Prohibits municipal agency from approving applications for development of certain warehouses unless certificate of need is issued by Office of Local Planning Services in DCA.

A4061

ASSEMBLY, No. 4061

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Prohibits municipal agency from approving
applications for development of certain warehouses unless certificate of need
is issued by Office of Local Planning Services in DCA.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

requiring certificates of need for certain
warehouse developments and supplementing P.L.1975, c.291 (C.40:55D-1 et seq.)
and P.L.1966, c.293 (C.52:27D-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� As used in this
section:

���� �Warehouse� means a building
greater than 100,000 square feet that stores cargo, goods, or products of any
type on a short-term or long-term basis for later distribution to wholesale or
retail customers, and includes, but is not limited to, a distribution center,
flex-warehouse, or any other type of warehouse.

���� b.� A municipal agency shall
not approve an application for development to construct or expand a warehouse unless
the Office of Local Planning Services in the Department of Community Affairs
has issued a certificate of need for the project, pursuant to section 2 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).� A
developer shall notify, in a form and manner determined by the Office of Local
Planning Services, a municipal agency of the developer�s intent to submit an
application for development to construct or expand a warehouse prior to
applying for a certificate of need.� A developer shall secure a certificate of
need prior to submitting the application for development and shall include it
with that application.

���� 2.��� a.� As used in this
section:

���� �Warehouse� means a building
greater than 100,000 square feet that stores cargo, goods, or products of any
type on a short-term or long-term basis for later distribution to wholesale or
retail customers, and includes, but is not limited to, a distribution center,
flex-warehouse, or any other type of warehouse.

���� b.� The Office of Local
Planning Services in the Department of Community Affairs shall adopt rules and
regulations pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), to effectuate the purposes of P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill) by establishing standards and
criteria meriting the issuance of a certificate of need for a proposed
warehouse project, including a requirement that the developer provide proof
prior to development that:

���� (1)�� at least 90 percent of
the proposed warehouse space is leased, or otherwise committed to active
warehouse use, if the warehouse is to house multiple businesses; or

���� (2) 100 percent of the
proposed warehouse space is leased, or otherwise committed to active warehouse
use, if the warehouse is to house a single business.

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill prohibits a
municipal agency from approving an application for development to construct or
expand a warehouse, as defined in the bill, unless the Office of Local Planning
Services (office) in the Department of Community Affairs has issued a
certificate of need for the project, pursuant to the bill. �A developer is to
notify, in a form and manner determined by the office, a municipal agency of
the developer�s intent to submit an application for development to construct or
expand a warehouse prior to applying for a certificate of need.� A developer is
to secure a certificate of need prior to submitting the application for
development and is to include it with that application.

���� The office is required to
adopt rules and regulations to effectuate the purposes of the bill by
establishing standards and criteria meriting the issuance of a certificate of
need for a proposed warehouse project, including a requirement that the
developer provide proof prior to development that: at least 90 percent of the
proposed warehouse space is leased, or otherwise committed to active warehouse
use, if the warehouse is to house multiple businesses; or 100 percent of the
proposed warehouse space is leased, or otherwise committed to active warehouse
use, if the warehouse is to house a single business.

���� There are many large
warehouses across this State that have been vacant for years, oftentimes
located in close proximity to one another, creating a cycle of ruinous
competition.� This bill�s intent is to ensure that new warehouses are
guaranteed to be occupied with businesses, demonstrating the community�s need
for the warehouse.