Sold! Developer to pay $82.8M for Nat'l Lead Contract to pave way for redevelopment of 427 waterfront acres BY MICHAEL ACKER Staff Writer Sayreville officials have reached a deal with a private firm that will buy the former National Lead property for $82.75 million, clean it up and redevelop it with a wide mix of housing, commercial and recreational uses. The redeveloper, O'Neill Properties, of King of Prussia, Pa., plans to build an estimated 2,000 residences, more than 1 million square feet of office space, nearly 2.7 million square feet of retail stores, 1.1 million square feet of hotel and convention center space, along with a performing arts center, marina and other recreational uses. The project is expected to create 15,000 new jobs and generate more than $22 million in property tax revenue for the borough, school district and county. In negotiations since last year, the redevelopment agreement involves the signatures of the builder, the Sayreville Economic Redevelopment Agency (SERA), Middlesex County and National Lead (NL) Industries, the company that formerly operated on the 427-acre waterfront tract and has remained in charge of cleaning up contamination on the site. O'Neill will assume responsibility for cleaning the upland portions of the site. NL will still be responsible for cleaning up contamination in the Raritan River, along with river sediment and the tidal wetlands, as required by the state Department of Environmental Protection (DEP). Middlesex County Freeholder Director David B. Crabiel credited the success of the negotiations process in part to the efforts of DEP Commissioner Lisa Jackson and New Jersey Economic Development Director Gary Rose. "Tonight I am pleased to announce that the parties have finally concluded a satisfactory agreement, which accomplishes all the parties' objectives and defines their obligations," Crabiel said at the freeholders'April 3 meeting. He noted that the contract assures that the county will be paid in full for the $39 million it loaned SERA to purchase the National Lead property through eminent domain. The county became involved in the negotiations with O'Neill after the county extended SERA's deadline for repayment of the loan on several occasions. The freeholders voted unanimously last week to affirm the redevelopment agreement in order to facilitate the process of O'Neill closing on the property. The agreement includes payment to the county of $42 million, which includes interest on the county loans. The county plans to use $8 million in Open Space Trust Funds to purchase 60 acres of the National Lead site in order to protect the waterfront areas. The freeholders plan to use another $3 million in open space funds to purchase public access easements on a 50-foot-wide strip of land along the entire length of the property's Raritan River waterfront, in order to offer public access to the water. The county anticipated a partial repayment from SERA in the amount of $7.2 million as part of the county's $397 million budget this year, and the Sayreville Borough Council recently voted to guarantee $9 million in bond notes in case the National Lead redevelopment contract was not signed in time. It is now expected that the bonds will be cancelled. According to the new agreement, O'Neill will pay the county $32 million upon the first closing on the land on May 1. The remainder of the county's money will be paid back over the next 30 months as the closings take place, according to a county press release. The final closing on the land is scheduled to take place by Oct. 15, 2010. The property includes a wide swath of land from west of the Garden State Parkway to east of Route 35, along the Raritan River. In addition to the residential, retail, office and hotel components, O'Neill plans to build a community center accessible to Sayreville residents, a performing arts center, a municipal office annex, a marina and yacht club, and fire and emergency service buildings, according to information provided by SERA Executive Director Randy Corman. Also, a 2-mile-long waterfront promenade will be constructed with lighting, benches, landscape, historical plaques and memorials reflecting the history of Sayreville. O'Neill will also contribute $19 million toward the construction of a new public school, according to the agreement. The developer has committed $110 million to the project, $20 million of which is for remediation, according to Middlesex County Counsel Thomas F. Kelso. O'Neill will be required to pay a substantial financial penalty if it exercises its right to terminate the agreement before the May 1 closing, according to the freeholders. "The National Lead site can now be finally and appropriately cleaned up," Crabiel said. "In addition, due to this property's strategic location, it will now become the catalyst for significant economic development. The taxpayers of Sayreville and of Middlesex County will be the direct beneficiaries of this redevelopment."