AREA IN NEED OF REDEVELOPMENT INVESTIGATION FOR BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 IN THE TOWNSHIP OF CRANBURY, NJ

Transcription

1 AREA IN NEED OF REDEVELOPMENT INVESTIGATION FOR BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 IN THE TOWNSHIP OF CRANBURY, NJ PREPARED FOR THE TOWNSHIP OF CRANBURY BY PHILLIPS PREISS GRYGIEL LLC JULY 2015

2 Area in Need of Redevelopment Investigation for Block 10, Lot 10 and Block 12, Lot 1 in the Township of Cranbury, NJ Prepared by PHILLIPS PREISS GRYGIEL LLC Planning & Real Estate Consultants Newark Street, Third Floor Hoboken, NJ July 20, 2015 The original of this report was signed and sealed in accordance with N.J.S.A. 13: Richard Preiss, NJ Planners License #3461

3 CONTENTS 1 Purpose and Scope Description of the Study Area General Description Property History Land Use Context Zoning Classification Master Plan Designation State Smart Growth Classification The Statutory Criteria for an Area in Need of Redevelopment Designation under the LRHL Consideration of an Area in Need of Redevelopment Designation for the Study Area Conclusion... 16

4 1 PURPOSE AND SCOPE On June 8, 2015, per Resolution #R the Cranbury Township Committee directed the Planning Board to conduct a non condemnation area in need of redevelopment investigation of Block 10, Lot 10 and Block 12, Lot 1 (the study area ) pursuant to the Local Redevelopment and Housing Law. This report was prepared for the review and consideration of the Planning Board in fulfillment of the Township Committee s directive. The study area comprises approximately acres located within the Township s Light Industrial zone. It was previously utilized as a munitions manufacturing facility, which ceased operations in the mid 1950s following an accidental explosion. It has not been put to any economically productive use since that time, although the current property owner has received site plan approval for a warehouse/office development. The following documents were reviewed as part of the investigation: the Township of Cranbury Zoning Ordinance and Master Plan; aerial photography of the subject property; plans and reports included in prior site plan applications for the subject property; and documentation from the property owner pertaining to the history of the property, the remediation efforts currently underway and a description provided by the property owner of incentive and financing programs available under a redevelopment area designation. The remainder of the report is organized as follows: Chapter 2 provides a description of the study area, including its zoning and master plan classifications. Chapter 3 summarizes the statutory criteria for an area in need of redevelopment designation. Chapter 4 evaluates the study area in accordance with the statutory criteria and considers whether a redevelopment area designation is supportable under the LRHL. The conclusions of the report are set forth in Chapter 5. 2

5 2 DESCRIPTION OF THE STUDY AREA 2.1 GENERAL DESCRIPTION The property consists of two tax lots separated by Hightstown Cranbury Station Road. Block 10, Lot 10 is approximately 395 acres. The general location of the study area is shown in Figure 1. It has frontage along Route 130, Brick Yard Road and Hightstown Cranbury Station Road. A portion of the property directly abuts the New Jersey Turnpike to the east. Block 12, Lot 1 is a triangular shaped tract consisting of approximately acres. The lot has frontage along Brick Yard Road and Hightstown Cranbury Station Road, and abuts the New Jersey Turnpike to the east. Block 10, Lot 10 is generally bounded by Route 130 to the west, vacant land and industrial warehouse development to the north and Hightstown Cranbury Station Road to the east. As indicated by the aerial photograph in Figure 2, until recently the study area was devoid of development, but did contain improvements which were remnants of the former chemical plant which occupied the site in the 1940s and early 1950s 1. This included some internal asphalt roads, concrete floor slabs and foundations associated with former structures. The remainder of the site either contained wetlands and wetland buffer areas or, in portions of the property that were farmed prior to the chemical plant being located on the property, successional fields containing forested uplands and freshwater wetlands. In all, approximately 125 acres of the property was classified as being freshwater wetlands, most of which were of extraordinary value. Cranbury Brook and the Millstone River are two main waterways located to the north and south of the site. The existing grades on the property were relatively level. Some portions of the site have been cleared to allow for remediation of the property, which will be described in greater detail below. Access to the property to support industrial warehouse development would be generally via Route 130 and Cranbury Station Road. The study area was until recently located outside of a designated sewer service area per the Middlesex County Wastewater Quality Management Plan. The NJDEP has amended their applicable water quality management plan to include approximately 200 acres of the study area, including the area to be developed, within this sewer service area. The remainder of the property will remain outside of the sewer service area. 1 In the last year, site remediation activities, related to the removal of munitions and contaminated materials, and wetland mitigation in accordance with NJDEP approvals and Cranbury Township site plan approvals, have occurred. The site is being readied for the construction of ± 2.8 million square feet of warehouse/office development on the eastern portion of the site, with the remainder to be deed restricted for conservation purposes. 3

6 STUDY AREA N 0 1 Mile FIGURE 1: LOCATION OF THE STUDY AREA AREA IN NEED OF REDEVELOPMENT INVESTIGATION BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 CRANBURY NJ PHILLIPS PREISS GRYGIEL LLC 2015

7 ROUTE 130 BLOCK 10 LOT 10 BRICK YARD ROAD BLOCK 12 LOT 1 HIGHTSTOWN-CRANBURY STATION ROAD NEW JERSEY TUNRPIKE FIGURE 2: AERIAL PHOTOGRAPH OF THE STUDY AREA Feet AREA IN NEED OF REDEVELOPMENT INVESTIGATION BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 CRANBURY NJ PHILLIPS PREISS GRYGIEL LLC 2015 SOURCE: GOOGLE EARTH 2013 N

8 2.2 PROPERTY HISTORY The study area is often referred to as the former Unexcelled Chemical Corporation (UCC) site. UCC operated on the site from 1930 to 1954 and used the property to manufacture products for the US Department of Defense, including insect repellant and military munitions. An accidental explosion occurred on the property on July 21, 1954 which killed two workers, injured many others and resulted in the dispersal of live munitions throughout the site. The NJ Department of Labor closed the facility on July 30, The site was almost completely cleared of above ground structures in No structures has been built on the property since 1957, nor has it been put to any economically productive use. As a result of the explosion, there were two major contamination zones on the property. The entire study area is subject to an approved Remedial Action Work Plan (RAWP) under the oversight of the NJDEP s Site Remediation Program. The property owner has concluded site wide remedial investigations and the remediation of unexploded ordnance and explosives has been completed. The remediation program is, however, ongoing. In 2015, the property owner received Amended Preliminary and Final Site Plan Approval from the Cranbury Planning Board for a phased warehouse/office development consisting of 3 buildings with a total of approximately 2.8 million square feet of gross building area. 2.3 LAND USE CONTEXT Lands to the north of the study area include the Alfieri property, which is approved for a 1.2 million square foot warehouse development known as Cranbury Station Park. A Prologis warehouse development tenanted by Home Depot is also located to the north. That property has approvals for an expansion of approximately 1.6 million square feet of warehouse development. To the east of the study area is the New Jersey Turnpike. The lands to the south of the subject property, across Brick Yard Road, are primarily open space, although there are several older industrial facilities located along Hightstown Cranbury Station Road. There is an outparcel within the southeast corner of Block 10, Lot 10 (along Hightstown Cranbury Station Road), which is improved with an occupied single family residence. Route 130 is located to the west of the study area, along which are located several commercial uses, including an auto dealership, and a single family residential development to the northwest of the study area. However, the majority of land area on the east side of Route 130 is vacant. In general, this area is characterized by warehouse development which benefits from the excellent access to the New Jersey Turnpike via Interchange 8A. 2.4 ZONING CLASSIFICATION As illustrated by the Zoning Map shown in Figure 3, the study area is located within the Light Impact Industrial (I LI) district. Offices, light industry, planned industrial development, commercial recreation 6

9 BLOCK 10 LOT 10 BLOCK 12 LOT 1 FIGURE 3: ZONING DESIGNATION OF THE STUDY AREA 0.25 Miles AREA IN NEED OF REDEVELOPMENT INVESTIGATION BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 CRANBURY NJ PHILLIPS PREISS GRYGIEL LLC 2015 SOURCE: CRANBURY TWP ZONING MAP N

10 R-L R-AR M-C MAIN ST R-AH PERRINE LN STITES DR R-AH I-LIS V/HR N R-L R-AH OLD CRANBURY RD PINOAKS DR P-OS R-L ROUTE 130 BLOCK 10 LOT 10 HALSEY REED RD R-VL M-R C-R NJ TURNPIKE MAIN ST BLOCK 12 LOT 1 Land Use Designations A-P Agricultural Preservation R-VL Very Low Density Residential R-L Low Density Residenial R-M Moderate Density Residential R-AR Age-Restricted Residential R-AH Affordable Housing Residential V-HR Village Hamlet Residential V-C Village Commercial C-C Community Commercial C-R Regional Commercial M-C Community Mixed-Use M-R Regional Mixed-Use O-R Research/Office I-L Light Industrial I-LI Light Impact Industrial I-LIS Sewered Light Impact Industrial P-OS Parks and Open Space BRICK YARD RD HIGHTSTOWN CRANBERRY STATION RD I-LI WYCKOFFS MILLS RD Greenway Corridors FIGURE 4: MASTER PLAN CLASSIFICATION OF THE STUDY AREA 0.25 Miles AREA IN NEED OF REDEVELOPMENT INVESTIGATION BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 CRANBURY NJ PHILLIPS PREISS GRYGIEL LLC 2015 SOURCE: CRANBURY TWP MASTER PLAN N

11 and research laboratories are permitted as principal uses. The minimum tract size in the I LI is 3 acres. The maximum allowable impervious coverage is 40% and the maximum floor area ration is MASTER PLAN DESIGNATION The Township of Cranbury s 2010 Master Plan includes the study area within the Light Impact Industrial (I LI) district, which is consistent with its zoning (see Figure 4). However, the Master Plan did not recommend any changes to the current sewer service area in Cranbury, and in particular [did] not recommend incorporation of the Viridian property (also known as the Cranbury Brick Yard Road, LLC property) into the sewer service area. 2 The plan also made several recommendations for circulation improvements in connection with the anticipated redevelopment of the subject property. 2.6 STATE SMART GROWTH CLASSIFICATION The American Planning Association defines Smart Growth as development which supports choice and opportunity by promoting efficient and sustainable land development, incorporates redevelopment patterns that optimize prior infrastructure investments, and consumes less land that is otherwise available for agriculture, open space, natural systems, and rural lifestyles. 3 As shown in Figure 5, the State s Smart Growth Site Evaluator mapping system indicates that a portion of the subject property, which includes the area that would be developed under the existing site plan approval, is located within a Smart Growth area. 4 The same area is designated as a Suburban Planning Area (also known as PA 2) in the State Development and Redevelopment Plan (SDRP). Therefore, the portion of the property that was approved for warehouse development is a designated Smart Growth location. 2 Township of Cranbury Master Plan (2010), p American Planning Association Policy Guide on Smart Growth (originally ratified in 2002 and updated in 2012), available at 4 Available at 9

12 BLOCK 10 LOT 10 BLOCK 12 LOT 1 N 0.25 Miles FIGURE 5: SMART GROWTH AREA CLASSIFICATION OF THE STUDY AREA AREA IN NEED OF REDEVELOPMENT INVESTIGATION BLOCK 10, LOT 10 AND BLOCK 12, LOT 1 CRANBURY NJ PHILLIPS PREISS GRYGIEL LLC 2015 SOURCE:

13 3 THE STATUTORY CRITERIA FOR AN AREA IN NEED OF REDEVELOPMENT DESIGNATION UNDER THE LRHL The Local Redevelopment and Housing Law (LRHL) provides for an alternative use of the zoning power for areas where government participation is necessary to spur reinvestment and redevelopment. The basis for the LRHL rests in the New Jersey Constitution, which authorizes the clearance, re planning, development or redevelopment of blighted areas so long as such redevelopment shall be a public purpose and public use for which private property may be taken or acquired. In 2013, the Legislature amended the LRHL to establish both Condemnation and Non Condemnation redevelopment areas, so that eminent domain is allowed in the former but prohibited in the latter. The LRHL also makes available public financing tools, such as bonding and up to 30 year tax exemptions, to implement the redevelopment of areas not likely to be developed through the instrumentality of private capital. The purpose of the LRHL lies in the following four findings (N.J.S.A. 40A:12A): 1) There exist, have existed and persist in various communities of this State conditions of deterioration in housing, commercial and industrial installations, public services and facilities and other physical components and supports of community life, and improper, or lack of proper development which result from forces which are amenable to correction and amelioration by concerted effort of responsible public bodies, and without this public effort are not likely to be corrected or ameliorated by private effort. 2) From time to time the Legislature has, by various enactments, empowered and assisted local governments in their efforts to arrest and reverse these conditions and to promote the advancement of the community interests through programs of redevelopment, rehabilitation and incentives to the expansion and improvement of commercial, industrial, residential and civic facilities. 3) As a result of those efforts, there has grown a varied and complex body of laws, all directed by diverse means to the principal goal of promoting the physical development that will be most conducive to the social and economic improvement of the State and its several municipalities. 4) It is the intent of this act to codify, simplify and concentrate prior enactments relative to local redevelopment and housing, to the end that the legal mechanisms for such improvement may be more efficiently employed. Under N.J.S.A. 40A:12A 5, a delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in Section 6 of P.L.1992, c.79 (C40A:12A 6), the governing 11

14 body of the municipality by resolution concludes that within the delineated area any of the following conditions is found: a. The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions. b. The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so great a state of disrepair as to be untenantable. c. Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or unimproved vacant land that has remained so for a period of ten years prior to adoption of the resolution, and that by reason of its location, remoteness, lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil, is not likely to be developed through the instrumentality of private capital. d. Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community. e. A growing lack or total lack of proper utilization of areas caused by the condition of the title, diverse ownership of the real properties therein or other similar conditions which impede land assemblage or discourage the undertaking of improvements, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare, which condition is presumed to be having a negative social or economic impact or otherwise being detrimental to the safety, health, morals, or welfare of the surrounding area or the community in general. f. Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or other casualty in such a way that the aggregate assessed value of the areas has been materially depreciated. g. In any municipality in which an enterprise zone has been designated pursuant to the New Jersey Urban Enterprise Zones Act, P.L. 1983, c. 303 (C.52:27H 60 et seq.) the execution of the actions prescribed in that act for the adoption by the municipality and approval by the New Jersey Urban Enterprise Zone Authority of the zone development plan for the area of the enterprise zone shall be considered sufficient for the determination that the area is in need of redevelopment pursuant to sections 5 and 6 of P.L. 1992, 12

15 c. 79 (C.40A:12A 5 and 40A:12A 6) for the purpose of granting tax exemptions within the enterprise zone district pursuant to the provisions of P.L. 1991, c. 431 (C.40A:20 1 et seq.) or the adoption of a tax abatement and exemption ordinance pursuant to the provisions of P.L. 1991, c. 441 (C.40A:21 1 et seq.). The municipality shall not utilize any other redevelopment powers within the urban enterprise zone unless the municipal governing body and planning board have also taken the actions and fulfilled the requirements prescribed in P.L. 1992, c. 79 (C.40A:12A 1 et al.) for determining that the area is in need of redevelopment or an area in need of rehabilitation and the municipal governing body has adopted a redevelopment plan ordinance including the area of the enterprise zone. h. The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation. Individual properties that do not meet any of the statutory conditions may still be included within an area in need of redevelopment provided that within the area as a whole, one or more of the expressed conditions are prevalent. This provision is referred to as Section 3 and is set forth under N.J.S.A. 40A:12A 3, which states in part that a redevelopment area may include lands, buildings, or improvements which of themselves are not detrimental to public health, safety or welfare, but the inclusion of which is found necessary, with or without change in this condition, for the effective redevelopment of the area of which they are a part. With this framework in mind, the following chapter evaluates the study area in accordance with the statutory criteria of the LRHL. 13

16 4 CONSIDERATION OF AN AREA IN NEED OF REDEVELOPMENT DESIGNATION FOR THE STUDY AREA The following provides an evaluation of the study area and considers whether it meets the statutory criteria for an area in need of redevelopment pursuant to the LRHL. In particular, the analysis considers the applicability of criterion c due to the nexus between the vacant condition of the property and the contamination resulting from the historic use of the property as a munitions facility. c. Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or unimproved vacant land that has remained so for a period of ten years prior to adoption of the resolution, and that by reason of its location, remoteness, lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil, is not likely to be developed through the instrumentality of private capital. In reference to the language of criterion c, the subject property has been vacant for at least ten years. Further, such condition is caused in large part by the nature of the soil as two major contamination areas exist on the property. The easterly contamination area, which is approximately 40 acres, includes the site of the 1954 explosion which resulted in the dispersal of constituents found in live fused and armed munitions, explosives, fuses and scrap. The approximately 207 acre southerly contamination area was used by UCC for plant operations including manufacturing and storage of munitions and explosives. In addition, there is contamination of the soil and groundwater throughout the property from metals and other environmental constituents that exceeds NJ DEP guidelines. As a result of the extensive contamination, the subject property has not been put to any economically productive use in approximately 60 years. By reference to the nature of the soil in criterion c the framers of the LRHL clearly anticipated the important role of public intervention to accomplish the remediation and redevelopment of the state s contaminated properties. An area in need of redevelopment designation is particularly advantageous for properties with environmental contamination, known as a brownfield. A brownfield has been defined in New Jersey as any former or current commercial or industrial site, currently vacant or underutilized and on which there has been, or there is suspected to have been, a discharge of a contaminant. 5 As described in Chapter II, the historic use of the subject property has resulted in significant soil and groundwater contamination throughout the property, qualifying it as a brownfield. Successful brownfield cleanup and redevelopment projects can further the public welfare by increasing the local tax base, improving environmental health, creating open space and encouraging development in Smart Growth locations. However, brownfield redevelopers face an array of real and perceived challenges including extra costs for site assessments, cleanup and liability issues. As a result, traditional 5 Brownfield and Contaminated Site Remediation Act, N.J.S.A. 58:10B 1. 14

17 lending sources such as banks, specialty finance companies and credit unions are reluctant to engage in brownfield projects due to the risk, high transaction cost and the specialized expertise required. In order to overcome those and other issues, private redevelopers must tap into a publicly supported technical and financial infrastructure which was created to meet the unique challenges posed by brownfields. An area in need of redevelopment designation under the LRHL greatly expands and enhances the redeveloper s access to grants and incentives for brownfield redevelopment. The LRHL provides an appropriate mechanism of public intervention by which those financial tools may be made available. Without a redevelopment designation and the availability of public financial incentives, a potential redeveloper is stuck with high upfront costs and liability issues and, as a result, the ability to obtain conventional financing is compromised. In the case of the study area, the property owner has indicated that remediation activities to date have cost 30% more than it originally budgeted and taken 7 more years than expected. At the outset of its redevelopment initiative, it was not possible to accurately anticipate the full extent of contamination in the study area or the time and financial resources that would be required to remediate it. The State tax incentives made available under a redevelopment area designation would help the owner overcome those hurdles and allow it to compete with the incentive packages which are being provided by New Jersey s competitors, such as Pennsylvania, for new industrial warehouse development. In conclusion, a clear connection exists between the current property condition and the need for public intervention, not only to alleviate that condition but also to advance the important public policy goals of remediating the property, creating new jobs and promoting economic development in the Township. Without public intervention/subsidy in the form of a redevelopment designation, the subject property is unlikely to be developed by private capital alone. The property has been vacant and unproductive for over 50 years due to the nature of the soils on site resulting from an environmental disaster in Remediation and soil capping is required before the property can be put to productive use, and a redevelopment designation is critical to accomplishing its full remediation and redevelopment. Finally, the redevelopment area designation of the study area is also consistent with smart growth planning principles, (criteria (h)), since it helps facilitate the remediation and redevelopment of a previously developed property in a largely built out area adjacent to the New Jersey Turnpike. The property is located mostly within Planning Area 2 (Suburban Planning Area) in the State Development and Redevelopment Plan (SDRP), which is a designated Smart Growth area 15

18 5 CONCLUSION The foregoing report evaluated an approximately acre property located in Cranbury Township in accordance with the statutory criteria of the LRHL. The investigation revealed that the study area satisfies criterion c of the LRHL due to its longstanding vacant condition and the extensive contamination found within the property due to its historic use. In addition, the redevelopment of the property would further Smart Growth principles and therefore also satisfy criteria h of the LRHL. Therefore, there is substantial credible evidence that the study area meets the statutory criteria for the establishment of a noncondemnation area in need of redevelopment in accordance with the LRHL. The financial and other tools made available under a redevelopment area designation will help facilitate the remediation and development of a property which has been contaminated and unproductive for approximately 60 years. 16