Eminent Domain - AP - State's eminent domain laws need reform, public advocate says

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State's eminent domain laws need reform, public advocate says

By BETH DeFALCO
Associated Press Writer

Thursday, May 18, 2006, 5:47 PM EDT

TRENTON, N.J. -- New Jersey's laws allowing government to take land for private redevelopment don't adequately protect the rights of tenants and property owners, the state's public advocate said Thursday.

"We must ensure the rights of New Jersey families are protected," Public Advocate Ronald Chen told the Assembly Commerce and Economic Development Committee, adding that the state's system for using eminent domain for private redevelopment needs serious reform.

Earlier Thursday, Chen's office issued a report commissioned in response to a U.S. Supreme Court ruling last year that gave wide latitude to local governments wanting to use eminent domain _ their power to seize private property _ to promote economic development.

Since the ruling, many states have tried to restrict such powers. South Dakota has outlawed the use of eminent domain for private redevelopment altogether, the report said.

While the report acknowledged the need for eminent domain to foster economic revitalization, it cautioned that the opportunities for misuse, abuse and injustice are greater "if the process is not transparent, used rarely and only in very specific circumstances."

"The use of eminent domain must be for redevelopment and must be limited to truly blighted areas," Chen said.

Some recommendations the advocate's office offered include:

_Narrowly tailoring qualifications to designate an area as blighted, which triggers the ability to use eminent domain.

_Placing on municipalities the burden of proving an area is blighted, opposed to residents having to prove the government's actions were wrong.

_Giving more notice to tenants and property owners affected by eminent domain. Currently, tenants are not entitled to any notice at all.

_Offering public participation when making the decision to seize a property.

_Allowing property owners more time to appeal.

_Allowing tenants, not just property owners, to participate in the redevelopment process.

_Paying homeowners who lose their property true market value or the replacement value of the home.

"Under current laws, a family can have its property taken but the compensation it receives may not be enough to allow that family to ever own a house in their community again," Chen said. "This is unconscionable."

Chen suggested that when low-income tenants are placed in an apartment that costs more than 30 percent of their gross income, the municipality or developer provide rental assistance for up to five years.

Timothy P. Duggan, a Princeton attorney who represents property and business owners in eminent domain disputes, commended the advocate's report but said more changes are needed, especially for business tenants. Currently, the government will pay to move them, but offers no additional assistance to make sure the business survives in its new location.

"In New Jersey, you don't get paid for the value of business, things like higher rent or the impact the move has had on your customer base," Duggan said.

Sen. Ronald Rice, chairman of the Senate Community and Urban Affairs Committee, said he was drafting legislation to establish "fair guidelines" for deciding eminent domain cases.

"Eminent domain is crucial for the redevelopment of an area, but we need to make changes to avoid abuse," said Rice, D-Essex.

Rice also said he plans to hold public hearings on eminent domain later this month and in June.

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On the Net: Advocate's Report: www.state.nj.us/publicadvocate/issues

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