For those of you with more than a passing interest in the issues being addressed by your local government, you may have come across the term “redevelopment.” It is most often in addressing areas within the town that are distressed or failing and require some form of rehabilitation or repurposing. Again, this is one of those subject matters that entire books (and laws) are written to describe and explain, but I thought it a good idea to provide you with a basic understanding and a good starting point should you want to explore it more thoroughly. Here it goes….
The type of redevelopment in this
article involves private property owners and developers (known as “redevelopers”)
entering into an agreement and working with local government under a set of
laws known as the “Local Redevelopment and
Housing Law” (under N.J.S.A. 40A:12A-1 et seq) to redevelop or rehabilitate
an area in need of redevelopment.[1]
The best way I can explain this topic is to provide you with a
real-life example of an area within our community that is in the latter stages
of redevelopment under the law, 40
Enterprise Avenue (a commercial property situated in the southern portion of
the town that borders Hamilton and Trenton).
For decades this property languished with a series of
significantly deteriorated buildings (some vacant and some occupied) that proved
to be a severe fire hazard and a dangerous situation for first responders frequently
called to the site for various reasons. Simply put, it was an eyesore of epic
proportions and fell well short of what we would want for our community, and,
as a result, it was something we needed to address in some significant way.
Under the law, a “redeveloper” is defined as any person,
firm, corporation, or public body that enters into a contract with a
municipality to develop or rehabilitate an area in need.[2] To determine whether an area is “in need,” an
investigation is conducted by a qualified professional (i.e., Municipal
Planner), a properly noticed public hearing is held, and the governing body must
determine that one of the established criteria is met (under N.J.S.A.
40A:12A-5).
In the case of 40 Enterprise Avenue, the governing body found
criteria (a) of the statute had been met; the
“generality of the buildings are substandard, unsafe, unsanitary, dilapidated,
or obsolete, or possess any such characteristics, or are so lacking in light,
air, or space as to be conducive to unwholesome living or working conditions.[3]
Notably, one
of the seven criteria must be met for an area to be “in need of
redevelopment” under the law. It is not
an easy burden to meet, and such projects happen, if at all, only occasionally within
a community. Additionally, if the project is not one that the governing wants, a majority vote (3 of 5 members) will end the process very early on.
You may be wondering why the governing body gets involved in a
private issue involving private property owned by a private person or entity. The simple answer is that without local
government involvement, there is no financial pathway for a land owner or developer
to redevelop the property. As a result,
the property languishes and deteriorates…to the detriment of the community and,
most significantly, those residents and businesses nearer to the property. The local government can work with and
provide incentives to the redeveloper by entering into agreements to reduce
property taxes for a specified period of time.[4]
Local government must address these problem areas, and the law
gives the municipality the responsibility for implementing the redevelopment
plans and projects. The result is that the
local government has a significant say (and unique opportunity) in the planning
and details of the project to ensure that the community's goals are met.
For 40 Enterprise Avenue, the project involved demolishing
existing buildings and structures, remediating existing environmental conditions,
developing a warehouse/distribution center, and related improvements that included
parking, stormwater management, lighting, and landscaping improvements.[5] The project dramatically changes the character
and property for the better, and its location is warehouse appropriate. I know….. some of you will say, “We don’t
need more warehouses.” But the reality
is that local government can’t force redevelopment upon a person or
entity. It requires an agreement of the
parties (redeveloper and local government) and always includes the incentive
for realizing a profit for the redeveloper. That is just how it is, and we must
navigate the process within those foundational elements for the greater good to
our maximum benefit.
In a community like ours that is essentially built out (i.e.,
a suburban community with limited opportunities for the development of vacant
land), the redevelopment law is an essential tool for the local government to
use to fight blight, increase property values, and return languishing
commercial properties to the tax rolls.
By doing so, the local government can also better maintain the type and level
of municipal services it provides to the community without turning automatically
to increasing taxes to accomplish that goal.
[1] An
“area in need of redevelopment” is a legal term under the law that provides for
specific criteria to be present to allow the redevelopment process to take
place.
[2]
This definition is modified to apply to the process in the project I am
describing.
[3] Other
criteria were met under the statute, but I found unnecessary to detail for this
article.
[4]
These agreements are called PILOTs (Payments in Lieu of Taxes).
[5]
The full plans are here: 210929
40 Enterprise RD Plan.pdf (lawrencetwp.com)
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