Bill > A4502

Introduced Session

This bill would establish certain limited purchase and pricing exemptions within the context of the State's existing farmland preservation laws. As a general rule, and as clarified in the bill, any farmland development easement that is proposed to be acquired by the State Agriculture Development Committee (SADC), or by a local government unit or qualifying tax exempt nonprofit organization, for farmland preservation purposes, is to be purchased for a price that is equal to, or less than, the easement's appraised value, as determined in accordance with the appraisal procedures set forth in existing law, at subsection c. of section 8 of the "Preserve New Jersey Act," P.L.2016, c.12 (C.13:8C-50). The bill would establish certain exceptions to this general rule. Specifically, the bill would authorize State, local, or nonprofit purchasers of fee simple title to, or of a development easement on, farmland to pay a final, negotiated purchase price therefor which is in excess of the title or easement's appraised value, based on a determination that the title or easement is located on lands that are uniquely situated or are otherwise unique in character or quality, including, but not limited to, lands situated within a designated preservation area of the Pinelands or Highlands Regions of the State. Specifically, in any case where a local government unit is proposing to acquire fee simple title to, or a development easement on, farmland using constitutionally dedicated moneys in whole or in part, for a negotiated purchase price exceeding the appraised value thereof, the local government unit would be required, under the bill, to submit a copy of the proposed agreement of sale, to the governing body of the county in which the development easement is located, before the agreement is finalized and executed. The governing body would then be required, within 30 days after receipt of such proposed agreement, to adopt an ordinance approving or disapproving the execution thereof and the acquisition of the title or easement, pursuant thereto, at the enhanced and negotiated price set forth therein. Whenever the governing body of a county adopts an ordinance approving the execution of such agreement, the ordinance would be required to contain certain findings of fact, including, but not limited to, findings related to the location, size, and appraised value and proposed purchase price of the fee simple title or easement interests to be acquired, and findings identifying the unique characteristics, qualities, or location of the land on which the fee simple title or development easement is proposed to be acquired, including, but not limited to, its location within a designated preservation area, which the governing body of the county deems sufficient to justify and warrant the local government unit's acquisition of the fee simple title or development easement, pursuant to the bill's local purchase and pricing exception, at a final, negotiated purchase price exceeding the appraised value thereof. In any case where the State Agriculture Development Committee (committee) or a qualified tax exempt nonprofit organization is proposing to acquire fee simple title to, or a development easement on, farmland using constitutionally dedicated moneys in whole or in part, for a negotiated purchase price exceeding the appraised value thereof, the committee or nonprofit would be authorized to proceed with such transaction, provided that the county agriculture development board or subregional agricultural retention board having jurisdiction over the relevant farmland, as appropriate, has first held a hearing on the matter, in compliance with all public hearing and comment requirements applicable thereto. Within 30 days after the conclusion of any such hearing, the hearing board would be required to issue a hearing report identifying certain findings of fact, including, but not limited to, findings related to the location, size, and appraised value and proposed purchase price of the fee simple title or easement interests to be acquired, and findings identifying the unique characteristics, qualities, or location of such land, including, but not limited to, its location within a designated preservation area, which have been cited by the proposed State or nonprofit purchaser, and by other members of the public, as sufficient basis upon which to justify and warrant the committee's or nonprofit's acquisition of the fee simple title or development easement at a final, negotiated purchase price exceeding the appraised value thereof. The bill would specify that, at the conclusion of each such requisite hearing, the proposed State or nonprofit purchaser will be immediately and statutorily authorized to execute a finalized agreement of sale effectuating the acquisition, thereby, of such title or easement at a purchase price exceeding the appraised value thereof. The authorization provided by the bill, in this regard, would be applicable regardless of whether the hearing board has issued its findings of facts on the matter, as required by the bill's provisions. Within 30 days after the execution of any such final, negotiated sales agreement, the State or nonprofit purchaser would be required to provide a copy of the signed agreement of sale to the governing body of the county in which the farmland is situated. However, nothing in the bill's provisions would be deemed to require such State or nonprofit purchaser to obtain the approval of a hearing board, or the approval of the governing body of the county, in order to finalize and execute such an agreement of sale following the conclusion of the hearing required by the bill. In addition to the foregoing changes, the bill would also amend section 8 of P.L.2016, c.12 (C.13:8C-50), which identifies the various alternative appraisal and valuation methods that may be used by State, local, and nonprofit purchasers to determine the fair market value of fee simple title to, or a development easement on, farmland that is proposed to be acquired thereby with farmland preservation moneys, in order to clarify the first optional valuation method that is authorized to be undertaken, for such purposes, thereunder. This first valuation method currently includes the authorized use, for such purposes, of the valuation process, established at section 24 of P.L.1983, c.32 (C.4:1C-31), which is applicable in cases where farmland development easements are proposed to be acquired by county agriculture development boards. The provisions of section 8 of P.L.2016, c.12 (C.13:8C-50), however, do not similarly authorize, or in any other way reference, the appraisal process previously established at section 39 of P.L.1999, c.152 (C.13:8C-39), which is applicable to the acquisition, by qualifying tax exempt nonprofit organizations, of fee simple titles to, or development easements on, farmland. Accordingly, the bill would amend the law to clarify that either such pre-existing valuation method, respectively codified at C.4:1C-31 or at C.13:8C-39, as appropriate, may be used as the first alternative means of land valuation for the purposes of the multi-pronged appraisal process that is required to be undertaken, pursuant to section 8 of P.L.2016, c.12 (C.13:8C-50), to determine the fair market value of fee simple and lesser interests in farmland proposed to be acquired, in whole or in part, with funds dedicated for farmland preservation purposes. It is the sponsor's intent to allow the State, local governments, and nonprofit organizations to negotiate a purchase price above the appraisal for the purchase of a development easement or fee simple title for farmland preservation purposes. In many areas of the State, due to low appraisals, the loss of farmland to development has occurred because government entities cannot compete with offers by developers. This bill will level the playing field for certain farmland preservation purchases while providing the public a transparent process.

AI Summary

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Alex Sauickie (R)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 06/06/2024)

Official Document