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Bill > S1766


NJ S1766

NJ S1766
Authorizes conversion of certain office parks and retail centers to mixed-use developments.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill establishes a limited preemption from local zoning regulations for applications to convert certain office parks and retail centers that meet the eligibility requirements of the bill into mixed-used developments. A developer of a proposed project to repurpose or redevelop a retail center or office park into a mixed-use development is required to demonstrate that the retail center or office park located on the lot or land included in the application for development meets the following requirements to be deemed an eligible property: (1) the office park is at least 50,000 square feet or the retail center is at least 15,000 square feet; (2) (a) the office park or retail center has a vacancy rate of at least 25 percent for a continuous period of at least 18 months immediately preceding the application for development; or (b) the office park or retail center has suffered an economic downturn over the three-year period immediately preceding the date of the application; and (c) require that the owner of the property has made and maintained a continuous, good faith effort to redress the vacancy rate, actively rent, or actively market the property during the vacancy period set forth in the bill. The bill provides that a mixed-use development that is the subject of an application for development to convert an eligible property is to be a permitted use and is not to require a use variance if the application for development complies with certain requirements provided in the bill. The bill further provides that the municipal planning board is to approve an application to repurpose or redevelop an eligible property into a mixed-use development notwithstanding the eligible property's location in the municipality, if the project complies with the zoning requirements applicable to projects within the municipality's mixed-use zone. If the municipality has multiple mixed-use zones in its zoning ordinance, the municipality is to designate which of its mixed-use zones' regulations are to apply to mixed-use developments that meet the requirements of the bill. If the municipality's zoning ordinance does not have a mixed-use zone, a development that meets the bill's requirements is to be subject to certain other requirements provided in the bill. A project undertaken pursuant to the bill is to be eligible for long term tax exemption pursuant to the "Long Term Tax Exemption Law," P.L.1991 (C.40A:20-1 et seq.) and is to be deemed an "area in need of redevelopment" or an "area in need of rehabilitation" without consideration of the requirements of the "Local Redevelopment and Housing Law," P.L.1991, c.431 (C.40A:12A-1 et seq.). The provisions of the bill are not to prohibit or limit an applicant's ability to apply and qualify for variances, tax incentives, financing, or grants. A development project and any municipal action undertaken pursuant to the bill is to be in compliance with the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) and all other applicable municipal zoning ordinance requirements. The bill defines the term "vacancy rate" to mean the percentage of unoccupied or unused square footage in a structure or facility, compared to the total square footage of the structure or facility.

AI Summary

This bill authorizes the conversion of certain underutilized office parks and retail centers into mixed-use developments by creating a limited exemption from local zoning rules for eligible properties. To qualify, an office park must be at least 50,000 square feet or a retail center at least 15,000 square feet, and either have a vacancy rate of 25% or more for at least 18 months, or have experienced an economic downturn where expenses have exceeded revenues by 30% or more annually for three years, provided the owner has made good-faith efforts to lease or market the property. Once deemed eligible, these properties can be converted into mixed-use developments, which combine different types of uses like residential and commercial, as a permitted use without needing a special variance, as long as the project adheres to the zoning requirements of the municipality's designated mixed-use zone, or specific alternative requirements if no such zone exists. These converted developments are also eligible for long-term tax exemptions and can be considered areas in need of redevelopment or rehabilitation without meeting the usual criteria for those designations, while still allowing developers to pursue other incentives and ensuring compliance with the Municipal Land Use Law and other applicable local zoning ordinances.

Committee Categories

Housing and Urban Affairs

Sponsors (3)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)

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