From the Philly Inquirer:
In a decision highlighting the value of open space in the nation’s most densely populated state, the New Jersey Supreme Court ruled yesterday that Mount Laurel acted properly when it seized a developer’s land to preserve open space.
“We recognize… that the citizens of New Jersey have expressed a strong and sustained public interest in the acquisition and preservation of open space,” the state’s highest court said in the 6-1 decision.
Jeff Tittel, director of the New Jersey chapter of the Sierra Club, called the court’s action an “important victory” for people and municipalities concerned about the impact of sprawl on the dwindling amount of undeveloped land in the state.
“In the race for open space, New Jersey just picked up a lot of speed,” said Tittel.
The case has been closely watched in the wake of last year’s U.S. Supreme Court decision giving wider authority to local governments to use eminent-domain powers to seize private property for economic revitalization – not just for more traditional reasons such as building highways and government buildings.
That ruling triggered controversy and fears of cronyism – fears that elected officials could simply condemn private property so a developer could build condos or undertake some other lucrative project that could be touted as economic development.
Such concerns led more than 20 states, including Pennsylvania, to curb or prohibit the use of eminent domain for economic development. In May, Gov. Rendell signed legislation that generally prohibits the use of eminent domain for private development.
Yesterday’s ruling came in a court battle over a 16.3-acre parcel owned by MiPro Homes L.L.C., which had obtained approval from the Mount Laurel planning board to build 23 homes on the site. A previous owner of the land had intended to build an assisted-living facility there, but MiPro bought the land and opted to build houses. The township then tried to buy the land. When MiPro refused, officials opted to use eminent domain to acquire the property.
Jeffrey Baron, who represents MiPro, said he has urged his client to ask the U.S. Supreme Court to hear an appeal of the ruling.
From the Star Ledger:
N.J. justices say towns can seize developers’ land
Towns have the right to use eminent domain to seize property from developers and set it aside for open space, the New Jersey Supreme Court ruled yesterday.
The 6-1 decision allowing Mount Laurel to take over an old farm and stop a planned housing development opens a new legal avenue for preserving open space. It also expands the use of eminent domain, a hot topic across the country since the U.S. Supreme Court last year allowed towns to seize land and turn it over to private developers.
…
The case involved a 16-acre property in Mount Laurel. Developer Michael Procacci Jr. and his company, MiPro Homes of Medford, wanted to build 23 single-family homes, priced at $400,000 and up, in a complex called High Pointe Estates. The plan was consistent with zoning for the property, and the developer won approvals for the project.
MiPro had already dug a retention basin for storm water and started with utilities. But less than a month after those approvals were granted, Mount Laurel, citing eminent domain, condemned the property. The town received a Green Acres grant to help acquire the former farm — one of the town’s few remaining open parcels of land.
LOL now the township is going to loose because they are not fighting some person – they are fighting a buisness and supreme court better overturn it otherwise nobody will ever start a buisness in this coutry. Why even bother if a bunch of officiasls from nearbuy township can just take you land?????
I always hated eminent domain law. It’s just does not make any sense that people can take your home wityhout you agreeing to it. You know – if the project is realy beneficial they would offer you bettere price than you’d get anyways. If you are greedy bastard you would not sell, project would be canceled and you would suffer from it yourself. What happened to free market and economy??
Well instead of using the eminent domain law, if the town does not want the company to build they can hold off on approvals of letting them build. The longer the company has to wait to build the homes, the more there profits will dwindle as the mareket continues to decrease.
I’m confused about one thing. Rather than use eminent domain, can’t the town just change the zoning? Zone an area as agricultural and refuse permission to build either residential or commercial.
What am I missing?
A couple of things:
Lisoosh — What you are talking about is called “spot zoning” and it is illegal. Yes it is done all the time, usually to give a developer who is making a payoff what he wants, but it is illegal. Just because it’s illegal doesn’t mean they would do it, as I said, it is done far more than people realize.
In this case, such an action would raise the price for the developer because he would have to pay for the court battle, but that’s part of the game.
Homer — they’ve got their approvals from the planning board. You might try and hamstring them with permits etc. but that’s a recipe for getting people fired, and the guy who issues permits isn’t going to want to explain that one to his family. Yes there are nits they can pick, but that gets old pretty quickly.
Finally, I think this “developer” isn’t getting taken advantage of, he’s in on a scam. Do you think he really wants to build his houses right now? If so, he’s a moron.
projects are being cancelled all over the place because there is excessive inventory out there, particularly in the Northeast.
If the town wanted the land for open space the price they would have had to pay before approvals was far less than it is now. They aren’t taking this guys land, they are taking his problem and paying him handsomely for it. If I lived there I would be railing against this one.
If you want to see a case where people are getting screwed by eminent domain abuse, check out Long Branch.
Although the turn in the fortunes of the housing market has taken some of the pressure off them, those people have been fighting for their homes on and off for 40 years. It’s disgusting.
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