[First Reprint]

ASSEMBLY, No. 3257

STATE OF NEW JERSEY

212th LEGISLATURE

 

INTRODUCED JUNE 8, 2006

 


 

Sponsored by:

Assemblyman JOHN J. BURZICHELLI

District 3 (Salem, Cumberland and Gloucester)

Assemblyman ROBERT M. GORDON

District 38 (Bergen)

Assemblyman CHRISTOPHER "KIP" BATEMAN

District 16 (Morris and Somerset)

Assemblyman LOUIS M. MANZO

District 31 (Hudson)

Assemblywoman NILSA CRUZ-PEREZ

District 5 (Camden and Gloucester)

Assemblyman DOUGLAS H. FISHER

District 3 (Salem, Cumberland and Gloucester)

Assemblywoman PAMELA R. LAMPITT

District 6 (Camden)

 

 

 

 

SYNOPSIS

     Revises procedures for the use of eminent domain in municipal redevelopment programs.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Commerce and Economic Development Committee on June 19, 2006, with amendments.

  


An Act concerning redevelopment and eminent domain, amending 1[P.L.1975, c.291] various parts of the statutory law1, and supplementing P.L.1992, c.79 1(C.40A:12A-1 et seq.)1.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  (New section) The Legislature finds and declares that:

     a.     Since 1949, municipalities have been authorized by the Legislature to undertake programs of redevelopment, rehabilitation, and incentives to promote the expansion and improvement of commercial, industrial, residential and civic facilities in blighted areas.

     b.    Since 1949, municipalities have used these programs to arrest and reverse conditions of deterioration 1[and inefficiency]1 in housing and commercial and industrial facilities, and to promote sound planning, revitalize their tax bases, and improve the public safety, health, 1[morals,]1 and welfare of their communities.  In exercising their responsibilities and implementing such programs municipalities have, in certain circumstances, exercised the power to acquire property by eminent domain in order to transfer such property to a private interest to undertake a project in accordance with an approved redevelopment plan; and 1[such] , at times, the1 use of the power of eminent domain has 1[contributed to the overall effectiveness and] been necessary to assure the1 success of such redevelopment programs.

     c.     Since 1949, the laws authorizing such redevelopment programs have been amended from time to time and were last re-codified in 1992 into one law designed to 1[simplify prior enactments in order to]1 make the legal mechanisms for exercising such responsibilities and powers in undertaking redevelopment improvements more efficient to use.  1[These changes to the law, together with changing land use and development patterns, have resulted in redevelopment programs being undertaken by municipalities of urban, suburban, and rural character.]1

     d.    The increase in redevelopment activity throughout the State, including the use of eminent domain, together with the 2005 United States Supreme Court decision in Kelo v. City of New London, Connecticut, have 1[focused public attention and scrutiny on] given rise to public concern surrounding certain1 municipal redevelopment activities.  1[This scrutiny has led to] These public concerns have resulted in1 a comprehensive 1legislative1 review of redevelopment programs 1[by the Legislature]1 and the process undertaken by municipalities for authorizing such redevelopment programs.

     e.     The Legislature’s comprehensive review has included a series of public meetings and the receipt of testimony and correspondence from various stakeholders in redevelopment programs, including, but not limited to, municipal officials, property owners, developers, real estate professionals, civil libertarians, academics, and members of the general public.

     f.     Following this comprehensive review, the Legislature declares that redevelopment remains a valid and important public purpose and public use; that the implementation of redevelopment programs continues to be a vital tool for municipal officials that must be maintained to allow such officials to continue to meet their governmental responsibilities to arrest and reverse deleterious property conditions within their municipal borders; and that the power of eminent domain remains necessary 1in certain cases1 to effectively implement such redevelopment responsibilities and powers.

     g.     Following this comprehensive review, the Legislature also declares that changes to the existing law are necessary1:1  to ensure that affected property owners and the general public are provided adequate notice of a municipality’s interest in developing a redevelopment program 1[so as:] ; to revise the definition of blight so that it is more specific, more objective, and incorporates terms that have well-established or historical meanings, are capable of third party review, or limit the possibility of very broad and expansive interpretation;1 to afford 1[these]1 stakeholders the opportunity to be heard during the process undertaken to develop 1[such] redevelopment1 programs;  to add transparency to the exercise of a legitimate governmental function; to create certainty that redevelopment programs are authorized and undertaken in a deliberative and open process; to ensure that the social and economic impacts of redevelopment are adequately addressed, including affordable housing and comparable replacement housing for households displaced by redevelopment; to provide that such programs, once properly adopted, are implemented in a fair and certain manner, including a public process1,1 where appropriate1,1 for the selection of redevelopers seeking the assistance of municipal officials in constructing a redevelopment project on municipally owned or acquired property; 1to ensure that the use of eminent domain for redevelopment is an absolute last resort, used only after other options have been fully explored and deemed insufficient to reasonably achieve the goals of the redevelopment plan;1 to provide a just measure of compensation to property owners who are subject to eminent domain; and to afford protection and finality to such redevelopment programs properly created under these heightened standards for enactment.   These changes will restore public confidence in local redevelopment programs by assuring that interested parties are provided access into 1[an] a fair,1 open 1,1 and deliberative process. 

     h.     The Legislature also recognizes that local redevelopment programs are necessary to promote State policies that encourage:

     (1) the reuse of existing property, as opposed to the loss of agricultural property and open space to development; and

     (2) construction in areas already serviced by public utilities, so that existing infrastructure can be maintained and used in the furtherance of the public good.

 

     2.  Section 3 of P.L.1992, c.79 (C.40A:12A-3) is amended to read as follows: 

     3.  As used in this act:

     “Bonds” means any bonds, notes, interim certificates, debentures or other obligations issued by a municipality, county, redevelopment entity, or housing authority pursuant to this act. 

     “Comparable affordable replacement housing” means housing offered to households being displaced as a result of a redevelopment project, that is affordable to that household as defined by the Council on Affordable Housing in the Department of Community Affairs, and that is comparable to the household’s dwelling in the redevelopment area with respect to the size and amenities of the dwelling unit, the quality of the neighborhood, and the level of public services and facilities offered by the municipality in which the redevelopment area is located.

     1“Contamination” means any discharged hazardous substance as defined pursuant to section 3 of P.L.1976, c.141 (C.58:10-23.11b), hazardous waste as defined pursuant to section 1 of P.L.1976, c.99 (C.13:1E-38), or pollutant as defined pursuant to section 3 of P.L.1977, c.74 (C.58:10A-3).1

     “Detrimental to the safety, health, or welfare of the community” means objective evidence of detriment, 1[including, but not limited] consisting of or similar1 to 1[,] :1 substantial building or health code violations 1[, excessive police activity,] ; a repeated need for police intervention over an extended period of time; or1 a lack of structural integrity 1[, or a continuing exterior appearance that degrades the surrounding properties]1 .  For commercial properties, the objective evidence of detriment also may include a lack of proper utilization of the land or structures 1[that leads to] resulting in conditions that are1 stagnant 1[or] and1 not fully productive 1[condition of the land]1.

     “Development” means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mining, excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.). 

     “Governing body” means the body exercising general legislative powers in a county or municipality according to the terms and procedural requirements set forth in the form of government adopted by the county or municipality. 

     “Housing authority” means a housing authority created or continued pursuant to this act. 

     “Housing project” means a project, or distinct portion of a project, which is designed and intended to provide decent, safe and sanitary dwellings, apartments or other living accommodations for persons of low and moderate income; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare or other purposes.  The term “housing project” also may be applied to the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith. 

     “Persons of low and moderate income” means persons or families who are, in the case of State assisted projects or programs, so defined by the Council on Affordable Housing in the Department of Community Affairs, or in the case of federally assisted projects or programs, defined as of “low and very low income” by the United States Department of Housing and Urban Development. 

     “Public body” means the State or any county, municipality, school district, authority or other political subdivision of the State. 

     “Public housing” means any housing for persons of low and moderate income owned by a municipality, county, the State or the federal government, or any agency or instrumentality thereof. 

     “Publicly assisted housing” means privately owned housing which receives public assistance or subsidy, which may be grants or loans for construction, reconstruction, conservation, or rehabilitation of the housing, or receives operational or maintenance subsidies either directly or through rental subsidies to tenants, from a federal, State or local government agency or instrumentality. 

     “Real property” means all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise, and indebtedness secured by such liens. 

     “Redeveloper” means any person, firm, corporation or public body that shall enter into or propose to enter into a contract with a municipality or other redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, under the provisions of this act, or for any construction or other work forming part of a redevelopment or rehabilitation project. 

     “Redevelopment” means clearance, replanning, development and redevelopment; the conservation and rehabilitation of any structure or improvement, the construction and provision for construction of residential, commercial, industrial, public or other structures and the grant or dedication of spaces as may be appropriate or necessary in the interest of the general welfare for streets, parks, playgrounds, or other public purposes, including recreational and other facilities incidental or appurtenant thereto, in accordance with a redevelopment plan. 

     “Redevelopment agency” means a redevelopment agency created pursuant to subsection a. of section 11 of P.L.1992, c.79 (C.40A:12A-11) or established heretofore pursuant to the “Redevelopment Agencies Law,” P.L.1949, c.306 (C.40:55C-1 et seq.), repealed by this act, which has been permitted in accordance with the provisions of this act to continue to exercise its redevelopment functions and powers. 

     “Redevelopment area” or “area in need of redevelopment” means 1[an] a contiguous1 area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) or determined heretofore to be a “blighted area” pursuant to P.L.1949, c.187 (C.40:55-21.1 et seq.) repealed by this act, both determinations as made pursuant to the authority of Article VIII, Section III, paragraph 1 of the Constitution. [A redevelopment area may include lands, buildings, or improvements which of themselves are not detrimental to the public health, safety or welfare, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they are a part.] 

     “Redevelopment entity” means a municipality or an entity authorized by the governing body of a municipality pursuant to subsection c. of section 4 of P.L.1992, c.79 (C.40A:12A-4) to implement redevelopment plans and carry out redevelopment projects in an area in need of redevelopment, or in an area in need of rehabilitation, or in both. 

     “Redevelopment plan” means a plan adopted by the governing body of a municipality for the redevelopment or rehabilitation of all or any part of a redevelopment area, or an area in need of rehabilitation, which plan shall be sufficiently complete to indicate its relationship to definite municipal objectives as to appropriate land uses, public transportation and utilities, recreational and municipal facilities, and other public improvements; and to indicate proposed land uses and building requirements in the redevelopment area or area in need of rehabilitation, or both. 

     “Redevelopment project” means any work or undertaking pursuant to a redevelopment plan; such undertaking may include any buildings, land, including demolition, clearance or removal of buildings from land, equipment, facilities, or other real or personal properties which are necessary, convenient, or desirable appurtenances, such as but not limited to streets, sewers, utilities, parks, site preparation, landscaping, and administrative, community, health, recreational, educational, and welfare facilities. 

     “Rehabilitation” means an undertaking, by means of extensive repair, reconstruction or renovation of existing structures, with or without the introduction of new construction or the enlargement of existing structures, in any area that has been determined to be in need of rehabilitation or redevelopment, to eliminate substandard structural or housing conditions and arrest the deterioration of that area. 

     “Rehabilitation area” or “area in need of rehabilitation” means any area determined to be in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14). 

(cf: P.L.1992, c.79, s.3) 

 

     3.  Section 4 of P.L.1992, c.79 (C.40A:12A-4) is amended to read as follows:

     4.    In exercising the redevelopment and rehabilitation functions provided for in this act: 

     a.     A municipal governing body shall have the power to:

     (1)   Cause a preliminary investigation to be made pursuant to subsection a. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment; 

     (2)   Determine pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) that an area is in need of redevelopment; 

     (3)   Adopt a redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7); 

     (4)   Determine pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14) that an area is in need of rehabilitation. 

     b.    A municipal planning board shall have the power to:

     (1)   Conduct, when authorized by the municipal governing body, a preliminary investigation and hearing and make a recommendation pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment; 

     (2)   Make recommendations concerning a redevelopment plan pursuant to subsection e. of section 7 of P.L.1992, c.79 (C.40A:12A-7), or prepare a redevelopment plan pursuant to subsection f. of that section. 

     (3)   Make recommendations concerning the determination of an area in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14). 

     c.     The municipality shall be responsible for implementing redevelopment plans and carrying out redevelopment projects pursuant to section 8 of P.L.1992, c.79 (C.40A:12A-8).  The municipality may execute these responsibilities directly, or in addition thereto or in lieu thereof, [through] may designate by ordinance either a municipal redevelopment agency, or a municipal housing authority authorized to exercise redevelopment powers pursuant to section 21 of P.L.1992, c.79 (C.40A:12A-21), but there shall be only one redevelopment entity responsible for each redevelopment project.  A county improvement authority authorized to undertake redevelopment projects pursuant to the “county improvement authorities law,” P.L.1960, c.183 (C.40:37A-44 et seq.) may also act as a redevelopment entity pursuant to this act.  The redevelopment entity, so authorized, may contract with any other public body, in accordance with the provisions of section 8 of P.L.1992, c.79 (C.40A:12A-8), for the carrying out of a redevelopment project or any part thereof under its jurisdiction.  Notwithstanding the above, the governing body of the municipality may, by ordinance, change or rescind the designation of the redevelopment [entity responsible for implementing] agency or housing authority designated to implement a redevelopment plan and [carrying] carry out a redevelopment project and may have the municipality assume this responsibility [itself, but] ; provided, however, that only the redevelopment entity authorized to undertake a particular redevelopment project shall remain authorized to complete it, unless the redevelopment entity and redeveloper agree otherwise, or unless no obligations have been entered into by the redevelopment entity with parties other than the municipality.  This shall not diminish the power of the municipality to dissolve a redevelopment entity pursuant to section 24 of P.L.1992, c.79 (C.40A:12A-24), and section 20 of the “Local Authorities Fiscal Control Law,” P.L.1983, c.313 (C.40A:5A-20). 

     1d.  No municipality shall exercise the power of eminent domain in an area in need of redevelopment for the acquisition of land subject to the protections provided under section 12 of P.L.1983, c.32 (C.4:1C-19).1

(cf: P.L.1992, c.79, s.4) 

 

     4.    Section 5 of P.L.1992, c.79 (C.40A:12A-5) is amended to read as follows:

     5.    A delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in section 6 of P.L.1992, c.79 (C.40A:12A-6), the governing body of the municipality by [resolution] ordinance concludes that within the delineated area any of the following conditions is found: 

     a.     The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions. 

     b.    The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so great a state of disrepair as to be untenantable. 

     c.     (1) Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or

     (2) unimproved vacant land that has remained so for a period of ten years prior to adoption of the [resolution] ordinance, and that by reason of its location, remoteness, 1environmental contamination,1 lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil,

     is not likely to be developed through the instrumentality of private capital and is determined to be detrimental to the safety, health, or welfare of the community

     d.    Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, [faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout,] or any combination of these or [other factors,] similar conditions are determined to be detrimental to the safety, health, [morals,] or welfare of the community.

     e.     A [growing lack or total] 1[lack of proper utilization of areas] deterioration in the condition of the property1 caused by 1[the condition of the title,]1 diverse ownership of the real property 1[therein]1 or other conditions 1of title1, [resulting in a stagnant or not fully productive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare] which, by virtue of these factors are determined to be detrimental to the safety, health, or welfare of the community

     f.     Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or other casualty in such a way that the aggregate assessed value of the area has been materially depreciated. 

     g.     In any municipality in which an enterprise zone has been designated pursuant to the “New Jersey Urban Enterprise Zones Act,” P.L.1983, c.303 (C.52:27H-60 et seq.) the execution of the actions prescribed in that act for the adoption by the municipality and approval by the New Jersey Urban Enterprise Zone Authority of the zone development plan for the area of the enterprise zone shall be considered sufficient for the determination that the area is in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) for the purpose of granting tax exemptions within the enterprise zone district pursuant to the provisions of P.L.1991, c.431 (C.40A:20-1 et seq.) or the adoption of a tax abatement and exemption ordinance pursuant to the provisions of P.L.1991, c.441 (C.40A:21-1 et seq.). The municipality shall not utilize any other redevelopment powers within the urban enterprise zone unless the municipal governing body and planning board have also taken the actions and fulfilled the requirements prescribed in P.L.1992, c.79 (C.40A:12A-1 et al.) for determining that the area is in need of redevelopment or an area in need of rehabilitation and the municipal governing body has adopted a redevelopment plan ordinance including the area of the enterprise zone.

     h.  [The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation.(Deleted by amendment, P.L.    , c.     .) (pending before the Legislature as this bill)

     i.  Parcels, either vacant or developed, which have remained vacant or substantially underutilized for a period of 24 consecutive months due to environmental 1[issues associated with such parcels’ historic use] contamination1 .

     In addition to parcels included in a delineated area under this section, an area in need of redevelopment may include other parcels containing lands, buildings, or improvements which of themselves are not detrimental to the safety, health, or welfare of the community, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they are a part; provided, however that such parcels, in the aggregate, shall not comprise in excess of 20% of the land mass of such area to be designated as available for private ownership.

(cf: P.L.2003, c.125, s.3)

 

     5.    Section 6 of P.L.1992, c.79 (C.40A:12A-6) is amended to read as follows:

     6.    a. (1) No area of a municipality shall be determined a redevelopment area unless the governing body of the municipality shall, by resolution, authorize the planning board to undertake a preliminary investigation to determine whether the proposed area is a redevelopment area according to the criteria set forth in section 5 of P.L.1992, c.79 (C.40A:12A-5).  A redeveloper shall not conduct or fund any part of the investigation.  Such determination shall be made after public notice and public hearing as provided in subsection b. of this section.  The governing body of a municipality shall assign the conduct of the investigation and hearing to the planning board of the municipality. 

     (2) In the case of any area of a municipality that is more than 10 acres in area, or that contains more than 100 occupied dwelling units or more than 50 operating business premises, the governing body shall hold a public informational meeting prior to adoption of the resolution authorizing the planning board to undertake a preliminary investigation as set forth in this section.  Notice of the public informational meeting shall be as in paragraph (3) of subsection b. of this section, except that notice to individual property owners and tenants shall not be required.

     b.    (1) Before proceeding to a public hearing on the matter, the planning board shall prepare a map showing the boundaries of the proposed redevelopment area and the location of the various parcels of property included therein.  There shall be appended to the map a statement setting forth the basis for the investigation. 

     (2)   The planning board shall specify a date for and give notice of a hearing for the purpose of hearing persons who are interested in or would be affected by a determination that the delineated area is a redevelopment area.

     (3)   (a) The hearing notice shall set forth the general boundaries of the area to be investigated and state that a map has been prepared and can be inspected at the office of the municipal clerk.  The notice shall be written in a simple, clear, understandable, and easily readable way.  The notice shall state that the governing body is considering designating the area as a redevelopment area 1, formerly referred to as a “blighted area,”1 and that a consequence of this designation is that the governing body would have the authority to condemn property located within the area pursuant to the procedures in the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.).  A copy of the notice shall be published in a newspaper of general circulation in the municipality once each week for two consecutive weeks, and the last publication shall be not less than ten days prior to the date set for the hearing.  If the municipality has an Internet web site, the notice shall be posted thereon.  A copy of the notice shall also be posted in such other places within or proximate to the proposed redevelopment area as may be available and appropriate.  A copy of the notice shall be [mailed] sent by certified 1[or] and1 regular mail by the municipal clerk at least [ten] 14 days prior to the date set for the hearing to the last owner, if any, of each parcel of property, and to any legal tenant of a residential rental dwelling unit within the area according to the assessment records of the municipality.  The municipal clerk shall make a diligent effort to ascertain the names and addresses of legal tenants of rental dwelling units by contacting the legal owner of the rental property or a management company identified by such owner, but if unable to do so shall have a copy of the notice posted on properties known to be rental dwelling units.  A notice shall also be sent by the municipal clerk to all persons at their last known address, if any, whose names are noted on the assessment records as claimants of an interest in any such parcel.  The assessor of the municipality shall make a notation upon the records when requested to do so by any person claiming to have an interest in any parcel of property in the municipality.  The notice shall be published and mailed by the municipal clerk[, or by such clerk or official as the planning board shall otherwise designate].  Failure to mail any such notice shall not invalidate the investigation or determination thereon.

     (b)   Prior to the hearing, a copy of all documents relevant to the determination that an area is in need of redevelopment shall be available for public inspection, and if the municipality has an Internet web site, they shall be posted thereon.

     (4)   At the hearing, which may be adjourned from time to time, the planning board shall hear all persons who are interested in or would be affected by a determination that the delineated area is a redevelopment area. All testimony provided at the hearing shall be under oath or affirmation.  The hearing shall be recorded and transcription of the full content of the hearing shall be made available to the public.  All objections to such a determination and evidence in support of those objections, given orally or in writing, shall be received and considered and made part of the public record.  1[All] The procedures governing the presentation of testimony at the hearing shall be sufficient to create a full record and, at a minimum, shall require that all1 persons who would be affected by a determination that the delineated area is a redevelopment area shall be allowed to bring witnesses to provide evidence relevant to the determination that the area is in need of redevelopment, and shall be allowed to submit written questions which shall be posed by the planning board to the witness or witnesses to whom they are directed if the planning board deems the question relevant.

     (5)   (a) After completing its hearing on this matter, the planning board shall recommend that the delineated area, or any part thereof, be determined, or not be determined, by the municipal governing body to be a redevelopment area.  Prior to making any determination that an area is in need of redevelopment, the planning board shall review, in light of the conditions of the area and the purposes of the redevelopment, whether designation of the area as an area in need of rehabilitation, or some other strategy of rehabilitation, preservation, or neighborhood improvement, may represent a more appropriate means of addressing the conditions of the area and the purposes of the redevelopment.  The report of the planning board shall set forth explicitly the reasons for its determination that such other strategies are less appropriate, and that the area should be designated in need of redevelopment.  The report shall also include an inventory of the environmental, historical, and cultural assets in the delineated area.

     (b) After receiving the recommendation of the planning board, the municipal governing body may adopt [a resolution] an ordinance determining that the delineated area, or any part thereof, is a redevelopment area.  [Upon the] Prior to final adoption of [a resolution] the ordinance, the clerk of the municipality shall, forthwith, transmit a copy of the [resolution] ordinance to the Commissioner of Community Affairs for review. If the area in need of redevelopment is not situated in an area in which development or redevelopment is to be encouraged pursuant to any State law or regulation promulgated pursuant thereto, the [determination] ordinance shall not [take effect] be finally adopted without first receiving the review and the approval of the commissioner.  If the commissioner does not issue an approval or disapproval within 30 calendar days of transmittal by the clerk, the determination shall be deemed to be approved and the ordinance may be finally adopted.  If the area in need of redevelopment is situated in an area in which development or redevelopment is to be encouraged pursuant to any State law or regulation promulgated pursuant thereto, then the determination shall take effect after the clerk has transmitted a copy of the [resolution] ordinance to the commissioner.  The determination 1that the delineated area is a redevelopment area1, 1[if supported by substantial evidence]1 and, if required, 1[approved] approval1 by the commissioner, shall be binding and conclusive upon all persons affected by the determination 1that the delineated area is a redevelopment area1[Notice of the determination shall be served, within 10 days after the determination, upon each person who filed a written objection thereto and stated, in or upon the written submission, an address to which notice of determination may be sent.1If the determination that the delineated area is a redevelopment area is challenged in court, the municipality shall be required to show, by a preponderance of the evidence, that the delineated area fulfills the criteria set forth in section 5 of P.L.1992, c.79 (C.40A:12A-5). 1

     (6)   [If written objections were filed in connection with the hearing, the municipality shall, for 45 days next following its determination to which the objections were filed, take no further action to acquire any property by condemnation within the redevelopment area.(Deleted by amendment, P.L.     , c.    .) (pending before the Legislature as this bill)

     (7)   [If a person who filed a written objection to a determination by the municipality pursuant to this subsection shall, within 45 days after the adoption by the municipality of the determination to which the person objected, apply to the Superior Court, the court may grant further review of the determination by procedure in lieu of prerogative writ; and in any such action the court may make any incidental order that it deems proper.] (Deleted by amendment, P.L.    , c.    .) (pending before the Legislature as this bill)

     (8)  Notice of final adoption of an ordinance making a determination shall be served, within 10 days after the final adoption of the ordinance making such determination, upon each person who received notice of the public hearing in accordance with paragraph (3) of subsection b. of this section in the same manner as provided therein.  The notice shall inform the recipient of the right to appeal the designation and shall provide the recipient with the relevant deadlines for filing an appeal.  Additionally, notice of final adoption of an ordinance making a determination shall be published in the official newspaper of the municipality, together with the date of the first publication of such notice and also a statement that any action or proceeding of any kind or nature in any court questioning the validity of the adoption of the ordinance or the determination contained therein, shall be commenced within 1[45] 601 days after the first publication of such notice.

     (9)  The municipality shall not finally adopt an ordinance adopting a redevelopment plan in accordance with section 7 of P.L.1992, c.79 (C.40A:12A-7) until 60 days have passed since the ordinance making a determination under this section has been finally adopted.

     c.  An area determined to be in need of redevelopment pursuant to this section shall be deemed to be a “blighted area” for the purposes of Article VIII, Section III, paragraph 1 of the Constitution.  If an area is determined to be a redevelopment area and a redevelopment plan is adopted for that area in accordance with the provisions of this act, the municipality is authorized to utilize all those powers provided in section 8 of P.L.1992, c.79 (C.40A:12A-8). 

     1d.  The determination of an area in need of redevelopment determined on or after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), shall expire 10 years following the final adoption of an ordinance making the determination or 10 years following the final adoption of the redevelopment plan, whichever occurs later.  A determination may be extended for a period, not to exceed 15 years following the final adoption of the ordinance making the initial determination, through the adoption of an ordinance affirming that the conditions supporting the determination are still present or that substantial progress has been made on the implementation of the redevelopment plan.1

(cf: P.L.2003, c.125, s.4)

 

     6.    Section 7 of P.L.1992, c.79 (C.40A:12A-7) is amended to read as follows:     

     7.    a.  Following the determination of an area in need of redevelopment pursuant to section 6 of P.L.1992, c.79 (C.40A:12A-6) or a determination of an area in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14), the municipality may undertake the preparation of a redevelopment plan for all or some part of the area determined to be in need of redevelopment or rehabilitation, directly in accordance with subsection e. of this section, or, by resolution, may direct the municipal planning board to develop such plan in accordance with subsection f. of this section.  No redevelopment project shall be undertaken or carried out except in accordance with a redevelopment plan [adopted by ordinance of the municipal governing body, upon its finding that the] relating to a specifically delineated project area that is located in an area in need of redevelopment or in an area in need of rehabilitation, or in both, according to criteria set forth in section 5 or section 14 of P.L.1992, c.79 (C.40A:12A-5 or 40A:12A-14), as appropriate.

     [The] A redevelopment plan shall include an outline for the planning, development, redevelopment, or rehabilitation of the project area sufficient to indicate: 

     (1)   [Its] The relationship of the plan to [definite] local objectives as set forth in the municipal master plan or other official documents with respect to [appropriate] land uses, density of population, [and improved] improvements or changes to traffic circulation, pedestrian circulation and public transportation, public utilities, recreational and community facilities and other public improvements. 

     (2)   Proposed land uses and building requirements in the project area, including the character, intensity and scale of proposed redevelopment activities, and the design and planning standards and guidelines to govern those activities.

     (3)   [Adequate provision for] A relocation study adequate to identify available units suitable to the temporary and permanent relocation, as necessary, of residents and businesses in the project area, as required by the “Relocation Assistance Act,” P.L.1971, c.362 (C.20:4-1 et seq.), including, for residents, an estimate of the extent to which [decent, safe and sanitary dwelling units affordable to displaced residents] comparable, affordable replacement housing will be available [to them] in the existing local housing market, an assessment of the disparity between the availability of comparable, affordable replacement housing and the needs of the residents in the project area, an estimate of the amount and type of replacement housing that will have to be provided within or without the redevelopment area in order to meet the relocation needs of residents in the project area, and a plan setting forth the manner and timetable in which that housing, if needed, will be provided

     (4)   An identification, by block and lot and street address, if any, of any property within the redevelopment area which is proposed to be acquired in accordance with the redevelopment plan, including an identification for each parcel of the objectives of the redevelopment plan which cannot be realistically achieved without the taking of such property, a consideration of alternatives to the proposed taking, and the reasons that such alternatives do not provide for realistic achievement of the objectives of the redevelopment plan.

     (5)   Any significant relationship of the redevelopment plan to (a) the master plans of contiguous municipalities, (b) the master plan of the county in which the municipality is located, and (c) the State Development and Redevelopment Plan adopted pursuant to the “State Planning Act,” P.L.1985, c.398 (C.52:18A-196 et al.).

     (6)   The social and economic impact of the redevelopment area, including its effect on those parts of the municipality adjacent to the redevelopment area, and on the low and moderate income residents of the area.

     (7)   An explanation of how any development controls contained in the redevelopment plan are consistent with smart growth planning principles adopted pursuant to law or regulation.

     (8)   An estimate of the number of dwelling units for low and moderate income households that may be required as a result of implementing the redevelopment plan in order to meet the municipality’s obligations under the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the municipality’s plan for meeting these obligations within or outside the redevelopment area.

     (9)  Provision for the replacement of any housing constructed for low and moderate income households under the provisions of any State or federal housing subsidy program which is to be removed as a result of the redevelopment plan; provided that any such replacement units shall not be counted toward the municipal obligation under paragraph (8) of this subsection 1if the housing which is removed had previously counted toward an obligation1. 1[Any rental housing constructed under this subsection shall remain affordable to low and moderate income households for a period of no less than 45 years or such other period established in State or federal financing programs.] The Commissioner of Community Affairs shall establish by rule the duration of housing affordability controls governing any rental housing constructed under this subsection.  In addition, displaced residents of housing units provided under any State or federal housing subsidy program or the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) shall have first priority for those replacement units provided.1

     (10)  Preservation or conservation strategies and goals for the assets contained in the inventory of environmental, historical and cultural assets in the delineated project area.

     (11)  A statement setting forth the municipal planning board’s ability, if any, to grant relief to applicants from elements of the redevelopment plan when reviewing and approving development applications.

     b.  [A] In addition to that housing provided pursuant to paragraph (8) of subsection a. of this section, a redevelopment plan may include the provision of affordable housing in accordance with the “Fair Housing Act,” P.L.1985, c.222 (C.52:27D-301 et al.) and the housing element of the municipal master plan. 

     c.  The redevelopment plan shall describe its relationship to pertinent municipal development regulations as defined in the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.).  The redevelopment plan shall supersede applicable provisions of the development regulations of the municipality or constitute an overlay zoning district within the redevelopment area.  When the redevelopment plan supersedes any provision of the development regulations, the ordinance adopting the redevelopment plan shall contain an explicit amendment to the zoning district map included in the zoning ordinance.  The zoning district map as amended shall indicate the redevelopment area to which the redevelopment plan applies.  [Notwithstanding the provisions of the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.) or of other law, no notice beyond that required for adoption of ordinances by the municipality shall be required for the hearing on or adoption of the redevelopment plan or subsequent amendments thereof.] 

     d.    All provisions of the redevelopment plan shall be either substantially consistent with the municipal master plan or designed to effectuate the master plan; but the municipal governing body may adopt a redevelopment plan which is inconsistent with or not designed to effectuate the master plan by affirmative vote of a majority of its full authorized membership with the reasons for so acting set forth in the redevelopment plan.

     e.     [Prior to the adoption of a redevelopment plan, or revision or amendment thereto, the] If a municipality prepares a redevelopment plan directly, the municipal governing body shall refer the proposed redevelopment plan to the municipal planning board for review.  Such referral may be by resolution.  The municipal planning board shall transmit to the governing body, within 45 days after referral, a report containing its recommendation concerning the redevelopment plan.  This report shall include an identification of any provisions in the proposed redevelopment plan which are inconsistent with the master plan and recommendations concerning these inconsistencies and any other matters as the board deems appropriate.  The governing body, when considering the adoption of a redevelopment plan or revision or amendment thereof, shall review the report of the planning board and may approve or disapprove or change any recommendation by a vote of a majority of its full authorized membership and shall record in its minutes the reasons for not following the recommendations.  Failure of the planning board to transmit its report within the required 45 days shall relieve the governing body from the requirements of this subsection with regard to the pertinent proposed redevelopment plan [or revision or amendment thereof].  Nothing in this subsection shall diminish the applicability of the provisions of subsection d. of this section with respect to any redevelopment plan or revision or amendment thereof. 

     f.  The governing body of a municipality may direct the planning board to prepare a redevelopment plan [or an amendment or revision to a redevelopment plan] for a designated redevelopment area.  After completing the redevelopment plan, the planning board shall transmit the proposed plan to the governing body for its adoption.  The governing body, when considering the proposed plan, may amend or revise any portion of the proposed redevelopment plan by an affirmative vote of the majority of its full authorized membership and shall record in its minutes the reasons for each amendment or revision.  When a redevelopment plan [or amendment to a redevelopment plan] is referred to the governing body by the planning board under this subsection, the governing body shall be relieved of the referral requirements of subsection e. of this section. 

     g.  Within 60 days after the governing body or planning board begins preparation of the redevelopment plan, the governing body or planning board shall conduct a public hearing on the goals and content of the redevelopment plan.  Notice of the public hearing shall state the date, time, and location of the public hearing 1[, shall] and1 identify the borders of the area for which a plan is being developed.  A copy of the notice of the public hearing shall be published in a newspaper of general circulation in the municipality once each week for two consecutive weeks, and the last publication shall be not less than 10 days prior to the date set for the hearing, and shall be posted on the municipality’s Internet web site, if any, and in such other public places within or proximate to the proposed redevelopment area as may be available and appropriate.  A copy of the notice shall be mailed by the municipal clerk at least 10 days prior to the date set for the hearing to the last owner, if any, of each parcel of property and any legal tenant of a residential rental dwelling unit, within the area according to the assessment records of the municipality.  The municipal clerk shall make a diligent effort to ascertain the names and addresses of legal tenants of rental dwelling units by contacting the legal owner of the rental property or a management company identified by such owner, but if unable to do so shall have a copy of the notice posted on properties known to be rental dwelling units.  At such public hearing, the municipal governing body shall hear all persons who are interested in or would be affected by the redevelopment plan, although the planning board or governing body may, by vote of its majority, restrict or limit the amount of time afforded each such person to speak.  A record of the public hearing shall be kept by the municipal clerk.

     h.     Amendments to redevelopment plans shall be prepared and adopted in the same manner provided for a redevelopment plan.

     i.      The redevelopment plan shall be adopted by ordinance of the municipal governing body.  Prior to final adoption of the ordinance, the municipal governing body shall conduct a public hearing on the ordinance and all interested persons shall be allowed to speak.  Notice of the public hearing shall state the date, time, and location of the public hearing, shall identify where the proposed redevelopment plan is available for examination and shall identify, by block and lot and street address, if any, the parcels that may be subject to eminent domain under the proposed redevelopment plan.  The full text of the redevelopment plan to be considered by the governing body along with any maps or other exhibits thereto, shall be made available to the public in the municipal building and shall be posted on the municipality’s Internet web site, if any, at the time such notice to such hearing is to be provided. Copies of the proposed redevelopment plan shall be available for purchase by any interested party. A copy of the notice of the public hearing shall be published in a newspaper of general circulation in the municipality once each week for two consecutive weeks, and the last publication shall be not less than 10 days prior to the date set for the hearing, and shall be posted on the municipality’s Internet web site and in such other public places within or proximate to the proposed redevelopment area as may be available and appropriate.  A copy of the notice shall be mailed by the municipal clerk at least 10 days prior to the date set for the hearing to the last owner, if any, of each parcel of property and any legal tenant of a residential rental dwelling unit, within the area according to the assessment records of the municipality.  The municipal clerk shall make a diligent effort to ascertain the names and addresses of legal tenants of residential rental dwelling units by contacting the legal owner of the rental property or a management company identified by such owner, but if unable to do so shall have a copy of the notice posted on properties known to contain residential rental dwelling units.  For property owners whose properties do not exhibit conditions of blight and are proposed to be acquired under the redevelopment plan, the notice shall specify the reason why acquiring the property is necessary for the redevelopment of the area.  A notice shall also be sent by the municipal clerk to all persons at their last known address, if any, whose names are noted on the assessment records as claimants of an interest in any such parcel.  The assessor of the municipality shall make a notation upon the records when requested to do so by any person claiming to have an interest in any parcel of property in the municipality.  The notice shall be published and mailed by the municipal clerk.  Failure to mail any such notice shall not invalidate the redevelopment plan.  At such public hearing, the municipal governing body shall hear all persons who are interested in or would be affected by the provisions of the redevelopment plan, although the governing body may, by vote of its majority, restrict or limit the amount of time afforded each such person to speak.  A record of the public hearing shall be kept by the municipal clerk.  Upon the close of the public hearing, the municipal governing body may vote to finally adopt the ordinance.

     j.     Notice of final adoption of an ordinance adopting a redevelopment plan shall be served, within 10 days after the final adoption of the ordinance making such determination, upon each person who received notice of the public hearing in accordance with subsection h. of this section in the same manner as provided therein.  Additionally, notice of final adoption of an ordinance making a determination shall be published in the official newspaper of the municipality, together with the date of the first publication of such notice and also a statement that any action or proceeding of any kind or nature in any court questioning the validity of the adoption of the ordinance or the determination contained therein, shall be commenced within 45 days after the first publication of such notice. 

     k.    The municipality may not finally authorize and execute an agreement with a redeveloper until 60 days next following the final adoption of the ordinance adopting a redevelopment plan pursuant to this section.

(cf: P.L.1992, c.79, s.7)

 

     7.    Section 8 of P.L.1992, c.79 (C.40A:12A-8) is amended to read as follows:

     8.    Upon the adoption of a redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7), the municipality or redevelopment entity designated by the governing body may proceed with the clearance, replanning, development and redevelopment of the area designated in that plan.  In order to carry out and effectuate the purposes of this act and the terms of the redevelopment plan, the municipality or designated redevelopment entity may: 

     a.     Undertake redevelopment projects, and for this purpose issue bonds in accordance with the provisions of section 29 of P.L.1992, c.79 (C.40A:12A-29). 

     b.    Acquire property pursuant to subsection i. of section 22 of P.L.1992, c.79 (C.40A:12A-22). 

     c.     Acquire, by condemnation, any land or building which is necessary for the redevelopment project, pursuant to the provisions of the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.); provided, however, that for properties to be acquired under the terms of an agreement entered into after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the valuation of such properties shall take into account the uses permitted for such property under the redevelopment plan and shall be based on the date the municipality files the declaration of taking or the date of adoption of the redevelopment plan, whichever yields the higher valuation.  For residential properties, if neither of these two valuations is equal to or more than the “replacement value” of the home, then the valuation of such properties must be at least the “replacement value” of the home, which shall be defined as the approximate value of a home of similar size and quality under comparable conditions, within the municipality and within a reasonable distance of the property being condemned.  1[Furthermore, persons displaced pursuant to implementation of a redevelopment plan shall be entitled to all rights and benefits provided under the Uniform Transportation Replacement Housing and Relocation Act, P.L.1972, c.47 (C.27:7-72 et seq.), and rules and regulations adopted in accordance thereof.]  Tenants who are otherwise eligible for rental assistance pursuant to section 1 of P.L.2004, c.140 (C.52:27D-287.1) and who are displaced by a redevelopment project undertaken because of the use of eminent domain authorized pursuant to the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.), shall be entitled to receive rental assistance, on a priority basis, under the rental assistance program for low income individuals or households established pursuant to P.L.2004, c.140 (C.52:27D-287.1 et seq.).  The redeveloper of the project in connection with which eminent domain has been employed shall be responsible for reimbursing the State for the cost of the rental assistance for a period not to exceed four years from the commencement of occupancy of the new unit, and shall, prior to any displacement, deposit with the Commissioner of Community Affairs the amount estimated by the commissioner to be necessary for this purpose.  The Commissioner of Community Affairs shall adopt the necessary rules and regulations to govern the calculation of the reimbursement by redevelopers pursuant to this subsection and the administration of the priority list for the rehousing of tenants displaced from redevelopment areas.1

     d.    Clear any area owned or acquired and install, construct or reconstruct streets, facilities, utilities, and site improvements essential to the preparation of sites for use in accordance with the redevelopment plan.   

     e.     Prepare or arrange by contract for the provision of professional services and the preparation of plans by registered architects, licensed professional engineers or planners, or other consultants for the carrying out of redevelopment projects. 

     f.     Arrange or contract with public agencies or redevelopers for the planning, replanning, construction, or undertaking of any project or redevelopment work, or any part thereof 1, provided that the selection of the redeveloper has taken place subject to the provisions of section 11 of P.L.    , c.   (C.        ) (pending before the Legislature as this bill), if applicable1; negotiate and collect revenue from a redeveloper to defray the costs of the redevelopment entity, including where applicable the costs incurred in conjunction with bonds, notes or other obligations issued by the redevelopment entity, and to secure payment of such revenue; as part of any such arrangement or contract, provide for extension of credit, or making of loans, to redevelopers to finance any project or redevelopment work, or upon a finding that the project or redevelopment work would not be undertaken but for the provision of financial assistance, or would not be undertaken in its intended scope without the provision of financial assistance, provide as part of an arrangement or contract for capital grants to redevelopers; and arrange or contract with public agencies or redevelopers for the opening, grading or closing of streets, roads, roadways, alleys, or other places or for the furnishing of facilities or for the acquisition by such agency of property options or property rights or for the furnishing of property or services in connection with a redevelopment area. 

     g.     Lease or convey property or improvements to any other party pursuant to this section, without public bidding and at such prices and upon such terms as it deems reasonable, provided that the lease or conveyance is made in conjunction with a redevelopment plan, 1[and that the selection of the party has taken place subject to the provisions of section 11 of P.L.    , c.   (C.        ) (pending before the Legislature as this bill), if applicable,]1 notwithstanding the provisions of any 1[other]1 law, rule, or regulation to the contrary. 

     h.     Enter upon any building or property in any redevelopment area in order to conduct investigations or make surveys, sounding or test borings necessary to carry out the purposes of this act. 

     i.      Arrange or contract with a public agency for the relocation, pursuant to the "Relocation Assistance Law of 1967," P.L.1967, c.79 (C.52:31B-1 et seq.) and the "Relocation Assistance Act," P.L.1971, c.362 (C.20:4-1 et seq.), of residents, industry or commerce displaced from a redevelopment area. 

     j.     Make, consistent with the redevelopment plan: (1) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements; and (2) plans for the enforcement of laws, codes, and regulations relating to the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements. 

     k.    Request that the planning board recommend and governing body designate particular areas as being in need of redevelopment or rehabilitation in accordance with the provisions of this act and make recommendations for the redevelopment or rehabilitation of such areas. 

     l.      Study the recommendations of the planning board or governing body for redevelopment of the area. 

     m.    Publish and disseminate information concerning any redevelopment area, plan or project. 

     n.     Do all things necessary or convenient to carry out its powers. 

     o.    1(1)Authorize and execute a written agreement designating a redeveloper or redevelopers to undertake a project or projects in accordance with the redevelopment plan 1[; provided, however, that if such].  The agreement may contain a provision requiring the redeveloper to reimburse the municipality for costs associated with the preliminary investigation to determine whether the proposed area is a redevelopment area as set forth in section 6 of P.L.1992, c.79 (C.40A:12A-6).

     (2) If a1 project or projects will involve the conveyance of land owned by the municipality or any project, 20% or more of which will be constructed upon land subject to acquisition by the municipality pursuant to the redevelopment plan, such designation shall be based upon the results of a competitive process undertaken in accordance with section 11 of P.L.    , c.   (C.        ) (pending before the Legislature as this bill).

(cf: P.L.1992, c.79, s.8)

 

     8.    Section 14 of P.L.1992, c.79 (C.40A:12A-14) is amended to read as follows:

     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 conditions such that:

     (1)   a significant portion of structures therein are in a deteriorated or substandard condition and there is a continuing pattern of vacancy, abandonment or underutilization of properties in the area, [with] which may be reflected in a persistent arrearage of property tax payments thereon; [or]

     (2)   [more than half] a significant amount of the housing stock [in the delineated area is at least 50 years old, or a majority of the water and sewer] or infrastructure in the delineated area, or both, is [at least 50 years old and is] in need of repair or substantial maintenance; [and]

     (3)   [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] (Deleted by amendment, P.L.     , c.     .) (pending before the Legislature as this bill);

     (4)   areas with buildings or improvements evidencing dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors; or

     (5)   a growing lack or total lack of proper utilization of areas resulting in a stagnant or not fully productive condition of land potentially useful and valuable for contributing to and serving the public health, safety, and welfare.

     The resolution determining that the area is in need of rehabilitation shall be based upon a written report documenting the conditions that provide the basis for the determination that the area is in need of rehabilitation.  Where warranted by consideration of the overall conditions and requirements of the community, a finding of need for rehabilitation may extend to the entire area of a municipality.  Prior to adoption of the resolution, the governing body shall submit [it] the proposed resolution together with the report that provides the basis for the determination to the municipal planning board for its review.  Within 45 days of its receipt of the proposed resolution, the municipal planning board shall submit its recommendations regarding the proposed resolution, including any modifications which it may recommend, to the governing body for its consideration.  Thereafter, or after the expiration of the 45 days if the municipal planning board does not submit recommendations, the governing body may adopt the resolution, with or without modification.  The resolution shall not become effective without the approval of the commissioner pursuant to section 6 of P.L.1992, c.79 (C.40A:12A-6), if otherwise required pursuant to that section.

     b.    A delineated area shall be deemed to have been determined to be an area in need of rehabilitation in accordance with the provisions of this act if it has heretofore been determined to be an area in need of rehabilitation pursuant to P.L.1975, c.104 (C.54:4-3.72 et seq.), P.L.1977, c.12 (C.54:4-3.95 et seq.) or P.L.1979, c.233 (C.54:4-3.121 et seq.).

(cf: P.L.2003, c.125, s.5)

 

     9.    Section 15 of P.L.1992, c.79 (C40A:12A-15) is amended to read as follows:

     15.  In accordance with the provisions of a redevelopment plan adopted pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7), a municipality or redevelopment entity may proceed with clearance, replanning, conservation, development, redevelopment and rehabilitation of an area in need of rehabilitation.  [With respect to a redevelopment project in] In an area in need of rehabilitation, the municipality or redevelopment entity, upon the adoption of a redevelopment plan for the area, may perform any of the actions set forth in section 8 of P.L.1992, c.79 (C.40A:12A-8), except that [with respect to such a project] the municipality shall not have the power to use eminent domain to take or acquire private property by condemnation in furtherance of a redevelopment plan, unless [:  a. the area is within an area determined to be in need of redevelopment pursuant to this act; or b.] exercise of that power is authorized under any other law of this State. 

(cf: P.L.1992, c.79, s.15)


     10.  Section 19 of P.L.1975, c.291 (C.40:55D-28) is amended to read as follows:

     19.  [Preparation; contents; modification.a.  The planning board may prepare and, after public hearing, adopt or amend a master plan or component parts thereof, to guide the use of lands within the municipality in a manner which protects public health and safety and promotes the general welfare.

     b.    The master plan shall generally comprise a report or statement and land use and development proposals, with maps, diagrams and text, presenting, at least the following elements (1) and (2) and, where appropriate, the following elements (3) through ([14] 15):

     (1)   A statement of objectives, principles, assumptions, policies and standards upon which the constituent proposals for the physical, economic and social development of the municipality are based;

     (2)   A land use plan element (a) taking into account and stating its relationship to the statement provided for in paragraph (1) hereof, and other master plan elements provided for in paragraphs (3) through ([14] 15) hereof and natural conditions, including, but not necessarily limited to, topography, soil conditions, water supply, drainage, flood plain areas, marshes, and woodlands; (b) showing the existing and proposed location, extent and intensity of development of land to be used in the future for varying types of residential, commercial, industrial, agricultural, recreational, educational and other public and private purposes or combination of purposes; and stating the relationship thereof to the existing and any proposed zone plan and zoning ordinance; and (c) showing the existing and proposed location of any airports and the boundaries of any airport safety zones delineated pursuant to the "Air Safety and Zoning Act of 1983," P.L.1983, c.260 (C.6:1-80 et seq.); and (d) including a statement of the standards of population density and development intensity recommended for the municipality;

     (3)   A housing plan element pursuant to section 10 of P.L.1985, c.222 (C.52:27D-310), including, but not limited to, residential standards and proposals for the construction and improvement of housing;

     (4)   A circulation plan element showing the location and types of facilities for all modes of transportation required for the efficient movement of people and goods into, about, and through the municipality, taking into account the functional highway classification system of the Federal Highway Administration and the types, locations, conditions and availability of existing and proposed transportation facilities, including air, water, road and rail;

     (5)   A utility service plan element analyzing the need for and showing the future general location of water supply and distribution facilities, drainage and flood control facilities, sewerage and waste treatment, solid waste disposal and provision for other related utilities, and including any storm water management plan required pursuant to the provisions of P.L.1981, c.32 (C.40:55D-93 et seq.).  If a municipality prepares a utility service plan element as a condition for adopting a development transfer ordinance pursuant to subsection c. of section 4 of P.L.2004, c.2 (C.40:55D-140), the plan element shall address the provision of utilities in the receiving zone as provided thereunder;

     (6)   A community facilities plan element showing the existing and proposed location and type of educational or cultural facilities, historic sites, libraries, hospitals, firehouses, police stations and other related facilities, including their relation to the surrounding areas;

     (7)   A recreation plan element showing a comprehensive system of areas and public sites for recreation;

     (8)   A conservation plan element providing for the preservation, conservation, and utilization of natural resources, including, to the extent appropriate, energy, open space, water supply, forests, soil, marshes, wetlands, harbors, rivers and other waters, fisheries, endangered or threatened species wildlife and other resources, and which systemically analyzes the impact of each other component and element of the master plan on the present and future preservation, conservation and utilization of those resources;

     (9)   An economic plan element considering all aspects of economic development and sustained economic vitality, including (a) a comparison of the types of employment expected to be provided by the economic development to be promoted with the characteristics of the labor pool resident in the municipality and nearby areas and (b) an analysis of the stability and diversity of the economic development to be promoted;

     (10) A historic preservation plan element: (a) indicating the location and significance of historic sites and historic districts; (b) identifying the standards used to assess worthiness for historic site or district identification; and (c) analyzing the impact of each component and element of the master plan on the preservation of historic sites and districts;

     (11) Appendices or separate reports containing the technical foundation for the master plan and its constituent elements;

     (12) A recycling plan element which incorporates the State Recycling Plan goals, including provisions for the collection, disposition and recycling of recyclable materials designated in the municipal recycling ordinance, and for the collection, disposition and recycling of recyclable materials within any development proposal for the construction of 50 or more units of single-family residential housing or 25 or more units of multi-family residential housing and any commercial or industrial development proposal for the utilization of 1,000 square feet or more of land;

     (13) A farmland preservation plan element, which shall include: an inventory of farm properties and a map illustrating significant areas of agricultural land; a statement showing that municipal ordinances support and promote agriculture as a business; and a plan for preserving as much farmland as possible in the short term by leveraging monies made available by P.L.1999, c.152 (C.13:8C-1 et al.) through a variety of mechanisms including, but not limited to, utilizing option agreements, installment purchases, and encouraging donations of permanent development easements; [and]

     (14) A development transfer plan element which sets forth the public purposes, the locations of sending and receiving zones and the technical details of a development transfer program based on the provisions of section 5 of P.L.2004, c.2 (C.40:55D-141); and

     (15) A redevelopment plan element identifying all areas that have been designated in need of redevelopment or rehabilitation in the municipality as well as additional areas that may be so designated in the future, the goals and objectives of projected redevelopment activities in those areas during the time period covered by the master plan, the manner in which those activities further the social, economic, and physical improvement of the municipality, and the manner in which redevelopment activities are linked to other activities being carried out by the municipality pursuant to the municipal master plan, including improvements to infrastructure, transportation improvements, and the construction of public and community facilities.

     c.     The master plan and its plan elements may be divided into subplans and subplan elements projected according to periods of time or staging sequences.

     d.    The master plan shall include a specific policy statement indicating the relationship of the proposed development of the municipality, as developed in the master plan to (1) the master plans of contiguous municipalities, (2) the master plan of the county in which the municipality is located, (3) the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," sections 1 through 12 of P.L.1985, c.398 (C.52:18A-196 et seq.) and (4) the district solid waste management plan required pursuant to the provisions of the "Solid Waste Management Act," P.L.1970, c.39 (C.13:1E-1 et seq.) of the county in which the municipality is located.

     In the case of a municipality situated within the Highlands Region, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), the master plan shall include a specific policy statement indicating the relationship of the proposed development of the municipality, as developed in the master plan, to the Highlands regional master plan adopted pursuant to section 8 of P.L.2004, c.120 (C.13:20-8).

(cf: P.L.2004, c.120, s.60)

 

     11.  (New section) a.  Whenever a redevelopment project or projects involve the conveyance of land owned by the municipality, or any project, 20% or more of which will be constructed upon land subject to acquisition by the municipality or redevelopment entity pursuant to the redevelopment plan, the municipality shall approve, by ordinance, a written agreement designating a redeveloper selected in accordance with this section. 

     b.    The municipality or redevelopment entity shall prepare or have prepared request for proposal documentation, which shall include: all requirements deemed appropriate and necessary to allow for full and free competition between potential redevelopers; information necessary for potential redevelopers to submit a proposal, including a copy of the redevelopment plan, a general description of the project or projects, and such municipal public records relating to buildings and improvements within the redevelopment area, including, but not limited to, services provided by public utilities, building permit, and assessment records; and a methodology by which the municipality will evaluate and rank proposals received from potential redevelopers.

     c.     The methodology for selecting a redeveloper shall be based on an evaluation and ranking which may include overall design, technical expertise, demonstrated experience on projects similar to the proposed project, the ability to finance the proposed project, and such other stated criteria as the municipality shall deem relevant.  

     d.    At no time during the proposal solicitation process shall the municipality or redevelopment entity, or any employee or agent thereof, convey information to the public or any potential redeveloper which could confer an unfair advantage upon that potential redeveloper over any other potential redeveloper.  If the municipality or redevelopment entity desires to change proposal documentation, the municipality or redevelopment entity shall notify only those potential redevelopers who received the proposal documentation of any and all changes in writing, and all existing documentation shall be changed appropriately.

     e.     All proposals shall be required to contain a statement of corporate ownership in accordance with the provisions of section 1 of P.L.1977, c.33 (C.52:25-24.2) and specifications concerning equal employment opportunity and affirmative action pursuant to P.L.1975, c.127 (C.10:5-31 et seq.)

     f.     A notice of the availability of request for proposal documentation shall be published in an official newspaper of the municipality at least 30 days prior to the date established for the submission of proposals.  Such notice shall provide the name, address, and phone number of the person who can provide additional information and a proposal document to an interested party.  The municipality or redevelopment entity shall promptly reply to any request by an interested party by providing a copy of the request for proposals.  The municipality or redevelopment entity may charge a fee for the proposal documentation that shall not exceed $50 or the cost of reproducing the documentation, whichever is greater.

     g.     Each interested potential redeveloper shall submit a proposal which shall include all the information required by the request for proposals.  Failure to meet the requirements of the request for proposals may result in the municipality or redevelopment entity disqualifying the potential redeveloper from further consideration. 

     h.     The municipality or redevelopment entity shall review and evaluate all proposals only in accordance with the methodology described in the request for proposals.  The review shall be conducted in a manner that avoids disclosure of the contents of any proposal prior to the selection of a redeveloper.  The municipality or redevelopment entity may conduct discussions with a potential redeveloper submitting a proposal for the purpose of clarifying the information submitted in the proposal.  The municipality or redevelopment entity may at any time revise its proposal document after the review of the submitted proposals if it notifies simultaneously, and in writing, each potential redeveloper that submitted a proposal of the revision and provides a uniform time within which the potential redevelopers may submit a revised proposal for review.

     i.      The municipality or redevelopment entity shall select the proposal that received the highest evaluation and shall negotiate an agreement with the potential redeveloper that submitted the selected proposal.  If the municipality or redevelopment entity is unable to negotiate a satisfactory agreement with the potential redeveloper that submitted the selected proposal, it may select the proposal that received the second highest evaluation from among those submitted and proceed to negotiate a satisfactory contract with the potential redeveloper that submitted that proposal.  The process shall continue until a redeveloper is selected or the process is abandoned by the municipality or redevelopment entity.  The decision to abandon the proposal process shall be by a resolution adopted by the governing body of the municipality or redevelopment entity.

     j.     After a redeveloper has been selected and a satisfactory agreement has been negotiated, but prior to the execution of the agreement by the governing body or redevelopment entity, the municipality or redevelopment entity shall prepare a report concerning the proposal selection process.  The report shall list the names of all potential redevelopers who submitted a proposal and shall summarize the proposals of each potential redeveloper.  The report shall (1) rank the potential redevelopers in order of evaluation; (2) summarize, in general terms, any unsuccessful negotiations with potential redevelopers that submitted proposals which were ranked higher than the proposal of the selected redeveloper; (3) recommend the selected redeveloper; and (4) summarize the project to be undertaken and the relevant terms of the proposed agreement.  The report shall be made available to the public at least 48 hours prior to the introduction of an ordinance authorizing an agreement with the redeveloper. 

     k.    The governing body of the municipality or redevelopment entity shall have the right to reject all proposals for any reason, but such reason must be given and the municipality shall not authorize another request for proposals concerning the same project or projects for a period of 30 days after the date of rejection or abandonment by the governing body.

     l.      Nothing in this section shall limit the authority of a municipality to convey property within a redevelopment area for nominal consideration to any of the entities designated in section 21 of the “Local Lands and Buildings Law,” P.L.1971, c.199 (C.40A:12-21) for any of the uses set forth therein, and to enter into redevelopment agreements with such entities for such uses without complying with the provisions of this section.

 

     12.  (New section)  If any agreement between a redevelopment entity and a redeveloper shall provide for the use or potential use of eminent domain by the redevelopment entity, such agreement shall contain:

     a.     a block and lot identification of all parcels which may be subject to eminent domain at the request of the redeveloper;

     b.    a schedule of acquisition by the redeveloper; and

     c.     a provision stating that the ability of the redeveloper to request acquisition by eminent domain shall lapse within five years of the effective date of the agreement, which provision may only be further extended by an ordinance adopted by the governing body after notice to any property owner whose rights will be directly affected by such an extension.

   1d.  A requirement, on the part of the redeveloper, to notify any property owner who receives a written offer from the redevelopment entity pursuant to section 6 of P.L.1971, c.361 (C.20:3-6) of the total compensation provided for in each contract of sale between the redeveloper and any property owner in the redevelopment area.  This notice, which shall be in writing, shall be provided at the time that the written offer is presented by the redevelopment entity.1

     All mandatory schedules and time limitations within these provisions may be subject to tolling for any contingencies set forth in the agreement.

 

     13.  (New section)  Every resident displaced as a result of a redevelopment project shall have a limited right of first refusal to purchase or lease a dwelling unit subsequently constructed within the redevelopment project as set forth in this section: 

     a.     At such time residents are provided notice pursuant to the Workable Relocation Assistance Plan pursuant to law or regulation adopted pursuant thereto, they shall be provided with the opportunity to have their names entered into a registry of residents seeking the opportunity to purchase or lease a dwelling unit in the redevelopment project.  The registry shall be maintained by the municipal relocation officer designated under the Workable Relocation Assistance Plan.

     b.    At such time that any residential development containing more than 10 dwelling units shall be constructed in any redevelopment area as a redevelopment project, the developer shall notify each individual on the registry, by registered mail and by e-mail to their last known mailing or e-mail address, as may be available, of their opportunity to purchase or lease a dwelling unit.  It shall be the sole responsibility of the individual to maintain a current mailing address with the registry, and the developer shall be under no obligation to provide notice except as set forth in this subsection.

     c.     From the date of mailing of the notice, the individuals on the registry shall have 1[eight] 201 business days before the units in such development are offered to the general public in order to enter into a contract of purchase or a lease for a unit in the development. Such contract or lease shall be on the same terms and at the same price as those on which the unit is initially offered to the general public.

 

     14.  (New section)  a.  For all areas determined to be in need of redevelopment, the municipality shall submit to the Department of Community Affairs a map outlining the physical boundaries of the redevelopment area, the preliminary investigation report, and a copy of the ordinance making the determination.  This information shall be transmitted within 60 days of the effective date of this act for areas determined to be in need of redevelopment on or prior to the effective date of this act, or within 10 days after the area is determined to be in need of redevelopment after the effective date of this act.  1The municipality shall also disclose to the Department of Community Affairs, with updates as required by the department, an accounting of the cost of all municipal investments made in the redevelopment area subsequent to the final adoption of an ordinance determining the area as in need of redevelopment, including, but not limited to, the granting of tax abatements, the issuance of density bonuses, and the value of municipal infrastructure provided in the implementation of the plan.  In addition, the municipality shall disclose any other public infrastructure to be provided in the redevelopment area using public funds.1    

     b.    For all condemnations of properties that occur pursuant to subsection c. of section 8 of P.L.1992, c.79 (C.40A:12A-8), the municipality shall submit to the Department of Community Affairs record of the condemnation and the compensation provided to the property owner within 10 days of the taking.

     c.     Each year the Department of Community Affairs shall issue a report that lists the location of all areas currently determined to be in need of redevelopment in New Jersey; basic data for each area about its size, population, the status of the redevelopment plan implementation, the length of time the area has been designated as an area in need of redevelopment, 1an accounting of the cost of all municipal investments and an enumeration of other investments made in the area using public funds subsequent to the final adoption of an ordinance determining the area as in need of redevelopment, as set forth in subsection a. of this section,1 the number of times eminent domain has been used in each redevelopment area, and data on compensation received by property owners, when available.  This report shall be made available to the general public upon request and on the Department of Community Affairs Internet web site.

 

     115.  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] a copy  of the appraisal upon which the offer has been based and which was approved by the condemnor, 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] and provide information, data or otherwise raise issues of concern to the owner relating to the valuation of the property and damages to the remainder arising from the proposed acquisition. The written offer made by a condemnor to a prospective condemnee holding record title to the property shall be served by certified mail by a private courier or in person along with a copy of the approved appraisal.  In no event shall such offer be less than the taking agency's approved appraisal of the fair market value of such property.  [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] The prospective condemnee shall be afforded 45 calendar days from receipt of the written offer to review the offer and the approved appraisal upon which the offer was based, to seek clarification thereof as well as any other relevant information, to allow an opportunity to negotiate the compensation to be paid, and to request an opportunity to discuss the offer and the basis thereof with a representative of the condemnor in person.  Prior to the expiration of this 45-day period, the prospective condemnee may request, in writing, an extension of this 45-day period for a period not exceeding an additional 25 days, for a total of 70 calendar days, which shall not be denied except for good cause shown by the condemnor.  During this period, as it may be extended, the prospective condemnee may seek additional relevant information regarding the offer or regarding the project.  Within the time period, as may be extended, the condemnor shall provide reasonable and timely responses to requests for information and for explanations and shall afford an opportunity for the condemnee to meet in person on at least one occasion with a representative of the condemnor to discuss the offer and the basis thereof.  The prospective condemnee may also obtain its own appraisal and share it with the prospective condemnor and seek a review thereof by the prospective condemnor.  If the prospective condemnee rejects the  written offer of the condemnor or otherwise does not affirmatively respond to the offer, the condemnor may then send in writing by certified mail, private courier, or in person, a letter setting forth an intent to commence condemnation proceedings in the Superior Court.  Such letter, upon receipt, shall conclude bona fide negotiations between the prospective condemnor and condemnee.  A disagreement over the amount of the offer, how the offer was calculated, or the method or manner in which the property was appraised shall not constitute grounds to continue negotiations or prevent the condemnor from successfully acquiring the property through the commencement of a condemnation proceeding  and the appointment of condemnation commissioners.  Nothing in this section shall be construed as requiring a condemnor to increase the amount of an offer during the review and negotiation period.  A condemnor may file a complaint for condemnation in the manner provided by the Rules of Court anytime after expiration of the initial review and negotiation period, including any extension thereof, all as provided for in this section, without the consent of the prospective condemnee, provided the condemnor is otherwise empowered to exercise the power of eminent domain and the condemnor has complied with the provisions of this section.  Proof of the delivery of a written offer  and a copy of the approved appraisal and the delivery of a letter of intent at the expiration of the negotiation period as set forth above, shall be deemed to 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, upon application as a notice of motion as provided by the Rules of Court, may dispense with the necessity  of such negotiations.  Neither the offer, the amount thereof, nor the refusal thereof by the prospective condemnee shall be evidential in the determination of compensation.1

(cf: P.L.1971, c. 361, s. 6)

 

     116.  Section 4 of P.L.1971, c.362 (C.20:4-4) is amended to read as follows.

     4.  a.  If a taking agency acquires real property for public use, it shall make fair and reasonable relocation payments to displaced persons and businesses as  required by this act, for:

     (1) actual reasonable expenses in moving himself, his family, business, farm  operation, or other personal property;

     (2) actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the taking agency; and

     (3) actual reasonable expenses in searching for a replacement business or farm.

     b.  Any displaced person eligible for payments under subsection a. of this section who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection a. of this section may receive a moving expense allowance, determined according to a schedule established by the taking agency, not to exceed [$300.00] $450, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the moving expense allowance shall be increased not to exceed $900, and further increased on the first day of the 24th month next following enactment of P.L.    , c.     (C.      ) (pending before the Legislature as this bill), not to exceed $1,350, and a dislocation allowance of [$200.00] $300, provided that on the first day of the 12th month next following enactment of P.L.    , c.   (C.      ) (pending before the Legislature as this bill), the dislocation allowance shall be $600, and on the first day of the 24th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), that allowance shall be $900 provided, however, such amounts shall be adjusted annually in accordance with section 19 of P.L.     , c.     (C.      ) (pending before the Legislature as this bill).

     c.  Any displaced person eligible for payments under subsection a. of this section who is displaced from his place of business or from his farm operation and who elects to accept the payment authorized by this subsection in lieu of the payment authorized by subsection a. of this section, may receive a fixed payment in an amount equal to the average annual net earnings of the business or farm operation, except that such payment shall not be less than [$2,500.00] $3,750, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the payment shall not be less than $7,500, and on the first day of the 24th month next following enactment of P.L.     , c.    (C.      ) (pending before the Legislature as this bill), the payment shall not be less than $11,250 nor more than [$10,000.00] $15,000, provided on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the payment shall not be more than $22,500, and on the first day of the 24th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill) the payment shall not be  more than $45,000 provided, however, such amounts shall be adjusted annually in accordance with section 19 of P.L.     , c.     (C.      ) (pending before the Legislature as this bill).  In the case of a business no payment shall be made under this subsection unless the taking agency is satisfied that the business (1) cannot be relocated without a substantial loss of its existing patronage, and (2) is not a part of a commercial enterprise having at least one other establishment not being acquired by the taking agency, which is engaged in the same or similar business.  The business owner shall have the right to appeal this decision in court.  For purposes of this subsection, the term "average annual net earnings," means 1/2 of any net earnings of the business or farm operation, before Federal, State, and local income taxes, during the 2 taxable years immediately preceding the taxable year in which such business or farm operation moves from the real property acquired or leased for such project, or during such other period as such agency determines to be more equitable for establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse, or his dependents during such period.1

(cf: P.L.1971, c.362, s.4)

 

     117.  Section 5 of P.L.1971, c.362 (C.20:4-5) is amended to read as follows:

     5.  a.  In addition to payments otherwise authorized by this act, P.L.1971, c.362 (C.20:4-1 et seq.), the taking agency shall make an additional payment not in excess of [$15,000.00] $22,500, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the additional payment shall not be in excess of $45,000, and on the first day of the 24th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill) the additional payment shall not be in excess of $67,500 to any displaced person who is displaced from a dwelling actually owned and occupied by such displaced person for not less than 180 days prior to the initiation of negotiations for the acquisition of the property ; provided, however, such amounts shall be adjusted annually in accordance with section 19 of P.L.     , c.     (C.      ) (pending before the Legislature as this bill).  Such additional payment shall include the following elements:

     (1) The amount, if any, which when added to the acquisition cost of the dwelling acquired, equals the reasonable cost of a comparable replacement dwelling which is a decent, safe, and sanitary dwelling adequate to accommodate such displaced person, reasonably accessible to public services and places of employment and available on the private market.  All determinations required to carry out this subparagraph shall be determined by regulations issued pursuant  to section 10 of [this act] P.L.1971, c.362 (C.20:4-10).

     (2) The amount, if any, which will compensate such displaced person for any  increased interest costs which such person is required to pay for financing the acquisition of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than 180 days prior to the initiation of negotiations for the acquisition of such dwelling.  Such amount  shall be equal to the excess in the aggregate interest and other debt service  costs of that amount of the principal of the mortgage on the replacement  dwelling which is equal to the unpaid balance of the mortgage on the acquired  dwelling, over the remainder term of the mortgage on the acquired dwelling,  reduced to discounted present value.  The discount rate shall be determined by  regulations issued pursuant to section 10 of [this act] P.L.1971, c.362 (C.20:4-10).

     (3) Reasonable expenses incurred by such displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses.

     (4) Penalty costs for prepayment of any mortgage entered into in good faith  encumbering such real property if such mortgage is on record or has been filed  for record as provided by law on the date of approval by taking agency of the  location of such project.

     (5) The pro rata portion of real property taxes payable during the calendar  year in which the property was acquired which are allocable to the period of  the year subsequent to the date of vesting of title in the taking agency, or  the effective date of the possession of such real property by the taking  agency, whichever is earlier.

     b.  The additional payment authorized by this section shall be made only to such a displaced person who purchases and occupies a replacement dwelling which  is decent, safe, and sanitary not later than the end of the one year period  beginning on the date on which he receives final payment of all costs of the  acquired dwelling, or on the date on which he moves from the acquired dwelling,  whichever is the later date.1

(cf: P.L.1971, c.362, s.5)

 

     118.  Section 6 of P.L.1971, c.362 (C.20:4-6) is amended to read as follows:

     6.  In addition to amounts otherwise authorized by this act, P.L.1971, c.362 (C.20:4-1 et seq.), a taking agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under section 5 which dwelling was actually and lawfully occupied by such displaced person for not less than 90 days prior to the initiation of negotiations for acquisition of such dwelling.  Such  payment shall be either:

     a.  the amount necessary to enable such displaced person to lease or rent for a period not to exceed 4 years, a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public utilities and public and commercial facilities, and reasonably accessible to his place of employment, but not to exceed [$4,000.00] $6,000, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the amount shall be increased not to exceed $12,000, and further increased on the first day of the 24th month next following enactment of P.L.   , c.   (C.     ) (pending before the Legislature as this bill), not to exceed $18,000;  or

     b.  the amount necessary to enable such person to make a downpayment (including incidental expenses described in section 5 a. (3)) on the purchase of a decent, safe, and sanitary dwelling of standards adequate to accommodate such persons in areas not generally less desirable in regard to public utilities and public and commercial facilities, but not to exceed [$4,000.00] $6,000, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the amount shall be increased not to exceed $12,000, and further increased on the first day of the 24th month next following enactment of P.L.    , c.     (C.      ) (pending before the Legislature as this bill), not to exceed $18,000.  Of that amount the first [$2,000.00] $3,000, provided that on the first day of the 12th month next following enactment of P.L.     , c.     (C.        ) (pending before the Legislature as this bill), the first $6,000, and on the first day of the 24th month next following enactment of P.L.     , c.     (C.      ) (pending before the Legislature as this bill), the first $9,000 [of which is to] shall be paid without contribution from the displaced person, but thereafter such payments will only be made on a matching dollar-for-dollar basis with the displaced person provided, however, all such amounts in this section shall be adjusted annually in accordance with section 19 of P.L.     , c.     (C.      ) (pending before the Legislature as this bill).1

(cf: P.L.1971, c.362, s.6)

 

     119.  (New section)  Beginning on the first day of the 36th month next following enactment of P.L.   , c.   (pending before the Legislature as this bill) all payment amounts set forth in sections 4 through 6 of P.L.1971, c.362 (C.20:4-4 through 20:4-6), as amended by P.L.     , c.     (C.      ) (pending before the Legislature as this bill), shall be annually automatically adjusted on the basis of the Consumer Price Index for All Urban Consumers (CPI-U), U. S. City Average, published by the United States Department of Labor, Bureau of Labor Statistics, using the last published index figure as of the date of displacement as the numerator and the index figure for the month in which P.L.     , c.     (C.      ) (pending before the Legislature as this bill) becomes effective as the denominator.1

 

     120.  (New section)  In addition to payments otherwise authorized by P.L.    , c.    (C.        ) (pending before the Legislature as this bill) for the taking of private property through the use of eminent domain pursuant to the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.), a redevelopment entity shall make an additional payment to the owner of a business for the value of goodwill.  For the purposes of this section, "goodwill" means the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage.

     Within 12 months after the date of enactment of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the Department of Community Affairs shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to effectuate the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  The rules and regulations to be adopted by the department pursuant to this section shall include, but are not limited to, the requirements to be met by the business in order to obtain the additional payment, the responsibility of the redevelopment entity, and an appeal process.1

 

     121.  (New section)  Notwithstanding the provisions of any other law to the contrary:

     a.  A municipal redevelopment entity shall not: negotiate for, or enter into, a redevelopment agreement, other than an agreement awarded pursuant to a fair and open process, with any redeveloper to perform any work under a redevelopment plan, if, beginning after the adoption of a memorializing resolution directing preliminary investigation to determine if a site is in need of redevelopment, that redeveloper has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to any municipal committee of a political party in that municipality or to any candidate committee of any person serving in an elective public office of that municipality.

     b.  No redeveloper described above who enters into a municipal redevelopment agreement to perform any work under a redevelopment plan shall make any of the aforesaid contributions during the term of any such redevelopment agreement.

     c.  None of the aforesaid committees shall accept a contribution in excess of the limits set forth above from such a redeveloper during the time periods set forth above.

     d.  Each committee described above shall use reasonable efforts to notify contributors and potential contributors that contributions to it may affect the ability of a redeveloper to enter into a redevelopment agreement.  Reasonable efforts shall include, but not be limited to, written notifications in fundraising solicitations or donor information request forms or other fundraising materials.

     e.  If a redeveloper makes a contribution that would otherwise bar it from negotiating for or entering into a redevelopment agreement or makes a contribution during the term of a redevelopment agreement in violation of this section, the redeveloper may request a full reimbursement from the recipient and, if such reimbursement is received within 60 days thereafter, the redeveloper shall again be eligible to negotiate or enter into a redevelopment agreement or shall no longer be in violation, as appropriate. 

     f.  Prior to entering into such a redevelopment agreement, a redevelopment entity shall require the redeveloper with which the redevelopment agreement is to be entered into to provide a written certification that it has not made a contribution that would bar the execution of a redevelopment agreement pursuant to this section. A redeveloper shall have a continuing duty to report to the Election Law Enforcement Commission any contribution that constitutes a violation of this section that is made during the duration of a redevelopment agreement.

     g.  As used in this section:

     "Fair and open process" means the process described in section 11 of P.L.     , c.      (C.       ) (pending before the Legislature as this bill) or, at a minimum, that the redevelopment agreement shall be: publicly advertised in newspapers or on the Internet website maintained by the public entity in sufficient time to give notice in advance of the agreement; entered into under a process that provides for public solicitation of proposals or qualifications and entered into and disclosed under criteria established in writing by the public entity prior to the solicitation of proposals or qualifications; and publicly opened and announced when awarded.  The decision of a public entity as to what constitutes a fair and open process shall be final; and

     “Redeveloper” means any person, firm, corporation, or public body that negotiates for, or enters into, a redevelopment agreement with a municipal redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, or for any construction or other work forming a part of a redevelopment or rehabilitation project, and includes any principal who owns or controls more than 10 percent of the profits or assets of a redeveloper or 10 percent of the stock in the case of a redeveloper that is a corporation for profit, as appropriate.1

 

     122.  Section 22 of P.L.1971, c.362 (C.20:4-22) is amended to read as follows:

     22.  The provisions of this act shall not apply to the State Department of Transportation or the New Jersey Transit Corporation; provided, however, that the State Department of Transportation and the New Jersey Transit Corporation shall supplement its existing relocation assistance program designed to minimize the hardships of persons and business concerns displaced as a result  of the acquisition by said State Department of Transportation and the New Jersey Transit Corporation of any real  property for a public use, by July 1, 1972. Said supplemented program shall be in compliance with the rules and regulations of the Federal Highway Administration and the Federal Transit Administration relating to relocation assistance so as to fully qualify the Department of Transportation and the New Jersey Transit Corporation for Federal aid reimbursement and to equal or exceed the requirements of this statute.  For purposes of coordinating and  formulating uniform relocation programs of the State, the Commissioner of  Transportation shall consult with the Commissioner of the Department of  Community Affairs in order that said relocation assistance program will be in  general conformity with any rules and regulations promulgated by the  Commissioner of the Department of Community Affairs pursuant to P.L. 91-646,  the Uniform Relocation Assistance and Real Property Acquisition Policies Act of  1970, and amendments thereto.

     The Commissioner of Transportation shall have the right and authority to promulgate regulations appropriate for the relocation programs of both the State Department of Transportation and the New Jersey Transit Corporation.  The Department of Transportation shall act as the lead entity with regard to relocation appeals.1

(cf: P.L.1971, c.362, s.22)

 

     1[15.] 23.1  This act shall take effect on the first day of the fourth month next following enactment.  Any final action taken by a municipality or redevelopment entity with respect to: a determination that an area is in need of redevelopment or in need of rehabilitation; enactment of a redevelopment plan; or designation of a redeveloper, prior to the effective date of this act shall have full force and effect, but any subsequent official action by the municipality or redevelopment entity after the effective date of this act shall be subject to its provisions.