&EPA
United States
Environmental
Protection Agency
Washington, D.C. 20460
Solid Waste
and Emergency
Response (5105)
EPA 500-F-00-216
October 2000
www.epa.gov/brownfields/
Trenton's Brownfields
Cleanup Revolving Loan
Fund Pilot Project
Outreach and Special Projects Staff (5105)
Quick Reference Fact Sheet
EPA's Brownfields Economic Redevelopment Initiative is designed to empower states, communities, and other
stakeholders in economic redevelopment to work together in a timely manner to prevent, assess, safely clean up, and
sustainably reuse brownfields. A brownfield is a site, or portion thereof, that has actual or perceived contamination and
an active potential for redevelopment or reuse. EPA is funding: assessment demonstration pilot programs (each funded
up to $200,000 over two years), to assess brownfields sites and to test cleanup and redevelopment models; job training
pilot programs (each funded up to $200,000 over two years), to provide training for residents of communities affected
by brownfields to facilitate cleanup of brownfields sites and prepare trainees for future employment in the environmental
field; and, cleanup revolving loan fund programs (each funded up to $1,000,000 over five years) to capitalize loan funds
to make loans for the environmental cleanup of brownfields. These pilot programs are intended to provide EPA, states,
tribes, municipalities, and communities with useful information and strategies as they continue to seek new methods
to promote a unified approach to site assessment, environmental cleanup, and redevelopment.
BACKGROUND
At one time, Trenton's vibrant manufacturing base
provided more than 50,000jobs. Todaythatnumberis
fewerthan 4,000. This dramatic reduction in jobs also
left numerous vacant and abandoned industrial sites,
a high level of poverty (18%), and disproportionate
number of minority citizens clustered in low economic,
and blighted neighborhoods. Using the U.S. EPA
Assessment Demonstration Pilot, the city has more
than 38 brownfields sites in some stage of planning,
investigation, cleanup, or development.
In September 1997, EPA selected Trenton for a
Brownfields Cleanup Revolving Loan Fund Pilot.
Under this program, EPA provided the city with
$350,000 to capitalize its revolving loan fund. In
September 1999 and September 2000, EPA
supplemented the city's BCRLF with an additional
$ 150,000, and $500,000, respectively, foratotal BCRLF
capitalization of $1,000,000. The City has secured
$150,000 from the New Jersey Urban Enterprise
Zone Assistance Fund for additional capital to support
the BCRLF. This additional capital adds value and
flexibility to the fund. The City will target its BCRLF
loan for the cleanup of publicly owned properties in the
designated redevelopment area.
PILOT SNAPSHOT
Trenton, New Jersey
Date of Announcement:
September1997
Amount: $1,000,000
Profile: At one time, Trenton's
vibrant manufacturing base
provided 50,000 jobs. Today,
thatnumberisfewerthan4,000.
This reduction has led to many
vacantand abandoned industrial
sites, and a high level of poverty.
The city is using the BCRLF
funds to loan to itself to address
properties in the targeted
redevelopment area.
Contacts:
CityofTrenton
(609)989-3603
EPA Region 2 Brownfields Coordinator
(212)637-4314
Visit the E PA Region 2 Brownfields web site at:
http://www.epa.gov/r02earth/superfnd/brownfld/
bfmainpg.htm
Forfurther information, including specific Pilot contacts,
additional Pilot information, brownfields news and events, and
publications and links, visit the EPA Brownfields web site at:
http://www.epa.gov/brownfields/
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STRUCTURE OF THE BCRLF PROGRAM
The City of Trenton is the Lead Agency. The
Redevelopment Entity is the loan recipient and is
responsible for the redevelopment project. The head
of the City Department of Finance is the Fund Manager.
Trenton's Brownfields Coordinator, acity employee,
will be the Site Manager.
The City's partnerships with the Brownfields
Environmental Solutions for Trenton (BEST) and
ISLES will continue to ensure ongoing community
involvement.
BCRLF LENDING TO YOURSELF
Trenton's City Council has approved two loans from
the BCRLF. Under both loans, the city is "lending to
itself." Trenton will lend the funds to the City's
designated redevelopment entity as authorized by the
New Jersey Redevelopment Act. After cleanup
activities are completed, the fund will be reimbursed
through the sale of the property to a private developer
or other entity, or through a Payment in Lieu of Taxes
(PILOT) agreement with the developer upon
completion of the redevelopment. If, however, the
property cannot be sold within 5 years of the completion
of the cleanup, then the City will be obligated to make
repayment through budget appropriations. In either
case, repayment of the loan will be made in full not
later than 15 years from the completion of the
environmental cleanup. The obligation to repay the
loan(s) is a legal obligation of the City and is not subject
to revocation by subsequent action of the City's
legislative bodies.
The New Jersey Redevelopment and Housing Law
expressly authorizes New Jersey municipalities to
exercise extensive and broad redevelopment powers
and pursuantto this authority Trenton can serve as the
RedevelopmentEntity.
The City Council' s role is to review documentation on
individual sites for benefits to the City and potential for
redevelopment in accordance with the Master Plan. It
also authorizes loans from the BCRLF to the
Redevelopment Entity and guarantees the loan by
committing the City to the repayment of the BCRLF
under conditions that have been specified in a Model
Resolution.
When a developer uses a PILOT agreement to repay
the BCRLF loan, the agreement must be entered into
within 5 years of the completion of the cleanup and full
payment will be made no later than 15 years from the
completion of the cleanup. Repaymentthrough PILOT
agreements will be billed regularly by the City Tax
Assessor.
The City is using a Model Resolution for each "lending
to yourself loan made with funds from the BCRLF.
This Model Resolution, when approved by the City
Council, serves as the enabling legislation or loan
implementation plan foreach funding action orBCRLF
loan.
TRENTON'S FIRST 'LENDING TO YOURSELF'
LOAN
Trenton's first loan was made in June in the amount
of $275,000 to provide for cleanup of the Kramer site,
a 6.5 acre industrial property. Trenton is using the
BCRLF to promote redevelopment of the Kramer
site. The City acquired the site through foreclosure in
1997. In 1998,the State Department of Environmental
Protection (NJDEP) conducted a brownfields site
assessment. Analysis of the samples indicated that
surficial soils have been impacted with metals and
semi-volatile organic compounds at concentrations
above NJDEP Soil Cleanup Criteria. In addition, three
groundwater samples contained at least one organic
solvent at concentrations exceeding NJDEP
Groundwater Quality Standards.
Planned cleanup activities at the site include capping
of historic fill areas. Soil excavation and removal and/
or capping is planned for localized areas of
contamination that are not associated with historic fill
areas. The BCRLF funds only will be used to address
soil contamination atthe site. Alternate funding sources
will be used to address groundwater issues. Several
redevelopment options are under consideration by the
City.
TRENTON'S SECOND 'LENDING TO YOURSELF'
LOAN
Trenton's City Council approved a Model Resolution
authorizing the City to a second BCRLF loan for
$150,000 to the City's designated Redevelopment
Entity to provide for the cleanup of the
Warren-Balderston Site, a 1.4 acre property.
Brownfields Cleanup Revolving Loan Fund Pilots
October2000
Trenton, New Jersey
EPA500-F-00-216
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The Warren-Balderston Site is an irregularly shaped
parcel currently zoned for office/warehouse use. The
site housed bakeries from 1908 to 1950. At this time
it was acquired by Warren-Balderston, an equipment
supply company. In 1963, the property again changed
hands, and it was used as a packaging facility and
plastic extrusion site for the Magic Marker
Corporation. The site has been vacant since 1973.
Historic fill is present on the site and contains heavy
metals and organic contamination. The proposed
clean-up plan for the site is for soil removal of the
historic fill.
The Warren-Balderston site has several potential
reuse options, including a new school, commercial/
retail operations, or housing. Several developers have
expressed interest in the site, but are unable to finance
the cleanup without assistance. The BCRLF loan will
enable the City of Trenton to clean the site, and then
market it to the most viable developer, ensuring that
the loan will be repaid through the sale of the property
or through a payment in lieu of taxes agreement
similar to the first Trenton BCRLF loan.
CONTACTS
Michele Lee Christina
City of Trenton Brownfields Coordinator
(609)989-3603
Jill Greenberg
Brownfields Project Manager/US ACE Liaison
(212) 63 7-43 09 or greenberg jill@epa.gov
Larry D'Andrea
EPA Region 2 Brownfields Coordinator
(212) 637-4314 ordandrea.larry@epa.gov
U.S. EPA OSWER Outreach and Special Projects
Staff
(202)260-4039
For additional information, contact the RCRA/
SuperfundHotline at: (800) 424-9346 orvisitthe EPA
Brownfields website at:
http: //www. epa.gov .brownfields
Use of BCRLF funds must be in accordance with CERCLA, and all
CERCLA restrictions on use of funding also apply to BCRL F funds.
Brownfields Cleanup Revolving Loan Fund Pilots
October2000
Trenton, New Jersey
EPA500-F-00-216
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