I. REDEVELOPMENT PLANNING DEFINED

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1 I. REDEVELOPMENT PLANNING DEFINED Redevelopment is not just constructing buildings; it ensures that residents of a community are empowered to improve their quality of life and environment as a result of sound Planning practices. Redevelopment is typically perceived as the physical placement and regulation of land uses and structures. However, redevelopment goals should also incorporate other aspects of community development such as design, preservation of historic assets, public spaces, promotion of environmental justice, environmental remediation and even issues that enhance the level of social services provided to neighborhood residents. This document discusses the need for improved redevelopment planning, key redevelopment planning concepts and a list of policies. APA- NJ will use this policy guide as a means to substantiate its position on redevelopment planning in New Jersey; both in its legal definition as well as the practice of sound and integrated land use planning. For the purposes of this guide, there are several forms of redevelopment, (with a Little r ) that is centered on re- planning efforts, zoning and private investment. The more traditional understanding of redevelopment (i.e. the Big R ), revolves around the Local Redevelopment and Housing Law (LRHL), 40A:12A- 3. It contains certain tax incentives and powers; and lastly it discusses the rehabilitation and reuse of existing structures and neighborhoods. According to the Redevelopment Handbook, A Guide to Rebuilding New Jersey s Communities; Redevelopment is defined as: A process to rebuild or restore an area in a measurable state of decline, disinvestment, or abandonment. Redevelopment may be publicly or privately initiated, but it is commonly recognized as the process governed by the Local Redevelopment and Housing Law and undertaken in accordance with a redevelopment plan adopted by a municipality. If used correctly, it can transform an underutilized or distressed area into an economically viable and productive part of the community. For the legal definition as it pertains to New Jersey, we refer to the LRHL, "Redevelopment" means: clearance, re- planning, development and redevelopment; the conservation and rehabilitation of any structure or improvement, the construction and provision for construction of residential, commercial, industrial, public or other structures and the grant or dedication of spaces as may be appropriate or necessary in the interest of the general welfare for streets, parks, playgrounds, or other public purposes, including recreational and other facilities incidental or appurtenant thereto, in accordance with the development plan.. Redevelopment makes communities viable. Financial and legal tools are used to ensure that the redevelopment process is executed sufficiently. An important component that contributes to the success of redevelopment, which is sometimes overlooked, is the presence of human capital. The fabric of a community is more a function of its residents than of the bricks and mortar. When designing your redevelopment project consider how the community functions on all levels. By doing so, investors can draw on existing resources in a neighborhood to make their projects, your projects. Additionally, maximizing the relationship between the community and the landscape builds ladders that link employers to the labor market and creates stability. Redevelopment can be an 1

2 effective tool that addresses the environmental, economic, social and physical conditions of communities in need of revitalization. II. NEED FOR IMPROVED REDEVELOPMENT PLANNING Redevelopment planning has historically been viewed as a regulatory land use tool accompanied by the local government s ability to execute its police powers to benefit the general public. Today, redevelopment planning is evolving. It is perceived as a tool that can enhance the economic climate of challenged communities supporting development in downtown districts/redevelopment areas. Additionally, redevelopment addresses NJ s growth management issues (which originated from decreased available land area and a consequent lack of future sustainable development opportunities) by amending past plans and creating new plans that call for increased density and compact development patterns. APA- NJ recognizes that planning, particularly redevelopment planning, will be used as an engine to manage and support necessary future growth. Therefore, our chapter advocates the following opinions/positions. Incorporate Value- Added Development Concepts in Plans APA- NJ believes that Value- Added Development language should be included in redevelopment plans. Redevelopment plans that embody select Smart Growth and Sustainable Development principles inevitably create comprehensive regulatory tools that offer both a measured and equitable impact on communities. For example: Include design concepts in redevelopment plans that provide illustrative options for propose redevelopment area (i.e. Transit networks, walkable communities, acceptable building scales, etc.). Integrate affordable and work force housing in design concept. Incorporate design principles that promote the development of vibrant & interactive mixed income and diverse communities (i.e. Neighborhoods containing ethnically and culturally mixed populations and assortments of particular age groups (i.e. Seniors vs. Youth)). Highlight the Importance of Public Outreach APA- NJ encourages local government and redevelopers to increase their levels of outreach and engagement efforts as a way to ensure public involvement throughout the redevelopment planning process. Communities that engage citizens and institutions to develop sustainability principles and a collective vision for the future and that apply an integrative approach to environmental, economic, and social goals are generally likely to be more successful. Below are several APA- NJ suggestions. 2

3 Establish a community meeting requirement in plans in addition to the public meeting requirement. i. Solicit input about neighborhood redevelopment projects from residents and stakeholders at community meetings in addition to Planning Board meetings. Develop and adopt noticing policy specific to redevelopment area designation/project applications. Ensure that plans address the needs of the existing population (Note: This addresses gentrification concerns). Educate the pubic about Redevelopment Planning APA-NJ promotes educating the general public on matters related to redevelopment. During public outreach sessions, often community members are provided with a brief overview of the redevelopment planning process for the first time. It is the intent of APA- NJ to establish partnerships with state and local government, planning agencies and organizations that promote sound redevelopment education. This type of collaboration can provide APA- NJ with opportunities to sponsor educational venues or develop resources for various populations in communities (i.e. Stakeholders, residents, youth groups, business owners, etc) in order to ensure that they are properly informed about initiatives that impact their neighborhoods. Some APA- NJ suggestions include the following. Host sessions that educate the public about the Designation Criteria, Just Compensation remuneration and the Relocation process. Provide guidance to local government to identify appropriate development concepts. Educate Redevelopment & Housing Authorities, Planning Board members and governing bodies about the potentially disruptive impacts of redevelopment in culturally sensitive communities. Develop a forum or tool that addresses the misperceptions and inquiries affiliated with Redevelopment Planning and other relevant topics (i.e. How is a redevelopment area selected, redeveloper designation process, etc.). Educate the Planning Board and respective governing bodies about the types and scale of development that responds to market demand. Define the Planners Role in Redevelopment Planning APA-NJ supports defining the planners role in redevelopment planning. APA- NJ realizes that public/private planners working on redevelopment projects with one another espouse to the same ethical planning principals and should therefore work together to ensure the development of a practical redevelopment plan. Several suggested role that Planners should assume in the redevelopment planning process include: 3

4 Develop sound and consistent planning standards; Adopt inclusive planning methods; Identify interim uses for designated redevelopment areas that will reconcile long- term area planning goals to the immediate needs of the community; Review redevelopment plans periodically to determine the suitability and validity of the zoning or redevelopment designation; and Ensure that any Plan amendments are incorporated into the Master Plan during the renewal period. Update and clarify the Local Enabling Legislation As redevelopment planning evolves, APA- NJ supports the clarification of the definition of blight ; the refinement of the blight criteria in the LRHL, and an amendment to the relocation practices. In our experience, proactive measures should be taken in order to negate blighted conditions and to facilitate life- altering processes for individuals and families affected by redevelopment planning. Ensure that Equitable Planning goals are addressed & satisfied in Redevelopment APA- NJ promotes advocating for equitable issues in the redevelopment planning process. Identify strategies and promote venues that use redevelopment as a tool to enhance the physical (i.e. Housing, open space, infrastructure, etc.) and social fabric (i.e. Safety, accessibility to goods & services, job creation etc.) of communities. Use redevelopment planning to address environmental justice and gentrification issues. Identify strategies that produce comprehensive revitalization. Research and recommend viable strategies that address issues faced by neighborhoods whose commercial and cultural fabric may be disrupted as a result of redevelopment activity. Identify strategies that promote diverse communities and transit friendly communities. 4

5 Use Redevelopment as a resource to support necessary Economic Development initiatives APA- NJ supports economic development and principles associated with economic sustainability as a component of redevelopment planning. Underscore the importance of redevelopment projects that create unified downtown districts. Develop and adhere to a schedule that supports sound area designation process and timely project implementation. This will ensure that redevelopment projects are feasible, inclusive and sufficiently executed. Include existing properties in conceptual plans and design schematics in order to support business owners and avoid the relocation of existing commercial establishments. Ensure that existing business owners are properly compensated when eminent domain is applied. An experienced person or agency should be identified to address all concerns, maintain appropriate records and agreements and confirm and execute final disbursements. Identify issues and strategies related to the Social Impacts of Redevelopment APA- NJ promotes the integration of social planning strategies in redevelopment plans. Redevelopment plans should include language that clearly defines the benefits and issues that land use, policy, fiscal/economic regulatory impacts will yield to a community as a result of redevelopment (i.e. How sizable blocks/acres of land will be used to benefit the public or how sizable amounts of public money will be spent on a community.). Work with CDC s, governmental and non- governmental organizations (NGOs) to promote, develop and implement training programs. Establish educational programs and resources to increase the capacity of CDC s & NGOs, where necessary. Organize and convene forums to discuss quality of life issues with residents and stakeholders. Findings should be documented and shared with proposed redevelopers. Some suggested topics of discussion include: i. Impact of policy decisions on an area ii. Access to labor services 5

6 iii. Capital facility needs and expense ramifications iv. Design issues v. Equity and exclusionary issues suffered by communities, and vi. Feasible partnership options with institutions and environmental groups to develop clear and precise equitable and environmental justice strategies relevant to a study area. Promote Partnerships APA- NJ seeks to partner with agencies, institutions, organizations, etc. that promote sound redevelopment planning practices and are supportive of redevelopment planning legislation that endorse equitable and sustainable strategies and solutions. Develop strategies or resources used to identify partnership opportunities (For example: municipal, county, state, etc.) Determine and discuss the level of impact a proposed redevelopment project may have on a designated area with neighboring municipalities. Evaluate legislative efforts against the goals of sustainable redevelopment priorities. Establish inter- governmental relationships to educate other departments about the redevelopment planning process and logistics. This effort can prevent area designation and project implementation conflicts/delays (i.e. budget, concepts/expectations, etc.). Establish partnerships with state, county regional and local redevelopment agencies/authorities to ensure uniformity in policy development and implementation. 6

7 III. KEY REDEVELOPMENT PLANNING CONCEPTS This section provides brief descriptions of common concepts associated with redevelopment planning. Following the narrative of each term, we ve identified the perceived strengths and challenges of redevelopment. Recommendations to address or improve upon the redevelopment process and/or projects are also provided. Finally, this section references pertinent redevelopment concepts identified in other legislation. The LRHL: The 1992 LRHL establishes the rules and principles by which NJ municipalities must undertake redevelopment. The law: Establishes the criteria and procedures for designating areas in need of redevelopment; Defines the roles and responsibilities of the governing body, planning board and redevelopment entity in the redevelopment process; Establishes the powers of the redevelopment entity to implement the redevelopment plan and administer redevelopment projects; Describes the contents of a redevelopment plan; Authorizes the use of eminent domain to acquire private property for redevelopment purposes; Defines the provisions of a redeveloper agreement; Outlines the procedures for establishing a redevelopment agency and housing authority; and Establishes educational and training requirements for redevelopment agency and housing authority commissioners and executive directors. Recent Case Law: Recent case law in New Jersey has validated the redevelopment process as constitutional and legally permissible. However, this same case law has required more substantive justification to the definition of blight. APA- NJ supports the court position that no longer can a net opinion serve as the basis for a blight designation. More quantitative data must support the designation, such as tax delinquencies, property value decline, code violations, and crime rates. Area in Need Designation Statutory Criteria(e) During the investigation process, an evaluation is conducted to determine whether the conditions in the delineated study area meet one or more of the statutory criteria. There are eight criteria (i.e. a through h ) identified in the LRHL. APA- NJ advocates that while these criteria are solid, ambiguity surrounding their application should be more clearly defined, such as: Criterion H: Definition for Smart Growth has never been provided and this criterion is useless without one. Although the spirit of this criterion is appreciated, we believe the criteria should not be used as the sole criterion when designating an area as blighted. Used 7

8 in conjunction with any other criteria, Criterion H should be included as support for denser, urban style redevelopment.. Area Investigation (AKA: Investigation) The LRHL establishes criteria and procedures for designating an area in need of redevelopment. In accordance with this mandate, the governing body of a municipality must authorize the planning board to conduct an investigation (i.e. Area Investigation) to determine if an area needs redevelopment. Subsequently, the Planner or a Planning Consultant prepares a comprehensive report that includes specific findings linked to the statutory criteria as per NJSA 40A:12-5 (a)- (h) on behalf of the planning board (See appendix). More specifically, this formal report includes a statement that sets forth the basis of the study, includes a map that illustrates the boundaries of the proposed redevelopment area and provides a description of the physical (i.e. Land use, building and environmental) conditions of the area. Additionally, a review of the zoning and master plan designations of the area is provided and an analysis outlining how the study area meets the LRHL statutory requirements. The findings must be presented to the municipal land use board (i.e. The Planning Board) for review and approval at a public hearing. Subsequently, a recommendation is forwarded to the governing body for adoption. We find the concept sufficient at this time. Blight Designation The LRHL defines blight as at least one of the eight (8) criteria. Care must be taken to follow not only the letter but the spirit or intent of the law. Supporting documentation justifying selection should be included in the presentation to the Planning Board and the general public. Criteria for today s blight designation are far more stringent than it has been in the past. While the law hasn t changed, case law has indicated less tolerance by the Court for designation that is not quantitatively supported. As a result, the blight designation process has to include numerous measures to support the opinion in order to sustain any legal challenge. Supporting documentation should include real estate appraisals, crime rate increase, code violations, and other quantitative statistics. Property Acquisition* 2 While most redeveloper agreements include detailed language about property acquisition, redevelopment plans reference acquisition through general descriptions of area building conditions, maps which illustrate existing and proposed land uses and charts that identify property address, block and lot information. Properties that may be subject to eminent domain must be identified in the redevelopment plan. Additionally to further justify acquisition of any property, redevelopment plans should include the following (i) Land 2 The asterisks represent future legislation or policy that APA-NJ will either support or initiate. 8

9 reconfiguration strategy that could improve a community s quality of life, (ii) A discussion of current market demands, (iii) A proposal to integrates revitalization techniques in depressed areas (i.e. Land banking, site remediation, etc.), (iv) a list of creative actions to utilize vacant land to benefit the community and (v) acceptable temporary uses for parcels until permanent redevelopment can occur. Language should be included in the redevelopment plan to discuss the general guidelines associated with property acquisition and to justify the intent of the proposed acquisition(s). Relocation* Relocation is a critical component of redevelopment. Whether you are relocating residents or businesses, care must be taken to ensure that these community members are treated fairly and equitably. The relocation law on the books today was written years ago and the standards referenced there are not appropriate for today. For example, compensation based on replacement value (as opposed to market value) will go a long way in calming neighborhood fears. Planners should have basic knowledge of the relocation process and the benefits that are available to the general public. APA- NJ also supports revision of the Relocation statue. Eminent Domain Eminent Domain is a police power exercised by a municipality or its designated redevelopment agency. It allows a municipality or the redevelopment agency to acquire private property from an owner for a public purpose with just compensation to the owner. Eminent Domain is critical to the redevelopment process; however, the use of eminent domain should be carefully weighed against many community factors. Eminent Domain can be useful against recalcitrant property owners who have either mothballed their property or have so neglected their property that the condition negatively impacts the community. At the extreme, utilizing eminent domain as a broad brush tool to acquire property without first evaluating the potential impact can have far reaching implications on the community and their reaction to the redevelopment project. Public Notice Requirement* The legislation mandates that notice of the public hearing to discuss the designation of an area in need of redevelopment must be provided twice (one time per week for two consecutive weeks). The last publication cannot be less than 10 days in advance of the public hearing date. The notice must be posted in the local newspaper or newspaper used by the municipality. Additionally, an individualized notice must be prepared and distributed by mail to the last known property owners within the proposed redevelopment area or persons who have requested notice. 9

10 In some cases, owners do not occupy the home and will therefore select not to participate in the planning process. Consequently, tenants residing in rental units/homes are thereby excluded or uninformed about the process. The LRHL does not require that certified letters be mailed to the owners. The LRHL should mandate that notice be provided via certified mail in order to ensure that owners are notified about the proposed redevelopment plan and the consequent impacts that it will have on their respective properties. This will also serve as a useful method to promote the community engagement process and to allow effected property owners sufficient time to provide comments about the plan prior to its adoption. Communication to the impacted community is critical, early and often. Receiving feedback from the community and including community representation in the planning process can smooth a potentially rocky process. Working with the community often fosters a positive working relationship with them, rather than an adversarial or confrontational relationship. When a community feels that something is being hidden from it, more often than not, it reacts negatively to redevelopment. APA- NJ promotes using social media as a supplemental resource for public noticing as well as the usage of simple, easily understood language in all notices to the public. While we recognize that the cost of noticing may be a financial hardship, APA- NJ recommends that the costs incurred as a result of the public notice process (in addition to other related costs) be included as part of justification to support a redeveloper fee or reimbursement as part of the redeveloper agreement negotiations. The Redevelopment Plan The redevelopment plan is a zoning tool used to define and implement a vision and regulate the land use of an investigated area in a municipality. The LRHL defines Redevelopment Plan as a plan adopted by the governing body of a municipality for the redevelopment or rehabilitation of all or any part of a redevelopment area, or an area in need of rehabilitation, which plan shall be sufficiently complete to indicate its relationship to definite municipal objectives as to appropriate land uses, public transportation and utilities, recreational and municipal facilities, and other public improvements; and to indicate proposed land uses and building requirements in the redevelopment area or area in need of rehabilitation, or both. Plan Adoption: The Planning Board either prepares a redevelopment plan or reviews the redevelopment plan (which may be prepared by a Planning Consultant on behalf of the Board) for consistency with the municipality s Master Plan, the County Master Plan and the State Development and Redevelopment Plan. Where inconsistencies exist, an explanation should be included. Subsequently, the Planning Board submits the Redevelopment Plan to the governing body for action. Following the introduction of an ordinance and a public hearing, the governing body adopts, by ordinance, the Redevelopment Plan. The Redevelopment Plan must include certain statutory requirements that are identified in the LRHL that can be found in 40A:12A- 7. The zoning identified in the Redevelopment Plan must be classified as superseding the existing zoning or considered an overlay zone. Superseding zoning 10

11 makes the Redevelopment Plan stronger. Additionally, the municipal zoning map must be amended to reflect the Redevelopment Area. Plan Amendment: The Redevelopment Area is regulated according to the standards set within the Redevelopment Plan. Unlike a zoning ordinance, variances from the regulations set forth in a redevelopment plan should not be permitted. Variances undermine the integrity of the Plan. If changes to a project become necessary or if exceptions to the permitted uses in a Redevelopment Area are essential, the Redevelopment Plan must be amended, via ordinance, to reflect those changes, after review by the Planning Board. APA-NJ Recommendation*: The Redevelopment Plan should have a level of flexibility however the planning board must be careful not to approve a project that isn t consistent with the vision of the community. APA- NJ supports the insertion of a deviation paragraph that allows the Planning Board to provide a waiver to a redeveloper when a minor deviation from the plan is necessary. Thereby the original intent of the plan is maintained and the City will not need to undertake Plan Amendment steps for minor changes to the Plan. Additionally, APA- NJ finds it imperative that redevelopment plans include language that quantitatively defines minor deviation (For example: 1% change in density = minor deviation). The parameters will act as a safeguard to ensure that minor deviation approvals conform to the original intent of the redevelopment plan and do not compromise the vision of the community. Redeveloper Selection* This is the stage at which a redeveloper is selected to develop an area according to the guidelines identified in the Redevelopment Plan. During this process the emphasis on redevelopment changes from plan development to plan implementation. Although the LRHL does not require that this process be competitive, a municipality or redevelopment entity typically issues a Request for Qualification (RFQ) or a Request for Proposal (RFP) to experienced redevelopers. Qualification statements or proposals are subsequently solicited from potential redevelopers and a selection is made. A municipality or redevelopment entity may also decide to select a redeveloper through a direct negotiation process (although that is not considered a fair and open process). A redeveloper must be chosen carefully. A thorough review of their fiscal, organizational capacity must be conducted. Additionally, a redeveloper should have a successful track record in completing projects commensurate with those called for in the Redevelopment Plan. Finally, the municipality and the redeveloper must be able to forge an honest, reliable and successful partnership throughout the project. Develop a system to improve communication methods with the redeveloper. More specifically, government should hold information sessions about the subject parcel(s) or area prior to and after the RFQ/P process. Following the selection process, a municipality should appoint a qualified person or team to work with the Redeveloper (and the Redevelopers Team) throughout the life of the project to remedy any issues that may compromise project success. These efforts will provide a level of transparency for all parties closely involved in the redevelopment project (i.e. Government, Redeveloper, 11

12 Funding institutions, etc.). Additionally, the establishment of a partnership will minimize the need for redeveloper agreement renegotiations and/or potential of project failure. The Redeveloper Agreement The Redeveloper s Agreement serves as a contract between the designated Redeveloper and the municipality or the city s designated redevelopment entity (which may be a Redevelopment Agency or the Local Housing Authority) to implement the Redevelopment Plan. There shall only be one redevelopment entity responsible for each redevelopment project. The Agreement is critical to an efficient implementation of the Redevelopment Plan. Therefore, a redevelopment attorney who fully understands the LRHL should craft a redeveloper agreement. The elected and administrative officials and planning staff involved in the project should fully understand the contents, implications and ramifications of the Agreement prior to onset of the implementation process in order to avoid acting against the merits of the Agreement or unnecessary project delay. Care should be taken to avoid waivers to the Redevelopment Plan. Public Participation The LRHL requires that the governing body hold two (2) public hearings (i.e. One public hearing during the designation of the Redevelopment Area and one hearing prior to the adoption of a Redevelopment Plan.). This requirement does not guarantee that a municipality will appropriately engage the community nor that affected property owners and stakeholders will participate in the redevelopment planning process. The vision and the voice of the community is often overlooked during a business as usual planning board hearing A separate effort whereby community visioning and comments can be solicited before the Plan is developed is preferable. Holding these meetings in the affected area allows the community more of an ability to participate. The exclusion of public input throughout the planning process undermines the integrity of the redevelopment plan. Tax Exemption & Abatement Laws: Five-Year Exemption & Abatement Law Municipalities can grant short- term abatements and exemptions for commercial/industrial developments, home improvements and multi- family conversions or improvements. This short term abatement/exemption can be utilized without formally designating and An Area in Need of Redevelopment, per the Local Redevelopment and Housing Law. Long Term Tax Exemption Law Municipalities can grant tax exemptions to private developers for redevelopment and housing projects. In order to utilized the Long Term Tax Exemption Law, an area must be 12

13 designated an Area in Need of Redevelopment per the Local Redevelopment and Housing Law. The aforementioned laws are redevelopment tools that have been misinterpreted. APA- NJ believes that while there are reasonable applications of the laws, a case by case cost benefit analysis should be conducted to determine the short and long term impacts of the law on the economic, environmental and physical conditions of our communities. Area in Need of Rehabilitation The LRHL defines rehabilitation as an undertaking, by means of extensive repair, reconstruction or renovation of existing structures, with or without the introduction of new construction or the enlargement of existing structures, in any area that has been determined to be in need of rehabilitation or redevelopment, to eliminate substandard structural or housing conditions and arrest the deterioration of that area. "Rehabilitation area" or "area in need of rehabilitation" means any area that has been found to be in need of rehabilitation. This mechanism can be utilized by a municipality in order to encourage improvements in an area that is showing signs of decline but does not meet the statutory criteria for redevelopment outlined within Section 5 of the LRHL. In a municipality, it is easy to notice areas that have an aging housing stock which lack maintenance or commercial properties that have vacant storefronts or lack maintenance. A municipality may have records of defaulting on tax payments by owners or even foreclosures. It is relatively simple and a determination can be made by the governing body if the area exhibits either one of the two conditions: A significant portion of structures within the area are in a deteriorated or substandard condition; there is a continuing pattern of vacancy, abandonment or underutilization of properties in the area, with a persistent arrearage of property tax payments; OR More than half of the housing stock in the delineated area is at least 50 years old or a majority of the water and sewer infrastructure in the delineated area is at least 50 years and is the need of repair or substantial maintenance. The process of designating an Area in Need of Rehabilitation is relatively simpler as no formal investigation or public hearing is required and the governing body must only adopt a resolution designating the area as such. However it is advisable that that supporting documentation for the criteria be provided. The designation of this area as such would permit a municipality to utilize all the powers of redevelopment except eminent domain. A municipality may designate either an area or even the entire town as an Area in Need of Rehabilitation. This designation is an attractive proposition when the acquisition, clearance and assemblage of properties is not required or where the rehabilitation of the existing buildings and structures is the primary objective. 13

14 This designation also allows municipalities to grant five- year tax abatements and exemptions that may encourage private property owners to rehabilitate and reinvest in their properties. It may also be used in conjunction with other redevelopment projects and initiatives as part of a comprehensive strategy. Under the State Economic Stimulus Act adopted in 2009, a Revenue Allocation District 3 can be created for an Area in Need of Rehabilitation that will allow for the issuance of tax increment financing bonds. 3 Revenue Allocation District (AKA: RAD) is a NJ s creative way to attract new businesses, retain existing ones, and improve the overall economic climate of its communities. New Jersey's Revenue Allocation District Financing Act provides municipalities with an additional tool to encourage private development by using the incremental tax or other revenue generated by a development project to finance various related infrastructure and redevelopment costs. 14

15 IV. WHERE DO WE GO FROM HERE??? Given the impacts of the existing economic climate on planning and the potential impacts of the NJ State Strategic Plan, APA- NJ feels that it is imperative that measures are identified to ensure the public is protected and their vision supported throughout the redevelopment process. Putting these goals into action requires State leaders to exercise sound decision making as specific situations arise. Throughout this section, we have identified several policies that represent our core beliefs about the future role of Redevelopment in New Jersey as well as future legislative actions that APA- NJ will either initiate or support 5. Policy 1: (Action Item) Update and clarify the Local Enabling Legislation As redevelopment planning evolves, APA- NJ supports the clarification of the definition of blight ; the refinement of the blight criteria in the LRHL, and an amendment to the relocation statute. APA- NJ believes that proactive measures should be taken in order to negate blighted conditions and to facilitate life- altering processes for individuals and families affected by redevelopment planning. Blight Further Defined: Federal law allows each state to define blight at its discretion. Instead of a standard blight definition, New Jersey, via the LRHL, provides a list of blighted criteria(e) that must exist in order for a site or parcel to be designated as a redevelopment area (See Appendix). In an effort to prevent ambiguity, APA- NJ proposes to further define blight as the physical, social, economic and environmental ramifications of underutilized parcels where eminent domain is or is not contemplated. Further, the aforementioned parcels should also include underutilized brownfield sites. Finally, as another level of validation and clarity, APA- NJ advocates the inclusion of supporting blight documentation in the designation document. Refinement of LRHL Criteria (e): Recognizing that underutilization of land leads to blight and has an adverse impact on surrounding properties (especially in cases related to Brownfield development where improvements are needed on a property but the property doesn t qualify as blighted), APA- NJ encourages redevelopment in areas that are trending towards blighted conditions. Equally important is the establishment of qualifiers that justify the designation. (For example: Define the existing vs. future stability of the proposed redevelopment area as follows. Is the proposed area socially and/or economically viable? Does or will the area generate revenue? As a result of designation, could there exist a disproportionate impact to the surrounding community? ). Amendment of existing Relocation Practices: An update of the relocation statute that reflects the current economic values and costs associated with relocation is necessary. i. Recognize that the replacement value of a residential property is more equitable that strictly the fair market value. 5 Some of the Action items identified in this section were identified and fully explained in other sections of thise policy guide. 15

16 ii. Update specific legislative values to more accurately reflect current market forces; Allow for indexing (to CPI or other valuation) to ensure automatic adjustments based on current economics with having to rely on legislative changes.. Policy 2: (Action Item) Mandate to distribute Public Notice via certified mail The LRHL should mandate that notice be provided via certified mail in order to ensure that owners are notified about the proposed redevelopment plan and the consequent impacts that it will have on their respective properties. This will also serve as a useful method to promote the community engagement process and to allow effected property owners sufficient time to provide comments about the plan prior to its adoption. Policy 3: Public Notice provided to Tenants In events where an area is zoned multi- family and/or in a non- owner occupied unit scenario, Public notice should be provided to the tenants of affected properties in the most prevalent language in the area to establish the redevelopers due diligence. Policy 4: (Action Item) Amended Public Notice Resources, Sources of Revenue & Primary Language APA- NJ supports amending the public notice requirement to include the following: (i) Usage of social media tools as a supplemental resource for public noticing; (ii) Inclusion of nontechnical language in all notices to the public in order to ensure that the general public understands the contents of the notice; (iii) Public notice expense reimbursement through redeveloper agreement; and (iv) Public notices written in the language of the majority population in addition to English. Policy 5: Establish an inclusive relocation strategy and process Planners should be informed about the Relocation Process as well and be able to articulate the benefits and replacement values that are offered to the community. Policy 6: Integrate existing historic buildings, sites, and structures within redevelopment areas. Many of New Jersey s redevelopment areas are located in older neighborhoods that often contain resources that reflect the history of a community. Those historic resources often reflect a community s identity and should be respected and incorporated into any future redevelopment when possible. 16

17 Policy 7: (Action Item) Establish a timeline or phasing plan for property acquisition in redevelopment plans Property owners whose property may be taken through a redevelopment project can be left in a state of limbo if there is no schedule for the acquisiton of their homes, businesses, or land. A property owner who wishes to sell their land to a private party prior to acquisition by the municipality may not be able to find a willing purchaser given the threat of eminent domain. A set timeline for property acquisition provides for the expedient implementation and resolution. Policy 8: Redevelopment is an economic, physical, environmental and social development tool and should thereby support equitable urban initiatives. Urban in- migration is on the rise. This shift in migratory patterns to urban centers is heavily influenced by NJ s increased population and limited land area, the heightened demand for access to public and mass transportation, the change in housing preferences and the state s economic climate. Potential for economic growth lies in urban areas and their adjacent inner ring suburbs primarily because these are the principal places with existing infrastructure to support planned growth. APA- NJ advocates policies that focus growth in these areas in order to deter development from greenfields and environmentally sensitive areas. Brownfields in urban areas are developable sites that can be used to create and provide equitable opportunities for job creation and reasonably priced housing. From a planning perspective, APA NJ wants to ensure that policy is adopted that supports partnership opportunities between public private agencies that have the capacity to develop urban assets in such a way that will benefit the general public. APA- NJ wants to ensure that equitable social planning continues to exist by evenly distributing wealth to NJ s educational system. We need to develop necessary policies and resources to provide adequate funding for school systems while continuing to provide incentives for redevelopment. For example, in order to decrease the negative fiscal impacts incurred by our municipal service providers, Tax- in- Lieu agreements should not exclude school boards, libraries and contributions to the general fund. Policy 9: (Action Item) Mandate substantial community engagement measures as a component of the redevelopment plan A progressive community engagement campaign should be required in order to address the residents, investors, patrons and stakeholders of a targeted community. Planners must understand the community in which they are planning for by conducting detailed research on the physical and socio- economic conditions of the study area. Results from 17

18 charettes sessions should be included in each redevelopment plan as a way to substantiate the design regulations/recommendations identified in the plan. Policy 10: (Action Item) Allow the Planning Board to approve minor changes to Redevelopment Plan under exceptional circumstances. In an effort to preserve the merits of a Redevelopment Plan and to avoid extraordinary delays during the implementation stage (which could compromise the development of the plan and subsequent investment into the community), APA- NJ supports providing the Planning Board with the authority to approve minor changes to a redevelopment plan under exceptional circumstances. Minor changes and Exceptional circumstances must be clearly defined to prevent unforeseen abuse of regulation. Additionally, the conditions of minor changes must include quantifiable limits (i.e. 1% change in density, etc.) so that the purpose and intent of the original Redevelopment Plan is not compromised in any way. Finally, minor changes should only be allowed after all other measures have been exhausted by the developer, local government or redevelopment authority or agency. Policy 11: (Action Item) Developers must post a concept plan or site plan prior to plan adoption. Often, redevelopment plans are approved without the knowledge of the general public about the proposed plan or intention for the parcels/sites. Noticing requirements are not all- inclusive and developers are not required to progressively promote their ideas or intentions to the general public. Therefore, APA- NJ supports developing a mandate to the developer to post a placard of the concept plan or site plan in a common area Prior to Plan Adoption. Policy 12: (Action Item) Identify interim uses for parcels slated for redevelopment. Following designation, it is common for a redevelopment area to lay fallow for long periods of time. Since interim uses are not defined in redevelopment plans, the lack of development activity perpetuates underutilization of the area; consistent eyesores, and/or a various safety hazards that inevitably endanger the health and welfare of community members. Consequently, APA- NJ strongly encourages inserting a range of interim land use recommendations in the plan that contribute to the final development concepts identified in the redevelopment plan. 18

19 APPENDIX A- BLIGHT CRITERIA 40A:12A-5. LHRL DETERMINATION OF NEED FOR REDEVELOPMENT A delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in section 6 of P.L. 1992, c.79 (C.40A:12A- 6), the governing body of the municipality by resolution concludes that within the delineated area any of the following conditions is found: a. The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions. b. The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so great a state of disrepair as to be untenantable. c. Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or unimproved vacant land that has remained so for a period of ten years prior to adoption of the resolution, and that by reason of its location, remoteness, lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil, is not likely to be developed through the instrumentality of private capital. d. Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community. e. A growing lack or total lack of proper utilization of areas caused by the condition of the title, diverse ownership of the real property therein or other conditions, resulting in a stagnant or not fully productive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare. f. Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or other casualty in such a way that the aggregate assessed value of the area has been materially depreciated. g. In any municipality in which an enterprise zone has been designated pursuant to the "New Jersey Urban Enterprise Zones Act," P.L. 1983, c.303 (C.52:27H-60 et seq.) the execution of the actions prescribed in that act for the adoption by the municipality and approval by the New Jersey Urban Enterprise Zone Authority of the zone development plan for the area of the enterprise zone shall be considered sufficient for the determination that the area is in need of redevelopment pursuant to sections 5 and 6 of P.L. 1992, c.79(c.40a:12a-5 and 40A:12A-6) for the purpose of granting tax exemptions within the enterprise zone district pursuant to the provisions of P.L. 1991, c.431 (C.40A:20-1 et seq.) or the adoption of a tax abatement and exemption ordinance pursuant to the provisions of P.L. 1991, c.441 (C.40A:21-1 et seq.). The municipality shall not utilize any other redevelopment powers within the urban enterprise zone unless the municipal governing body and planning board have also taken the actions and fulfilled the requirements prescribed in P.L. 1992, c.79 (C.40A:12A-1 et al.) for determining that the area is in need of redevelopment or an area in need of rehabilitation and the municipal governing body has adopted a redevelopment plan ordinance including the area of the enterprise zone. 19