New Jersey Assembly Bill A4777

New Jersey 2024-2025 Regular Session

• Introduced: 9/19/24
• Refer: 9/19/24

Caption

Prohibits municipal agency from approving applications for development of certain warehouses unless certificate of need is issued by Office of Local Planning Services in DCA.

Impact

The implications of this bill are significant, as it centralizes decision-making regarding warehouse development to state oversight and aims to reduce the proliferation of vacant or underutilized warehouse spaces across municipalities. In doing so, it seeks to foster more responsible development aligned with community needs, thereby potentially curbing the trend of 'ruinous competition'—where multiple warehouses compete for a limited customer base, leading to economic inefficiencies and wasted resources in regions with excess supply.

Summary

Assembly Bill A4777 introduces regulations concerning the development of large warehouses, specifically those exceeding 100,000 square feet. The bill mandates that a municipal agency cannot approve development applications for these warehouses unless a certificate of need is first obtained from the Office of Local Planning Services within the Department of Community Affairs. This requirement aims to ensure that new warehouse projects are justified by demonstrated community demand and occupancy commitments, specifically requiring at least 90% commitment for multi-tenant warehouses and full commitment for those housing single businesses.

Contention

While proponents argue that A4777 will protect communities from the adverse effects of overdevelopment and ensure that new warehouse spaces meet actual market demand, critics may express concerns about regulatory burdens on developers. Some might argue that the certificate of need requirement could hinder economic growth and delay potentially beneficial developments. Others might contend that it infringes upon local governance and reduces the autonomy of municipal agencies to determine the appropriateness of development based on local contexts.