First Sandy, now Blue Acres buyout could be 'nail in coffin' for N.J. shore town

Blue Acres is a program that buys up flood-prone areas and converts it into open space. Watch video

The Blue Acres program is designed to help communities vulnerable to flooding but, according to some, there is concern that the program could hasten the demise of a coastal community.

Under the Blue Acres program, state and federal funds are used to buy up flood-prone areas and converts it to open space. The New Jersey Department of Environmental Protect (DEP) recently announced an expansion of the program into Downe Township in Cumberland County and Rahway in Union County.

"The base of our main source of revenue are the beaches, so every time they attack the beaches it's kind of a nail in our coffin," said Mayor Bob Campbell of Downe Township. "We're not going to be able to sustain ourselves if they keep it up."

Blue Acres has shown interest in the Money Island section of Downe Township and, if the buyouts are successful, Campbell anticipates the township losing $9 million in ratables.

Downe Township lost 10 percent of its ratable base after Superstorm Sandy and, if the buyouts go through, another 6 percent of its ratable base will be swept away.

Across New Jersey

An offshoot of DEP's Green Acres program, the Blue Acres Buyout Program was unveiled in 2012 after Superstorm Sandy flooded much of New Jersey and did $29 billion in damage.

Since its inception in 2012, Blue Acres has purchased 543 properties in seven counties and in 12 municipalities that were affected by Superstorm Sandy, according to a DEP announcement about the recent expansion of the program.

According to Larry Hajna, spokesman for the DEP, the department holds meetings in communities it is interested in and share information about the program with residents.

Entering the program is entirely voluntary, he added.

"With the Blue Acres program, we only go where we are wanted," Hajna said.

Approximately $284 million has been used in federal disaster recovery funds for the program -- with $169 million coming from the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program, $100 million from the U.S. Department of Housing and Urban Development Community Development Block Grant for disaster recovery and $15 million form the Blue Acres and State Land Acquisition fund.

"The Blue Acres Buyout Program is committed to fulfilling the (Gov. Chris Christie) Administration's goal of moving residents in flood-prone communities to safer ground so those families can enjoy their homes and live without fear of additional flooding and damages," said DEP Commissioner Bob Martin in a press release about Blue Acres. "Keeping families safe is just one part of our multi-pronged approach to make New Jersey more flood resilient."

Delaware Bayshore

On the Delaware Bayshore, next to Downe Township, Lawrence Township has already gone through the Blue Acres process and, according to Committeeman Erwin Sheppard, the ratable base has now gone down by approximately $2 million.

Lawrence Township Committee chose not to stand in the way of its residents when they contemplated whether to take a buyout from Blue Acres or not.

According to DEP, Blue Acres has spent $1.6 million since September 2014.

In total, 43 buyout offers were extended to Lawrence Township residents -- with 30 residents accepting the offer and buyouts being completed on 14 properties.

"We still have to raise the same total money on a lesser tax base," Sheppard said.

Open space

Blue Acres converts land into protected space but, according to Cumberland County Freeholder Director Joseph Derella, 41 percent of the county is already protected land that cannot be used for development.

Downe Township is 54 square miles and has a population of 1,500 people. If the buyouts are successful, it would leave the municipality with 85 percent of its land undevelopable, according to its mayor.

Residents are not only motivated by escaping flood zones, Campbell explained, but are also escaping state regulation and fears that they may be kicked off their land even without a buyout.

"The people that are considering taking the buyouts are taxpayers, they're my constituents and they're my friends," Campbell said. "I understand their frustration and their fear. They are scared not to take the deal. I don't blame them. I'm not mad at them."

According to Hajna, however, the residents who have accepted buy outs have largely had a sigh of relief afterward because it helps give them an option other than being tied to a home that they might not be able to afford to keep, repair or rebuild.

"It really comes down to what is best for the community and we wouldn't have made this announcement unless we thought that we had the proper community support," Hajna said.

Blue Acres has extended to Sayreville Borough, South River Borough, Woodbridge Borough, East Brunswick Township and Old Bridge Township in Middlesex County; Manville Borough in Somerset County; Linden and Rahway in Union County; Lawrence Township and Downe Township in Cumberland County; Pompton Lakes Borough in Passaic County; Newark City in Essex County and New Milford in Bergen County.