There is an important eminent domain case in New Jersey that warrants careful attention by all small business owners.
The dispute involves a commercial property owned by BMIA, LLC in Belmar, New Jersey. BMIA has been fighting to keep its property, the Belmar Mall, from being condemned for a redevelopment project. The Belmar Mall is a commercial center that contains 20 mom-and-pop businesses, along with three major chain tenants, Rite Aid, Curves for Women and West Marine.
To help ensure that condemnation of the property would be possible, the city of Belmar conducted a study, which determined that the downtown property was "an area in need of redevelopment." This designation was the first step in instituting eminent domain proceedings. The municipality's "area in need" designation was based on a determination that .34 acres of the 15-acre site, or 2 percent, was in a state of blight.
The NFIB filed an amicus brief with the Superior Court of New Jersey Appellate Division urging the court to find that the municipality's determination lacks sufficient evidence, arguing that finding 2 percent of a 15-acre site in need of redevelopment is insufficient to condemn the entire property.
"It is important that the Court understand the detrimental effect this decision would have on small businesses," said Elizabeth Gaudio, senior executive counsel of NFIB's Legal Foundation. "This case highlights the injustices that property owners, including many small-business owners, face when it comes to battling a local government's liberal interpretation of blight."
An ordinance prohibiting the mayor and town council from using eminent domain to acquire any owner-occupied home for redevelopment purposes has been proposed by the town's newest councilman, Matthew J. Doherty, earlier this month.
Sadly, now that the Kelo case has become a distant memory to many, this story has gotten almost no attention in the media. Hats off to the NFIB for staying on top of property rights in the wake of the Kelo decision and for their active involvement this important case.
