In a recent decision, Borough of Harvey Cedars v. Karan, 214 N.J. 384 (2013), the New Jersey Supreme Court overturned the “special vs. general benefits” distinction that had previously been used in calculating compensation to property owners in partial-takings cases. This ruling will have a substantial impact on the calculation of compensation in forthcoming partial-takings by the state. The court’s decision specifically will impact the compensation received by owners of property taken in connection with the government’s plan to reinforce beachfront property in the wake of Superstorm Sandy.
In Harvey Cedars, the borough of Harvey Cedars condemned a portion of the oceanfront property of the Karans, in order to permit dune construction. The dune construction project was part of a larger shore-protection project. The new dune line was designed to benefit all of the residents of the borough by providing greater protection against flooding and rising tides during storms. The dune-construction project required the securing of easements on properties bordering the ocean. The responsibility and cost of acquiring those easements fell to the municipalities on Long Beach Island — including the borough of Harvey Cedars.
