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June 14, 2007

EMINENT DOMAINIA: The Garden State

Along with New York, New Jersey is considered one of the worst abusers of eminent domain in the nation.

NJEminentDomain.com, Bloomfield consents to cease eminent domain
We've been keeping a close eye on the Bloomfield case, since it's another instance in which a state's coercive power was being used for one of the nation's serial abusers of eminent domain, Atlantic Yards developer Forest City Ratner.

Back in January, Forest City walked away from the deal. Could this recent announcement be why?

The long, contentious three-year litigation over Bloomfield’s redevelopment and its attempts to secure properties by eminent domain is over. The New Jersey Superior Court entered an order approved by Essex County Assignment Judge Patricia Costello dismissing Lardieri et al v. Township of Bloomfield (ESX-L-8929-06) on the express condition that Bloomfield would not use its power of eminent domain to acquire the five plaintiffs’ properties.

The order was approved in a resolution by the Bloomfield Township Planning Board, the Mayor and Council. Both the resolution and the order establish that Bloomfield, when it selects a new developer, cannot use eminent domain to acquire private properties for the project, and the developer can acquire properties only through arms length negotiations. Most importantly, eminent domain has been removed from the developer’s arsenal.

More and more courts are reasserting private property rights in states where the legislature has preferred to bend over backwards for developers. New Jersey looks like they're the latest:

AP, via BusinessWeek.com, Court: eminent domain requires blight

The New Jersey State Supreme Court issued a blow Wednesday to the way municipalities use their power of eminent domain to acquire private land.

In an unanimous ruling, the court said that for land to be taken against the owner's wishes it must be "blighted" and not merely "not fully productive."

Bergen Record, Ruling limits use of eminent domain

The 42-page unanimous decision said that town officials cannot seize homes and businesses simply because they believe those properties can be put to better use.

"The court is giving notice that municipalities no longer have unfettered access to private property," said Harvey Pearlman, a lawyer who represents a Passaic homeowner whose house was condemned by the city without his knowledge.

The court wrestled with what constitutes blight in deciding a case from Gloucester County, where the town of Paulsboro sought to condemn a 63-acre tract made up mostly of wetlands.

Chief Justice James Zazzali wrote that Paulsboro considered blight to be property that is "stagnant or not fully productive" but could be rehabilitated.

"Under that approach, any property that is operated in a less than optimal manner is arguably 'blighted,' " he wrote. "If such an all-encompassing definition of 'blight' were adopted, most property in the State would be eligible for redevelopment."

Posted by lumi at June 14, 2007 8:49 AM