In Gallenthin Realty Development, Inc. v. Borough of Paulsboro (A-51-2006), the New Jersey Supreme Court dramatically narrowed the definition of blight under Article VIII, Section 3 of the New Jersey Constitution, substantially limited the scope of criterion “e” of N.J.S.A. 40A:12A-5 and made other statements that likely could have the effect of substantially limiting the scope of all of the major redevelopment criteria of N.J.S.A. 40A:12A-5. In so doing, despite artful attempts to distinguish prior court decisions and the legislative history of the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. (“LRHL”), the Court appears to have initiated a reversal of the course of over 40 years of New Jersey decisional law and legislative enactments, as well as national and international theories and policies on effective redevelopment. Read full report.
