An "arbitrary" decision about the Ingersoll Rand site could push away a major company, according to project managers. Watch video
The future of a multimillion-dollar warehouse project that has been called a turning point for the Phillipsburg area is at risk, according to the developer.
Demolition is halting at Commerce Park due to an "arbitrary" decision by state environmental officials that could also drive away a major package company interested in the site, said Erin Murphy, principal of Opus Investments.
Opus, based in Medford, N.J., has proposed building an eight-warehouse complex totaling 4 million square feet. The project is projected to bring about 3,000 jobs, and produce $3.7 billion within Warren County over the next 10 years. Construction was planned to begin this year and finish in 2021.
The Commerce Park property covers nearly 400 acres between Phillipsburg and Lopatcong Township. It once was home to Ingersoll Rand, the town's largest employer for decades.
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Murphy said an agreement between Opus and the package company -- she declined to identify the company by name -- is now threatened by a New Jersey Department of Environmental Protection decision over soil fill requirements, that she said was issued Thursday.
A DEP spokesperson could not immediately be reached for comment after hours.
The developer said there had been an understanding among officials that a certain kind of fill that mostly matched the industrial contents of the existing soil could be used to level the area needed for the company's warehouse, among numerous other details. She said the DEP has since decided that a "clean" fill is required, which Murphy estimated would cost Opus $30 million.
Murphy said Opus will have to break its agreement with the package company and that financial partners will stop funding the project until the issue is resolved. That could take years if it goes to litigation, she said.
"They're contradicting decisions that they've made on other projects," Murphy said Thursday evening of the New Jersey Department of Environmental Protection. "It's just wrong. They don't seem to understand what this means for Phillipsburg."
Municipal officials could not immediately comment on the situation.
Steve Novak may be reached at snovak@njadvancemedia.com. Follow him on Twitter @type2supernovak and Facebook. Find lehighvalleylive.com on Facebook.