On August
9, 2019, Governor Murphy signed Bill A1700 into law, expanding the eligibility
criteria for redevelopment under the Local Development and Housing Law.
The new law allows municipalities to designate significantly vacant shopping
malls, shopping plazas, and professional office parks as areas in need of
redevelopment. Under the new law, vacancy includes buildings with less
than 50% occupancy for a period of at least one year.
Once
prominent and desirable land use types, some shopping malls and office campuses
now fail to attract the modern consumer and job seeker. More and more
people shop online and work from home, near home, or where they can easily
commute by mass transit. Retailers and corporations have recognized this
shift and moved their businesses into downtowns and buildings offering multi‑use
development projects.
The new
law recognizes that redevelopment of “stranded assets” requires more than
traditional land use planning and zoning. Designation as an area in need
of redevelopment provides municipalities and private sector developers with
more powerful tools, including tax exemptions and abatements, to effectuate a
broader, more modern, range of redevelopment projects.
Riker
Danzig has extensive experience representing developers and governments in
redevelopment projects. Currently, Riker Danzig attorneys are
representing SJP Properties in connection with its proposal to construct two
office buildings in downtown Morristown, the most consequential redevelopment
project in that town since the Headquarters Plaza Complex was built in the
70’s.
If you
would like more information, please contact someone from our Real Estate Group.
