New Jersey Industrial Site Recovery Act

In addition to the environmental due diligence required of every commercial real estate transaction involving contaminated property, New Jersey’s Industrial Site Recovery Act (ISRA) law imposes additional requirements on sellers of certain property in New Jersey with industrial operations with certain North American Industrial Classification (NAICS) codes numbers. If your company owns and/or operates an “industrial establishment” with a subject NAIC code, or you are considering purchasing property and operating assets subject to the ISRA law, then a host of additional requirements must be met including:

• Filing of a General Information Notice (GIN) within ten (10) days of the execution of a contract of sale for property with an ISRA regulated “industrial establishment”;
  
• Entry into a Remediation Agreement with the NJDEP prior to the closing of title identifying the entity responsible for performing the environmental investigation and remediation of the property;
  
• Posting of a “Remediation Funding Source” in a minimum amount of $100,000 (unless a properly conducted Preliminary Assessment and Site Investigation determines a higher or lesser amount);
  
• Payment of the NJDEP’s 1% annual program surcharge; and
  
• Numerous other requirements including the biennial certification of existing engineering controls.

Please see the List of Representative Clients and Sites for a listing of recent ISRA transactions handled by the Sherman Law Firm.

The Sherman Law Firm LLC
92 Park Street
Montclair, New Jersey 07042
Telephone 973-783-0284
Facsimile 973-783-0285
Email
www.theshermanlawfirm.com

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