Irving E. Cohen
is Brooklyn born, but he’s adopted New Jersey as a second home.
That’s because Cohen had tremendous success developing
brownfields in the Garden State.
In the 1990s, Cohen’s firm, OENJ Cherokee Corp. cleaned and
sold a 66-acre former landfill in Elizabeth, NJ. In 1998, the
1.3 million-square-foot Jersey Gardens Mall opened on the site,
and the project created 5,000 jobs for a struggling
post-industrial city. This and other projects made OENJ
essentially “the catalyst for the changes in the brownfields
mindset in New Jersey,” Cohen said.
Now Cohen’s new firm, Green Eagle LLC, wants to help
redevelop a large Yonkers brownfield, but there’s a different
obstacle. Unlike New Jersey and other states, New York State is
known for creating regulatory roadblocks to brownfields
redevelopment.
Now that may be changing. The state Legislature and the
governor reached an agreement this year to revamp brownfield
regulations and make cleanup standards clear, reform liability
and jumpstart work with about $135 million each year in tax
credits. After a glitch in June, the bill is expected to become
law in the coming weeks.
“I’m smelling a change based on what some of the legislators
are talking about and what some of the bills are saying,” Cohen
said.
Aside from a new law, there are other hopeful signs for New
York’s brownfields.
New York City is creating a brownfield strategy and
establishing a revolving loan fund to help developers of the
sites. “This administration is really looking much more
diligently at the brownfields issue,” said Robert Kulikowski,
director of the city’s Office of Environmental Coordination.
A New York chapter of the National Brownfield Association is
holding its first meeting Sept. 29 at the Yonkers Library.
Robert Colangelo, executive director of the national
association, said the chapter is meant to encourage new real
estate deals. Last year, President Bush signed legislation to
create new brownfield cleanup grants.
Still, some urge caution. The new law would “would still make
New York’s program one of the most stringent and non-user
friendly in the country,” said Kenneth Kamlet, director of legal
affairs for Newman Development Group, LLC, which has brownfield
projects in New York. Attitudes will also have to change with
regulations, others say.
Proponents of reusing brownfields say it’s an idea
environmentalists and developers can love. “I’ve always viewed
the brownfield issue as a win-win both for economic development
and the economy and the environment,” said Kamlet.
“There aren’t too many issues that one can say that about.”
A brownfield is generally described as vacant or
underutilized land, usually former industrial sites on
waterfronts or in poor neighborhoods.
Frequently they are only perceived to be contaminated, but
developers or banks won’t take the litigation risk.
The brownfield movement is about a decade old and grew out of
“superfund” programs established to prevent another Love
Canal-type disaster. Unlike superfund sites, people said
brownfields were not as polluted and could be reused much
easier.
The industry has expanded in the last decade, although its
growth is hard to measure. “When a deal gets done, nobody
plasters a sign on it, ‘This is a brownfield,’” said Colangelo
of the National Brownfield Association.
“Somewhere along the line it starts as a brownfield and ends
as a real estate transaction.”
In a 1996 count, New York City found it had 6,000 potential
brownfields covering between 3,000 to 4,000 acres, although the
real estate market likely gobbled many since then. Nationally
there could be anywhere from 125,000 to 1 million brownfield
sites, according to the National Brownfield Association.
Proponents say brownfields hold tremendous promise for older,
post-industrial cities in New York and elsewhere. Despite the
criticism of New York’s program, 443 brownfield sites in the
state have been or are in the process of being cleaned. In New
York City, a former brewery is being converted to low-cost
housing use in Bushwick and a site in Hunts Point is being
turned into a public waterfront park.
New York’s current cleanup program is administrative, meaning
that its guidelines are not codified into law. The nine-year-old
“voluntary cleanup program” is run by the state Department of
Environmental Conservation.
Owners or developers enter into an agreement with the DEC and
get a release if the work is completed satisfactorily.
That process won’t change substantially, but experts say New
York’s guidelines for cleanup will finally be spelled out in
law. Standards can be related to the future use for the site,
meaning that the state won’t take the impractical “eat the dirt”
approach to every cleanup, said Kathryn S. Wylde, president of
the Partnership for New York City.
The bill has incentives for developers to bring land to
residential standards, particularly in struggling neighborhoods.
But brownfield developers argue that even basic cleanups take
the land to a level far above whatever pollution naturally
exists. The DEC says it does not know of an existing brownfield
cleanup that failed and became a health hazard.
All this makes Cohen excited about his Yonkers project on the
Hudson River, which is aimed to be mostly residential. His
development team has not been selected yet, but he’s confident
the project “could become a poster child” for New York
brownfields redevelopment.