Thursday, March 09, 2006

Jones Lang LaSalle

State Officials Roll Out Corzine Administration’s Agenda
By Eric Peterson
Last updated: March 9, 2006 11:18am

NEW BRUNSWICK, NJ-The topics were familiar--“smart growth,” brownfields redevelopment, environment, affordable housing and transportation, among others. But the spin was a little different because a new administration is in place in Trenton, and three of Gov. Jon Corzine’s top cabinet members yesterday offered some hints of what’s ahead at a public policy symposium sponsored by the New Jersey Chapter of NAIOP.

Among other things, according to Susan Bass Levin, commissioner of the Department of Community Affairs, Corzine is intent upon creating at least 100,000 affordable housing units over the next decade. “There is an obligation to provide affordable housing as part of general growth by the towns,” said Levin, who is a holdover from the previous Codey/McGreevey administration. “We are asking towns to look at long-term planning, not short-term spot planning.”

On the subject of brownfields, “we will continue to focus on redeveloping these sites,” Bass Levin told chapter members. “We will do that even though it’s more expensive than developing open space.”

Bass Levin also indicated that the “state growth management plan is undergoing a review as required by statute.” Part of that review involves inter-agency relationships, what she termed a “cross-acceptance process.” She conceded, as well, that a restructuring of state agencies relating to the state’s looming budget crisis is something that may factor into the larger equation.

On that subject, Lisa Jackson, commissioner of the New Jersey DEP said, “we’re at a critical juncture tied to cross-acceptance. We’re facing shrinking resources in government regarding the budget.” Other issues on DEP’s plate, said Jackson, include “re-energizing the water quality management planning process. There is a long road ahead in terms of fixing the planning rules and how to expedite permitting. We want predictability and transparency--this has to be a two-way street.”

Jackson also indicated that Gov. Corzine “is in favor of keeping the moratorium on fast-track permitting to determine what to do with it.” The legislation to speed up permitting in certain parts of the state was signed into law by former Gov. James McGreevey, then quickly put on the shelf in the face of criticism. Jackson also challenged builders “to build smarter regarding the environment, green building materials and low-impact design.”

One of the challenges facing Kris Kolluri, new commissioner of DOT, is the state’s transportation trust fund, which could be bankrupt by June with serious implications including matching federal funds. “The governor’s plan is to develop a long-term consensus on solving the problem, but also develop a five-year game plan.” For the latter, “the governor will direct that all gas tax collections be directed to the trust fund, and that more of the money collected from the toll roads will go to the fund.”

Regarding development, “our guiding principle is not to make a transportation capacity expansion if it’s going to be obsolete in a couple of years. We will ask that a project’s master plan be well thought out. We need predictability from an investment standpoint." Kolluri also indicated DOT will “focus on the development of transit villages, and DOT wants to play a bigger role than just giving money.”

A panel of top state legislators followed with their own take on the issues. Moderator Anthony Pizzutillo of Issues Management raised the specter of eminent domain, with Senate majority leader Bernard Kenny, Jr. (D-Hudson) responding, “redevelopment is good. Eminent domain, if used properly, is necessary. But we have to look at fairness and the way property owners are compensated.”

Assembly speaker Joseph Roberts (D-Camden) also supported the concept, “but the process has to involve people in the community.” Noting there are several bills in the legislature involving eminent domain, Senate minority leader Leonard Lance (R-Hunterdon) called for “a rational, calm, deliberate approach.” Assembly minority leader Alex DeCroce (R-Morris) also called for fairness: “I don’t want to see people get hurt by arbitrary things.”

As for property tax reform, all four tied the state’s high taxes to home rule and New Jersey’s complex mix of 566 municipalities. Regionalism would bring down taxes, they agreed, with Roberts explaining, “we’re paying a dear price for the structure we have. It’s all about choices.”
For dealing with tax reform, Robert expressed support for a constitutional convention of citizens elected solely for that purpose, with no other agenda. He said that Corzine was leaning toward a “special session of the legislature to set the parameters for a constitutional convention.”


Lance, meanwhile, warned that such a convention could result in “higher taxes for commercial real estate,” which is currently taxed at the same rate as residential. DeCroce expressed support for keeping the matter in the legislature, as did Kenny, who reiterated, “it’s all tied to the way we function as a state.”