Proposed Legislation May Have a Potential Impact on

Urban Development in New Jersey following Kelo v. New London Case

By: Martin L. Borosko, Esq., Member, Chairperson, Redevelopment

and Real Estate Group - The Law Firm of Becker Meisel, Livingston, N.J.

The Kelo v. City of New London (Kelo) decision this spring in which the U.S. Supreme Court ruled 5-4 that the use of eminent domain for purely economic development constitutes a valid public purpose, continues to generate a backlash of reactions in New Jersey . In the past several months, a number of New Jersey legislators have proposed new bills to counterbalance the decision.

The proposed bills appear to be a mixed bag. Some seem to be politically motivated while others are more of a knee-jerk reaction. However, some of the proposals seek to address valid concerns and vagaries within the existing eminent domain and redevelopment law.

Because many of New Jersey ’s largest cities are in the midst of revitalizations prompted by redevelopment initiatives, the Kelo decision is important to many in the state. W hen today’s Redevelopment Law was originally adopted, more than 25 years ago, it was meant for the rehabilitation of ‘blighted’ areas, historically defined as areas with dilapidated physical and social conditions. Now, a more aggressive use is occurring often with terrific results but also with controversies.

As a result, the proposed bills have attracted serious attention. Whether any become law remains to be seen, and the process will take time. F ollowing is an overview of what we consider to be three of the key proposals and the potential impact these bills may have on urban development in New Jersey .

Cont'd next page >>