Legislators Introduce New Eminent Domain Bill
By: Henry T. Chou, Esq.
After 18 months of negotiations, Senator Ronald Rice (D-Essex) and Assemblyman John Burzichelli (D-Gloucester) have introduced a compromise bill that proposes to maintain the government's ability to condemn property for redevelopment, while attempting to reign in past practices that have been deemed abusive.
The catalyst for the proposed bill was the New Jersey Supreme Court's decision in Gallenthin v. Paulsboro in June 2007. Prior to the Gallenthin decision, many municipalities blighted properties solely on the basis that the properties were not being used for their "most optimal purpose." In the Gallenthin, the Court held that property is not “in need of redevelopment” merely because it is not being used for its most optimal purpose, but also must be found to be "deteriorated and stagnant" under the Local Redevelopment Housing Law.
In the aftermath of the Gallenthin decision, Assemblyman Burzichelli began work on a bill that aimed to safeguard property owners from abusive practices associated with eminent domain. However, that bill would not advance beyond the Senate Community and Urban Affairs Committee, which is chaired by Senator Rice, a proponent of eminent domain.
Subsequently, the two legislators worked together to create a compromise bill that was palatable to both. The bill, which was finally introduced on June 14, 2009, proposes to limit the amount of non-qualifying properties to be included in areas in need of redevelopment, limit the time for takings to occur, assess property values based on the proposed redevelopment use, and impose stricter notice and public hearing requirements on condemning entities, among other measures.
It is anticipated that the Legislature will vote on the bill when it reconvenes in the fall.