New Municipal Redevelopment Law Signed into Law in New Jersey

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New Municipal Redevelopment Law Signed into Law in New Jersey

by Patrick McNamara on September 20, 2013

Gov. Chris Christie has signed legislation that will change the rules for New Jersey redevelopment projects. The new law limits municipalities’ use of eminent domain under the Local Redevelopment and Housing Law (LRHL), while also providing new alternatives.

The approved measure, A-3615, amends one of the statutory criteria to resolve the flaws articulated in Gallenthin v. Paulsboro, 191 N.J. 344 (2007). The case established that a finding of "deterioration or stagnation that has a decadent effect on surrounding property" must exist in order for an area to be determined in need of redevelopment. It further clarified that the use of eminent domain cannot be justified to acquire property solely upon the basis that it is underutilized, unless the property otherwise meets the criteria for designation under the LRHL.

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