June 28, 2004
By Jim Sinclair (First Vice President), 609-393-7707, ext. 236
For too many environmentalists, smart growth means no growth. Nowhere was this more evident than in the debate over so-called fast-track legislation that was approved by the Legislature in June.
The environmental lobby was up in arms about legislation that would put strict deadlines on permit approvals in urban and older suburban areas. After the bill passed, many environmentalists claimed that it would "set back environmental policy in this state 30 years."
The environmentalists are wrong. Fast-track permitting will not harm the environment and may do more for smart growth than Highlands preservation, developer impact fees or other initiatives supported by the environmental lobby.
But before we get into what the bill would do, let's be clear about what it would not do.
Fast-track legislation would not reduce any environmental standard, weaken any environmental law or eliminate any environmental regulation. Any development approved under a fast-track process would have to meet each and every environmental standard in existence today.
Fast-track legislation would not rubber stamp permits. Nothing in the bill says the DEP must approve a permit or work with an incomplete application. It says only that they must give an answer in a timely fashion.
Fast-track legislation would not speed up development all over the State. The fast track process will only be available to developments in urban and older suburban areas that have already been designated for growth by the State Plan and local zoning ordinances.
Fast-track legislation would not prevent public comment. The process does not override local zoning and planning ordinances, which must include at least one public hearing on a project.
What this bill would do, however, is provide a tremendous financial incentive for developers to site projects in developed areas instead of open spaces, farmlands and rural locations.
Developers do not set out to create sprawl or harm the environment. New Jersey law just provides a perverse financial incentive to develop in rural areas rather than already-developed parts of the state. It's simply a lot more cost effective to just start digging in the middle of a field than to go through the expense of tearing down old buildings, complying with brownfields regulations, and appeasing neighboring businesses and residents.
The fast-track bill would turn that situation around by making the already developed areas more cost effective for new construction.
The fees developers pay to the NJ Department of Environmental Protection (DEP), while being among the highest in the nation, are nowhere near as costly to a developer as the cost of common delays in the permit-approval process. Years worth of legal and engineering fees (lawyers and engineers usually charge by the hour) can add up to a tremendous expense.
By guaranteeing developers that they can get an answer on their permits with 90 days, the State will give developers a tremendous financial incentive to turn away from rural sites and look for suitable development areas in urban corridors. This in turn will take development pressure off of open spaces and farmland, and do it without any controversial construction bans or the need for taxpayer-funded compensation to property owners.
Fast track legislation also would provide the state with a tremendous economic development tool. The Governor and his economic development team would be able to guarantee prospective businesses a timely review of their project, provided they locate in a designated growth area. Business relocations and expansions would get done more quickly, and this would mean more jobs for New Jersey residents.
Let's face it, eliminating all development of any kind is not feasible. In order to have economic growth, we must have some new development. That's why the State Plan created two tiers where development should be encouraged-planning areas 1 and 2. Fast track legislation would only apply to projects in these areas.
We need housing we can afford. We need economic growth. If we are going to severely restrict development in areas like the Highlands and the Pinelands, then we as a state must find ways to encourage it in places where development makes sense. That's what the fast-track bill does. And that's why Governor James E. McGreevey should sign it.
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