REPLACE TITLE TO READ:

      AN ACT concerning redevelopment and eminent domain, amending ¹P.L.1971, c.361 and¹ P.L.1975, c.291, and amending and supplementing P.L.1992, c.79.

REPLACE SECTION 2 TO READ:

      2.  Section 3 of P.L.1992, c.79 (C.40A:12A-3) is amended to read as follows: 

      3.  As used in this act:

      “Bonds” means any bonds, notes, interim certificates, debentures or other obligations issued by a municipality, county, redevelopment entity, or housing authority pursuant to this act. 

      “Comparable affordable replacement housing” means housing offered to households being displaced as a result of a redevelopment project, that is affordable to that household as defined by the Council on Affordable Housing in the Department of Community Affairs, and that is comparable to the household’s dwelling in the redevelopment area with respect to the size and amenities of the dwelling unit, the quality of the neighborhood, and the level of public services and facilities offered by the municipality in which the redevelopment area is located.

      “Detrimental to the safety, health, or welfare of the community” means objective evidence of detriment, ¹[including, but not limited] consisting of or similar¹ to¹[,] :¹ substantial building or health code violations¹[, excessive police activity,] ; a repeated need for police intervention over an extended period of time; or¹ a lack of structural integrity¹[, or a continuing exterior appearance that degrades the surrounding properties]¹.  For commercial properties, the objective evidence of detriment also may include a lack of proper utilization of the land or structures ¹[that leads to] resulting in conditions that are¹ stagnant ¹[or] and¹ not fully productive ¹[condition of the land]¹.

      “Development” means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mining, excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.). 

      “Governing body” means the body exercising general legislative powers in a county or municipality according to the terms and procedural requirements set forth in the form of government adopted by the county or municipality. 

      “Housing authority” means a housing authority created or continued pursuant to this act. 

      “Housing project” means a project, or distinct portion of a project, which is designed and intended to provide decent, safe and sanitary dwellings, apartments or other living accommodations for persons of low and moderate income; such work or undertaking may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, educational, welfare or other purposes.  The term “housing project” also may be applied to the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith. 

      “Persons of low and moderate income” means persons or families who are, in the case of State assisted projects or programs, so defined by the Council on Affordable Housing in the Department of Community Affairs, or in the case of federally assisted projects or programs, defined as of “low and very low income” by the United States Department of Housing and Urban Development. 

      “Public body” means the State or any county, municipality, school district, authority or other political subdivision of the State. 

      “Public housing” means any housing for persons of low and moderate income owned by a municipality, county, the State or the federal government, or any agency or instrumentality thereof. 

      “Publicly assisted housing” means privately owned housing which receives public assistance or subsidy, which may be grants or loans for construction, reconstruction, conservation, or rehabilitation of the housing, or receives operational or maintenance subsidies either directly or through rental subsidies to tenants, from a federal, State or local government agency or instrumentality. 

      “Real property” means all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise, and indebtedness secured by such liens. 

      “Redeveloper” means any person, firm, corporation or public body that shall enter into or propose to enter into a contract with a municipality or other redevelopment entity for the redevelopment or rehabilitation of an area in need of redevelopment, or an area in need of rehabilitation, or any part thereof, under the provisions of this act, or for any construction or other work forming part of a redevelopment or rehabilitation project. 

      “Redevelopment” means clearance, replanning, development and redevelopment; the conservation and rehabilitation of any structure or improvement, the construction and provision for construction of residential, commercial, industrial, public or other structures and the grant or dedication of spaces as may be appropriate or necessary in the interest of the general welfare for streets, parks, playgrounds, or other public purposes, including recreational and other facilities incidental or appurtenant thereto, in accordance with a redevelopment plan. 

      “Redevelopment agency” means a redevelopment agency created pursuant to subsection a. of section 11 of P.L.1992, c.79 (C.40A:12A-11) or established heretofore pursuant to the “Redevelopment Agencies Law,” P.L.1949, c.306 (C.40:55C-1 et seq.), repealed by this act, which has been permitted in accordance with the provisions of this act to continue to exercise its redevelopment functions and powers. 

      “Redevelopment area” or “area in need of redevelopment” means an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) or determined heretofore to be a “blighted area” pursuant to P.L.1949, c.187 (C.40:55-21.1 et seq.) repealed by this act, both determinations as made pursuant to the authority of Article VIII, Section III, paragraph 1 of the Constitution. [A redevelopment area may include lands, buildings, or improvements which of themselves are not detrimental to the public health, safety or welfare, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they are a part.] 

      “Redevelopment entity” means a municipality or an entity authorized by the governing body of a municipality pursuant to subsection c. of section 4 of P.L.1992, c.79 (C.40A:12A-4) to implement redevelopment plans and carry out redevelopment projects in an area in need of redevelopment, or in an area in need of rehabilitation, or in both. 

      “Redevelopment plan” means a plan adopted by the governing body of a municipality for the redevelopment or rehabilitation of all or any part of a redevelopment area, or an area in need of rehabilitation, which plan shall be sufficiently complete to indicate its relationship to definite municipal objectives as to appropriate land uses, public transportation and utilities, recreational and municipal facilities, and other public improvements; and to indicate proposed land uses and building requirements in the redevelopment area or area in need of rehabilitation, or both. 

      “Redevelopment project” means any work or undertaking pursuant to a redevelopment plan; such undertaking may include any buildings, land, including demolition, clearance or removal of buildings from land, equipment, facilities, or other real or personal properties which are necessary, convenient, or desirable appurtenances, such as but not limited to streets, sewers, utilities, parks, site preparation, landscaping, and administrative, community, health, recreational, educational, and welfare facilities. 

      “Rehabilitation” means an undertaking, by means of extensive repair, reconstruction or renovation of existing structures, with or without the introduction of new construction or the enlargement of existing structures, in any area that has been determined to be in need of rehabilitation or redevelopment, to eliminate substandard structural or housing conditions and arrest the deterioration of that area. 

      “Rehabilitation area” or “area in need of rehabilitation” means any area determined to be in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14). 

(cf: P.L.1992, c.79, s.3) 

REPLACE SECTION 4 TO READ:

      4.   Section 5 of P.L.1992, c.79 (C.40A:12A-5) is amended to read as follows:

      5.   A delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in section 6 of P.L.1992, c.79 (C.40A:12A-6), the governing body of the municipality by [resolution] ordinance concludes that within the delineated area any of the following conditions is found: 

      a.   The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions. 

      b.   The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so great a state of disrepair as to be untenantable. 

      c.   (1) Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or

      (2) unimproved vacant land that has remained so for a period of ten years prior to adoption of the [resolution] ordinance, and that by reason of its location, remoteness, ¹environmental contamination,¹ lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil,

      is not likely to be developed through the instrumentality of private capital and is determined to be detrimental to the safety, health, or welfare of the community. 

      d.   Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, [faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout,] or any combination of these or [other factors,] similar conditions are determined to be detrimental to the safety, health, [morals,] or welfare of the community.

      e.   A [growing lack or total] ¹[lack of proper utilization of areas] deterioration in the condition of the property¹ caused by ¹[the condition of the title,]¹ diverse ownership of the real property ¹[therein]¹ or other conditions ¹of title¹, [resulting in a stagnant or not fully productive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare] which, by virtue of these factors are determined to be detrimental to the safety, health, or welfare of the community. 

      f.    Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or other casualty in such a way that the aggregate assessed value of the area has been materially depreciated. 

      g.   In any municipality in which an enterprise zone has been designated pursuant to the “New Jersey Urban Enterprise Zones Act,” P.L.1983, c.303 (C.52:27H-60 et seq.) the execution of the actions prescribed in that act for the adoption by the municipality and approval by the New Jersey Urban Enterprise Zone Authority of the zone development plan for the area of the enterprise zone shall be considered sufficient for the determination that the area is in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) for the purpose of granting tax exemptions within the enterprise zone district pursuant to the provisions of P.L.1991, c.431 (C.40A:20-1 et seq.) or the adoption of a tax abatement and exemption ordinance pursuant to the provisions of P.L.1991, c.441 (C.40A:21-1 et seq.). The municipality shall not utilize any other redevelopment powers within the urban enterprise zone unless the municipal governing body and planning board have also taken the actions and fulfilled the requirements prescribed in P.L.1992, c.79 (C.40A:12A-1 et al.) for determining that the area is in need of redevelopment or an area in need of rehabilitation and the municipal governing body has adopted a redevelopment plan ordinance including the area of the enterprise zone.

      h.  [The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation.]  (Deleted by amendment, P.L.    , c.     .) (pending before the Legislature as this bill)

      i.  Parcels, either vacant or developed, which have remained vacant or substantially underutilized for a period of 24 consecutive months due to environmental issues associated with such parcels’ historic use.

      In addition to parcels included in a delineated area under this section, an area in need of redevelopment may include other parcels containing lands, buildings, or improvements which of themselves are not detrimental to the safety, health, or welfare of the community, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they are a part; provided, however that such parcels, in the aggregate, shall not comprise in excess of 20% of the land mass of such area to be designated as available for private ownership.

(cf: P.L.2003, c.125, s.3)

REPLACE SECTION 5 TO READ:

      5.   Section 6 of P.L.1992, c.79 (C.40A:12A-6) is amended to read as follows:

      6.   a. (1) No area of a municipality shall be determined a redevelopment area unless the governing body of the municipality shall, by resolution, authorize the planning board to undertake a preliminary investigation to determine whether the proposed area is a redevelopment area according to the criteria set forth in section 5 of P.L.1992, c.79 (C.40A:12A-5).  A ¹[redeveloper] private entity¹ shall not conduct or fund any part of the investigation.  Such determination shall be made after public notice and public hearing as provided in subsection b. of this section.  The governing body of a municipality shall assign the conduct of the investigation and hearing to the planning board of the municipality. 

      (2) In the case of any area of a municipality that is more than 10 acres in area, or that contains more than 100 occupied dwelling units or more than 50 operating business premises, the governing body shall hold a public informational meeting prior to adoption of the resolution authorizing the planning board to undertake a preliminary investigation as set forth in this section.  Notice of the public informational meeting shall be as in paragraph (3) of subsection b. of this section, except that notice to individual property owners and tenants shall not be required.

      b.   (1) Before proceeding to a public hearing on the matter, the planning board shall prepare a map showing the boundaries of the proposed redevelopment area and the location of the various parcels of property included therein.  There shall be appended to the map a statement setting forth the basis for the investigation. 

      (2)  The planning board shall specify a date for and give notice of a hearing for the purpose of hearing persons who are interested in or would be affected by a determination that the delineated area is a redevelopment area.

      (3)  (a) The hearing notice shall set forth the general boundaries of the area to be investigated and state that a map has been prepared and can be inspected at the office of the municipal clerk.  The notice shall be written in a simple, clear, understandable, and easily readable way.  The notice shall state that the governing body is considering designating the area as a redevelopment area and that a consequence of this designation is that the governing body would have the authority to condemn property located within the area pursuant to the procedures in the "Eminent Domain Act of 1971,"  P.L.1971, c.361 (C.20:3-1 et seq.).  A copy of the notice shall be published in a newspaper of general circulation in the municipality once each week for two consecutive weeks, and the last publication shall be not less than ten days prior to the date set for the hearing.  If the municipality has an Internet web site, the notice shall be posted thereon.  A copy of the notice shall also be posted in such other places within or proximate to the proposed redevelopment area as may be available and appropriate.  A copy of the notice shall be [mailed] sent by certified or regular mail by the municipal clerk at least [ten] 14 days prior to the date set for the hearing to the last owner, if any, of each parcel of property, and to any legal tenant of a residential rental dwelling unit within the area according to the assessment records of the municipality.  The municipal clerk shall make a diligent effort to ascertain the names and addresses of legal tenants of rental dwelling units by contacting the legal owner of the rental property or a management company identified by such owner, but if unable to do so shall have a copy of the notice posted on properties known to be rental dwelling units.  A notice shall also be sent by the municipal clerk to all persons at their last known address, if any, whose names are noted on the assessment records as claimants of an interest in any such parcel.  The assessor of the municipality shall make a notation upon the records when requested to do so by any person claiming to have an interest in any parcel of property in the municipality.  The notice shall be published and mailed by the municipal clerk[, or by such clerk or official as the planning board shall otherwise designate].  Failure to mail any such notice shall not invalidate the investigation or determination thereon.

      (b)  Prior to the hearing, a copy of all documents relevant to the determination that an area is in need of redevelopment shall be available for public inspection, and if the municipality has an Internet web site, they shall be posted thereon.

      (4)  At the hearing, which may be adjourned from time to time, the planning board shall hear all persons who are interested in or would be affected by a determination that the delineated area is a redevelopment area. All testimony provided at the hearing shall be under oath or affirmation.  The hearing shall be recorded and transcription of the full content of the hearing shall be made available to the public.  All objections to such a determination and evidence in support of those objections, given orally or in writing, shall be received and considered and made part of the public record.  All persons who would be affected by a determination that the delineated area is a redevelopment area shall be allowed to bring witnesses to provide evidence relevant to the determination that the area is in need of redevelopment, and shall be allowed to submit written questions which shall be posed by the planning board to the witness or witnesses to whom they are directed if the planning board deems the question relevant.

      (5)  (a) After completing its hearing on this matter, the planning board shall recommend that the delineated area, or any part thereof, be determined, or not be determined, by the municipal governing body to be a redevelopment area.  Prior to making any determination that an area is in need of redevelopment, the planning board shall review, in light of the conditions of the area and the purposes of the redevelopment, whether designation of the area as an area in need of rehabilitation, or some other strategy of rehabilitation, preservation, or neighborhood improvement, may represent a more appropriate means of addressing the conditions of the area and the purposes of the redevelopment.  The report of the planning board shall set forth explicitly the reasons for its determination that such other strategies are less appropriate, and that the area should be designated in need of redevelopment.  The report shall also include an inventory of the environmental, historical, and cultural assets in the delineated area.

      (b) After receiving the recommendation of the planning board, the municipal governing body may adopt [a resolution] an ordinance determining that the delineated area, or any part thereof, is a redevelopment area.  [Upon the] Prior to final adoption of [a resolution] the ordinance, the clerk of the municipality shall, forthwith, transmit a copy of the [resolution] ordinance to the Commissioner of Community Affairs for review. If the area in need of redevelopment is not situated in an area in which development or redevelopment is to be encouraged pursuant to any State law or regulation promulgated pursuant thereto, the [determination] ordinance shall not [take effect] be finally adopted without first receiving the review and the approval of the commissioner.  If the commissioner does not issue an approval or disapproval within 30 calendar days of transmittal by the clerk, the determination shall be deemed to be approved and the ordinance may be finally adopted.  If the area in need of redevelopment is situated in an area in which development or redevelopment is to be encouraged pursuant to any State law or regulation promulgated pursuant thereto, then the determination shall take effect after the clerk has transmitted a copy of the [resolution] ordinance to the commissioner.  The determination, if supported by ¹[substantial] a preponderance of the¹ evidence and, if required, approved by the commissioner, shall be binding and conclusive upon all persons affected by the determination.  [Notice of the determination shall be served, within 10 days after the determination, upon each person who filed a written objection thereto and stated, in or upon the written submission, an address to which notice of determination may be sent.]

      (6)  [If written objections were filed in connection with the hearing, the municipality shall, for 45 days next following its determination to which the objections were filed, take no further action to acquire any property by condemnation within the redevelopment area.]  (Deleted by amendment, P.L.     , c.    .) (pending before the Legislature as this bill)

      (7)  [If a person who filed a written objection to a determination by the municipality pursuant to this subsection shall, within 45 days after the adoption by the municipality of the determination to which the person objected, apply to the Superior Court, the court may grant further review of the determination by procedure in lieu of prerogative writ; and in any such action the court may make any incidental order that it deems proper.] (Deleted by amendment, P.L.     , c.    .) (pending before the Legislature as this bill)

      (8)  Notice of final adoption of an ordinance making a determination shall be served, within 10 days after the final adoption of the ordinance making such determination, upon each person who received notice of the public hearing in accordance with paragraph (3) of subsection b. of this section in the same manner as provided therein.  The notice shall inform the recipient of the right to appeal the designation and shall provide the recipient with the relevant deadlines for filing an appeal.  Additionally, notice of final adoption of an ordinance making a determination shall be published in the official newspaper of the municipality, together with the date of the first publication of such notice and also a statement that any action or proceeding of any kind or nature in any court questioning the validity of the adoption of the ordinance or the determination contained therein, shall be commenced within ¹[45] 60¹ days after the first publication of such notice.

      (9) The municipality shall not finally adopt an ordinance adopting a redevelopment plan in accordance with section 7 of P.L.1992, c.79 (C.40A:12A-7) until 60 days have passed since the ordinance making a determination under this section has been finally adopted.

      c.  An area determined to be in need of redevelopment pursuant to this section shall be deemed to be a “blighted area” for the purposes of Article VIII, Section III, paragraph 1 of the Constitution.  If an area is determined to be a redevelopment area and a redevelopment plan is adopted for that area in accordance with the provisions of this act, the municipality is authorized to utilize all those powers provided in section 8 of P.L.1992, c.79 (C.40A:12A-8). 

      ¹d.  In order to continue an area in need of redevelopment designation, ten years following the adoption of blight designation or ten years following the final adoption of the redevelopment plan, whichever occurs later, not to exceed a period of 15 years following the initial blight designation adoption, the municipality shall continue the designation through the adoption of an ordinance affirming that the conditions supporting the designation are still present or that substantial progress has been made on the implementation of the redevelopment plan.¹

(cf: P.L.2003, c.125, s.4)

REPLACE SECTION 7 TO READ:

      7.   Section 8 of P.L.1992, c.79 (C.40A:12A-8) is amended to read as follows:

      8.   Upon the adoption of a redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7), the municipality or redevelopment entity designated by the governing body may proceed with the clearance, replanning, development and redevelopment of the area designated in that plan.  In order to carry out and effectuate the purposes of this act and the terms of the redevelopment plan, the municipality or designated redevelopment entity may: 

      a.   Undertake redevelopment projects, and for this purpose issue bonds in accordance with the provisions of section 29 of P.L.1992, c.79 (C.40A:12A-29). 

      b.   Acquire property pursuant to subsection i. of section 22 of P.L.1992, c.79 (C.40A:12A-22). 

      c.   Acquire, by condemnation, any land or building which is necessary for the redevelopment project, pursuant to the provisions of the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.); provided, however, that for properties to be acquired under the terms of an agreement entered into after the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the valuation of such properties shall take into account the uses permitted for such property under the redevelopment plan and shall be based on the date the municipality files the declaration of taking or the date of adoption of the redevelopment plan, whichever yields the higher valuation.  For residential properties, if neither of these two valuations is equal to or more than the “replacement value” of the home, then the valuation of such properties must be at least the “replacement value” of the home, which shall be defined as the approximate value of a home of similar size and quality under comparable conditions, within the municipality and within a reasonable distance of the property being condemned.  Furthermore, persons displaced pursuant to implementation of a redevelopment plan shall be entitled to all rights and benefits provided under the Uniform Transportation Replacement Housing and Relocation Act, P.L.1972, c.47 (C.27:7-72 et seq.), and rules and regulations adopted in accordance thereof.

      d.   Clear any area owned or acquired and install, construct or reconstruct streets, facilities, utilities, and site improvements essential to the preparation of sites for use in accordance with the redevelopment plan. 

      e.   Prepare or arrange by contract for the provision of professional services and the preparation of plans by registered architects, licensed professional engineers or planners, or other consultants for the carrying out of redevelopment projects. 

      f.    Arrange or contract with public agencies or redevelopers for the planning, replanning, construction, or undertaking of any project or redevelopment work, or any part thereof; negotiate and collect revenue from a redeveloper to defray the costs of the redevelopment entity, including where applicable the costs incurred in conjunction with bonds, notes or other obligations issued by the redevelopment entity, and to secure payment of such revenue; as part of any such arrangement or contract, provide for extension of credit, or making of loans, to redevelopers to finance any project or redevelopment work, or upon a finding that the project or redevelopment work would not be undertaken but for the provision of financial assistance, or would not be undertaken in its intended scope without the provision of financial assistance, provide as part of an arrangement or contract for capital grants to redevelopers; and arrange or contract with public agencies or redevelopers for the opening, grading or closing of streets, roads, roadways, alleys, or other places or for the furnishing of facilities or for the acquisition by such agency of property options or property rights or for the furnishing of property or services in connection with a redevelopment area. 

      g.   Lease or convey property or improvements to any other party pursuant to this section, without public bidding and at such prices and upon such terms as it deems reasonable, provided that the lease or conveyance is made in conjunction with a redevelopment plan, and that the selection of the party has taken place subject to the provisions of section 11 of P.L.    , c.   (C.        ) (pending before the Legislature as this bill), if applicable, notwithstanding the provisions of any other law, rule, or regulation to the contrary. 

      h.   Enter upon any building or property in any redevelopment area in order to conduct investigations or make surveys, sounding or test borings necessary to carry out the purposes of this act. 

      i.    Arrange or contract with a public agency for the relocation, pursuant to the "Relocation Assistance Law of 1967," P.L.1967, c.79 (C.52:31B-1 et seq.) and the "Relocation Assistance Act," P.L.1971, c.362 (C.20:4-1 et seq.), of residents, industry or commerce displaced from a redevelopment area. 

      j.    Make, consistent with the redevelopment plan: (1) plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements; and (2) plans for the enforcement of laws, codes, and regulations relating to the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements. 

      k.   Request that the planning board recommend and governing body designate particular areas as being in need of redevelopment or rehabilitation in accordance with the provisions of this act and make recommendations for the redevelopment or rehabilitation of such areas. 

      l.    Study the recommendations of the planning board or governing body for redevelopment of the area. 

      m.  Publish and disseminate information concerning any redevelopment area, plan or project. 

      n.   Do all things necessary or convenient to carry out its powers. 

      o.   ¹(1)¹  Authorize and execute a written agreement designating a redeveloper or redevelopers to undertake a project or projects in accordance with the redevelopment plan¹[; provided, however, that if such]. The agreement may contain a provision requiring the redeveloper to reimburse the municipality for costs associated with the preliminary investigation to determine whether the proposed area is a redevelopment area as set forth in Section 6 of P.L.1992, c.79 (C.40A:12A-6).

      (2) If a¹ project or projects will involve the conveyance of land owned by the municipality or any project, 20% or more of which will be constructed upon land subject to acquisition by the municipality pursuant to the redevelopment plan, such designation shall be based upon the results of a competitive process undertaken in accordance with section 11 of P.L.    , c.   (C.        ) (pending before the Legislature as this bill).

(cf: P.L.1992, c.79, s.8)

REPLACE SECTION 12 TO READ:

      12. (New section) If any agreement between a redevelopment entity and a redeveloper shall provide for the use or potential use of eminent domain by the redevelopment entity, such agreement shall contain:

      a.   a block and lot identification of all parcels which may be subject to eminent domain at the request of the redeveloper;

      b.   a schedule of acquisition by the redeveloper; and

      c.   a provision stating that the ability of the redeveloper to ¹[request acquisition by] acquire land using¹ eminent domain shall lapse within five years of the effective date of the agreement, which provision may only be further extended by an ordinance adopted by the governing body after notice to any property owner whose rights will be directly affected by such an extension.

    ¹d.  A requirement, on the part of the redeveloper, to notify any property owner who receives a written offer from the redevelopment entity pursuant to section 6 of P.L.1971, c.361 (C.20:3-6) of the total compensation provided for in each contract of sale between the redeveloper and any property owner in the redevelopment area.  This notice, which shall be in writing,  shall be provided at the time that the written offer is presented by the redevelopment entity.¹

      All mandatory schedules and time limitations within these provisions may be subject to tolling for any contingencies set forth in the agreement.

REPLACE SECTION 14 TO READ:

      14. (New section)  a.  For all areas determined to be in need of redevelopment, the municipality shall submit to the Department of Community Affairs a map outlining the physical boundaries of the redevelopment area, the preliminary investigation report, and a copy of the ordinance making the determination.  This information shall be transmitted within 60 days of the effective date of this act for areas determined to be in need of redevelopment on or prior to the effective date of this act, or within 10 days after the area is determined to be in need of redevelopment after the effective date of this act.  ¹Every six months, the municipality shall publicly disclose, in a single document, an account of the cost of all public investments made in the redevelopment area subsequent to the designation of the area as in need of redevelopment, including, but not limited to, the granting of tax abatements or the issuance of density bonuses.¹

      b.   For all condemnations of properties that occur pursuant to subsection c. of section 8 of P.L.1992, c.79 (C.40A:12A-8), the municipality shall submit to the Department of Community Affairs record of the condemnation and the compensation provided to the property owner within 10 days of the taking.

      c.   Each year the Department of Community Affairs shall issue a report that lists the location of all areas currently determined to be in need of redevelopment in New Jersey; basic data for each area about its size, population, the status of the redevelopment plan implementation, the length of time the area has been designated as an area in need of redevelopment, ¹an account of the cost of all public investments made in the area subsequent to the designation of the area as in need of redevelopment, as set forth in subsection a. of this section,¹ the number of times eminent domain has been used in each redevelopment area, and data on compensation received by property owners, when available.  This report shall be made available to the general public upon request and on the Department of Community Affairs Internet web site.

INSERT NEW SECTION 15 TO READ:

      ¹15.  Section 6 of P.L.1971, c.361 (C.20:3-6) is amended to read as follows:

      6.  Whenever any condemnor shall have determined to acquire property pursuant to  law, including public property already devoted to public purpose, but cannot  acquire title thereto or possession thereof by agreement with a prospective  condemnee, whether by reason of disagreement concerning the compensation to be  paid or for any other cause, the condemnation of such property and the  compensation to be paid therefor, and to whom payable, and all matters  incidental thereto and arising therefrom shall be governed, ascertained and  paid by and in the manner provided by this act;  provided, however, that no  action to condemn shall be instituted unless the condemnor is unable to acquire  such title or possession through bona fide negotiations with the prospective  condemnee, which negotiations shall include an offer in writing by the  condemnor to the prospective condemnee holding the title of record to the  property being condemned, setting forth the property and interest therein to be  acquired, the compensation offered to be paid and [a reasonable disclosure of  the manner in which the amount of such offered compensation has been  calculated] a copy  of the appraisal upon which the offer has been based and which was approved by the condemnor, and such other matters as may be required by the rules.  Prior to such offer the taking agency shall appraise said property and the owner shall be given an opportunity to accompany the appraiser during inspection of the property [.  Such offer] and provide information, data or otherwise raise issues of concern to the owner relating to the valuation of the property and damages to the remainder arising from the proposed acquisition. The written offer made by a condemnor to a prospective condemnee holding record title to the property shall be served by certified mail by a private courier or in person along with a copy of the approved appraisal.  In no event shall such offer be less than the taking agency's approved appraisal of the fair market value of such property.  [A rejection of said offer or failure to accept the same within the period fixed in written offer, which shall in no case be less than 14 days from the mailing of the offer, shall] The prospective condemnee shall be afforded 45 calendar days from receipt of the written offer to review the offer and the approved appraisal upon which the offer was based, to seek clarification thereof as well as any other relevant information, to allow an opportunity to negotiate the compensation to be paid, and to request an opportunity to discuss the offer and the basis thereof with a representative of the condemnor in person.  Prior to the expiration of this 45-day period, the prospective condemnee may request, in writing, an extension of this 45-day period for a period not exceeding an additional 25 days, for a total of 70 calendar days, which shall not be denied except for good cause shown by the condemnor.  During this period, as it may be extended, the prospective condemnee may seek additional relevant information regarding the offer or regarding the project.  Within the time period, as may be extended, the condemnor shall provide reasonable and timely responses to requests for information and for explanations and shall afford an opportunity for the condemnee to meet in person on at least one occasion with a representative of the condemnor to discuss the offer and the basis thereof.  The prospective condemnee may also obtain its own appraisal and share it with the prospective condemnor and seek a review thereof by the prospective condemnor.  If the prospective condemnee rejects the  written offer of the condemnor or otherwise does not affirmatively respond to the offer, the condemnor may then send in writing by certified mail, private courier, or in person, a letter setting forth an intent to commence condemnation proceedings in the Superior Court.  Such letter, upon receipt, shall conclude bona fide negotiations between the prospective condemnor and condemnee.  A disagreement over the amount of the offer, how the offer was calculated, or the method or manner in which the property was appraised shall not constitute grounds to continue negotiations or prevent the condemnor from successfully acquiring the property through the commencement of a condemnation proceeding  and the appointment of condemnation commissioners.  Nothing in this section shall be construed as requiring a condemnor to increase the amount of an offer during the review and negotiation period.  A condemnor may file a complaint for condemnation in the manner provided by the Rules of Court anytime after expiration of the review and negotiation period provided for in this section, including any extension thereof, without the consent of the prospective condemnee, provided the condemnor is otherwise empowered to exercise the power of eminent domain and the condemnor has complied with the provisions of this section.  Proof of the delivery of a written offer  and a copy of the approved appraisal and the delivery of a letter of intent at the expiration of the negotiation period as set forth above, shall be deemed to be conclusive proof of  the inability of the condemnor to acquire the property or possession thereof  through negotiations.  When the holder of the title is unknown, resides out of  the State, or for other good cause, the court, upon application as a notice of motion as provided by the Rules of Court, may dispense with the necessity  of such negotiations.  Neither the offer, the amount thereof, nor the refusal thereof by the prospective condemnee shall be evidential in the determination of compensation.¹

(cf: P.L.1971, c. 361, s. 6)

RENUMBER SECTION 15 AS SECTION 16