New Jersey Passes Eminent Domain Legislation

The New Jersey legislature has passed legislation somewhat restricting local governments' use of eminent domain for private redevelopment. It also creates an alternative to condemnation for redevelopment projects.

S-2447, passed 36-1, was expressly designed to codify New Jersey Supreme Court's decisions holding that the prior statutory standard for "blight" — that the property be in a "stagnant or not fully productive condition" — unconstitutional as applied. This legislation changes the requirement such that the property must be in an "unproductive condition."

The legislation also provides local governments with an option to undertake redevelopment without using the power of eminent domain. It now awaits Gov. Christie's signature.