Eminent Domain Bill Dies in Lame Duck Session

It looks like there will be no bill passed before the end of the expiring legislative session that will impact the process for eminent domain or amend the Local Redevelopment and Housing Law.  The Star Ledger reports that Senator Ron Rice (D-Essex), the chairman of the Senate Community and Urban Affairs Committee could not move a revised version of his bill (S-1975) out of committee, as no member would second it.  Another pending bill (A-3257), which passed the Assembly during the last term, also died in committee.  As a result, it appears that there will not be enough time between now and the end of the legislative term to enact reform legislation unless a special session is called for by Senate President Dick Codey (D-Essex).

Panel rejects changes to eminent domain

Codey must call special meeting to save bill

Friday, November 30, 2007BY ROBERT SCHWANEBERG

Star-Ledger Staff

A bill to revise the procedures municipalities must follow when they take private property through eminent domain died yesterday in a Senate committee.

After hearing testimony for nearly three hours, Sen. Ronald Rice (D-Essex), the chairman of the Senate Community and Urban Affairs Committee, had to hold a revised version of his bill (S-1975) when no other committee member would agree to second it.

It was the last scheduled meeting of the committee during the lame duck legislative session that ends Jan. 8, meaning Rice’s bill is doomed unless Senate President Richard Codey (D-Essex) calls a special meeting.

Codey’s spokeswoman, Jennifer Sciortino, said, “It is uncertain at this point if there will be another meeting. We need to get these conflicting viewpoints to reach some sort of compromise.”

“I don’t believe this is going to move through lame duck,” Sen. Fred Madden (D-Gloucester), a committee member, said. “There’s too much work to do.”

Rice called the version posted yesterday a “compromise” that reflected years of hearings and negotiations, but admitted it would not please everyone.

“There is no such thing as a perfect bill on eminent domain,” Rice said.

Rice’s bill had support from the state Chamber of Commerce, Association of Realtors and Business and Industry Association, but was criticized for being both too weak and too tough.

Jersey City Mayor Jerramiah Healy said it made it so hard for municipalities to condemn property it would be “the death knell” for urban redevelopment.

“The miracle that is the Jersey City waterfront would never have occurred under this statutory scheme,” Healy said.

But Madden said, “I believe this bill actually weakens the constitutional limits set by the New Jersey Supreme Court” in a decision last June. That ruling prevented towns from seizing private property “solely because the property is not used in an optimal manner.”

Public Advocate Ronald Chen raised the same objection in a letter sent Wednesday to Rice. Chen said the bill uses “vague and open-ended phrases” in determining whether property is “blighted” and subject to eminent domain.

Sen. Leonard Connors (R-Ocean) said he wanted a far more restrictive bill, one that would allow governments to condemn property only for a “public use” such as a school or highway and not for private redevelopment.

Connors said revisions made to the bill this week had not been adequately discussed.

“I see loopholes here that I can’t really put my finger on,” Connors said.

Bill Potter, a Princeton lawyer who is co-president of Stop Eminent Domain Abuse, said, “This is a continued stalemate which I believe only the aggressive action of Gov. (Jon) Corzine is going to change. He has remained on the sidelines even though he was a strong proponent of reform as a candidate.”

Corzine’s press secretary, Lilo Stainton, said, “Clearly the Governor feels very passionate about this. He is willing to insert himself into the process.”

Robert Schwaneberg may be reached at (609) 989-0324 or rschwaneberg@starledger.com.