STATE OF NEW JERSEY
212th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2006 SESSION
Sponsored by:
Assemblyman SEAN T. KEAN
District 11 (Monmouth)
Assemblywoman JENNIFER BECK
District 12 (Mercer and Monmouth)
SYNOPSIS
Requires payment of extra $100,000 to owners whose property is condemned for private economic development purposes.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning an increase in just compensation paid for certain condemnations and amending P.L.1971, c.361.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1971, c.361 (C.20:3-6) is amended to read as follows:
6. Whenever any condemnor shall have determined to acquire property pursuant to law, including public property already devoted to public purpose, but cannot acquire title thereto or possession thereof by agreement with a prospective condemnee, whether by reason of disagreement concerning the compensation to be paid or for any other cause, the condemnation of such property and the compensation to be paid therefor, and to whom payable, and all matters incidental thereto and arising therefrom shall be governed, ascertained and paid by and in the manner provided by this act; provided, however, that no action to condemn shall be instituted unless the condemnor is unable to acquire such title or possession through bona fide negotiations with the prospective condemnee, which negotiations shall include an offer in writing by the condemnor to the prospective condemnee holding the title of record to the property being condemned, setting forth the property and interest therein to be acquired, the compensation offered to be paid and a reasonable disclosure of the manner in which the amount of such offered compensation has been calculated, and such other matters as may be required by the rules. Prior to such offer the taking agency shall appraise said property and the owner shall be given an opportunity to accompany the appraiser during inspection of the property. Such offer shall be served by certified mail. In no event shall such offer be less than the taking agency's approved appraisal of the fair market value of such property. In the case of a property that the taking agency contemplates selling or transferring to a private entity for economic development purposes, the taking agency's approved appraisal of the fair market value of the property shall be augmented by $100,000 in order to provide compensation to the owner for extinguishing the opportunity to share in the property’s potential appreciation. A rejection of said offer or failure to accept the same within the period fixed in written offer, which shall in no case be less than 14 days from the mailing of the offer, shall be conclusive proof of the inability of the condemnor to acquire the property or possession thereof through negotiations. When the holder of the title is unknown, resides out of the State, or for other good cause, the court may dispense with the necessity of such negotiations. Neither the offer nor the refusal thereof shall be evidential in the determination of compensation.
(cf: P.L.1971, c.361, s.6)
2. This act shall take effect immediately.
STATEMENT
This bill is intended to provide financial justice to owners of property that is condemned for private economic development purposes. The New Jersey Constitution requires condemnors to pay "just compensation" when a private property is taken for a public use. Just compensation is generally based on an appraisal of the fair market value of a property. This bill extends the meaning of “just compensation” to include a payment of $100,000 to the property owner as compensation for the potential appreciation of the property that is expected to result from the private economic development activity for which the property is being condemned. This additional compensation will permit families and businesses involuntarily being displaced by private economic development activity to relocate with a little disruption as possible.