is changing now as well.

Recently, K. Hovnanian, a large residential developer in New Jersey, constructed a successful condominium project in Union County. The site was once industrial and required site cleanup. No one would have done that five years ago, but it was in fact recently accomplished. This is big news for the home buying public and for people who care about the environment.

Now, there is even bigger news in the form of a project called Summerset at Frick Park in Pittsburgh: a 244 acre residential development with parks, open space and a mixture of single family homes and apartments. That is what it will be. It was a steel manufacturing facility, loaded with literally tons of steel waste (slag) and bisected by a polluted stream.

Housing will range from $90,000 to $300,000 according to published reports. An incredible 57% of the project will be open space, including parks. This is major scale residential brownfields development. In addition to cleaning the stream, according to reports large volumes of the slag will be remediated as well.

Summerset is expected by everyone to establish a brand-new neighborhood in Pittsburgh. While this planned community will retain and attract new families, it will also expand this City's tax base. A real win-win.

Groundbreaking for this project began in May 1999. At hand was U.S. Secretary of Energy Bill Richardson. The project is one of five national pilot community's in the federal government's Partnership in Advancing Technologies in Housing program, also called PATH.

With these examples in place, developers should search out quality properties that have environmental challenges for residential projects. Location, location, location still applies. However, if priced correctly, and if environmental insurance policies and government liability reduction programs are considered, these projects can be rewarding for everyone involved.

The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.

Stuart Lieberman, Esq., and IRED.Com, Inc., will not accept any responsibilty for any reliance on the information in this column or any damages whatsoever resulting from reading this column.


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