ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1700

with committee amendments

STATE OF NEW JERSEY

DATED:  SEPTEMBER 13, 2018

      The Assembly Commerce and Economic Development Committee reports favorably and with committee amendments Assembly Bill No.

1700.

      This bill, as amended, would amend the “Local Redevelopment and Housing Law,” P.L.1992, c.79 (C.40A:12A-1 et seq.), to specify that a municipality may determine an area to be in need of redevelopment if the area contains buildings that are used as, or were previously used as, a shopping mall, a shopping plaza, or a professional office park, and the buildings have been vacant, or partially vacant with less than 50 percent occupancy, for a period of at least two years. This bill will allow municipalities to use the powers authorized under Article VIII, Section III, paragraph 1 of the State Constitution to redevelop these “stranded assets.”  By specifying that a vacant shopping mall or office park is an area in need of redevelopment, a municipality can offer potential private sector partners redevelopment tools such as tax exemptions and abatements to encourage them to repurpose these stranded assets.

      This bill was pre-filed for introduction in the 2018-2019 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed. 

COMMITTEE AMENDMENTS:

      The committee amended the bill to increase from one year to two years the period of time that buildings used, or previously used, as a shopping mall, shopping plaza, or professional office park, must have been vacant or partially vacant in order for a municipality to determine the area containing the buildings to be an area in need of redevelopment.