Open Space Acquisition by fwo93561


									                                 NEW JERSEY ENVIRONMENTAL
                                 INFRASTRUCTURE FINANCING                       Preserving open space protects land from

Open Space                       PROGRAM                                        development, safeguards our water
                                                                                supplies and other natural resources and
                                                                                provides outdoor recreational
                                 The New Jersey Environmental

Acquisition                      Infrastructure Financing Program (EIFP)        opportunities.
                                 is a partnership between the New Jersey
                                 Department of Environmental Protection         FINANCING THROUGH THE EIFP
                                 (DEP) and the New Jersey Environmental
                                 Infrastructure Trust. The Legislature          Most EIFP borrowers receive two loans, a
Using the Environmental          created the program to offer local             zero percent interest loan from DEP and a
Infrastructure Financing         governments and private water purveyors        market rate loan from the sale of the
Program                          low-cost financing for construction of         Trust’s AAA-rated tax-exempt bonds.
                                 wastewater and drinking water                  Land acquisition projects, however, will
                                 infrastructure, landfill construction and      receive 75 percent of the total loan from
                                 closure, and stormwater and nonpoint           DEP and 25 percent from the Trust,
                                 source pollution management projects.          making these loans financed at only one-
                                 Nonpoint source projects may include           quarter of the market rate.
                                 open space acquisition and remedial
                                 action such as a brownfields cleanup that      WHAT IS ELIGIBLE FOR FUNDING?
                                 produces a water quality improvement.
                                                                                Land acquisition financed through the
                                 PRESERVING OPEN SPACE                          EIFP must demonstrate a water quality
                                                                                benefit. Headwaters, stream corridors,
                                 Open space preservation is essential to        wetlands, watershed protection, and
                                 protecting and enhancing the quality of life   aquifer recharge areas are among the
                                 in New Jersey’s communities.                   types of land that would qualify.
                                 Uncontrolled, haphazard development is
                                 rapidly devouring New Jersey’s open            While lands purchased through the EIFP
                                 space. Poorly designed development             cannot be developed, they may be used
                                 threatens our precious water supplies and      for passive recreational activities, such as
                                 other vital natural resources by increasing    hiking, fishing and horseback riding.
                                 the amount pavement and impervious             Application of a conservation easement
     Municipal Finance           cover, preventing rainfall from                on funded parcels assures that the water
                                 replenishing underground aquifers. New         quality benefits are preserved.
     And Construction            roads and large, scattered housing sites
                                 create currents of stormwater runoff that      The EIFP works closely with the Green
     New Jersey Department of    carry trash, road salts, oil and other         Acres Program to maximize a
     Environmental Protection    contaminants into our streams and rivers.      community’s limited funds for land
     Division of Water Quality   By some estimates, nearly 60 percent of        acquisition. Through this partnership,
                                 current water pollution is attributed to       municipalities can receive the resources
                                 stormwater runoff.                             necessary to purchase larger and/or more
 expensive parcels before they are lost to      ADVANTAGES OF BORROWING
development.                                    THROUGH THE EIFP
If only a portion of a parcel is eligible for   Lowest interest – Land acquisition
EIFP financing, the remaining portion of        projects are eligible for loans at one-
the land can be financed through open           quarter of the market rate. Other                  State of New Jersey
space acquisition programs such as              categories of infrastructure are eligible to           Jon Corzine
Green Acres or local programs funded by         receive loans at one-quarter or one-half of             Governor
county and municipal open space taxes.          the market rate.
                                                                                                   NJ Department of
For more information on Green Acres,            Reduced financing costs – Borrowers             Environmental Protection
contact Gary Rice at (609) 984-0570.            benefit from reduced costs due to the                 Lisa Jackson
                                                economies of scale of a pooled bond                   Commissioner
WHAT ELSE CAN BE FUNDED?                        issue. Bond insurance is rarely needed,
                                                                                                Environmental Regulation
                                                interest may be capitalized and principal            Nancy Wittenberg
    Remedial work                               payments deferred during construction,           Assistant Commissioner
    Wastewater projects                         and the debt service reserve fund is
    Stormwater and nonpoint source              capitalized by the state.                       Division of Water Quality
                                                                                               Narinder K. Ahuja, P.E., P.P.
    pollution management projects,
                                                Match to other funding programs – The                    Director
    including street sweepers, skimmer
    boats, and netting on outfalls              amount available to project sponsors for
                                                EIFP loans is unlimited and can be used           Municipal Finance and
    Drinking water projects                     to supplement grants and other loan               Construction Element
    Landfill construction and closure           programs.                                      Stanley V. Cach, Jr, P.E., P.P.
                                                                                                     Assistant Director
    Security such as fencing, lighting,                                                            401 East State Street
    motion detectors, and cameras               HOW TO QUALIFY                                          PO Box 425
                                                                                                    Trenton, NJ 08625
CONTACT US FOR INFORMATION                      October 1 of each year is the deadline for            (609) 292-8961
                                                submitting a commitment letter and       
                                                planning documents to qualify for a loan
    Engineering Planning and Design -           award in November of the following year.            NJ Environmental
    (609) 984-6840                                                                                 Infrastructure Trust
    Environmental Planning, Design              Pre-award approval may be granted to                    Dennis Hart
    and Project Priority List - (609) 292-      allow applicants to proceed with a project           Executive Director
    3859                                        before the loan award.                         3131 Princeton Pike, Bldg 6,
                                                                                                  Suite 201, PO Box 440
    Financial Applications and                                                                   Lawrenceville, NJ 08648
    Payments - (609) 633-1208                   Short-term financing for approved work
                                                                                                      (609) 219-8600
                                                initiated before the loan award is also
                                                available through the EIFP.
                                                                                                   Printed on Recycled Paper

                                                                                                       November 2003

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