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

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

In New Jersey , many of its largest cities are in the midst of revitalizations prompted by redevelopment initiatives. The redevelopment planning process in New Jersey , governed by the Local Redevelopment and Housing Law, takes place in a series of steps.

The first step is to designate an area as an ‘area in need of redevelopment’. 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.

The recent decision in Kelo v. City of New London, where 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 garner headlines across the nation. A number of New Jersey legislators reacted recently by proposing new bills to counterbalance the U.S. Supreme Court decision.

The proposed bills appear to be a mixed bag. Some appear to be politically motivated. Some simply a knee-jerk reaction, and some seek to address valid concerns and vagaries within the existing eminent domain and redevelopment law. Whether any of the proposed bills become law remains to be seen, and the process will take time. At this time, three of t he bills are gaining serious attention. The f ollowing is an overview of and the potential impact these bills may have on urban development in New Jersey .

Cont'd next page >>