Real Property & Environmental Law Alert

Real Property & Environmental Law Alert

Transactional Real Estate, Development/Redevelopment & Environmental Law

Category Archives: Development/Redevelopment

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Appellate Division Grants Leave to Appeal to Affordable Housing Decision, While Trial Courts Continue Towards Trial and Compliance Hearings

Posted in Development/Redevelopment
On April 11, 2016, the Appellate Division issued an order granting a motion by the Township of Barnegat for leave to appeal a decision by the Hon. Mark A. Troncone, J.S.C., designated Mt. Laurel judge for Ocean County, and also granted a number of motions for other municipalities from outside of Ocean County to appear as amici curiae in the case. The order returns the question of methodology – a hotly contested issue – to the Appellate Division. The counties comprising Region 4 (Mercer, Monmouth, and Ocean counties) of the Council on Affordable Housing (“COAH”) were set to be among the first to hold trials regarding the methodology for determining the municipal fair share housing obligations of municipalities. The grant of leave to appeal in the Ocean County case will necessarily delay any trial in that vicinage until the resolution of the appeal. This post briefly reviews the trial court’s decision, and the potential impact the decision to grant leave to appeal may have on pending declaratory judgment cases.… Continue Reading

Remedial Investigation Deadline Looms for New Jersey Contaminated Sites

Posted in Development/Redevelopment, Environmental & Green Issues
In less than three weeks, the statutory deadline to complete a site-wide remedial investigation (“RI”) for many contaminated sites in New Jersey will pass. Any site for which an RI has not been completed will be subject to direct oversight of the New Jersey Department of Environmental Protection (“NJDEP”), which would come with additional costs, less control over the remediation, and other burdens for responsible parties. Accordingly, responsible parties and their Licensed Site Remediation Professionals (“LSRPs”) should do everything in their power to complete an RI by the statutory deadline: May 7, 2016.… Continue Reading

Proposed Definition of “Underutilized” for Brownfield Cleanup Act Amendments Draws Many Comments

Posted in Development/Redevelopment
Numerous organizations and individuals have submitted comments on the proposed definition of “underutilized” published by the New York State Department of Environmental Conservation (NYSDEC) on March 9, 2016, pursuant to the 2015 Brownfield Cleanup Act Amendments. The Amendments require NYSDEC to propose a definition for “underutilized,” one of the few remaining ways for New York City sites to qualify for tangible property tax credits under the State’s Brownfield Cleanup Program (BCP). As such, this definition is seen by many as crucial to the continued viability of the BCP as a cleanup mechanism for brownfield properties in New York City.… Continue Reading

Howard Geneslaw and Jason Tuvel to Speak at the 2016 Land Use Update

Posted in Development/Redevelopment
Howard D. Geneslaw, a Director in the firm’s Real Property & Environmental Department and Vice Chair of the Land Use Section of the New Jersey State Bar Association, will be participating, both as a moderator and speaker, at the upcoming 2016 Land Use Update on Wednesday, February 24, 2016 in West Orange, New Jersey. Jason R. Tuvel, also a Director in the firm’s Real Property & Environmental Department and a Director of the Land Use Section, will be speaking when the same program is presented next month on March 16, 2016 in Mount Laurel, New Jersey.… Continue Reading

NJ High Court Clarifies Standard for Revocation of Direct Access to State Highway from Commercial Property

Posted in Development/Redevelopment
In its recent decision in In Re Revocation of the Access of Block #613, the New Jersey Supreme Court clarified the standard governing the revocation of direct access from a State highway to a property used for commercial purposes under the State Highway Access Management Act and the State Highway Access Management Code. The case outlines the requisite procedure for revocation of a commercial property's direct access to a State highway by the New Jersey Department of Transportation (NJDOT).… Continue Reading

No Further Extensions of New Jersey’s Permit Extension Act

Posted in Development/Redevelopment
The state legislature took no action to further extend New Jersey’s Permit Extension Act (“PEA”) during the recently concluded legislative session, which means that permits and approvals extended by the PEA’s tolling period either have expired or will expire soon. Pursuant to the terms of the act, the expiration date for most approvals covered by the PEA are tolled through June 30, 2016, with certain approvals expiring before that date, making right now the time to evaluate projects approaching construction to determine which existing approvals were extended by the PEA, the exact expiration date of such approvals, and whether further extensions are available under other laws. After such an evaluation, developers and project managers can then determine whether approval rights can be fully vested prior to their expiration date and, if not, whether an extension, amendment, or renewal of the approval is required.… Continue Reading

Settlement Update on New Jersey Tax Court’s Closely-Watched AHS Hospital Decision

Posted in Development/Redevelopment
Several months ago, this blog reported on Judge Vito Bianco’s denial of Morristown Memorial Hospital’s (the “Hospital”) property tax appeal. While this was only a Tax Court decision, it was closely-watched because it had the potential to eviscerate the property tax exemption for modern integrated hospitals, and potentially for other nonprofit organizations with complicated corporate structures or relationships.… Continue Reading

New Jersey Appellate Court Rules Redeveloper Cannot Compel Amendments to Redevelopment Plan

Posted in Development/Redevelopment
Redevelopment agreements are the tool used to memorialize the respective obligations of the redeveloper and the municipality to effectuate a redevelopment project. Often, a concept plan has been agreed upon, but changes to the site-specific zoning embodied in the redevelopment plan are necessary in order for the project to advance. In an unpublished decision earlier this year, the New Jersey Superior Court, Appellate Division, ruled in Fieldstone Associates, L.P. v. Borough of Merchantville, A-1239-13T3, that the municipality cannot be contractually compelled to adopt such amendments.… Continue Reading

Jersey City Restriction on Chain Stores and Restaurants Could be Unconstitutional

Posted in Development/Redevelopment, Litigation
Jersey City, New Jersey’s second largest city, recently passed an ordinance that restricts “formula businesses” in certain neighborhoods. The ordinance defines a “formula business” as one which is “contractually obligated” to maintain certain “standardized characteristics” such as merchandise, menu items, design, signage, and trademarks. In other words, Jersey City is seeking to limit chain restaurants and stores from opening in certain city neighborhoods.… Continue Reading

New Jersey Supreme Court Decides 62-64 Main Street, L.L.C. v. City of Hackensack, Clarifies Definition of “Blight” in Context of Redevelopment

Posted in Development/Redevelopment
On March 23, 2015, in 62-64 Main Street, L.L.C. v. City of Hackensack, the New Jersey Supreme Court determined that property does not need to have a negative effect on surrounding properties in order to be deemed “blighted.” Prior to the Court’s decision in this case, it was unclear whether a negative effect on surrounding properties was a prerequisite to a finding of blight, or simply one way to establish it. Because the New Jersey constitution allows municipalities to exercise their powers of eminent domain to redevelop blighted property, the Court’s decision could encourage more municipalities to move forward with the condemnation of property for private redevelopment.… Continue Reading

NYSDEC Hears Comments on Proposed Definition of “Underutilized”

Posted in Development/Redevelopment, Environmental & Green Issues
On July 29, 2015, the New York State Department of Environmental Conservation (NYSDEC) conducted a public hearing on its proposed definition of an "underutilized" site for purposes of the 2015 Brownfield Cleanup Act Amendments. As indicated in a prior blog, this definition is critical because being "underutilized" is one of the few ways that a New York City brownfield site can qualify for tangible property credits under the 2015 Amendments.… Continue Reading

Gibbons Advises New Jersey Future 2015 Smart Growth Award Winners

Posted in Development/Redevelopment
New Jersey Future, a non-profit, non-partisan organization focused on the promotion of responsible land use policies, has named the Military Park renovation in Newark and 18 Park in Jersey City as two of its 2015 Smart Growth honorees. Gibbons P.C. played a significant role in both of these projects. The awards were given out on Thursday, June 4 at the annual awards gala.… Continue Reading

2015 Amendments to New York State Brownfield Cleanup Program

Posted in Development/Redevelopment
After a number of failed attempts over the past several years, the New York State Legislature and Gov. Andrew Cuomo reached agreement as part of the 2015-16 state budget on sweeping amendments to the New York State Brownfield Cleanup Program (BCP). This achievement is significant in light of the scheduled expiration of tax credits under the program on December 31, 2015. The attached article published by Bloomberg BNA, reprinted with permission, and co-authored by David J. Freeman, reviews the key elements of the amended statute, evaluates their significance and identifies some of the important unresolved issues that will need to be addressed in implementing the new law.… Continue Reading

New Jersey Court Invalidates Exaction for Sidewalks

Posted in Development/Redevelopment
In a recent unpublished decision, Jerman v. Township of Berkeley, a New Jersey trial court held invalid an ordinance which required the construction of sidewalks and curbs as a condition of subdivision or site plan approval, or the payment of a fee in lieu of constructing these improvements. The decision serves as a reminder that the legal authority for municipalities to impose exactions is strictly limited as provided by statute, and requires a “rational nexus” between the project and the need for the improvement.… Continue Reading

New Jersey Supreme Court Appoints Trial Court the Venue for Affordable Housing Disputes

Posted in Development/Redevelopment
Last week, the New Jersey Supreme Court issued a green light to developers and other interested parties to eventually pursue builders’ remedy actions in New Jersey Superior Court. The decision is the latest in a battle over affordable housing that has been in and out of the courts since the Mount Laurel decision in 1975. Most recently, in September 2013, the Supreme Court overturned the Council on Affordable Housing’s (“COAH”) latest attempt at adopting affordable housing regulations and ordered COAH to adopt new regulations within five months. That period was eventually extended to November 2014. COAH, however, did not adopt new regulations. Its inaction prompted a motion in aid of litigants’ rights, whereby parties to the prior action sought to break the bureaucratic logjam. Last week’s decision, designating trial courts as the venue for affordable housing disputes, is the New Jersey Supreme Court’s solution to the logjam.… Continue Reading

Howard Geneslaw and Jason Tuvel to Speak at the 2015 Land Use Update

Posted in Development/Redevelopment
Howard D. Geneslaw, a Director in the firm’s Real Property & Environmental Department and Secretary of the Land Use Section of the New Jersey State Bar Association, will be participating, as both a moderator and speaker, at the upcoming 2015 Land Use Update on Wednesday February 25, 2015 in West Orange, New Jersey. Jason R. Tuvel, also a Director in the Gibbons Real Property & Environmental Department, will be a speaking when the same program is presented next month at the Legal Center in New Brunswick, New Jersey on March 18, 2015.… Continue Reading

No Specific Waiver, No Arbitration: Enforceability of Arbitration Provisions in New Jersey Real Estate Contracts in Doubt Following Dispenziere v. Kushner Cos.

Posted in Development/Redevelopment, Real Estate, Transactional Real Estate & Leasing
Companies doing business in New Jersey and accustomed to settling contract disputes through binding arbitration should carefully review their contracts - and carefully draft all future contracts - to ensure that each arbitration provision contains clear and unambiguous language that the parties are waiving their rights to sue in court. An arbitration clause stating that all disputes will be determined through binding arbitration, but failing to contain this explicit waiver, may not be enforceable in accordance with the recent holding by the Appellate Division in Dispenziere v. Kushner Cos.… Continue Reading
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