When governments are devised, powers are often divided and procedural requirements imposed. Those in power often chafe at the limitation on their absolute discretion. On occasion circumstances may arise where the need for prompt action overcomes the benefit of the procedural limitations. We call those circumstances “states of emergency” and, as I’ve written before((Superstorm Sandy, Ten Years Later: The State of Emergency Continues)), they are often declared or continued solely to avoid “unnecessary red tape or bureaucratic obstacles” (read normal checks and balances).
But states of emergencies are not the only devices that allow local governments to evade normal procedural requirements. In the land use field municipalities are increasingly determining that particular properties or neighborhoods are “areas in need of redevelopment,” a euphemism for the constitutional term “blighted” which has been deemed too pejorative. But employment of the softer term has led to a concomitant softening of the standard actually employed (as opposed to supposed to be employed) in making the determination, from blight to “it could be better.”
Once an area is determined to be “in need of redevelopment,” the municipality can overlay or substitute the normal zoning with a “redevelopment plan,” can limit the ability to develop the property to a chosen “redeveloper,” can make use of eminent domain to effect the redevelopment, can sell municipal property without public bidding, and can exempt the real estate from taxation under a PILOT (payment in lieu of taxes) program.
The way it’s supposed to work is this: the municipal governing body authorizes the planning board to conduct an investigation of the area to determine if a particular area is “in need of redevelopment.” A state statute, the Local Redevelopment and Housing Law (LRHL) sets forth the substantive standards that govern whether the declaration of blight (I’m sorry, need of redevelopment) may be made. The planning board conducts the investigation, holds a hearing, reaches a conclusion and transmits its report to the governing body, which then makes the decision based upon the evidence contained in the record of the hearing. Then a redevelopment plan is put together (by or with review by the planning board) and approved by the governing body.
The way it all too often can work is this: a favored developer wants to build a project on property it may or may not own and privately approaches “the powers that be” who cause the governing body to retain a consultant to prepare a draft report to justify the “in need of redevelopment” determination, often mainly parroting the statutory language. (There is a good chance that the consultant will also be hired to prepare any resulting redevelopment plan, so there’s all the more incentive to find a need.) The report is made publicly available, and notice of the planning board hearing is given (enough to satisfy the statute, but not much more). The consultant puts on the prepared presentation. There may be some public participation, but there is not likely to be time for opposition to get organized and marshal its own evidence). The planning board and governing body serially vote unanimously for the determination and in another month for the previously prepared redevelopment plan.
One of the important checks on municipal authority is the availability of judicial review to make it conform to statutory limits. To make certain that appointed judges do not substitute themselves for the elected local leaders the municipal action is cloaked with a presumption of validity and cannot be overturned unless it is arbitrary, capricious, and unreasonable. In many cases this standard requires that the municipal action be supported by substantial evidence in the record. Courts take this standard seriously (I often think too seriously) and it seems to me that the unreasonableness of a decision has to be glaringly obvious before they intervene.
That’s why I was pleased with this past Monday’s NJ Supreme Court decision in Malanga v. Township of West Orange. The town undertook the redevelopment designation process on its own public library with a pretty clear purpose of getting the ability to sell it at a private sale. Although the study found the library to be “in need of redevelopment” because “it could be better,” it was never for the purpose of improving that building. A new library is being built elsewhere while the current library site was intended to be redeveloped with senior citizen housing.((During the pendency of the challenge the township acted under a different statute to contract to sell the library site to a developer for the construction of an all affordable senior citizen housing development. That sale has not yet closed, and the town was unwilling to give up the redevelopment designation in case it fell through, so the Supreme Court rejected its contention that the case was moot.)) The lower courts upheld the municipal action, but the Supreme Court undertook a searching analysis of the record in light of the relevant statutory language and unanimously found that the municipal action was not supported by substantial evidence in the record.
I’m not going to go into detail about the municipal justifications and the particulars of the Court’s decision. I’m not criticizing the determination that maybe the library could be better or that senior citizen affordable housing should be built. But I am celebrating that the Court took its task seriously and did not simply take the easy route of rubber stamping the municipal action.
Jay Bohn
March 16, 2023