FINAL REPORT Brownfield Economic Redevelopment: Preparing Modern Intermodal Freight Infrastructure to Support Brownfield Economic Redevelopment A Joint Project of the North Jersey Transportation Planning Authority, Inc. and the New Jersey Institute of Technology Funded by the Federal Transportation and Community and System Preservation Pilot (TCSP) Program January 2003 Final Report Brownfield Economic Redevelopment Preparing Modern Intermodal Freight Infrastructure to Support Brownfield Economic Redevelopment A Joint Project of the North Jersey Transportation Planning Authority, Inc. and the New Jersey Institute of Technology Funded by the Federal Transportation and Community and System Preservation Pilot (TCSP) Program January 2003 BER FINAL R EPORT This report was financed by the US Department of Transportation,Transportation and Community and System Preservation Pilot program. The NJTPA and NJIT are solely responsible for its contents. Information presented on case study properties in this document is intended to provide only general guidance as to the issues affecting possible development of the sites and cannot substitute for due diligence on the part of those advancing development proposals. NJTPA-NJIT Project Team Consultant Team John Hummer, NJTPA, Principal Investigator Schoor DePalma Lazar Spasovic, NJIT,Principal Investigator Bruce Mackie, Geotrans James Mack, NJIT Dennis Toft,Wolff & Sampson David Dawson, NJTPA Peter Zimmermann Mark Solof, NJTPA Ann Strauss-Wieder Associates, Inc. George Fallat, NJIT John Ricklefs, Moffat-Nichol Engineers, Inc. Former Members BEM, Inc. Gary Thomas,NJIT,co-Principal Investigator, Phase One McLaren/Hart, Inc. Fred Ellerbusch, NJIT Rich Roberts, Muller-Bohlin Associates, Inc. Tom Boland,NJIT Steering Committee Robert Hutchinson, NJTPA NJ Department of Transportation Jerry McKenna, NJIT NJ Department of Environmental Protection Office of State Planning Port Authority of New York & New Jersey NJ Brownfields Redevelopment Task Force US Environmental Protection Agency NJ Department of Labor, State Employment & Training Commission Thanks to the following NJIT interns who worked on the project during Phase I: Kartik Brahmbhatt, Maturza Kathawala, Leena Raut, Jennifer Coffey and Jannina Alvarez.Also thanks to University of Singapore intern Steve Shaffer. Graphic Design: Suzanne Bennett. For further information, see the project website at: www.njtpa.org/planning/brownfields or contact: John Hummer, NJTPA,One Newark Center, 17th floor, Newark, NJ 07102 973-639-8424 Page Table of Contents v Section 1 Introduction . .1 Section 2 Background & Context . .3 2.1 Global Trends Affecting Brownfields Reuse . .3 2.1.1 Importance of Freight . .3 2.1.2 The International Supply Chain . .5 2.1.3 Port Efficiency Challenges . .6 2.1.4 Logistics and Value Added Facilities . .8 2.1.6 Brownfields: the Solution . .10 2.2 Regional Trends Affecting Brownfields Reuse . .11 2.2.1 Market Demand for Warehouse/Distribution Centers (W/DC) . .11 2.2.2 Market Recognition and Activity . .14 Section 3 Study Methodology . .17 3.1 Introduction . .17 3.2 Summary of Phase I . .17 3.3 Case Study Selection . .18 3.4 Summary of Phase II Case Studies Tasks . .19 3.5 Evaluation . .20 Section 4 Case Study Summaries . .21 4.1 Introduction . .21 4.2 Brief Descriptions of the Case Study Sites . .22 4.2.1 Arsynco Site . .22 4.2.1.1 General Site Description . .22 4.2.1.2.Transportation Access . .22 4.2.1.3 Environmental Assessment . .23 4.2.1.4 Market Assessment . .23 4.2.2 Albert Steel Drum Site . .23 4.2.2.1. General Site Description . .23 4.2.2.2.Transportation Access . .24 4.2.2.3 Environmental Assessment . .25 4.2.1.4 Market Assessment . .26 4.2.3 Reichhold Chemical Site . .27 4.2.3.1General Site Description . .27 4.2.3.2 Transportation Assessment . .28 4.2.3.3 Environmental Assessment . .28 4.2.3.4 Market Assessment . .29 4.2.4 Carteret Redevelopment Properties Site . .30 4.2.4.1. General Site Description . .30 4.2.4.2 Transportation Access . .30 4.2.4.3 Environmental Assessment . .30 4.2.4.4 Market Assessment . .32 BER FINAL R EPORT Page 4.2.5 Koppers Coke/Standard Chlorine/Diamond Shamrock Site . .32 vi 4.2.5.1. General Site Description . .32 4.2.5.2. Transportation Access . .33 4.2.5.3 Environmental Assessment . .36 4.2.5.4 Market Assessment . .38 Section 5 - Case Study Findings . .41 5.1 Introduction . .41 5.2 Transportation Access . .41 5.3 Environmental . .43 5.3.1 Site Characterization and the Triad Approach . .44 5.3.2 State Environmental/Brownfields Policies . .45 5.4 Market Evaluation . .46 5.5 Property Value . .47 5.6 Community Considerations . .48 5.7 Financial . .49 Section 6 - Analysis of Findings . .53 6.1 Introduction . .53 6.2 Barriers . .53 6.2.1 Redevelopment Climate . .53 6.2.2 Local Acceptance . .55 6.2.3 Container Storage on Brownfields . .55 6.2.4 Environmental Regulation . .56 6.3 Transportation . .57 6.3.1 Site Access Improvements . .58 6.3.2 Portway/Highway Improvements . .58 6.3.3 Rail . .60 6.3.4 Barge/PIDN . .61 6.3.5 Transportation Financing . .63 6.3.5.1 Port Fees . .63 6.3.5.2 FAST Model . .64 6.4 - Comprehensive Planning . .65 6.4.1 Development Models . .66 6.4.2 Planning Responsibilities . .67 Section 7 - Conclusions & Recommendations . .69 7.1 Conclusions . .69 7.2 Recommendations . .70 7.2.1 Barriers . .70 7.2.1.1 Redevelopment Climate . ..