New Jersey Supreme Court Confirms Improvement Authorities Must Engage in Competitive Bidding Process to Solicit Redeveloper

In a decision on April 28, 2022, in Dobco, Inc. v. Bergen County Improvement Authority, the New Jersey Supreme Court affirmed an injunction requiring the Bergen County Improvement Authority (BCIA) to use a public bidding process to select a redeveloper for to rehabilitate the Bergen County Courthouse.

After finding that the plaintiff had standing as a taxpayer to challenge the BCIA’s actions, the Court held that the New Jersey Local Public Contracts Law required the BCIA to set forth a public bidding process to procure a redeveloper for the project. The Court stated that BCIA could not be used as a vehicle to skirt public bidding laws, such as the New Jersey Local Public Contracts Law, which requires specific bidding processes and awards to the lowest bidder. In authorizing County Improvement Authorities, the Legislature did not create any exception to the bidding mandate even if the BCIA was acting as a redevelopment entity.

Ultimately, companies seeking to be approved as a redeveloper should keep in mind that County Improvement Authorities will be required to proceed through ordinary public bidding procedures.

For more information on Public Bidding issues, please contact Procurement Law, Government Contracts and Bid Protest Litigation specialists and firm Partners Jennifer Borek, Esq. via email here, Lawrence Bluestone, Esq. via email here, or call 973.533.0777.