This document summarizes a redevelopment forum presentation about redevelopment and rehabilitation areas. It discusses the process for designating areas in need of redevelopment and rehabilitation. It explains the criteria and powers granted in redevelopment and rehabilitation areas, such as tax exemptions, eminent domain, and zoning controls. The presentation evaluates strategies for addressing planning issues after disasters like Sandy and provides recommendations on evaluating goals, objectives, and standards in redevelopment plans.

1. March 1, 2013
Redevelopment Forum
Presented by:
Stan Slachetka, P.P., AICP
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2.  Redevelopment Areas
 The “f” Criterion
 The designation process
 Powers granted in redevelopment areas
 Rehabilitation Areas
 Process and Criteria
 Powers granted in rehabilitation areas
 Zoning Issues & Strategies
 Evaluating Planning Strategies
 Evaluation Matrix
 Time Issues—Short-term vs. Long-Term Approaches
 Redevelopment Powers—Comparison to Zoning
 Key Findings and Takeaways

3. A. Substandard Building Conditions
B. Abandonment of Commercial and Industrial Buildings
C. Public and Privately Owned Vacant Land
D. Deleterious Land Use, Faulty Design, Obsolete Layout with
Detrimental Impact
E. Growing or Total Lack of Proper Utilization due to
Condition of Title or Diversity of Ownership
F. Natural Disasters
G. Urban Enterprise Zone (tax exemptions only)
H. Consistency with Smart Growth Policies per Law or
Regulation (Added July 9, 2003)
Section 5: Local Redevelopment and Housing Law P.L. 1992, c.79 (N.J.S.A. 40:12A-1 et seq.)

4.  “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.”
Section 5: Local Redevelopment and Housing Law P.L. 1992, c.79 (N.J.S.A. 40:12A-1 et seq.)

5. F Criterion

6.  Governing Body Resolution Directing the
Planning Board to Undertake a Study
 Preparation of a Preliminary Investigation and
Report
 Public Notice
 Planning Board Hearing and Recommendation
 Governing Body Resolution Designating the
Area in Need of Redevelopment
 Review of Resolution by NJ DCA

7. Harrison Redevelopment Agency v. DeRose
398 N.J. Super 361 (App. Div. 2008)
 Notice must be given that redevelopment is a
public purpose and eminent domain may be
used to acquire property if the area is
determined to be in need of redevelopment
 To property owners in the redevelopment study
area
 Regardless of whether or not eminent domain is
contemplated
 Notice also required at time of adoption of
resolution by governing body

8.  Long-term tax exemptions/PILOTs (up to 35 years) for
new redevelopment projects
 Five-year tax abatement and exemptions to residential
and commercial property owners to upgrade and
improve their property
 Property can be conveyed to a designated redeveloper
without the need to go through a public bidding
process
 Redevelopment allocation bonds (RAB) can be issued
by a municipality to fund public improvements.
 The bonds may be repaid from PILOTs or by levying
a special assessment on the redevelopment
project.

9.  Eminent domain
 Could be used to acquire severely damaged properties
that may become abandoned by property owners.
 Can be used to clear up title issues, easements, or deed
restrictions that would prevent or hinder revitalization .
 Could be controversial and should be considered only as
a last resort if necessary.
 Economic Redevelopment and Growth (ERG) grants
 Need to adopt redevelopment plan to obtain powers

10.  50% or more of dwellings are 50 years old or
older; or
 Water and sewer utilities are 50 years old or
older and in need of repair or maintenance; or
 Presence of deteriorated or substandard
structures , and a continuing pattern of
vacancy, abandonment, or underutilization of
properties with a persistent pattern of
property tax arrearage
Local Redevelopment and Housing Law P.L. 1992, c.79 (N.J.S.A. 40:12A-1 4)

11. Governing Body Planning Board Reviews Governing Body
Refers Resolution to Resolution and Submits Adopts Resolution
Planning Board Recommendations to Designating Area
Governing Body
 Resolution also submitted to NJDCA
 All Redevelopment Powers Except Condemnation
and Long-term Tax Exemptions/PILOTS
 Powers Granted Upon Adoption of a Redevelopment
Plan

12.  An entire municipality may be designated
in need of rehabilitation
 Many municipalities have existing
rehabilitation areas
 Key powers:
 Five-year tax abatements
 Redevelopment plan can control design
of development

14.  Entire Borough designated area in need of
rehabilitation
 To provide five-year tax abatements
 No eminent domain
 Ocean Avenue proposed to be area in need of
redevelopment
 Only municipally-owned properties
 Planning Board to conduct preliminary investigation
 Exploring possibility of a private developer to come up
with plans for rebuilding the oceanfront

16.  Advisory Base Flood Elevation (ABFE) maps
 Impact on building height standards
 How building height measured—varies by
town
 Definition of floor/stories
 Impact on other related standards
 Coverage—new driveway surfaces
 Setbacks—stoops
 Need for variances
 Definition of substantially destroyed/damaged
 Use
 Principal and accessory structures

17.  Level of damage
 Areas of significant damage—Redevelopment
 Infill development or encouraging improvement of
storm-damaged properties—Rehabilitation or rely
on existing zoning
 Powers and authority
 Need for long-term tax exemptions or eminent
domain—Redevelopment
 Short-term tax abatements—Rehabilitation
 Objectives:
 Substantial control over future development—
Redevelopment or Rehabilitation
 Reconstruction of existing neighborhood fabric—
Rehabilitation or Existing Zoning

18.  Timing is Critical
 May take significant time to designate area in need
of redevelopment and adopt redevelopment plan
 Rehabilitation area designation requires less time
 Short-term Objectives and Needs
 FEMA Issues/Building Height—Zoning
 Variances/Revisions to Code—Zoning
 Five-year tax abatements—Rehabilitation
 Long-term Planning Objectives
 Redevelopment
 Hazard Mitigation Plans
 Transfer of Development Rights
 Non-contiguous cluster ordinance

24. Need to reevaluate goals and objectives & standards in plan

25.  Many areas impacted by Sandy may be designated
in need of redevelopment
 Meets “f” criterion in Section 5 of the statute
 Understand process and notice issues
 Powers and limitations
 Rehabilitation areas
 Alternative to redevelopment
 Five-year tax abatements
 Eminent domain & PILOTs not available
 Look at alternatives to redevelopment
 Level of damage
 Powers
 Objectives

26.  Time Frame
 Immediate zoning concerns vs. long-range planning
efforts
 Redevelopment process may take significant time from
designation to adoption of redevelopment plans
 Evaluate existing redevelopment and rehabilitation
areas
 May need to change plans
 Review as possible TDR Receiving Areas or as part of a
non-contiguous cluster
 Redevelopment appropriate where the area meets the
criteria and you need to use powers that are granted in
a redevelopment or rehabilitation area

27.  The Redevelopment Handbook: A Guide to
Rebuilding New Jersey’s Communities
http://njplanning.org/publications/redevelopment-handbook/
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