February 12, 2021

MSW Public Policy Alert: Pending legislation would significantly impact redevelopment efforts throughout New Jersey

New legislation pending in the New Jersey State Assembly (A1571/A1576), and Senate (S1956), seeks to amend the “New Jersey Prevailing Wage Act.” P.L.1963, c.150 (C.34:11-56.25 et seq.) to impose prevailing wage requirements on private redevelopment projects awarded tax abatements or exemptions (also referred to as PILOTs). Specifically, the legislation requires a contractor to include a provision in their contract that holds the contractor liable for paying a worker “a rate of wages less than the prevailing wage.” PILOTs have been a successful tax incentive tool utilized by private developers and municipalities to incentivize the redevelopment of distressed properties throughout the State. \

“This pending legislation threatens the use of this vital property tax incentive program by significantly increasing the costs to develop distressed properties. As a result, it will have a significant impact on redevelopment efforts throughout the State. The development community must come together to fight this legislation.” – Thomas S. Dolan, Chair of Property Tax Practice at MSW.

Murphy Schiller & Wilkes LLP is a boutique law firm specializing in commercial real estate and development matters. Headquartered in Newark, NJ, the firm was founded to provide effective, efficient, and creative legal services to meet the distinctive needs of our clients. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.