Redevelopment reform bill may soon become law

TRENTON — Legislation aimed at enhancing protections and oversight for public investments in private redevelopment projects in New Jersey may soon become law, but some environmentalists say the current bill doesn’t go far enough. The Legislature approved the measure (A-2650/S-1769) in late June, and Gov. Jon Corzine is expected to sign it. Known as the “EnCap reform bill” — a reference to the failed multimillion-dollar development plan to build a golf course and housing on four Meadowlands landfills — it requires businesses getting more than $50 million in public aid for private redevelopment projects to file annual, independently audited financial statements with the state treasurer and each entity from which it secured financing. It also requires businesses to spend at least $1 for every $5 received in public funds and pay for a performance bond — the amount of which would be tied to the project costs attributable to the publicly funded improvements. Businesses also would only be able to get 90 percent of the total approved public funds at first, and the rest after the project is completed. Corzine likely will sign the bill soon, although a date has not yet been set, said Robert Corrales, the governor’s spokesman. But the Sierra Club of New Jersey has urged Corzine to conditionally veto the measure, saying it has been weakened and deviates greatly from its original intent. “What started out as a reform bill ended up as a sham. Governor Corzine has to stand up and strengthen this bill,” Sierra Club director Jeff Tittel said this week. “The goal was to protect state residents when large amounts of public money are used for development, but what the lawmakers have done is taken out all the oversight. We believe that this bill in its current form provides political cover while reinforcing the system that is broken.” Tittel noted that the bill initially called for oversight of projects with $25 million or more of public financial aid, but it was later raised to $50 million. He also said the final version exempts many projects in large cities, including some where corruption has been an ongoing problem.