Bill > A3345

Introduced Session

This bill, entitled the "Warehouse Development Control Bond Act," authorizes the issuance of $150 million in State general obligation bonds to be used to provide matching grants to municipalities to pay for the cost of purchasing the development rights of proposed warehouse sites. The Department of Environmental Protection (DEP) would establish procedures for the review and approval of, and eligibility criteria for, the grants, pursuant to section 5 of the bill. Grants would be issued according to a priority system to be developed by the DEP. The bill would establish certain conditions on the purchase of development rights, as enumerated in section 5 of the bill. For example, a municipality would be required to acquire the development rights of the property in the form of an easement that: (a) is recorded on the title of that property; (b) permanently restricts the development of the property, and provides that any subdivision of a property in agricultural use ensures that the resulting parcels are not lesser in size than the minimum size required for qualification for farmland assessment pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.) plus one acre, and that the resulting parcels remain in agricultural use; and (c) authorizes the landowner to retain all other rights and responsibilities associated with the property, including the ability to sell the property, provided that the terms of the sale are consistent with the easement, and, if the property is a farm, to farm the land without restriction and in the same manner as a farm that retains its development rights and to construct or maintain one single-family home on the farm or any subdivision thereof. The intent of allowing the subdivision of farmland for which an easement against future development has been sold is to allow smaller farms to be created with single-family housing to promote new or young farmers purchasing land that otherwise would require too much capital. The bill provides that the bond act is to be submitted to the people for approval at the general election to be held at least 70 days after enactment and appropriates $5,000 to the Department of State for expenses in connection with the publication of the public question. The development of warehouses within a host municipality often results in land use, traffic, environmental, economic, fiscal, and social equity effects in the host municipality, and may adversely impact the overall region in which the warehouse is being proposed for development. Municipalities are often faced with a choice between the development of housing, which results in a higher demand for schools and other government services without an equivalent increase in property taxes, and warehouse development, which may negatively impact the character of the municipality, as well as affecting the farming areas, open space, recreation areas, and areas of historic and cultural significance in the municipality. Frequently, this choice represents a Hobson's choice, with warehouse development representing the only option that is fiscally viable for the municipality. Thus, it is the intent of this bill to offer municipalities a program through which the municipality can purchase the development rights of a proposed warehouse site, preserving the positive fiscal benefit of the real property to the municipality, providing compensation to the landowner, and avoiding the negative consequences associated with warehouse development.

AI Summary

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Alex Sauickie (R)*, 

Introduced, Referred to Assembly Environment, Natural Resources, and Solid Waste Committee (on 01/09/2024)

Official Document