Lock-In Costs and Certainty with EWMAs SECUR-IT® Guaranteed Fixed-Price Remediation Program
This year has proven to be one of the best times for developers to pursue redevelopment of brownfield properties in the commercial and industrial real estate market. Due to the lack of developable land and the strong economy in the state, developers are now looking to develop brownfield properties that are usually passed over due to environmental concerns. Brownfield redevelopment is a key component in building strong local economies in New Jersey, as it returns unusable properties back to uses that benefit the community.
An important component of the renewed interest in redeveloping environmentally distressed properties is New Jersey’s Licensed Site Remediation Professional (LSRP) program, which is a product of the Site Remediation Reform Act (SRRA) that was enacted in 2009. The LSRP program shifts the day-to-day cleanup and oversight to the private sector by utilizing environmental professionals that are licensed by the State. This has sped up the remediation process of contaminated properties in New Jersey considerably and has allowed developers to redevelop thousands of brownfields.
EWMA’s SECUR-IT® Guaranteed Fixed-Price Remediation program combines business, insurance, and technical elements to manage risk and meet overall project goals. The program has played a key role in providing the certainty needed by lenders and investors to provide funding to remediate and redevelop environmentally distressed properties. In some circumstances, SECUR-IT® has proven to be the best way to get all the parties to the table to move forward with a real estate transaction, since it provides predictable timing, budgeting, and accurate estimation of return on investment calculations. The main benefits of the SECUR-IT® program are the cap on remediation costs and limited environmental liability, which are both needed by developers to ensure that their remediation costs are understood and fixed.
To learn more about how EWMA’s SECUR-IT® program can help you lock-in your site remediation costs, please contact Michael Sylvester at Michael.Sylvester@ewma.com or (973) 560-1400 x187.