Bill

Bill > S2507


NJ S2507

NJ S2507
Enhances transparency in exercise of municipal redevelopment powers.


summary

Introduced
02/05/2024
In Committee
02/05/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill would make procedural modifications to the process through which municipalities exercise redevelopment power. First, the bill would require that municipalities act by ordinance rather than resolution in acting under the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.). This would require a more elaborate publication and hearing process than that which is required when a municipality acts by resolution. The bill enhances notification requirements under this law. Under current law, when a municipal governing body designates properties within a redevelopment area, it is required to authorize the planning board to undertake a preliminary investigation to determine whether the proposed area fulfills those criteria which the law establishes in order to be so designated. Although the current law does provide for notification when an area is to be designated, the hearing notice is only required to set forth the general boundaries of the area to be investigated and notice that the map shall be made available at the office of the municipal clerk. Property owners in the proposed redevelopment area are to be notified by regular mail, under the current law, with no information to be provided as to what a redevelopment designation means. This bill would require that the hearing notice clearly delineate the properties which are to be included in the redevelopment area and that notice to property owners be provided by certified mail. In addition, the bill requires that a Public Advisory Statement be sent to every property owner within the redevelopment area as part of the required notification and prescribes the content of this statement. The purpose of this Public Advisory Statement is to explain to property owners within the redevelopment area that municipalities are granted broad powers to facilitate economic development within redevelopment areas, which includes the power to exercise eminent domain. Additionally, the notification is designed to inform property owners of their recourse in this situation and who to contact for further information. The bill requires both the planning board and municipal governing body to hold public hearings on the redevelopment plan, which is required to be prepared before a municipality is authorized to undertake a redevelopment project under existing law. In addition, the bill requires that property owners within the designated redevelopment area be provided with certified mail notice in advance of the public hearing held by the municipal governing body. Under current law, the redevelopment plan is to be adopted by ordinance and the municipality is only required to provide that notice associated with the adoption of an ordinance under general law. Under current law, when the governing body originates the redevelopment plan, it is required to transmit a copy of the proposed redevelopment plan to the planning board for recommendations and an analysis of the consistency of that plan with the municipal master plan. The law gives the planning board 45 days within which to report back to the governing body. Given the addition of a mandatory public hearing process by this bill, this 45 day review period is extended to 90 days. Current law authorizes municipalities to lease or convey property or improvements "without public bidding and at such prices and upon such terms as it deems reasonable." By removing this exception from public bidding and vague language deferring to the municipality as to the establishment of a price for such property or improvements, this bill would require open public bidding and, thereby, the establishment of a market price through a transparent transaction process.

AI Summary

This bill enhances transparency in the process through which municipalities exercise redevelopment powers under the Local Redevelopment and Housing Law. Key provisions include: - Requiring municipalities to act by ordinance rather than resolution when designating a redevelopment area, which involves a more elaborate publication and hearing process. - Enhancing notification requirements, including requiring certified mail notice to property owners, a public advisory statement explaining redevelopment powers, and public hearings by both the planning board and municipal governing body. - Extending the planning board's review period for the redevelopment plan from 45 to 90 days. - Removing an exception that previously allowed municipalities to lease or convey property without public bidding, instead requiring open public bidding and market-based pricing. Overall, the bill aims to improve transparency and public participation in the municipal redevelopment process.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/05/2024)

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