NJEDA approves creation of brownfields program

Matthew Fazelpoor//October 13, 2022

The New Jersey Economic Development Authority (NJEDA) board approved the creation of the Brownfields Redevelopment Incentive (BRI) Program Oct. 13.

The program, which will provide $300 million in incentive funding over six years, aims to support remediation costs and to incentivize developers of redevelopment projects to carry out cleanup activities around the Garden State.

The NJEDA is hopeful the incentives can bring these sites back into usage as part of community development efforts.

Gov. Phil Murphy in Camden — “The Brownfields Redevelopment Incentive Program will allow for the redevelopment of long-vacated and abandoned properties, helping to foster economic development throughout the state,” said Gov. Phil Murphy, shown in July. – OIT/OFFICE OF THE NJ GOVERNOR

The awards cover up to 50% of remediation costs, up to a maximum of $4 million. Those terms tick up if the Brownfield site is in a Government Restricted Municipality, which may be eligible for up to 60% of costs covered, up to a maximum of $8 million.

Awards are scored on a competitive basis and through a competitive application process, which opens in the coming months.

“The Brownfields Redevelopment Incentive Program will allow for the redevelopment of long-vacated and abandoned properties, helping to foster economic development throughout the state,” said Gov. Phil Murphy. “This program will open the door for new developments that will bring jobs and improve the environment in underserved communities that will have been disproportionately affected by past pollution.”

As part of the process, the NJEDA and New Jersey Department of Environmental Protection partnered to create a criterial to evaluate the application process. To receive tax credits through the program, a developer must demonstrate that a financial gap exists.

“Supporting the transformation of brownfields from hazardous sites into community assets that spur economic development and job creation is vital to our efforts to advance environmental justice in New Jersey,” said NJDEP Commissioner Shawn LaTourette.

“The Brownfields Redevelopment Program can unlock vast untapped economic potential contaminated sites can have after they have been effectively rehabilitated,” said NJEDA Chief Executive Officer Tim Sullivan.