Legal Advice During Challenging Times

What is spot blight eminent domain?

On Behalf of | Jan 26, 2024 | Real Estate Law |

Real estate developers are likely familiar with the term ’eminent domain’ and how it can affect their commercial properties. It’s a divisive issue that often pits private property owners against government entities.

Eminent domain is a Fifth Amendment right that allows the government to take private property for public use, with the understanding that the government will compensate the private owner for the fair value of the land.

Addressing blighted properties

Under the spot blight eminent domain, New Jersey’s local governments can condemn and acquire private properties they deem run-down. The purpose is to promote revitalization and redevelopment in areas where blighted properties pose a threat to public health and safety.

Specific criteria need to be met to exercise spot blight eminent domain, including:

  • There has to be a structure on the property. It can’t be a vacant lot.
  • The structure shows signs of dilapidation, obsolescence, or other conditions negatively impacting the surrounding area.
  • Acquiring the property is necessary for redevelopment purposes

Meeting these criteria ensures that the exercise of spot blight eminent domain is based on sound reasoning and serves the goal of revitalizing blighted areas fairly and justly. Furthermore, it can only be used on property the municipality has determined to be abandoned. It can’t be used to force a property owner to give up their land.

New Jersey’s spot blight eminent domain can help real estate developers in several ways, such as:

  • Providing a way for developers to obtain properties that may otherwise be difficult to purchase.
  • It allows developers to participate in community revitalization efforts.
  • It can save time and resources by eliminating potential obstacles to obtaining land.

Before investing in commercial real estate, potential buyers must consider all their options. Working with someone who understands New Jersey’s spot blight eminent domain laws can help ensure everyone’s rights are protected.