Strategie ies for r Repurposing Stra randed Assets September 29, - - PowerPoint PPT Presentation

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Strategie ies for r Repurposing Stra randed Assets September 29, - - PowerPoint PPT Presentation

Suburban Market Place 2016 Strategie ies for r Repurposing Stra randed Assets September 29, 2016 Panelists Carlos Rodrigues, PP, FAICP; Rodrigues Urban Design Introduction/Moderator Ann Brady; PlanSmart NJ Findings from A Guide to the Future


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Suburban Market Place 2016

Strategie ies for r Repurposing Stra randed Assets

September 29, 2016

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Panelists

Carlos Rodrigues, PP, FAICP; Rodrigues Urban Design

Introduction/Moderator

Ann Brady; PlanSmart NJ

Findings from A Guide to the Future

Walter Lane, AICP/PP; Somerset County Planning

Stranded Assets and Regional Planning

Anne Babineau, Wilentz Goldman & Spitzer

Legal Aspects of Redevelopment Law

Peter Cocoziello; Advance Realty

New Jersey Center of Excellence

Discussion / Q&A

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A Guide to the Future: Stranded Assets

September 29, 2016 Urban Land Institute

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Stranded Assets Defined

Retail: More than 25,000 sq. ft. Vacancy > 20% Office: More than 100,000 SF Vacancy > average (14%) Chronic vacancy (5 yrs)

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Why Stranded Assets?

1 out of 5

large retail/office assets are stranded in NJ

1 in 3

municipalities possess stranded assets

1 in 10

stranded assets are completely vacant

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Economic Impacts

Loss in commercial land value more than 5% 584 lost jobs = $14,000 lost per WEEK in lunches alone

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Changing Demands: Walkability

50% want walkability 2 out of 3 want access to bike paths

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Cost of Car Dependence

The Transportation Trust Fund went BANKRUPT July 1

NJ: $596 US: $335

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Transportation Costs to Society

Car Commute Biking Mass Transit $2.78 $0.38 $0.75

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  • NJ is the most exited

state in the nation

  • 10,000 baby boomers

retire every day, many look to downsize

  • Baby boomers outpace

millennials in the rental market

Meeting Housing Demands

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Meeting Housing Demands

Owner-occupied home ownership has dropped by 100,000 But the population has grown by

400,000 5 new renters for every 3 new homeowners

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Changing Faces of Work & Shop

  • Telecommuting doubled between 2005 and 2014
  • Car trips to big box stores and malls down by

more than 20%

  • E-commerce projected to grow by 44% by 2019

For every 1 innovation job  5 non-innovation jobs created

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Planning for the Future

  • Isolated development patterns cannot

meet these demands

  • But we have an excellent opportunity

to address these issues….

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So Much Potential 14M Sf

Empty office space

7,100 Acres

  • r 8 Central Parks
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So Much Potential 7M Sf

Empty retail space

410 Football fields

  • f surface parking
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Checklist for Success Checklist for Success

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Find the Guide Online www.plansmartnj.org

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ADVANCING THE SOMERSET COUNT Y INVESTMENT FRAMEWORK

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COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

The Somerset County Comprehensive Economic Development Strategy was a joint effort with the Somerset County Business Partnership.

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S UPPORTING PRIORITY INVESTMENT IN

IN S OMERSET COUNTY THROUGH ACCESS AND MOBILITY IMPROVEMENTS

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S UPPORTING PRIORITY INVESTMENT IN

IN S OMERSET COUNTY: P HASE 1

ANALYSES PREFORMED:

  • Socio-economic Analysis
  • Improvement to Land Value Analysis
  • Labor and Industry Analysis
  • Business Inventory and Industry Cluster Analysis
  • Real Estate Supply and Demand Analysis
  • Transportation and Utility Infrastructure Analysis
  • Baseline Conditions: Land Use
  • Assessment of Land Use Policies & Workforce Housing
  • Build-out Analysis
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SUPPORTI

RTING NG PRIORIT ITY INVESTM TMENT NT IN IN SOMERSET SET COUNTY TY:

: PHASE 2

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I-287 INDUSTRIAL COMPLEX PGIA

  • Conceptual mixed-

use development

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ADVANCING THE SOMERSET COUNTY INVESTMENT FRAMEWORK Have our efforts been successful? Yes!

  • Resources and Information to Inform Local Decision

Makers

  • NJ Center of Excellence Project
  • Municipal Master Plan and Zoning Ordinance

Reviews and Updates

  • Additional North Jersey Transportation Planning

Authority Grants and Initiatives

  • Strong Interest in Phase 3 Study
  • Update of County Preservation Plans
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QUESTIONS

For more information, please contact: Walter C. Lane, AICP/PP Director of Planning Somerset County Planning Division (p) (908) 231-7021 lane@co.somerset.nj.us

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Panelists

Carlos Rodrigues, PP, FAICP; Rodrigues Urban Design

Introduction/Moderator

Ann Brady; PlanSmart NJ

Findings from A Guide to the Future

Walter Lane, AICP/PP; Somerset County Planning

Stranded Assets and Regional Planning

Anne Babineau, Wilentz Goldman & Spitzer

Legal Aspects of Redevelopment Law

Peter Cocoziello; Advance Realty

New Jersey Center of Excellence

Discussion / Q&A

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Suburban Market Place 2016

Strategies for Repurposing Stranded Assets

September 29, 2016

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STRATEGIES FOR REPURPOSING

STRANDED ASSETS

Anne S. Babineau, Esq. Wilentz, Goldman & Spitzer, P.A. 90 Woodbridge Center Dr. Woodbridge, NJ 07095 732.855.6057 ababineau@wilentz.com

URBAN LAND INSTITUTE: SUBURBAN/URBAN MARKETPLACE

2016

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“Area in Need of Redevelopment or Redevelopment Area” means:

“A delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in section 6 of P.L.1992, c. 79 (C.40A:12A-6), the governing body of the municipality by resolution concludes that within the delineated area any of the following conditions is found: …” LRHL, Section 5.

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Local Redevelopment and Housing Law – Redevelopment Laws in NJ date since 1940s

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  • “a. The generality of buildings are substandard, unsafe, unsanitary,

dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions.”

  • “b. The discontinuance of the use of buildings previously used for

commercial, manufacturing, or industrial purposes; the abandonment

  • f such buildings; or the same being allowed to fall into so great a state
  • f disrepair as to be untenantable.”
  • “c.

Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or unimproved vacant land that has remained so for a period of ten years prior to adoption of the resolution, and that by reason of its location, remoteness, lack of means of access to developed sections or portions

  • f the municipality, or topography, or nature of the soil, is not likely to

be developed through the instrumentality of private capital.”

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Redevelopment Area Criteria:

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  • “d.

Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination

  • f these or other factors, are detrimental to the safety, health, morals,
  • r welfare of the community.”
  • “e.

A growing lack or total lack of proper utilization of areas caused by the condition of the title, diverse ownership of the real properties therein or other similar conditions which impede land assemblage or discourage the undertaking of improvements, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare, which condition is presumed to be having a negative social or economic impact or otherwise being detrimental to the safety, health, morals, or welfare of the surrounding area or the community in general.”

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Redevelopment Area Criteria:

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  • “f.

Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or

  • ther casualty in such a way that the aggregate assessed value of the

area has been materially depreciated;”

  • “g.

...the execution of the actions...for the adoption... of the ...plan for the area of the enterprise zone shall be considered sufficient for the determination that the area is in need of redevelopment...for the purpose of granting tax exemptions within the enterprise zone…”

  • “h.

The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation”.

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Redevelopment Area Criteria:

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Section 3

"Redevelopment Area" ... may also include an "area in need of rehabilitation", as well as land buildings or improvements which are not in need of redevelopment or rehabilitation, but are necessarily included to achieve the public purpose. N.J.S.A. 40A:12A-3

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Redevelopment Area Criteria: Redevelopment Area Criteria:

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What is an area in need of rehabilitation?

A delineated area may be determined to be in need of rehabilitation if the governing body of the municipality determines by resolution that a program of rehabilitation, as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3), may be expected to prevent further deterioration and promote the overall development of the community; and that there exist in that area any of the following conditions such that 1) a significant portion of structures therein are in a deteriorated or substandard condition; 2) more than half of the housing stock in the delineated area is at least 50 years

  • ld;

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The Rehabilitation Area Redevelopment Area Criteria:

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What is an area in need of rehabilitation?

3) there is a pattern of vacancy, abandonment or underutilization of properties in the area; 4) there is a persistent arrearage of property tax payments on properties in the area; 5) environmental contamination is discouraging improvements and investment in properties in the area; or 6) a majority of the water and sewer infrastructure in the delineated area is at least 50 years old and is in need of repair or substantial maintenance. N.J.S.A. 40A:12A-14a.

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The Rehabilitation Area

Important Redevelopment Case Law

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Gallenthin Realty v. Paulsboro, 191 N.J. 344 (2007)

  • Involved NJSA 40A:12A-5 (e)
  • Mere underutilization of a property will not satisfy the definition of

blight under the Local Redevelopment and Housing Law (LRHL)

  • Blight must be based on the common sense understanding of the term

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Important Redevelopment Case Law

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62-64 Main Street, L.L.C. v. Hackensack rejected misinterpretations of Gallethin

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1) Supreme Court in 62-64 Main v Hackensack clarified Gallethin v. Paulsboro:

  • “Although the meaning of “blight” has evolved, the term retains

its essential characteristic: deterioration or stagnation that negatively affects surrounding properties.” Ibid.

  • From that passage and another ... “at its core, ‘blight’ includes

deterioration or stagnation that has a decadent effect on surrounding property...”

  • The Supreme Court rejected such a “one-size-fits-all” definition
  • f blight.

Important Redevelopment Case Law

62-64 Main v Hackensack

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2) Supreme Court also rejected the argument that Gallenthin imposed a requirement for a separate showing that the condition in the area resulted in deterioration or stagnation that negatively affects surrounding areas.

  • “We have never stated that an area is not blighted unless it

“negatively affects surrounding properties” because to do so, would undo all the legislative classifications of blight established before and after the ratification of the Blighted Areas Clause – classifications that we have previously declared to be

  • constitutional. “ Id. at 153.

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62-64 Main v Hackensack

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3) Supreme Court also rejected the notion that the constitutionality of subsections (a), (b) and (d) of NJSA 40A:12A-5 was at issue in Gallethin:

  • “Additionally, we made clear from the opening statement in

Gallenthin that the only issue before the Court was the constitutionality of subsection (e) of the Redevelopment Law.” Id. at 153.

  • “We therefore reject the notion that Gallenthin established a

constitutional blight standard to be superimposed on top of the legislative classifications of blight.” Id. at 154.

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62-64 Main v Hackensack

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a) The Court reiterated that the focus in a redevelopment area investigation is whether an “area” is in need of redevelopment, and that single parcels -- that could not be declared blighted if considered in isolation -- could be included in a redevelopment area. Id. at 189.

  • “The issue is not whether one isolated lot might have some redeeming

features, but whether an “area” is in need of redevelopment.” Id. at 157.

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62-64 Main v Hackensack