The document discusses amendments made in 2013 to New Jersey's Local Redevelopment and Housing Law (LRHL) that address issues related to redevelopment designations and the use of eminent domain. The amendments allow municipalities to designate redevelopment areas as either "Non Condemnation Redevelopment Areas" that do not allow eminent domain, or "Condemnation Redevelopment Areas" that do. The amendments establish new procedures for these redevelopment area designations and notifications to property owners. They also revise some of the criteria used to designate areas as in need of redevelopment or rehabilitation.

1. Communities across the country have engaged in redevelopment initiatives to address their
economic issues. However, the redevelopment standards and procedures that are utilized in
declaration of areas in need of redevelopment have been in transition since the United
States Supreme Court case of Kelo v. City of New London, 545 U.S. 469 (2005), which upheld
the use of condemnation powers for the public purpose of encouraging economic
development. However, since Kelo, there has been a negative stigma which has
encumbered the redevelopment designation process because of the fear of the utilization of
condemnation powers.
On September 9, 2013, Governor Christie signed a Bill to amend the Local Redevelopment
and Housing Law (“LRHL”), to address some of these issues.
REDEVELOPMENT W/O EMINENT DOMAIN
NJ Future Redevelopment Conference
Hyatt Hotel, New Brunswick
March 14, 2014
Joseph J. Maraziti Jr., Esq., Partner
MARAZITI FALCON & HEALEY, LLP
Attorneys at Law
George Vallone, President
The Hoboken Brownstone Co.
Real Estate & Development
J. Randy Bishop, Committeeman
Township of Neptune
Susan S. Gruel, PP, Principal
HEYER, GRUEL & ASSOCIATES
Community Planning Consultants

2. REDEVELOPMENT W/O EMINENT DOMAIN
 Redevelopment: How NOT to start the conversation
 Focusing the Attention:
Residential and Business Owners Bill of Rights
 So what happened?

3. Amendments to the Redevelopment and Housing Law
 Signed into law by the Governor on September 9, 2013 (known as
Assembly Bill 3615)
 Law took effect 90 days from September 9th or December 8, 2013
 Does not apply to existing redevelopment designations or those
designations before December 8, 2013
 Addresses use of condemnation/eminent domain
 Codifies two judicial decisions
o Gallenthin Realty Development Inc v. Borough of Paulsboro 191 NJ
344 (2007)
o Harrison Redevelopment Agency v. De Rose 398 NJ Super. 361
(Appellate Division 2008)
REDEVELOPMENT W/O EMINENT DOMAIN

4. Key Provision
 Law permits a municipality to use two different types of redevelopment
area designations
o Non Condemnation Redevelopment Area – All redevelopment
powers (including 30 year tax abatement) except use of eminent
domain
o Condemnation Redevelopment Area – All redevelopment powers
including eminent domain
 Governing body resolution requesting Planning Board to investigate
whether an area qualifies as an area in need of redevelopment must state
whether the redevelopment area designation will authorize the
municipality to use condemnation
REDEVELOPMENT W/O EMINENT DOMAIN

5. Key Procedural Changes
Non Condemnation Redevelopment Area Option
 Notice of Planning Board hearing shall specifically state that a
Redevelopment Area determination shall not authorize the municipality to
exercise the power of eminent domain to acquire property in the
delineated area.
Condemnation Redevelopment Area Option
 Notice of Planning Board hearing shall specifically state that a
redevelopment area determination shall authorize the municipality to
exercise the power of eminent domain to acquire property in delineated
area
REDEVELOPMENT W/O EMINENT DOMAIN

6. Notice of Determination
Condemnation Redevelopment Area
 Notice of determination (that delineated area is a redevelopment area)
shall be served within 10 days after determination to all owners of record
located within the delineated area listed on the tax assessor’s records and
upon each person who filed a written objection.
 Notice shall state the following:
o Determination operates as a finding of public purpose and
authorizes municipality to exercise the power of eminent domain to
acquire property in area
 Legal action to challenge the determination must be commenced within
45 days of receipt of notice of determination and failure to do so shall
preclude an owner from later raising such challenge unless that
municipality and property owner agree otherwise.
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7. Change from Non Condemnation Redevelopment Area to
Condemnation Redevelopment Area
 If the municipal Governing Body wants to change the designation of a
property or area from a Non Condemnation Redevelopment Area to a
Condemnation Redevelopment Area it must follow the process set forth for
a Condemnation Redevelopment Area designation
 The determination must be based upon the existing conditions of the
property or area and shall not be based upon the condition at the time of
the prior Non Condemnation Redevelopment Area designation.
REDEVELOPMENT W/O EMINENT DOMAIN

8. Revisions to Criteria “e”
 New “e” language:
“A growing lack or total lack of property utilization of areas caused by
condition of the title, diverse ownership of the real properties therein or
other similar conditions which impede land assemblage or discourage the
undertaking of improvements resulting in a stagnant and unproductive
condition of land potentially useful and valuable for contributing to and
serving the public health, safety and welfare which condition is presumed
to be having a negative social or economic impact or otherwise being
detrimental to the safety, health, morals or welfare of the surrounding
area or the community in general.”
 Revisions based upon Gallenthin Realty Development Inc v. Borough of
Paulsboro
 Revisions clarified:
o “similar conditions” language
REDEVELOPMENT W/O EMINENT DOMAIN

9. Revisions to Rehabilitation Criteria (NJSA 40A:12A-14)
 Addition of environmental criterion
(5) “environmental contamination is discouraging improvements and
investment in properties in the area”
 New Criteria
(14 a) “ A delineated area may be determined to be in need of
rehabilitation if the governing body of the municipality determines by
resolution that a program of rehabilitation, as defined in section 3 of
P.L.1992, c.79 (C.40A:12A-3), may be expected to prevent further
deterioration and promote the overall development of the community;
and that there exist in that area any of the following conditions such that
(1) a significant portion of structures therein are in a deteriorated or
substandard condition; (2) more than half of the housing stock in the
delineated area is at least 50 years old; (3) there is a pattern of vacancy,
abandonment, or underutilization of properties in the area; (4) there is a
persistent arrearage of property tax payments on properties in the area;
(5) environmental contamination is discouraging improvements and
investment in properties in the area; or (6) a majority of the water and
sewer infrastructure in the delineated area is at least 50 years old and is in
need of repair or substantial maintenance.”
REDEVELOPMENT W/O EMINENT DOMAIN

10. Rezone Rehabilitation Redevelopment Non-Condemnation
Redevelopment
Active Municipal Role X X X
Passive Municipal Role X
Must Satisfy
Designation Criteria
(Area Study)
X X X
Redevelopment Plan X X X
Municipality Selects
Redeveloper
X X
Build as of Right X
Maximum Municipal
Control
X X X
Condemnation Option X
Improvements Limited
to “Rational Nexus”
X
Negotiate Community
Amenities
X X X
Long Term Tax
Exemption Option
X X
Short Term Tax
Exemption Option
X X X
Public Property
Transfers without Bid
X X X
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11. Observations
 At least one statutory criterion for designating a redevelopment area
must still be met.
 The “substantial evidence” standard remains.
 The “finality” of the 45 day timeframe for appeals can be extended by
the Court in the “interest of justice.”
 The “redevelopment light” option addresses the stigma of condemnation
and in certain situations may be an effective tool; however, it may not solve
the site assemblage issue without utilizing the condemnation option.
 Environmental contamination is a new rehabilitation criterion. It may be
difficult to establish a nexus between environmental contamination and
“discouraging improvements and investment in property.”
REDEVELOPMENT W/O EMINENT DOMAIN

12. Comments & Questions
03/14/2014
MARAZITI FALCON & HEALEY, LLP
Attorneys at Law
150 JFK Parkway
Short Hills, NJ 07078
Phone: 973.912.9008
Fax: 973.912.9007
www.mfhenvlaw.com
HEYER, GRUEL & ASSOCIATES
Community Planning Consultants
236 Broad Street
Red Bank, NJ 07701
Phone: 732.741.2900
Fax: 732.741.2929
www.hgapa.com
THE HOBOKEN BORWNSTONE CO.
Real Estate & Development
305 Coles Street
Jersey City, NJ 07310
Phone: 201.792.3814
www.hbrownstone.com