What Is Redevelopment?

"Redevelopment" is the cooperative public-private process of clearing away the existing improvements on a property and replacing them with new improvements designed to promote government policy goals, such as revitalization of underutilized or contaminated parcels.

How Does It Work?

After preparing a redevelopment or urban renewal plan that sets forth its objectives for a given area, the government takes the property and transfers title to a private developer, which enters into an agreement to construct a new revenue-producing project that is consistent with the government's plan. Before the government may take property for redevelopment by eminent domain, many jurisdictions require a finding that the property or its existing improvements are "blighted" or "in need of redevelopment" although some jurisdictions allow the use of eminent domain solely to stimulate economic development.