Under the terms of that deal, all of the units would be built on a 1,000-acre brownfield site, formerly a mining operation for Heritage Minerals. The surrounding 6,300 mostly pristine acres would be preserved and another 360 acres in neighboring Berkeley Twp., owned by Hovnanian, would similarly be preserved.

"This agreement demonstrates a significant commitment to minimize environmental impacts and shows how limited, focused development can embrace smart growth," according to New Jersey DEP commissioner Bradley M. Campbell, who negotiated the deal with Hovnanian. Officials of the company have declined to comment.

"The final agreement is a sensible balance of environmental and economic interests," according to Campbell.

As part of the agreement, Hovnanian will drop its litigation against DEP and the Pinelands Commission, which oversees the state's Pine Barrens region - fear of losing in the courts may have driven DEP in its desire to settle, according to observers, and that could have paved the way for the larger project.

Hovnanian will also be responsible for stormwater runoff, recharging natural acquifers and a long list of other environment preservation-related issues, according to Campbell.

But the project still has some obstacles, according to officials. For one thing, Hovnanian has to obtain final development permits - the site straddles both the Pinelands Management Area and the DEP's coastal management zone, the latter covered by the state's Coastal Area Facility Review Act (CAFRA).

The actual 1,000 acres to be developed will also need substantial remediation, according to DEP officials. The locally-named Heritage Tract contains radioactive sand and assorted groundwater contamination that needs to be cleaned up before any construction can start.

Finally, local officials led by Manchester Twp. Mayor Michael Fressola have vowed to continue to fight the project, noting that zoning variances will be needed since the 1,000-acre development site is currently zoned for a maximum of 800 housing units. "The developer has a long ways to go," Fressola told reporters after DEP's agreement with Hovnanian was announced.

But the township itself could be at risk for legal action on a related issue. The township has not met its obligation for affordable housing under the strictures of the Council for Affordable Housing, and observers say the community could be vulnerable to a lawsuit "that might be used as 'leverage'," according to one official.

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