Now, however, SFC is cashing in on its investment in the landbecause the two states and some conservation groups have taken tobuying up portions of it to take it out of circulation. In thelatest move, the States of New Jersey and New York havecollaborated with The Trust for Public Land to fork over just under$8 million for another 1,065 acres, which will be set aside asparklands. This follows a similar deal that occurred two yearsago.

One of the key issues regarding the site is that the tract justpurchased provides drinking water for some two million residents ofNorth Jersey. Adjacent forests purify rainwater flowing into theWanaque and Monksville reservoirs and Greenwood Lake.

The sale reduces Sterling Forest Corp.'s holdings to about 1,200acres, about half of which is said to be developable. SFC stillplans to build homes and a golf course, but on a much smaller scalethan had been anticipated.