New York Real Estate Journal

How Hydro Tech saved millions for a developer with the Brownfield Program

October 23, 2009 - Spotlight Content
Saving money during the construction of a contaminated property does not have to be a fairy tale. The New York State Brownfield Program is designed to help you transform your blighted contaminated land into land that will be beneficial for the entire community. Hydro Tech Environmental can help you enter, work through and complete the program. The program has been extremely beneficial to a property located in the central portion of Brooklyn. This property initially consisted of a vacant parcel of land that was formerly a gasoline station and a series of 2-story residential homes that were vacant and in various degrees of disrepair. The land was associated with an active NYSDEC spill number and also associated with NYC Environmental Quality Review, or CEQR, requirements. The former gasoline station had significantly impacted the soil and groundwater with various petroleum products. The gasoline tanks were previously abandoned in place. A prior owner, an oil company, had agreed to remediate the property but had dragged it out for years. The development team had plans for the construction of a multi-story building that would contain both market rate condominiums and a synagogue to be used by the local community. Plans to move forward with the construction were on hold indefinitely until decisions could be made relating to funding of the necessary environmental remediation could be addressed. The development team had been pursuing legal action for the purpose of possible settlement or cost recovery of the remediation from a prior owner, an oil company, for well over a year. On Hydro Tech's suggestion, the possibility of pursuing the assistance of the Brownfield Program was researched to evaluate possible funding available. Time was of the essence. After reviewing the potential acceptance of the project into the program, along with estimated timeframes to accomplish the program's requirements, a pre-application meeting was conducted with the NYSDEC. All parties came to an agreement that half of the overall property (and therefore half of the construction) would be accepted into the program. Remedial plans were submitted to all NYS and NYC agencies and subsequently approved. The application was filed and accepted, the public acceptance periods were met and the project was accepted into the program. The overall timeframe from beginning to end: 2½ months. The type of remediation accepted: Track 1...the most stringent possible, which allowed for the most tax relief. This acceptance resulted in an overall savings toward the project in the form of tax relief of millions of dollars ensuring that the project would in fact take place. The NYSDEC also confirmed that the spill number would be closed and NYC confirmed that their CEQR requirements would be satisfied. Construction commenced during March 2008 and involved the excavation of contaminated soil and underground storage tanks. To expedite the process, we were able to "live load" the soil directly to trucks; no soil piles were ever present at the site. This type of excavation process also ensured that the sub-grade work proceeded in as expeditious a manner as possible. Safeguards were established to ensure that the project was as invisible and seamless to the community as possible. As a result, no public complaints were lodged for the duration of the sub grade activities. Hydro Tech was able to implement the majority of the groundwater portion of the cleanup during construction by using in-situ techniques. This allowed the cleanup to commence and continue without intruding upon the construction. Once the lowest level of excavation was achieved, it was clear that additional contaminated soil was present; this soil was not anticipated for removal and if it was, it would have jeopardized the construction that was now going in full force. Hydro Tech was able to take advantage of the flexibility of the program on behalf of the development team to remediate this material during construction and thereby keep the project on Track 1. Construction activities proceed throughout the rest of 2008 and well into 2009. As the construction got "out of the ground" and didn't involve any sub grade work, it was time to prepare the final engineering report. This report is designed to document the implementation and findings of the remediation and "close out" the project. When it's ultimately approved by the NYSDEC and reviewed by the public, the development team will be able to obtain its pre-arranged tax relief at the end of the calendar year. Significant tax relief, NYSDEC spill number closed, NYC CEQR requirements met...all in one package provided by Hydro Tech. Mark Robbins, C.P.G., C.E.I., is a principal for Hydro Tech Environmental Corp., Commack, N.Y.