Governor Murphy issued Executive Order 122 requiring all “non-essential” construction projects in New Jersey to cease by Friday, April 10, 2020, at 8 pm. This shutdown continues indefinitely, with limited exemptions for construction projects that are deemed essential. On-going construction for projects that are not deemed essential will be required to stop, and future construction for projects that are not deemed essential will not be permitted to begin.

The shutdown will potentially delay many real estate projects, impact deadlines in contracts, and/or impact construction financing. Readers are encouraged to review with counsel their loan commitments and covenants, land use approval expiration dates, delivery obligations to buyers and tenants, and other potential impacts of Executive Order 122.

Continue Reading Governor Murphy Announces Shutdown of Non-Essential Construction

The NJ Department of Environmental Protection (NJDEP or Department) issued new regulations effective April 6, 2020 that expand the Garden State’s list of protected waterways. These amendments to the Surface Water Quality Standards (SWQS), N.J.A.C. 7:9B, upgrade the designation of approximately 600 river miles throughout the state and assigns them the highest level of protected water quality status of “Category  One” (or “C1”).

Continue Reading New Jersey Expands List of Protected Waterways, Imposing Stricter Water Quality Controls and Development Buffers

The New Jersey Department of Community Affairs, Division of Local Government Services (DLGS or Division) yesterday issued “Operational Guidance” to the state’s municipal Planning Boards and Zoning Boards of Adjustment to “ensure continuity of Land Use application procedures” while New Jersey’s State of Emergency remains in effect. The guidance document seeks to “ensure due process is afforded hearings and to remind local units to adhere to appropriate social distancing and health measures as they implement this process.”

Continue Reading NJDCA Issues Guidelines Clearing the Way for Virtual Zoning and Planning Board Hearings

Sills Cummis attorney Ted Zangari recently issued a public call for the New Jersey State Legislature to adopt a new version of the Permit Extension Act, N.J.S.A. 40:55D-136.1 et seq. The Act was signed into law in 2008 to revive and extend state, county, and local government approvals to provide the regulated community, developers, property owners, and the real estate sector with relief in recognition of the nationwide recession that began in 2007. As the recession and its effects dragged on, the Act was further extended in 2010 and 2012, and again in 2014 to deal with compounded effects of Superstorm Sandy in certain highly impacted areas. As Ted noted, now is the time to extend these protections as we adapt and respond to the current and forthcoming public health and economic crises that are impacting the country and the world.

Continue Reading The Need for a New Permit Extension Act due to the COVID-19 Health Crisis and Ensuing Economic Downturn

History doesn’t usually repeat but it often rhymes. COVID-19’s impact on construction projects will likely differ from past recessionary triggers but one thing is already clear: the setback will be severe in its depth and breadth. That’s why policymakers in Trenton should begin to consider extending building permits and approvals, just as they did during the Great Recession.

A dozen years ago, the New Jersey State Legislature approved the Permit Extension Act of 2008. By any measure, this law saved countless businesses, construction lenders and host municipalities from financial ruin and prevented what could have been a far more dire situation for the state’s economy.

So why was it so important to extend permits and approvals?

Continue Reading COVID-19 Legal Resources: It’s Not Too Early to Consider Extending Building Permits & Approvals

Curbside pickups, already trending in shopping centers before the pandemic, will likely become a permanent feature of retail stores…along with features long associated with bank branches: automated kiosks (ATMs), dividers between customers and clerks (tellers), and drive-throughs. As with the advent of mini-fulfillment centers within stores (see my earlier post), these operational and design changes will trigger all sorts of lease, building code and land use issues. Landlords, tenants and their host municipalities have no choice but to get this right; e-commerce may have created a competitive threat the past two decades, but COVID-19 poses an existential threat to all parties. When it comes time to swing open the doors, don’t just re-open— RE-IMAGINE.

> Click here to read “Curbside Enthusiasm: Retailers Adapt In A Time Of Crisis” from Forbes

On January 27, 2020, Governor Murphy unveiled a series of broad regulatory proposals seeking to establish a “clean energy future” framework in the Garden State. The sweeping changes − billed as first-in-the-nation “comprehensive and aggressive suite of climate change regulations” − are laid out in three separate, but interrelated administration documents:

  • A newly updated New Jersey Energy Master Plan from the New Jersey Board of Public Utilities
  • Governor Murphy’s Executive Order 100
  • NJDEP Commissioner McCabe’s Administrative Order 2020-01

These new energy and climate change requirements would dramatically impact land use, development, utilities, energy consumption, and numerous other areas of everyday life.

Continue Reading The Winds of Change: Governor Murphy Launches Sweeping Regulatory Reforms to Promote Clean Air and Fight Climate Change

As seen on: ROI-NJ.com

The city of Newark has one of the top locations in the country for investors looking to take advantage of the new Opportunity Zone Program, according to a national study released Thursday morning.

The LOCUS National Opportunity Zone Ranking Report ranked a census tract in downtown Newark in a tie for sixth place among the top Opportunity Zones for Smart Growth Potential, in a ranking of nearly 8,000 tracts.

In addition, a tract in Newark ranked fourth overall in locations deemed to be the top Social Equity and Vulnerable Places with High Smart Growth Potential, meaning the city not only could handle the investment, it would do so without hurting the existing population.

> Link to full article

Assembly Bill 3494 was approved last week, with amendments, by the Assembly Appropriations Committee. The bill now heads for a vote in the full General Assembly. The State Senate is expected to take up the legislation early next year.

> Click here for a summary of the most-up-to-date version of the legislation