Christie Administration Moves to Make It Tougher to Keep Sprawl in Check

The following story was written by Tom Johnson and published by our partners at NJSpotlight.com.

The Christie administration is moving to repeal an anti-sprawl measure that sought to discourage growth in undeveloped areas by imposing the cost of extending utility services on the developer or customers served by the extension.

In a draft rule unveiled by the New Jersey Board of Public Utilities (BPU), the agency would now allow those costs to be potentially spread over the entire ratepayer base. Under the current rule, developers can spread the costs among all ratepayers only when building in designated growth areas with an existing infrastructure, such as towns and suburbs.

But that provision was struck down by a state appeals court in 2009, which ruled the agency lacked the statutory authority to place that requirement on developers. The draft rule is the agency’s response to the court decision, which stemmed from a developer balking at paying $8 million in utility extension costs for a 555-home development in Howell Township.

Although the BPU says it has little choice but to repeal the measure, smart growth advocates say the result will be to encourage development in undeveloped areas. They are looking to the state legislature to resolve the issue in favor of smart growth policies.

Anti-Sprawl Agenda

The original rationale behind the proposal, one of the key parts of former Gov. Jim McGreevey’s anti-sprawl agenda, was to provide a disincentive for developers seeking to build in relatively remote areas where there are no sewer lines, water mains, or gas and electric lines.

While not criticizing the BPU, smart growth advocates said they hope to have legislation passed that would allow state agencies to create such rules. The state, they argue should be allowed to implement policies that steer development away from areas not designated for growth under the State Plan.

“The BPU’s hands are tied,’’ said Chris Sturm, senior director for state policy for New Jersey Future, a nonprofit group concerned with land use issues, referring to the appellate court decision. “This is the wrong direction. It’s going to encourage sprawl.’’

Sturm also said her group is hoping the administration’s strategic plan for development, a Cabinet-level review of state land use policies, will “create a new investment framework for encouraging economic growth in the right areas.’’

“This is a step back for smart growth and sound land use planning in New Jersey,’’ added Lucy Vandenberg, executive director of PlanSmart, a nonprofit civic planning group. “It does call out for legislative action.’’

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