ASSEMBLY, No. 4089
STATE OF NEW JERSEY
INTRODUCED MAY 12, 2005
Assemblyman JOHN S. WISNIEWSKI
District 19 (Middlesex)
Assemblyman JOHN J. BURZICHELLI
District 3 (Salem, Cumberland and Gloucester)
Requires contamination be considered in property valuation in condemnation proceeding.
CURRENT VERSION OF TEXT
(Sponsorship Updated As Of: 6/14/2005)
An Act concerning valuation of contaminated property in condemnation, and supplementing P.L.1971, c.361 (C.20:3-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. In determining the amount of compensation to be paid by the condemnor pursuant to section 29 of P.L.1971, c.361 (C.20:3-29), the commissioners, or the court, as applicable, shall, in calculating the fair market value of the property, take into account the presence of contamination on the property and the impact, if any, on the fair market value of the property caused by the contamination in determining just compensation.
As used in this section, "contamination" shall have the same meaning as defined in section 3 of P.L.1976, c.141 (C.58:10-23.11b).
2. This act shall take effect immediately and shall be applicable to any action to condemn pending on or after the effective date of this act.
This bill would provide that in a condemnation action, in determining the compensation to be paid for the condemned property, the commissioners, or the court, as applicable, shall take into account the existence of environmental contamination in establishing the fair market value of the property. This bill would effectively undo the New Jersey Supreme Court's approach to the valuation of contaminated property in condemnation as articulated in Housing Auth. of City of New Brunswick v. Suydam Invs., 177 N.J.2 (2003). The bill provides that its provisions would be applicable to any action to condemn that is filed after the effective date of the act.