Bill Text: NJ A4731 | 2014-2015 | Regular Session | Amended
Bill Title: Voids deed restrictions on publicly-owned or leased property in Atlantic City Tourism District; grants public entity 18 months to sell property or submit public use plan.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-01-07 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A4731 Detail]
Download: New_Jersey-2014-A4731-Amended.html
ASSEMBLY, No. 4731
STATE OF NEW JERSEY
216th LEGISLATURE
INTRODUCED NOVEMBER 16, 2015
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Voids deed restrictions on publicly-owned or leased property in Atlantic City Tourism District; grants public entity 18 months to sell property or submit public use plan.
CURRENT VERSION OF TEXT
As reported by the Assembly Appropriations Committee on January 7, 2016, with amendments.
An Act concerning the taxation of certain publicly-owned or lease real property within the Atlantic City Tourism District, supplementing P.L.2011, c.18 (C.5:12-218 et seq.), and amending P.L.1971, c.370 (C.54:4-3.3a).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that:
a. By reason of its location, natural resources and worldwide prominence and reputation, the City of Atlantic City and its resort, tourist and convention industries represent an exceptional and valuable asset to the continued viability and economic strength of the tourist, convention and resort industry of the State of New Jersey.
b. As memorialized in the Casino Control Act, New Jersey public policy strongly fosters and encourages new construction and replacements of lost convention, tourist, entertainment, and cultural centers in Atlantic City through varied attractions and exceptional facilities in an effort to restore it as the Playground of the World and major hospitality center of the eastern United States. Urban redevelopment is the unique tool to accomplish such purposes.
c. In an effort to accomplish these purposes, in 2011, the Legislature enacted, and the Governor signed, P.L.2011, c.18, now codified at C.5:12-218 et seq., to revive and enhance Atlantic City through the creation of the Atlantic City Tourism District. The district is managed by the Casino Reinvestment Development Authority which has exclusive jurisdiction over the enactment and administration of land use controls and approvals for all lands within the Tourism District.
d. With the identical purposes, the New Jersey Department of Environmental Protection, in implementation of the Coastal Area Facility Review Act, has promulgated liberal regulations at N.J.A.C.7:7-9.47 pertaining only to regulated development in Atlantic City.
e. The foregoing purposes are undermined when property owners attempt to use deed restrictions, which are servitudes that effectively constrain both competition and development diversity, to place limitations on the subsequent use of real property in an effort to control the nature of permissible land use.
f. The imposition of deed restrictions is particularly offensive when applied to limit the use and nature of improvements upon public property located in the Tourism District.
g. This is especially so in the case of the former Showboat Hotel and Casino which was purchased by Stockton University for the purpose of expanding its campus to the Tourism District and now, because of deed restrictions, cannot do so and is having difficulty selling the property.
h. Allowing a public institution of higher education to expand its services into the Tourism District would greatly contribute to the vitality and diversity of Atlantic City and enhance its economic strength.
i. Accordingly, the public interest in promoting the use of publicly-owned property in the Tourism District of Atlantic City for a variety of purposes outweighs the interest of any former property owner in interfering with the transfer of real property and in property being used for its highest and best purpose.
j. Restrictions upon the use of publicly-owned property in the Tourism District of Atlantic City, as well as any related release price, whether created heretofore or hereafter, erode the purposes of the Casino Control Act, hinder development, permit the private interests of a few to outweigh the strong social benefits of the many, are against the public policy promoted by the unique nature of Atlantic City, and must be deemed void and unenforceable as against public entities and their successors who own or have any leasehold interests therein.
2. (New section) Every oral agreement or provision in a written instrument 1enforcing a prohibition or restriction on the use or occupancy of the property or the nature, including the aesthetics, or any improvements thereon1 , no matter when entered into or made, relating to real property 1[now]1 within the boundaries of the Atlantic City Tourism District established pursuant to P.L.2011, c.18 (C.5:12-218 et seq.), 1that was previously part of an area determined to be in need of redevelopment and that becomes subject to ownership or leasehold by a public entity,1 may be enforced only among the original parties to the agreement and shall not run with the land. Whenever a public entity holds title or a leasehold interest in a property within the boundaries of the Atlantic City Tourism District and which property is purportedly subject to a provision which forbids or restricts the use or occupancy of the property or the nature, including the aesthetics, or any improvements thereon, the restrictions shall be void and unenforceable as against public policy. Any successor in interest to the public entity may buy, lease, or take assignment of the property without regard to the purported restrictions, including any provisions requiring a price for the release of the restrictions.
3. (New section) Whenever a public entity holds title or an interest in real property located within the boundaries of the Atlantic City Tourism District established pursuant to P.L.2011, c.18 (C.5:12-218 et seq.), the real property shall be considered to be devoted to a public use in accordance with R.S.54:4-3.3, and not subject to taxation under chapter 4 of Title 54 of the Revised Statutes, if the public entity (1) submits a detailed plan for the public use of the property to the Casino Reinvestment Development Authority and the municipal tax assessor within 18 months of acquiring its interest, or (2) sells, assigns, or transfers its interest in the property within 18 months of acquiring that interest. If the real property is sold, assigned, or transferred to a person or entity that is not exempt from taxation, then the real property shall be subject to taxation under chapter 4 of Title 54 of the Revised Statutes commencing on the day next following the date of sale, assignment, or transfer.
4. (New section) As used in sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), "public entity" means the State, and any county, municipality, school district, public authority, public agency, and any other political subdivision or public body in this State, including a public institution of higher education.
5. Section 1 of P.L.1971, c.370 (C.54:4-3.3a) is amended to read as follows:
1. Real property acquired by the State or by a State agency, or by an authority created by the State, or by any public entity, including a public institution of higher education, shall not be exempt from taxation during the period or periods following such acquisition, as prescribed in [this act] P.L.1971, c.370 (C.54:4-3.3a et seq.); provided, however, whenever a public entity holds title or an interest in real property located within the boundaries of the Atlantic City Tourism District established pursuant to P.L.2011, c.18 (C.5:12-218 et seq.), that real property shall be exempt from taxation if section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) is applicable.
(cf: P.L.1971, c.370, s.1)
6. This act shall take effect immediately.
