Black cloud lifts on dirty building

As Seen in Long Island Business News January 13, 2006 by DAWN WOTAPKA HARDESTY

HAUPPAUGE – An environmentally contaminated building site snubbed by many in the real estate community has finally found a tenant.

USA Family Outlet Inc., a company that packs and pre-tickets underwear and bras, inked a deal for the 25,000-square-foot building at 100 Oser Ave. and its 57,000-square-foot neighbor, 110 Oser Ave.

In the ’70s and ’80s, a textile manufacturer that dry cleaned finished products allegedly contaminated 100 Oser Ave. with a common dry-cleaning chemical. While that ended two decades ago, the cleanup will continue for several years.

“It just works for me. I’m not worried about the dirt and what’s in the ground. They wouldn’t let us rent the building if the building isn’t safe,” said company owner Ira Goldman, who splits more than 25 employees between the two structures. “I don’t glow in the dark. It’s not contaminated as far as I’m concerned. No one has gotten sick here.”

110 Oser Ave. has been tested and has no problems, said Jeff Schwartzberg, the Sutton & Edwards Inc./TCN Worldwide senior director who spent much of 2005 with colleague Ted Trias working to fill the duo.

But “both properties had a black cloud over them because they were sort of known as the properties that needed environmental cleanup,” he said. “A lot of brokers wouldn’t even bring people to them.”

Perhaps that’s because a February 2005 report by the New York State Department of Environmental Conservation’s Division of Environmental Remediation described 100 Oser Ave.’s contamination as “a significant threat to human health associated with potential exposure to contaminants in soil vapor, sediments, surface and water.”

The state department, which proposed long-term monitoring of the groundwater, indoor air and surface water, did not return two calls for comment.

James Rigano, a partner at law firm Certilman, Balin, Adler & Hyman LLP in Hauppauge, has represented property owner Anwar Chitayat for several years. Rigano said the state’s stern wording is used to describe thousands of properties across New York, including many that are occupied.

At 100 Oser Ave., extensive air testing over several years has shown the indoor air levels are below state guidelines, said Rigano, who concentrates in environmental law. The building also taps public water, which undergoes stringent testing.

According to the state report, 100 Oser Ave. was built by Vanderbilt Associates, which leased the 2.5-acre parcel to Sands Textile Corp. From the mid ’70s until 1985, Sands used tetrachloroethene, or PCE, which allegedly discharged into the site. Anecdotal evidence, according to the state report, indicates used PCE was disposed in the roof drain cleanouts and open floor pits and permeated the property. Above-ground storage tanks may also have leaked the colorless liquid that can ultimately cause cancer.

Chitayat purchased the site in 1985 to expand his business from 110 Oser Ave., the report says. Chitayat agreed to reimburse the state for the investigation and remediation – even though he didn’t cause the problem, Rigano said.

Sutton & Edwards’ Schwartzberg said Chitayat’s company, Anorad Corp., which made equipment used in computer manufacturing, was sold in late 1998 and the operation later was relocated to Brookhaven, leaving the two Oser Avenue buildings empty.

Late last year, Goldman, who founded USA Family Outlet as a Farmingdale retail store in 1988, signed to stay in 100 Oser Ave. for 18 months and 110 Oser Ave. for five years.

Ashlind Properties’ Richie Cohen, who represented the tenant, said USA Family Outlet is an ideal tenant because it is not working with hazardous materials, machines with oils or food products.

“He’s a practical guy in a practical situation,” said Cohen.

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