Bill Text: NJ A2520 | 2024-2025 | Regular Session | Introduced
Bill Title: Specifies just compensation when property is condemned for use by profit-making entity.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Housing Committee [A2520 Detail]
Download: New_Jersey-2024-A2520-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ERIK PETERSON
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
Specifies just compensation when property is condemned for use by profit-making entity.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the condemnation of property for use by profit-making entities and supplementing P.L.1971, c.361 (C.20:3-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. When determining the compensation to be paid when a property interest is taken for use by a profit-making entity, the fair market value of the property interest shall recognize the intended use of the property being taken, and include the revenue generation potential of the property being taken.
b. When determining the compensation to be paid when a property interest is taken for use by a profit-making entity, the condemnor shall compensate property owners for damages to property adjacent and nearby the condemned property, which shall include, but not be limited to, damages resulting from:
(1) impeded access;
(2) interference with removal of earth, sand, gravel, minerals, or other valuable surface or subsurface materials;
(3) impacts to groundwater, including wells and springs;
(4) impacts on any other source of water;
(5) noise and emissions;
(6) impacts to views;
(7) loss of fair market value due to public fear or public perception; and
(8) loss of fair market value due to the burden of complying with easement requirements or other property restrictions.
c. When determining the compensation to be paid when a property interest is taken for use by a profit-making entity, the condemnor shall compensate property owners for consequential damages, which shall include, but not be limited to:
(1) the cost of interference with contracts allowing extraction of resources or other activities on the property;
(2) the cost of ongoing maintenance obligations required by the condemnor; and
(3) other damages to the property, or costs incurred by the property owner, proximately caused by the taking.
d. When a property interest is taken for use by a profit-making entity, and the compensation awarded in an eminent domain action exceeds, by 10 percent or more, the highest offer made by the condemnor, the condemnor shall reimburse the condemnee for the condemnee's reasonable costs, disbursements and expenses actually incurred, including, but not limited to court costs and reasonable attorney, appraiser, and engineering fees.
e. If a profit-making entity fails to comply with all of the conditions set forth in, or reasonably related to, an authorization to exercise the power of eminent domain, all property interests taken shall automatically revert to the private property owners.
2. This act shall take effect immediately.
STATEMENT
This bill reforms current eminent domain law as it pertains to the condemnation of property for use by a profit-making entity. The bill provides that when a property interest is taken for use by a profit-making entity, the fair market value of the property interest shall recognize the intended use of the property being taken and include the revenue generation potential of the property being taken. The bill also requires the payment of compensation to property owners for damages to property adjacent and nearby the condemned property, and the payment of additional compensation for consequential damages. Additionally, the bill provides that if the compensation awarded to a property owner in an eminent domain proceeding exceeds by 10 percent or more the highest offer the condemnor made to purchase the property interest, the condemnor must reimburse the property owner for litigation costs. Finally, the bill provides that if the profit-making entity fails to comply with all of the conditions of, or reasonably related to, an authorization to exercise the power of eminent domain, all property interests taken will automatically revert to the private property owners.
