SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 1583

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 17, 2019

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 1583, with committee amendments.

      As amended, this bill would revise 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 the repurposing of these stranded assets.

COMMITTEE AMENDMENTS:

      The committee amended the bill to change the vacancy requirement for buildings used or previously used as a shopping mall, shopping plaza, or professional office park from one year to two years in order for a municipality to determine the area containing the buildings to be an area in need of redevelopment.

      These amendments make this bill identical to Assembly Bill No. 1700 (1R).