Bills aim to ease impact of eminent domain decision

Local assemblymen co-sponsor Assembly bill (Dec. 1)

By: Lauren Burgoon
   Two bills that would severely limit towns’ rights to take residential properties for redevelopment have been introduced in the Legislature. The bills come in the aftermath of a June U.S. Supreme Court decision allowing local governments to use eminent domain to seize private property for development, even if the properties are not considered blighted.
   Two local assemblymen, Mike Panter and Robert Morgan (both D-12th), are co-sponsors of the Assembly bill. The bill would prevent condemnation for economic development on residential properties that meet all housing codes, and more clearly defines a blighted area, where governments can use eminent domain for redevelopment. Previous eminent domain laws did not provide a definition for blighted areas, allowing municipalities a broad interpretation of the condition.
   The bill also adds an extra layer of public scrutiny by requiring towns to define redevelopment areas by ordinance, rather than resolution, which requires at least one public hearing on the proposed zones.
   In the past, New Jersey municipalities generally could use eminent domain only to seize properties for roads, schools or open space — all public uses. But the 5-4 Supreme Court decision expanded the power to seizing homes for commercial development, and left open the possibility of eminent domain abuse, Mr. Panter said.
   "It is, and I don’t use this term loosely, un-American in the true sense of the word. We need to think about the impact (the ruling) has on our citizens," he said. "It would be a travesty to allow this in New Jersey. We need to recognize that the Supreme Court decision is problematic and we need to protect homeowners."
   The court’s decision means individual states will have to set parameters for eminent domain powers to lessen the ruling’s impact. Several states already have begun the process of limiting towns’ condemnation powers. The proposed laws in New Jersey would retain towns’ ability to force property sale for roads, schools and other public uses.
   The Supreme Court decision prompted many discussions about the fairness of the ruling and eminent domain in general, and Mr. Panter said he expects an "interesting debate" in the Legislature over the bills. One obstacle he anticipates facing is reluctance from Assembly members and senators who also serve as mayors.
   "They might not want to curtail their own powers as local officials," Mr. Panter said. "But hopefully they will act as legislators, not local officials, when considering the bill."
   Mr. Panter said public support for the measures, possible rallies and bipartisan sponsorship should help move the bills through the Legislature. The Assembly bill, also sponsored by two Democratic representatives from Bergen County, is matched by an identical version in the state Senate that is co-sponsored by a Republican, Diane Allen (7th). Ms. Allen is proposing a second Senate bill for a moratorium on eminent domain while a commission studies the issue.
   Yet progress has been slow as the Legislature winds down its annual session. The Senate introduced its bill in June, where it sat in committee. It was reintroduced in the Senate on Nov. 10, the same day the Assembly introduced its eminent domain bill. Both bills were referred to committees.
   Getting both bills passed before the Legislature’s term expires is an unlikely race against the clock. Only one session remains before new representatives and Gov.-elect Jon Corzine are installed in January. The bills will have to be reintroduced in the new session if they are not passed on Dec. 12. Mr. Panter said he would push to reintroduce the Assembly bill in that case.
   Gov.-elect Corzine, who likely will be in office before either of the bills is passed, "outlined a number of steps designed to curb eminent domain abuse and he looks forward to working with all interested parties to arrive at a solution to this problem," transition team spokesman Brendan Gilfillan said.
   "Eminent domain is one of many issues the transition team will be looking at over the next couple of months," he said. "The transition team will be consulting widely and studying the issue to put together a list of options to pursue."