Practice Areas

Redevelopment and Economic Development

In recent years, McManimon & Scotland, L.L.C. has been engaged as counsel to assist public entities with a variety of redevelopment initiatives. These responsibilities include the designation of areas in need of rehabilitation and the adoption of redevelopment plans. The types of redevelopment projects for which our firm has provided legal assistance include commercial and recreational redevelopment projects as well as market and affordable housing. In connection with these initiatives, McManimon & Scotland, L.L.C. has negotiated developer and tax abatement agreements and provided advise relating to the structure and financing of redevelopment projects including security agreements and financial assistance contracts by public entities.

The statutory and structural complexity of even the most rudimentary redevelopment project demands a wide range of legal expertise. The attorneys at McManimon & Scotland, L.L.C. have acquired that expertise in all of the areas required to turn a redevelopment concept into a redevelopment project. These areas of expertise include:

Planning Expertise
Every redevelopment project begins with a plan. McManimon & Scotland, L.L.C. will assist the municipality, the planning board and the municipality's planning consultant in designating an area in need of redevelopment, formulating a redevelopment plan, and selecting a redeveloper. A thorough knowledge of the redevelopment laws, and how those laws are interpreted by New Jersey's courts, will ensure a solid foundation for your redevelopment project.

Transactional Expertise
Redevelopment projects often include a series of transactions involving multiple legal disciplines. Whether it be the sale, purchase or condemnation of property, the borrowing or lending of money or the negotiation and execution of a construction contract or redevelopment agreement, a broad transactional expertise is required to achieve the municipality's goal. Accordingly, the ability to draw upon a law firm that has transactional expertise in such areas as contract law, public sector law, land use law, environmental law, bankruptcy law and corporate, tax and finance law is critical to a successful redevelopment project. Every redevelopment project is different. The drafting and negotiation of the transaction documents requires experience and judgement about what the law will permit, what the public reaction may be, what the redeveloper is likely to find acceptable and what is achievable in the redevelopment area.

Financial Expertise
As part of the redevelopment process, a municipality must focus on the challenges in the redevelopment area which prevent or deter private investment. Frequently, those challenges include inferior infrastructure, abandoned buildings which require demolition, and environmental remediation issues. The municipality must understand its needs, as well as the requirements of its private partner, in order to determine what assistance, if any, a municipality should render to a potential redeveloper. The successful redevelopment project is achieved when the public subsidy is limited to the amount and type needed to encourage development but avoid a windfall for the developer. Only a law firm with both municipal and corporate finance experience can provide the expertise needed to help a municipality strike this balance.

Tax Expertise
The ability to address the pros and cons of short and long term tax exemptions is critical to many redevelopment projects. It is also helpful to understand the tax impact of every transaction on the redeveloper in order to ensure a fair deal for both parties. Finally, the ability to identify opportunities to take advantage of tax exempt interest rates can often make the difference between a failed redevelopment concept and a successful redevelopment project.

Dispute Resolution Expertise
Redevelopment projects often represent major changes for a municipality. Redevelopment may be pursued in order to create additional revenues for a municipality, spur economic revitalization and or assist local businesses to expand and improve their facilities. Redevelopment projects often require relocation of residents and/or businesses and condemnation of private property. Occasionally that change is not well tolerated.

McManimon & Scotland, L.L.C.'s dispute resolution experts have dealt with challenges to a municipality's designation of a redevelopment area, adoption of a redevelopment plan, negotiation of a redevelopment agreement and condemnation of private property.

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