Farer Fersko played a central role in the Denholtz Associates cleanup and redevelopment of the former Lily Tulip Dixie Cup factory in Holmdel, New Jersey into a thriving mixed use development including retail, assisted living, age restricted housing, and offices.

The old, abandoned factory and the property around it were contaminated by historical use of oil, arsenic and chlorinated solvents.

Our client acquired the property in 1998, just as New Jersey's brownfield law, and its Brownfield Site Reimbursement Fund, were taking effect. We recognized the opportunity for Denholtz Associates to recoup up to 75% of its cleanup costs based on anticipated generation of post-redevelopment tax revenues, and we were the first in the state to apply for such funding. We obtained a commitment from the state to reimburse 75% of the cleanup costs, provided that qualifying tax revenues were generated.

By mid-2006, remediation costs totaled about $2.5 million, and we had already obtained reimbursements of over $1.5 million for our client. It is expected that total reimbursements to Denholtz Associates will be about $2 million.

In addition to our work on cost reimbursement, we oversaw and coordinated the cleanup activities among DEP, the environmental consultants and contractors and the redevelopment contractors. Once the soil cleanup was complete and the project was built and occupied as certain groundwater activities continued, we coordinated continued access requirements with the new tenants at the site, based on lease terms that we had developed with our commercial co-counsel in the matter.

The project generated hundreds of temporary construction jobs and permanent employment positions, bringing new opportunities and services to the Holmdel community.

Our client continues to own the office buildings. The retail component was sold to a national real estate investment trust.