02/04/2008
CONTACT: Melissa Sharp, 202-314-2068
Washington, D.C. -- The Superior Court of New Jersey issued a critically important decision to private-property owners in a case dealing with the state's interpretation of how properties can be deemed "blighted" and consequently ripe for eminent domain takings. To the delight of property owners, the Superior Court overruled the trial court's decision and held that the law only allows a property to be deemed "blighted" in narrow circumstances. The National Federation of Independent Legal Foundation participated in this case and strongly urged the court to find in favor of the small-business property owners.
The dispute involved a commercial property owned by BMIA, LLC in Belmar, New Jersey. BMIA had been fighting to keep its property, the Belmar Mall, from being condemned for a redevelopment project. The Belmar Mall is a commercial center that contains 20 mom-and-pop businesses, along with three major chain tenants.
The trial court ruled that this property was located in an area in need of redevelopment. On appeal, the Superior Court of New Jersey determined that the trial court mistakenly relied on this finding in condemning the property for a redevelopment project. The Superior Court's decision reinforced that the New Jersey Constitution restricts government redevelopment to "blighted" areas. Further the Court said that finding an area in need of redevelopment does not show that the property reaches the "blight" standard. In New Jersey, a property is found to be a "blighted" area if it is detrimental to the safety, health, morals or welfare of the community. This was not the case with the Belmar Mall, and, therefore, the court reversed the lower court's decision.
"This is a very important decision for small-business owners and all private-property owners in New Jersey," said Karen Harned, executive director of NFIB's Legal Foundation. "Private-property owners deserve to know that their property will not be taken away from them simply because some third party wants to redevelop it. NFIB is very pleased that the Superior Court of New Jersey understands and enforces the state's constitutional limits to government takings of private property. The court correctly concluded that the Belmar Mall should remain private property."
