Bill Text: NJ A1226 | 2024-2025 | Regular Session | Introduced
Bill Title: Authorizes counties and certain boards to acquire unpreserved lands in agricultural development areas for use by agricultural support businesses, and to sell or lease county-owned lands in such areas to such businesses at reduced price.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A1226 Detail]
Download: New_Jersey-2024-A1226-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Authorizes counties and certain boards to acquire unpreserved lands in agricultural development areas for use by agricultural support businesses, and to sell or lease county-owned lands in such areas to such businesses at reduced price.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the acquisition, sale, and lease, by counties, of certain unpreserved lands situated in agricultural development areas, and amending and supplementing P.L.1983, c.32 and Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1983, c.32 (C.4:1C-13) is amended to read as follows:
3. As used in [this act] P.L.1983, c.32 (C.4:1C-11 et seq.) and P.L. , c. (C. ) (pending before the Legislature as this bill):
a. "Agricultural development [areas] area" means [areas] any area identified by a county agricultural development board pursuant to the provisions of section 11 of [this act] P.L.1983, c.32 (C.4:1C-18) and certified by the State Agriculture Development Committee[;].
b. "Agricultural use" means the use of land for common farmsite activities, including but not limited to: production, harvesting, storage, grading, packaging, processing and the wholesale and retail marketing of crops, plants, animals and other related commodities and the use and application of techniques and methods of soil preparation and management, fertilization, weed, disease and pest control, disposal of farm waste, irrigation, drainage and water management, and grazing[;].
c. "Board" means a county agriculture development board established pursuant to section 7 of P.L.1983, c.32 (C.4:1C-14), or a subregional agricultural retention board established pursuant to section 10 of [this act;] P.L.1983, c.32 (C.4:1C-17).
d. "Committee" means the State Agriculture Development Committee established pursuant to section 4 of the "Right to Farm Act," P.L. 1983, c. 31 (C. 4:1C-4)[;].
e. "Cost," as used with respect to cost of fee simple absolute title, development easements or soil and water conservation projects, includes, in addition to the usual connotations thereof[,]; any interest or discount on bonds; the cost of bond issuance [of bonds]; the cost of inspection, appraisal, legal, financial, and other professional services, estimates and advice; and the cost of organizational, administrative and other work and services, including salaries, supplies, equipment and materials necessary to administer [this act;] P.L.1983, c.32 (C.4:1C-11 et seq.).
f. "Development easement" means an interest in land, less than fee simple absolute title thereto, which enables the owner to develop the land for any nonagricultural purpose as determined by the provisions of [this act;] P.L.1983, c.32 (C.4:1C-11 et seq.) and any relevant rules or regulations promulgated pursuant hereto[;].
g. "Development project" means any proposed construction or capital improvement for nonagricultural purposes[;].
h. "Farmland preservation program" or "municipally approved farmland preservation program" [(hereinafter referred to as] or "municipally approved program[)]" means any voluntary program, [the] established pursuant to section 14 of P.L.1983, c.32 (C.4:1C-21), which has a duration of [which is] at least 8 years, is authorized by law enacted subsequent to the effective date of the "Farmland Preservation Bond Act of 1981," P.L. 1981, c. 276, [which] and has, as its principal purpose, ensuring both the long-term preservation of significant masses of reasonably contiguous agricultural land within an agricultural development [areas adopted] area designated pursuant to [this act] P.L.1983, c.32 (C.4:1C-11 et seq.) and the maintenance and support of increased agricultural production as the first priority use of that land. [Any municipally approved program shall be established pursuant to section 14 of this act;]
i. "Fund" means the "Farmland Preservation Fund" created pursuant to the "Farmland Preservation Bond Act of 1981," P.L. 1981, c. 276[;].
j. "Governing body" means, in the case of a county, the governing body of the county, and in the case of a municipality, the commission, council, board or body, by whatever name it may be known, having charge of the finances of the municipality[;].
k. "Secretary" means the Secretary of Agriculture[;].
l. "Soil and water conservation project" means any project designed for the control and prevention of soil erosion and sediment damages, the control of pollution on agricultural lands, the impoundment, storage and management of water for agricultural purposes, or the improved management of land and soils to achieve maximum agricultural productivity[;].
m. "Soil conservation district" means a governmental subdivision of this State, which is organized in accordance with the provisions of R.S. 4:24-1 et seq.[;]
n. "Agricultural deed restrictions for farmland preservation purposes" or "agricultural deed restrictions" means a statement [containing] that expresses the conditions of the conveyance [and], the terms of the restrictions set forth in P.L.1983, c.32 (C.4:1C-11 et seq.), and [as additionally determined] any other restrictions established by the committee on the use and the development of the land, and which [shall be] statement is recorded with the deed in the same manner as the deed was originally recorded.
o. "Agricultural support business" means a for-profit or not-for-profit business or enterprise, including, but not limited to, one operated cooperatively by a collective group of farmers, which supplies needed equipment, supplies, or services to the surrounding agricultural community and, thereby, has a direct and positive impact on agriculture. "Agricultural support business" includes, but is not limited to: a veterinary practice and any other type of practice, shop, store, or facility that supplies necessary food, temporary shelter, or medical care or support for farm animals; any shop, store, or other facility that supplies seeds, fertilizers, agricultural tools or equipment, or agricultural vehicles or machinery to the surrounding agricultural community; any practice, shop, store, garage, or other facility that engages in the repair or servicing of tractors or other agricultural vehicles, equipment, tools, or machinery; any tack shop, store, or other facility that sells equestrian supplies, apparel, equipment, horse care products, grooming supplies, horse blankets and sheets, model horses, or equine-related books, magazines, and videos; any shop, store, or other facility that sells or provides storage for natural or synthetic agricultural chemicals or other substances that are used to protect, or to promote the growth of, plants or animals, including, but not limited to, fertilizers, pesticides, herbicides, growth regulators, animal feed supplements, urea, animal vaccines or antibiotics, or raw materials used in agriculture-related chemical processes; and any auction house or other facility that is used to temporarily house, showcase, or sell produce or livestock being offered for sale at auction.
p. "Preserved farmland" means land on which agricultural deed restrictions have been imposed, or on which a development easement has been conveyed to, or retained by, the committee, a board, or a qualifying tax exempt nonprofit organization, pursuant to the provisions of sections 17 or 24 of P.L.1983, c.32 (C.4:1C-24 or C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland preservation purposes.
q. "Unpreserved land" means land that is not subject to any agricultural deed restrictions imposed, or to any development easement conveyed or retained by the committee, or by a board or qualifying tax exempt nonprofit organization, pursuant to the provisions of sections 17 or 24 of P.L.1983, c.32 (C.4:1C-24 or C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland preservation purposes.
(cf: P.L.1988, c.4, s.1)
2. Section 8 of P.L.1983, c.32 (C.4:1C-15) is amended to read as follows:
8. Every board shall:
a. [Develop] develop and adopt, after public hearings, agricultural retention and development programs, which shall have as their principal purpose the long-term encouragement of the agricultural business climate and the preservation of agricultural land in the county;
b. [Establish] establish the minimum acreage of significant masses of reasonably contiguous land required for the creation of a municipally approved program or other farmland preservation programs;
c. [Establish] establish minimum standards for the inclusion of land in a municipally approved program or other farmland preservation programs;
d. [Review] review and approve, conditionally approve, or disapprove petitions for the formation of a municipally approved program or other farmland preservation programs, and monitor the operations thereof;
e. [Review] review and approve, conditionally approve, or disapprove, prior to any applications to the committee, any request for financial assistance authorized by [this act] P.L.1983, c.32 (C.4:1C-11 et seq.);
f. [Monitor] monitor and make appropriate recommendations to the committee, and to county and municipal governing bodies and boards, with respect to resolutions, ordinances, regulations and development approvals which would threaten the continued viability of agricultural activities and farmland preservation programs within agricultural development areas;
g. [At] at the request of a municipality, require that any person proposing any nonagricultural development in an agricultural development area prepare and submit a statement as to the potential impact the proposed development would have on agricultural activities in the area; and
h. make appropriate recommendations to the governing body of the county, upon request, or at any other time deemed by the board to be appropriate, with respect to the county's acquisition, sale, and lease, pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), of unpreserved land in an agriculture development area for use by an agricultural support business; take appropriate action to monitor and enforce the compliance of agricultural support businesses with any deed or lease restrictions imposed pursuant to section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), as the case may be, in association with their purchase or lease of unpreserved land in an agricultural development area; and, as authorized and directed by the county governing body, and using funds allocated thereby as necessary, facilitate the transactions and execute the agreements necessary to effectuate, on the county's behalf, the acquisition, sale, and lease of unpreserved land in an agricultural development area for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.1983, c.32, s.8)
3. (New section) a. Notwithstanding the provisions of P.L.1983, c.32 (C.4:1C-11 et seq.), P.L.1971, c.199 (C.40A:12-1 et seq.), or any other law, rule, or regulation to the contrary, if an agriculture development area includes any parcel of land that is not subject to a development easement conveyed, or to agricultural deed restrictions imposed, for farmland preservation purposes, and the governing body of the county, or the board, determines that the use of such unpreserved land by an agricultural support business would benefit and promote the long-term viability of agricultural operations in the agriculture development area, including on preserved farmlands situated therein, and would, thereby, facilitate and enhance the preferred use of the area for agriculture, the governing body, or the board, acting upon the direction of, and with funds allocated by, the governing body, may acquire fee simple title to the unpreserved land for the purposes of selling or leasing such land to an agricultural support business in accordance with the provisions of sections 5 and 6 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill).
b. Notwithstanding any provision of this section, or of any other provision of law, rule, or regulation to the contrary, land acquired for the purposes of this section shall not be acquired through the exercise of eminent domain, pursuant to the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), or through condemnation proceedings, but may be acquired through purchase, gift, devise, exchange, or other appropriate means, as authorized by resolution of the governing body, adopted pursuant to the "Local Lands and Buildings Law," P.L.1971, c.199 (C.40A:12-1 et seq.).
c. A county governing body or board may establish one or more agricultural support working groups, composed of farmers, agricultural support business owners or operators, and appropriate agricultural and environmental experts, to advise the governing body or board, as the case may be, on the appropriateness of land acquisitions being considered, proposed, or effectuated pursuant to this section. The governing body or board may authorize any such agricultural support working group to:
(1) study, and provide its findings and recommendations to the governing body or board regarding, the feasibility, need for, and appropriateness of acquiring land in an agriculture development area for the purposes authorized by subsection a. of this section;
(2) identify particular parcels of land in an agriculture development area, the use of which by an agricultural support business would be most consistent with, and would best facilitate, current and future agricultural activities in the agriculture development area, including on preserved farmlands situated therein; and
(3) undertake any other reviews, or engage in other investigatory and deliberative actions, as may be necessary to facilitate the determinations required pursuant to subsection a. of this section.
4. Section 14 of P.L.1971, c.199 (C.40A:12-14) is amended to read as follows:
14. Any county or municipality may lease any real property, capital improvement, or personal property not needed for public use as set forth in the resolution or ordinance authorizing the lease, other than county or municipal real property otherwise dedicated or restricted pursuant to law, and except as otherwise provided by law, all such leases shall be made in the manner provided by this section.
(a) In the case of a lease to a private person, except for a lease to a private person for a public purpose as provided in subsection (j) of section 15 of P.L.1971, c.199 (C.40A:12-15), or for agricultural or horticultural use as provided in section 2 of P.L.2006, c.52 (C.40A:12-14.1), [said] or for use by an agricultural support business as provided in section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), the lease shall be made to the highest bidder by open public bidding at auction or by submission of sealed bids. Advertisement of the method of bidding shall be published in a newspaper circulating in the municipality or municipalities in which the leasehold is situated by two insertions at least once a week during two consecutive weeks; the lease publication to be not earlier than seven days prior to the letting of the lease. The governing body may, by resolution, fix a minimum rental with the reservation of the right to reject all bids where the highest bid is not accepted. Notice of such reservation shall be included in the advertisement of the letting of the lease and public notice thereof shall be given of the time of the letting of the lease. Such resolution may provide that upon the completion of the bidding, the highest bid may be accepted or all of the bids may be rejected. It shall also set out the conditions, restrictions, and limitations upon the tenancy subject to the lease. Acceptance or rejection of the bid or bids shall be made not later than at the second regular meeting of the governing body following the completion of the bidding, and, if the governing body shall not so accept such highest bid, or reject all bids, said bids shall be deemed to have been rejected. Any such award may be adjourned at the time advertised for not more than one week without readvertising.
(b) In the case of a lease to a public body, the lease may be upon such terms and conditions and for nominal or other consideration as the governing body of the county or municipality shall approve by ordinance or resolution.
(c) In the case of a lease to a nonprofit corporation or association for a public purpose, the lease shall be authorized by resolution, in the case of a county, or by ordinance, in the case of a municipality, and may be for nominal or other consideration. [Said] The authorization shall include the nominal or other consideration for the lease; the name of the corporation or corporations who shall be the lessees; the public purpose served by the lessee; the number of persons benefiting from the public purpose served by the lessee, whether within or without the municipality in which the leasehold is located; the term of the lease, and the officer, employee or agency responsible for enforcement of the conditions of the lease. [Said] The ordinance or resolution shall also require any nonprofit corporation holding a lease for a public purpose pursuant to this section, to annually submit a report to the officer, employee, or agency designated by the governing body, setting out the use to which the leasehold was put during each year, the activities of the lessee undertaken in furtherance of the public purpose for which the leasehold was granted; the approximate value or cost, if any, of such activities in furtherance of such purpose; and an affirmation of the continued tax-exempt status of the nonprofit corporation pursuant to both State and federal law.
(d) In the case of a lease to a housing corporation or resident first-time homebuyer for the public purposes, and pursuant to the provisions of P.L.1983, c.335 (C.55:18-1 et seq.), the lease shall be authorized by ordinance by a municipality.
cf: P.L.2003, c.52, s.1)
5. (New section) a. Notwithstanding any provision of law to the contrary, whenever a county acquires unpreserved land in an agriculture development area, as authorized by section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), or the governing body determines that unpreserved land currently owned by the county in an agriculture development area, with or without improvements, is no longer needed for county purposes, the county may, by resolution, authorize the private sale and conveyance of such unpreserved land, or any part thereof, to an agriculture support business for such consideration as shall be mutually agreed upon, including for consideration that is less than the fair market value of the land, provided that the agreement of sale contains express restrictions, which are recorded in the deed, and which:
(1) require the land, and any improvements thereon, to be used exclusively, by the buyer, for purposes of the agricultural support business;
(2) provide for the fee simple title to revert to the county upon any violation of the agreement's use restrictions by the buyer and following the provision of written notice thereof to the buyer and any associated hearing on the matter, which may be requested by the buyer within 30 days after receipt of the written notice of violation; and
(3) specify that, in any case involving the future sale of the property, the county shall have the right of first refusal to adopt and accept the terms and conditions of the proposed purchase agreement.
b. A private sale or conveyance of unpreserved land in an agriculture development area, authorized by resolution adopted pursuant to this section, may be effectuated either by the governing body of the county or by the appropriate board, as specified in the resolution.
c. As used in this section, "agriculture development area," "agricultural support business," "board," and "unpreserved land" mean the same as those terms are defined in section 3 of P.L.1983, c.32 (C.4:1C-13).
6. (New section) a. Notwithstanding any provision of law to the contrary, whenever a county acquires fee simple title to unpreserved land in an agriculture development area, as authorized by section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), or the governing body determines that unpreserved land previously acquired and owned by the county in an agriculture development area, with or without improvements, is no longer needed for county purposes, the county may, by resolution, authorize the lease of such unpreserved land, or any part thereof, to an agriculture support business for such period, consideration, and other terms and conditions as shall be mutually agreed upon, including for consideration that is less than the going lease rate for similarly situated properties, provided that the lease agreement contains express restrictions that:
(1) require the land, and any improvements thereon, to be used, by the lessee, exclusively for purposes of the agricultural support business;
(2) provide for the lease agreement to be subject to immediate termination upon any violation of the lease's use restrictions and following the provision of written notice thereof to the lessee and any associated hearing on the matter, which may be requested by the lessee within 30 days after receipt of the written notice of violation; and
(3) prohibit the lessee from assigning or transferring the lease to any other person without the prior consent and approval of the lessor county or board.
b. The leasing of unpreserved land in an agriculture development area, authorized by resolution adopted pursuant to this section, may be effectuated either by the governing body of the county or by the appropriate board, as specified in the resolution.
c. As used in this section, "agriculture development area," "agricultural support business," "board," and "unpreserved land" mean the same as those terms are defined in section 3 of P.L.1983, c.32 (C.4:1C-13).
7. This act shall take effect immediately.
STATEMENT
This bill would authorize a county governing body, or the appropriate county or subregional agriculture development board (board), as directed by the county governing body, to acquire fee simple title to, and to sell or lease, certain lands situated in an agricultural development area for use by an agricultural support business. "Agricultural support business" is defined, by the bill, to mean a for-profit or not-for-profit business or enterprise, including, but not limited to, one operated cooperatively by a collective group of farmers, which supplies needed equipment, supplies, or services to the surrounding agricultural community and, thereby, has a direct and positive impact on agriculture. The term would include, but not be limited to, the following types of businesses or enterprises: a veterinary practice and any other type of practice, shop, store, or facility that supplies necessary food, temporary shelter, or medical care or support for farm animals; any shop, store, or other facility that supplies seeds, fertilizers, agricultural tools or equipment, or agricultural vehicles or machinery to the surrounding agricultural community; any practice, shop, store, garage, or other facility that engages in the repair or servicing of tractors or other agricultural vehicles, equipment, tools, or machinery; any tack shop, store, or other facility that sells equestrian supplies, apparel, equipment, horse care products, grooming supplies, horse blankets and sheets, model horses, or equine-related books, magazines, and videos; any shop, store, or other facility that sells or provides storage for natural or synthetic agricultural chemicals or other substances that are used to protect, or promote the growth of, plants or animals, including, but not limited to, fertilizers, pesticides, herbicides, growth regulators, animal feed supplements, urea, animal vaccines or antibiotics, or raw materials used in agriculture-related chemical processes; and any auction house or other facility that is used to temporarily house, showcase, or sell produce or livestock being offered for sale at auction.
Under the bill's provisions, a county would be authorized to acquire unpreserved land in an agricultural development area, for use by an agricultural support business, so long as the land so acquired does not constitute preserved farmland (i.e., is not subject to a development easement conveyed, or to agricultural deed restrictions imposed, for farmland preservation purposes), and the governing body of the county, or the appropriate board, determines that the use of such land by an agricultural support business would benefit and promote the long-term viability of agricultural operations being undertaken in the agriculture development area, including on preserved farmlands situated therein, and would, thereby, facilitate and enhance the preferred use of the area for agriculture. The acquisition of land, by a county, for these purposes, may not be effectuated through the exercise of eminent domain, or through condemnation proceedings, but is to be effectuated through purchase, gift, devise, exchange, or other appropriate means, as authorized by resolution of the governing body, adopted pursuant to the "Local Lands and Buildings Law," P.L.1971, c.199 (C.40A:12-1 et seq.).
The bill would authorize a county governing body or board to establish one or more agricultural support working groups, composed of farmers, agricultural support business owners or operators, and appropriate agricultural and environmental experts, to advise the governing body or board regarding the appropriateness of land acquisitions being considered, proposed, or effectuated pursuant to the bill. Any such agricultural support working group may be authorized to: (1) study, and provide the governing body or board with its findings and recommendations regarding, the feasibility, need for, and appropriateness of acquiring land in an agriculture development area for use by an agricultural support business; (2) identify particular parcels of land in an agriculture development area, the use of which by an agricultural support business would be most consistent with, and would best facilitate, current and future agricultural activities being undertaken in the agriculture development area; and (3) undertake any other reviews, or engage in other investigatory and deliberative actions, as may be necessary to facilitate the requisite determinations being made by the governing body or board with respect to the acquisition of land under the bill.
The bill would further provide that, whenever a county acquires unpreserved land in an agriculture development area, for the bill's purposes, or whenever the governing body determines that unpreserved land currently owned by the county in an agriculture development area, with or without improvements, is no longer needed for county purposes, the county may, by resolution, authorize the private sale and conveyance of such unpreserved land, or any part thereof, to an agriculture support business for such consideration as may be mutually agreed upon, including for consideration that is less than the fair market value of the land, provided that the agreement of sale contains express restrictions, which are recorded in the deed, and which: (1) require the land, and any improvements thereon, to be used exclusively, by the buyer, for purposes of the agricultural support business; (2) provide for the fee simple title to revert to the county upon any violation of the agreement's use restrictions by the buyer and following the provision of written notice thereof to the buyer and any associated hearing on the matter, which may be requested by the buyer within 30 days after receipt of the written notice of violation; and (3) specify that, in any case involving the future sale of the property, the county is to have the right of first refusal to adopt and accept the terms and conditions of the proposed purchase agreement.
The bill would also enable a county, by resolution, to authorize the lease of such unpreserved land, or any part thereof, to an agriculture support business for such period, consideration, and other terms and conditions as may be mutually agreed upon, including for consideration that is less than the going lease rate for similarly situated properties, provided that the lease agreement contains express restrictions that: (1) require the land, and any improvements thereon, to be used, by the lessee, exclusively for purposes of the agricultural support business; (2) provide for the lease agreement to be subject to immediate termination, for any violation of the lease's use restrictions, following the provision of written notice of the violation to the lessee and any associated hearing on the matter, which may be requested by the lessee within 30 days after receipt of the written notice of violation; and (3) prohibit the lessee from assigning or transferring the lease to any other person without the prior consent and approval of the lessor county or board.
The acquisition, sale, or lease of unpreserved land in an agriculture development area, which is undertaken for the bill's purposes, may be effectuated either by the county governing body or by the appropriate board, on the governing body's behalf, as directed by the governing body. Each board would additionally be required to make appropriate recommendations to the governing body of the county regarding the county's acquisition, resale, and lease of unpreserved land in an agricultural development area, and undertake appropriate action to monitor and enforce the compliance of agricultural support businesses with the deed or lease restrictions that are imposed, pursuant to the bill, in association with their purchase or lease of unpreserved land in an agricultural development area.
The availability and accessibility of agricultural support businesses is essential and integral to ensuring the ongoing viability and success of agricultural operations occurring in the State, and the siting and operation of such businesses in agriculture development areas, in accordance with the restrictions imposed by the bill, would effectively compliment, and be fully consistent with, the preferred, but non-exclusive, use of such areas for agriculture.
