SCR14

A Concurrent Resolution proposing to amend Article VIII, Section III, paragraph 1 of the Constitution of the State of New Jersey.

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article VIII, Section III, paragraph 1, to read as follows:

1. The clearance, replanning, development or redevelopment of blighted areas shall be a public purpose and public use, for which private property may be taken or acquired; provided, however, that private property within a blighted area that is not itself blighted shall not be taken for the use of, or the transfer to, a private entity for economic development purposes. Municipal, public or private corporations may be authorized by law to undertake such clearance, replanning, development or redevelopment; and improvements made for these purposes and uses, or for any of them, may be exempted from taxation, in whole or in part, for a limited period of time during which the profits of and dividends payable by any private corporation enjoying such tax exemption shall be limited by law. The conditions of use, ownership, management and control of such improvements shall be regulated by law.

(cf: Art.VIII, Sec.III, para. 1)

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Attorney General, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (T) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (T) in the square opposite the word "No."

b. In every municipality the following question:

		CONSTITUTIONAL AMENDMENT LIMITING POWER TO CONDEMN NON-BLIGHTED PROPERTY FOR ECONOMIC DEVELOPMENT PURPOSES
	YES	Shall the amendment to Article VIII, Section III, paragraph 1 of the State Constitution, agreed to by the Legislature, to forbid the taking of non-blighted property for the purpose of turning it over to a private entity for economic development purposes, be approved?
		INTERPRETIVE STATEMENT
	NO	This proposed amendment would ensure that private property that is not itself blighted, even though it may be located in a blighted area, cannot be condemned and taken if it is to be subsequently sold to or used by a private company or other private entity for economic development purposes. Recently, the United States Supreme Court decided that economic development is a permissible public use for condemnation purposes, except where prohibited or limited by a state. If approved, this proposed amendment will prevent the condemnation of non-blighted property in New Jersey for the purpose of economic development.

STATEMENT

This concurrent resolution proposes a constitutional amendment to restrict the use of the condemnation power. Currently, a property that is not in a blighted condition, but that has the misfortune of being located in a blighted area that has been determined by a municipal governing body to be in need of redevelopment, can be condemned upon the failure of a bona fide attempt to purchase it, and then turned over to a private company for its own economic enrichment. The courts have held that economic development is a public use for which the power of condemnation can be used, even when the public benefit is incidental to the private benefit. This proposed amendment would narrow the use of the condemnation power against non-blighted property, even in furtherance of a plan to redevelop a blighted area. When the non-blighted property is to be used by, or transferred to, a private entity for economic development purposes, the condemnation power could not be used and the redeveloper would have to keep attempting to acquire the property through purchase alone, or build around the property.