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 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
A Guide to the Future: Stranded Assets September 29, 2016 Urban Land Institute
Stranded Assets Defined Office: More than 100,000 SF Vacancy > average (14%) Chronic vacancy (5 yrs) Retail: More than 25,000 sq. ft. Vacancy > 20%
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
Economic Impacts Loss in commercial land value more than 5% 584 lost jobs = $14,000 lost per WEEK in lunches alone
Changing Demands: Walkability 50% want walkability 2 out of 3 want access to bike paths
Cost of Car Dependence The Transportation Trust Fund went BANKRUPT July 1 NJ: $596 US: $335
Transportation Costs to Society $2.78 $0.75 $0.38 Car Commute Mass Transit Biking
Meeting Housing Demands - 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 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
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
Planning for the Future - Isolated development patterns cannot meet these demands - But we have an excellent opportunity to address these issues….
So Much Potential 14M Sf Empty office space 7,100 Acres or 8 Central Parks
So Much Potential 7M Sf Empty retail space 410 Football fields of surface parking
Checklist for Success Checklist for Success
Find the Guide Online www.plansmartnj.org
A DVANCING THE S OMERSET C OUNT Y I NVESTMENT F RAMEWORK
COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY The Somerset County Comprehensive Economic Development Strategy was a joint effort with the Somerset County Business Partnership.
S UPPORTING PRIORITY INVESTMENT IN IN S OMERSET COUNTY THROUGH ACCESS AND MOBILITY IMPROVEMENTS
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
S UPPORTI NG PRIORIT ITY INVESTM NT IN IN S OMERSET SET COUNTY TY : : P HASE 2 RTING TMENT
I-287 I NDUSTRIAL C OMPLEX PGIA Conceptual mixed- use development
A DVANCING THE S OMERSET C OUNTY I NVESTMENT F RAMEWORK 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
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
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
Suburban Market Place 2016 Strategies for Repurposing Stranded Assets September 29, 2016
S TRATEGIES FOR REPURPOSING STRANDED ASSETS URBAN LAND INSTITUTE : SUBURBAN / URBAN MARKETPLACE 2016 Anne S. Babineau, Esq. Wilentz, Goldman & Spitzer, P.A. 90 Woodbridge Center Dr. Woodbridge, NJ 07095 732.855.6057 ababineau@wilentz.com
Local Redevelopment and Housing Law – Redevelopment Laws in NJ date since 1940s “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. 40
Redevelopment Area Criteria: • “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 of such buildings; or the same being allowed to fall into so great a state of 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 of the municipality, or topography, or nature of the soil, is not likely to be developed through the instrumentality of private capital .” 41
Redevelopment Area Criteria: • “ 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 of these or other factors, are detrimental to the safety, health, morals, or 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 .” 42
Redevelopment Area Criteria: • “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 other 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” . 43
Redevelopment Area Criteria: Redevelopment Area Criteria: 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 44
Redevelopment Area Criteria: The Rehabilitation Area 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 old; 45
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