CSG Law Alert: CSG Client Obtains First Approval Under the Brownfield Redevelopment Incentive Program

The New Jersey Economic Development Authority (“NJEDA”) issued its first approval under its new Brownfield Redevelopment Incentive Program (“BRIP”) to a client of CSG Law – Ninety Nine Main Avenue, LLC on May 10. The BRIP was authorized under the New Jersey Economic Recovery Act of 2020, N.J.S.A. 34:1B-279, et seq., to encourage development of Brownfield sites through the issuance of tax credits for 50 percent of eligible remediation costs or $4 million, whichever is less. Eligibility in the program requires that work at projects apply affirmative action and construction prevailing wage – obligations which continue through completion of the redevelopment project or until two years after the tax credit is issued, along with a “10-year tail” for building services. Additional eligibility requirements include that the site is a brownfield site, establishing that the applicant is not liable for the contamination, proving a financing gap, demonstrating a development track record by the applicant, and demonstrating that the remediation costs are reasonable. The application is complex and requires detailed financial analysis of the project expenses and anticipated revenue, along with a thorough discussion of the environmental conditions at the site.

For more information on the BRIP process, please contact the author of this alert or your CSG Law attorney.

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