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