Can Dead Shopping Centers be Brought Back to Life?
1. Can Dead Shopping Centers be Brought Back to Life?
Morris County Bar Association
March 5, 2019
2. The Panel
Lawrence B. Litwin, Esq.
Moderator
Anthony F. Della Pelle, Esq. , CRE
McKirdy, Riskin Olson & DellaPelle, PC
Joseph Gargiulo, Vice President
Andrew Rohmeyer, Vice President
Investors Bank
Matthew Krauser, CRE, FRICS
Senior Managing Director, Newmark Knight Frank
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3. Redevelopment in New Jersey since Kelo v.
New London
• More judicial scrutiny in redevelopment cases and other types of
takings
• Redevelopment is basically dead in New Jersey
• RECESSION
• Prior failed legislative reform
• A-3615/S-2447:
• “non condemnation” redevelopment: a solution?
• How the legislation came about
• Why redevelopment designation is important in the market
• Nearly unanimous support from Legislature and signed into law
in September, 2013
• Legislative declaration is strong in favor of public purpose
• Notices must be clear
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4. Redevelopment in New Jersey Since
Legislative Reform
• Dozens of towns and cities trying “Non-Condemnation
Redevelopment”
• Condemnation Redevelopment Areas also are baaaack!
• Affordable housing now intertwined
• Are property rights really more protected?
• Will abuses become more prevalent again?
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5. Are Malls and Office Parks Blighted?
• “Stranded” Assets become target of New Jersey legislative reform
• A-1309
• Would preempt from local zoning regulations applications to convert office
properties (50,000 SF or larger) or retail properties (15,000 SF or larger) into
mixed-use developments, provided that they are at least 40% vacant
• Effort to kick-start and provide tax ratables
• Stuck in committee
• A-1700/S-1583
• Would amend Local Redevelopment Housing Law
• Retail malls/centers and offices with at least 50% vacancy for at least ONE
year would qualify as blighted under statutory criteria
• Would permit eminent domain, redevelopment plan zoning and financial
incentives available in designated redevelopment areas
• Bill may be gaining momentum – out of committee – see any problems?
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