Bill Text: NJ A3816 | 2010-2011 | Regular Session | Introduced
Bill Title: Amends provisions NJ Economic Stimulus Act of 2009 concerning Economic Redevelopment and Growth Grant program of EDA.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-02-17 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A3816 Detail]
Download: New_Jersey-2010-A3816-Introduced.html
Sponsored by:
Assemblyman ALBERT COUTINHO
District 29 (Essex and Union)
SYNOPSIS
Amends provisions of NJ Economic Stimulus Act of 2009 concerning Economic Redevelopment and Growth Grant program of EDA.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the Economic Redevelopment and Growth Grant program and amending P.L.2009, c.90.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2009, c.90 (C.52:27D-489c) is amended to read as follows:
3. As used in sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.):
"Applicant" means a developer proposing to enter into a redevelopment incentive grant agreement.
"Ancillary infrastructure project" means public structures or improvements that are located in the public right-of-way outside the project area of a redevelopment project, provided a developer or municipal redeveloper has demonstrated that the redevelopment project would not be economically viable without such improvements.
"Authority" means the New Jersey Economic Development Authority established under section 4 of P.L.1974, c.80 (C.34:1B-4).
"Developer" means any person who enters or proposes to enter into a redevelopment incentive grant agreement pursuant to the provisions of section 9 of P.L.2009, c.90 (C.52:27D-489i). A developer also may be a municipal [government or a redevelopment agency as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3)] redeveloper.
"Developer contributed capital" means any and all capital contributed by a developer toward the costs of a redevelopment project, which shall not be less than 20 percent of the total redevelopment project costs. Developer contributed capital shall include, but not be limited to, the appraised value of any existing improvements in the project area owned or controlled by the developer.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Eligible revenue" means the property tax increment and any other incremental revenues set forth in section 11 of P.L.2009, c.90 (C.52:27D-489k).
"Incentive grant" means reimbursement of all or a portion of the project financing gap of a redevelopment project through the State or a local Economic Redevelopment and Growth Grant program pursuant to section 4 or section 5 of P.L.2009, c.90 (C.52:27D-489d or C.52:27D-489e).
"Infrastructure improvements in the public right-of-way" means public structures or improvements located in the public right of way that are located within a project area or that constitute an ancillary infrastructure project or a major transit facility.
"Municipal redeveloper" means a municipal government or a redevelopment agency as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3) acting on behalf of a municipal government that is an applicant for a redevelopment incentive grant agreement.
"Project area" means land or lands under common ownership or control including through a redevelopment agreement with a municipality or as otherwise established by a municipality.
"Project financing gap" means the part of the total redevelopment project cost, including return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, developer contributed capital [, which shall not be less than 20 percent of the total project cost,] and investor or financial entity capital or loans for which the developer, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources.
"Project revenue" means all rents, fees, sales, and payments generated by a project, less taxes or other government payments.
"Property tax increment" means the amount obtained by:
(1) multiplying the general tax rate levied each year by the taxable value of all the property assessed within a project area in the same year, excluding any special assessments; and
(2) multiplying that product by a fraction having a numerator equal to the taxable value of all the property assessed within the project area, minus the property tax increment base, and having a denominator equal to the taxable value of all property assessed within the project area.
For the purpose of this definition, "property tax increment base" means the aggregate taxable value of all property assessed which is located within the redevelopment project area as of October 1st of the year preceding the year in which the redevelopment incentive grant agreement is authorized.
["Qualifying economic redevelopment and growth grant incentive area" means Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a center as designated by the State Planning Commission; a pinelands regional growth area, a pinelands town management area, a pinelands village, or a military and federal installation area established pursuant to the pinelands comprehensive management plan adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.); a transit village, as determined by the Commissioner of Transportation; and federally owned land approved for closure under a federal Base Realignment Closing Commission action.]
"Redevelopment incentive grant agreement" means an agreement between, (1) the State and the [New Jersey Economic Development Authority] authority and a developer, or a municipal ordinance authorizing a project to be undertaken by a municipal redeveloper; or (2) a municipality and a developer, or a municipal ordinance authorizing a project to be undertaken by a municipal redeveloper, under which, in exchange for the proceeds of an incentive grant, the developer agrees to perform any work or undertaking necessary for a redevelopment project, including the clearance, development or redevelopment, construction, or rehabilitation of any structure or improvement of commercial, industrial, or residential [, or public structures] or any infrastructure development or improvements within a [qualifying economic redevelopment and growth grant incentive] smart growth area [or a transit village].
"Redevelopment project" means a specific work or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer within a project area, infrastructure improvements associated therewith, and any project conducted upon lands donated for open space and the remediation thereof, and any ancillary infrastructure project associated therewith.
"Redevelopment utility" means a self-liquidating fund created by a municipality pursuant to section 12 of P.L.2009, c.90 (C.52:27D-489l) to account for revenues collected and incentive grants paid pursuant to section 11 of P.L.2009, c.90 (C.52:27D-489k), or other revenues dedicated to a redevelopment project.
"Revenue increment base" means the amounts of all eligible revenues from sources within the redevelopment project area in the calendar year preceding the year in which the redevelopment incentive grant agreement is [executed] authorized, as certified by the State Treasurer for State revenues, and the chief financial officer of the municipality for municipal revenues.
"Smart growth area" means an area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), a designated center, or a designated growth center in an endorsed plan; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); a growth area designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the Pinelands Protection Act, P.L.1979, c.111 (C.13:18A-8); an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.) and approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection.
"Total redevelopment project cost" means the total cost incurred in connection with the redevelopment project including, without limitation, remediation costs, soft costs and capitalized interest paid to third parties, but excluding any costs for which the project has received other State or local funding.
"Transit village" means a community with a bus, train, light rail, or ferry station that has developed a plan to achieve its economic development and revitalization goals and has been designated by the New Jersey Department of Transportation as a transit village.
(cf: P.L.2010, c.10, s.4)
2. Section 5 of P.L.2009, c.90 (C.52:27D-489e) is amended to read as follows:
5. a. The [New Jersey Economic Development Authority] authority, in consultation with the State Treasurer, shall establish an Economic Redevelopment and Growth Grant program for the purpose of encouraging redevelopment projects in [qualifying economic redevelopment and growth grant incentive] smart growth areas that do not qualify as such areas solely by virtue of being a transit village, through the provision of incentive grants to reimburse developers for certain project financing gap costs.
b. (1) A developer that submits an application for a State incentive grant shall indicate on the application whether it is also applying for a local incentive grant.
(2) When an applicant indicates it is also applying for a local incentive grant, the authority shall forward a copy of the application to the municipality wherein the redevelopment project is to be located for approval by municipal ordinance.
c. An application for a State incentive grant shall be reviewed and approved by the authority.
(cf: P.L.2010, c.10, s.5)
3. Section 6 of P.L.2009, c.90 (C.52:27D-489f) is amended to read as follows:
6. a. Up to the limits established in subsection b. of this section and in accordance with a redevelopment incentive grant agreement, the State Treasurer shall pay to the developer incremental State revenues directly realized from businesses operating on the redevelopment project premises from the following taxes: the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the tax imposed on marine insurance companies pursuant to R.S.54:16-1 et seq., the tax imposed on insurers generally, pursuant to P.L.1945, c.132 (C.54:18A-1 et seq.), the public utility franchise tax, public utilities gross receipts tax and public utility excise tax imposed on sewerage and water corporations pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.), the tax derived from net profits from business, a distributive share of partnership income, or a pro rata share of S corporation income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., the tax derived from a business at the site of a redevelopment project that is required to collect the tax pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), the tax imposed pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.) from the purchase of materials used for the remediation, the construction of new structures, or the construction of new residences at the site of a redevelopment project, the hotel and motel occupancy fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1), or the portion of the fee imposed pursuant to section 3 of P.L.1968, c.49 (C.46:15-7) derived from the sale of real property at the site of the redevelopment project and paid to the State Treasurer for use by the State, that is not credited to the "Shore Protection Fund" or the "Neighborhood Preservation Nonlapsing Revolving Fund" ("New Jersey Affordable Housing Trust Fund") pursuant to section 4 of P.L.1968, c.49 (C.46:15-8).
b. Up to 75 percent of the projected annual incremental revenues may be pledged towards the State portion of an incentive grant, except that up to 100 percent of the projected annual incremental revenues collected pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) may be pledged towards the State portion of an incentive grant in the case of a redevelopment project that includes a supermarket or grocery store located in a municipality that lacks adequate access to affordable and nutritious food in the judgment of the Chief Executive Officer of the authority.
c. All administrative costs associated with the incentive grant shall be assessed to the applicant and be retained by the State Treasurer from the annual incentive grant payments.
d. The incremental revenue for the revenues listed in subsection a. of this section shall be calculated as the difference between the amount collected in any fiscal year from any eligible revenue source included in the State redevelopment incentive grant agreement, less the revenue increment base for that eligible revenue.
e. The municipality is authorized to collect any and all information necessary to facilitate grants under this program and remit that information, as may be required from time to time, in order to assist in the calculation of incremental revenue.
(cf: P.L.2010, c.10, s.6)
4. Section 7 of P.L.2009, c.90 (C.52:27D-489g) is amended to read as follows:
7. a. Up to the limits established in subsection b. of this section, and in accordance with a redevelopment incentive grant agreement, the municipality shall pay to the developer incremental eligible revenues directly realized from activities or business operations on the redevelopment project premises and may also pay eligible revenues derived from the project and the project area.
b. Up to 75 percent of the incremental local revenues collected pursuant to paragraphs 1, 3, 4, 5, 7, 8, 9, and 10 of subsection d. of section 11 of P.L.2009, c.90 (C.52:27D-489k) may be pledged towards the municipal portion, if any, of an incentive grant, up to 100 percent of the incremental local revenues collected pursuant to paragraph 2 of subsection d. of section 11 of P.L.2009, c.90 (C.52:27D-489k) may be pledged towards the municipal portion, if any, of an incentive grant, and up to 100 percent of the incremental local revenues collected pursuant to paragraph 6 of subsection d. of section 11 of P.L.2009, c.90 (C.52:27D-489k) may be pledged towards the municipal portion, if any, of an incentive grant in the case of a redevelopment project that includes a supermarket or grocery store located in a municipality that lacks adequate access to affordable and nutritious food in the judgment of the Chief Executive Officer of the authority.
c. All administrative costs associated with the local incentive grant shall be assessed to the applicant and be retained by the municipality from its annual payments to the developer.
(cf: P.L.2010, c.10, s.7)
5. Section 8 of P.L.2009, c.90 (C.52:27D-489h) is amended to read as follows:
8. a. (1) The [New Jersey Economic Development Authority] authority, in consultation with the State Treasurer, shall promulgate an incentive grant application form and procedure for the Economic Redevelopment and Growth Grant program.
(2) (a) The Local Finance Board, in consultation with the [New Jersey Economic Development Authority] authority, shall develop a minimum standard incentive grant application form for municipal Economic Redevelopment and Growth Grant programs.
(b) Through regulation, the [Economic Development Authority] authority shall establish standards for redevelopment projects seeking State or local incentive grants based on the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources in order to reduce environmental degradation and encourage long-term cost reduction. Prior to and until the green building manual has been adopted by the Commissioner of Community Affairs, redevelopment projects seeking State or local incentive grants shall meet the National Green Building Standard ICC 700-2008, which was approved by the American National Standards Institute as an American National Standard on January 29, 2009.
b. Within each incentive grant application, a developer shall certify information concerning:
(1) the status of control of the entire redevelopment project site;
(2) all required State and federal government permits that have been issued for the redevelopment project, or will be issued pending resolution of financing issues;
(3) local planning and zoning board approvals, as required, for the redevelopment project;
(4) estimates of the revenue increment base, the eligible revenues for the project, and the assumptions upon which those estimates are made.
c. (1) With regard to State tax revenues proposed to be pledged for an incentive grant the authority and the State Treasurer shall review the redevelopment project costs, evaluate and validate the project financing gap estimated by the developer, and conduct a State fiscal impact analysis to ensure that the overall public assistance provided to the project will result in net positive benefits to the State including, without limitation, both direct and indirect economic benefits and non-financial community revitalization objectives.
(2) With regard to local incremental revenues proposed to be pledged for an incentive grant the authority and the Local Finance Board shall review the redevelopment project costs, and except with respect to an application by a municipal redeveloper, evaluate and validate the financing gap projected by the developer, and conduct a local fiscal impact analysis to ensure that the overall public assistance provided to the project will result in net positive benefits to the municipality wherein the redevelopment project is located including, without limitation, both direct and indirect economic benefits and non-financial community revitalization objectives.
(3) The authority, State Treasurer, and Local Finance Board may act cooperatively to administer and review applications, and shall consult with the Office of State Planning on matters concerning State, regional, and local development and planning strategies.
(4) The costs of the aforementioned reviews shall be assessed to the applicant as an application fee.
(cf: P.L. 2010, c.10, s.8)
6. Section 9 of P.L.2009, c.90 (C.52:27D-489i) is amended to read as follows:
9. a. The authority is authorized to enter into a redevelopment incentive grant agreement with a developer for any redevelopment project located within a [qualifying economic redevelopment and growth grant incentive] smart growth area that does not qualify as such area solely by virtue of being a transit village.
b. The decision whether or not to enter into a redevelopment incentive grant agreement is solely within the discretion of the authority and the State Treasurer, provided that they both agree to enter into an agreement.
c. The Chief Executive Officer of the [New Jersey Economic Development Authority] authority, in consultation with the State Treasurer shall negotiate the terms and conditions of any redevelopment incentive grant agreement on behalf of the State.
d. The redevelopment incentive grant agreement shall specify the amount of the incentive grant to be awarded the developer, the frequency of payments, and the length of time, which shall not exceed 20 years, during which that reimbursement shall be granted. The authority shall have the discretion to require the holdback of grant amounts in amounts not to exceed 20 percent to the extent necessary to protect against refunds of eligible revenues, and to determine the priority of the use of eligible sales tax revenues collected pursuant to subsection a. of section 6 of P.L.2009, c.90 (C.52:27D-489f) between and among various programs administered by the authority including, without limitation, the Brownfield Reimbursement program created in the Brownfield and Contaminated Site Remediation Act, P.L.1993, c.139 (C.58:10B-1 et seq.), based on the particular financing needs of the project. Except for redevelopment incentive grant agreements with a municipal redeveloper, in no event shall the combined amount of the reimbursements under redevelopment incentive grant agreements with the State or municipality exceed [20 percent of the total cost of the project. For the purposes of calculating the total cost of all projects, the cost of infrastructure improvements in the public right-of-way and publicly owned facilities shall not be included. The amount of the redevelopment incentive grant for a municipal redeveloper may include] the [total cost of such infrastructure improvements and publicly owned facilities] maximum incentive amount.
e. The authority and the State Treasurer may enter into a redevelopment incentive grant agreement only if they make a finding that the State revenues to be realized from the redevelopment project will be in excess of the amount necessary to reimburse the developer for its project financing gap. This finding may be made by an estimation based upon the professional judgment of the Chief Executive Officer of the [New Jersey Economic Development Authority] authority and the State Treasurer.
f. In deciding whether or not to recommend entering into a redevelopment incentive grant agreement and in negotiating a redevelopment agreement with a developer, the Chief Executive Officer of the [New Jersey Economic Development Authority] authority shall consider the following factors:
(1) the economic feasibility of the redevelopment project;
(2) the extent of economic and related social distress in the municipality and the area to be affected by the redevelopment project;
(3) the degree to which the redevelopment project will advance State, regional and local development and planning strategies;
(4) the likelihood that the redevelopment project shall, upon completion, be capable of generating new tax revenue in an amount in excess of the amount necessary to reimburse the developer for project costs incurred as provided in the redevelopment incentive grant agreement;
(5) the relationship of the redevelopment project to a comprehensive local development strategy, including other major projects undertaken within the municipality;
(6) the need of the redevelopment incentive grant agreement to the viability of the redevelopment project; and
(7) the degree to which the redevelopment project enhances and promotes job creation and economic development.
g. (1) A developer that has entered into a redevelopment incentive grant agreement with the authority and the State Treasurer pursuant to this section may, upon notice to and consent of the authority and the State Treasurer, pledge and assign as security or support for any loan or bond, any or all of its right, title and interest in and to such agreements and in the incentive grants payable thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement. Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.
(2) Any pledge of incentive grants made by the developer shall be valid and binding from the time when the pledge is made and filed in the records of the authority. The incentive grants so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof. Neither the redevelopment incentive grant agreement nor any other instrument by which a pledge under this section is created need be filed or recorded except with the authority.
(cf: P.L.2010, c.10, s.9)
7. Section 11 of P.L.2009, c.90 (C.52:27D-489k) is amended to read as follows:
11. a. The governing body of a municipality is authorized to enter into a redevelopment incentive grant agreement with a developer, which shall not be effective until adopted by ordinance, for any redevelopment project located within a [qualifying economic redevelopment and growth grant incentive] smart growth area.
b. The redevelopment incentive grant agreement shall specify the amount of the incentive grant to be awarded the developer, the frequency of payments, and the length of time, which shall not exceed 20 years, during which that reimbursement shall be granted. The authority shall have the discretion to require the holdback of grant amounts in amounts not to exceed 20 percent to the extent necessary to protect against refunds of eligible revenues, and to determine the priority of the use of eligible sales tax revenues collected pursuant to subsection a. of section 6 of P.L.2009, c.90 (C.52:27D-489f) between and among various programs administered by the authority including, without limitation, the Brownfield Reimbursement program created in the Brownfield and Contaminated Site Remediation Act, P.L.1993, c.139 (C.58:10B-1 et seq.), based on the particular financing needs of the project. Except for redevelopment incentive grants with a municipal redeveloper, in no event shall the combined amount of the reimbursements under redevelopment incentive grant agreements with the State or municipality exceed [20 percent of the total cost of the project. For the purposes of calculating the total cost of all projects, the cost of infrastructure improvements in the public right-of-way and publicly owned facilities shall not be included. The amount of the redevelopment incentive grant for a municipal redeveloper may include] the [total cost of such infrastructure improvements and publicly owned facilities] maximum incentive amount.
c. The municipality may enter into a redevelopment incentive grant agreement only if the chief financial officer of the municipality makes a finding that the incremental revenues to be realized from the redevelopment project will be in excess of the amount necessary to reimburse the developer for its project financing gap. Such finding shall be based upon appropriate documentation and calculations supporting the decision.
d. Within a [qualifying economic redevelopment and growth grant incentive] smart growth area a municipality that has entered into a local redevelopment incentive grant agreement may pledge eligible revenues it is authorized to collect as follows:
(1) incremental payments in lieu of taxes, with respect to property located in the district, made pursuant to the "Five-Year Exemption and Abatement Law," P.L.1991, c.441 (C.40A:21-1 et seq.), or the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et al.);
(2) incremental revenues collected from payroll taxes, with respect to business activities carried on within the area, pursuant to section 15 of P.L.1970, c.326 (C.40:48C-15);
(3) incremental revenue from lease payments made to the municipality, the developer, or the developer's successors with respect to property located in the area;
(4) incremental revenue collected from parking taxes derived from parking facilities located within the area pursuant to section 7 of P.L.1970, c.326 (C.40:48C-7);
(5) incremental admissions and sales taxes derived from the operation of a public facility within the area pursuant to section 1 of P.L.2007, c.302 (C.40:48G-1);
(6) (a) incremental sales and excise taxes which are derived from activities within the area and which are rebated to or retained by the municipality pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.) or any other law providing for such rebate or retention;
(b) within Planning Area 1 (Metropolitan) under the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," sections 1 through 12 of P.L.1985, c.398 (C.52:18A-196 et seq.), a municipality may impose the entire State sales tax on business activities within a redevelopment project located in an urban enterprise zone that would ordinarily be entitled to collect reduced rate revenues under section 21 of P.L.1983, c.303 (C.52:27H-80), and pledge the excess revenues to a local redevelopment incentive grant agreement;
(7) incremental parking revenue collected, pursuant to section 7 of P.L.1970, c.326 (C.40:48C-7), from public parking facilities built as part of a redevelopment project, except for public parking facilities owned by parking authorities pursuant to the "Parking Authority Law," P.L.1948, c.198 (C.40:11A-1 et seq.);
(8) incremental revenues collected, pursuant to section 3 of P.L.2003, c.114 (C.40:48F-1), P.L.1981, c.77 (C.40:48E-1 et seq.), or P.L.1947, c.71 (C.40:48-8.15 et seq.), from hotel and motel taxes;
(9) upon approval by the Local Finance Board, other incremental municipal revenues that may become available;
(10) the property tax increment.
The incremental revenue for the revenues listed in this subsection, when applicable, shall be calculated as the difference between the amount collected in any fiscal year from any eligible revenue source included in the local redevelopment incentive grant agreement, less the revenue increment base for that eligible revenue.
e. (1) In calculating the general tax rate of a municipality each year, the aggregate amount of the incremental ratable value over the property tax increment base in the redevelopment project area that is pledged as part of a redevelopment incentive grant agreement shall be excluded from the ratable base of a municipality.
(2) The amount of property tax increment not pledged toward a redevelopment incentive grant agreement shall be allocated pursuant to the normal tax rate distribution.
The full incremental value of a project area shall be included in the value used for county and regional school tax apportionment until such time that the Director of the Division of Taxation in the Department of the Treasury can certify that property tax management systems are capable of handling the technical and legal requirements of treating parcels in areas of redevelopment as exempt from county and regional school apportionment.
f. In addition to the incremental revenues that may be pledged in subsection d. of this section, any amount of tax proceeds collected from the tax on the rental of motor vehicles pursuant to section 20 of P.L.2009, c.90 (C.40:48H-2), may be included in a redevelopment incentive grant agreement with a developer, regardless of whether or not the redevelopment project area is within or outside of the designated industrial zone from which the tax on the rental of motor vehicles is collected.
g. (1) A developer that has entered into a redevelopment incentive grant agreement with a municipality pursuant to this section may, upon notice to and consent of the municipality, pledge and assign as security or support for any loan or bond, any or all of its right, title and interest in and to such agreements and in the incentive grants payable thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement. Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.
(2) Any pledge of incentive grants made by the developer shall be valid and binding from the time when the pledge is made and filed in the office of the municipal clerk. The incentive grants so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof. Neither the redevelopment incentive grant agreement nor any other instrument by which a pledge under this section is created need be filed or recorded except with the municipality.
(cf: P.L.2010, c.10, s.10)
8. This act shall take effect immediately, but the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be construed as affecting terms of any contract or agreement in effect as of the effective date of P.L. , c. .
STATEMENT
This bill amends provisions the New Jersey Economic Stimulus Act of 2009 ("Act") concerning the Economic Redevelopment and Growth Grant program established under the Act. The bill provides that the contributed capital paid by a developer shall include the appraised value of existing improvements and shall not be less than 20% of the total redevelopment project costs.
The bill deletes the provision allowing a government or a redevelopment agency, as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3), to be considered a developer and instead provides that a municipal redeveloper may be considered a developer under the Act.
The bill increases incentive grants provided under the Act from 20 percent of project costs to a maximum incentive amount of 35 percent of project costs and allow grants of 100 percent of cost of public infrastructure improvements and 100 percent of value of land dedicated to open space including remediation thereof.
The bill would increase the amount of incremental revenues that can be applied to grants from 75 percent to 100 percent in the case of: (1) sales taxes paid within a project that includes a supermarket or grocery store located in a city that lacks adequate access to affordable and nutritious food, and (2) municipal payroll taxes.
The bill increases the type of local revenues of 75 percent that can be applied to grants to include: (1) certain payments in lieu of taxes, with respect to property located in the area; (2) revenue from lease payments made to the municipality, the developer, or the developer's successors with respect to property located in the area; (3) revenue collected from parking taxes derived from parking facilities; (4) admissions and sales taxes derived from the operation of a public facility within the area; (5) certain parking revenue (6) incremental revenues from certain hotel and motel taxes; (7) upon as approved by the Local Finance Board, other incremental municipal revenues that may become available; and (8) the property tax increment.
The bill also provides that, concerning redevelopment incentive grant agreements between the New Jersey Economic Development Authority ("authority") and a developer and between a municipality and a developer, the authority shall have discretion to require the holdback of grant amounts not exceeding 20 percent to the extent necessary to protect against refunds of eligible revenues, and to determine the priority of the use of eligible sales tax revenues collected pursuant to subsection a. of section 6 of P.L.2009, c.90 (C.52:27D-489f) between and among various programs administered by the authority including, without limitation, the Brownfield Reimbursement program created in the Brownfield and Contaminated Site Remediation Act, P.L.1993, c.139 (C.58:10B-1 et seq.), based on the particular financing needs of the project.
The bill requires that, until the green building manual has been adopted by the Commissioner of Community Affairs, redevelopment projects seeking State or local incentive grants shall meet the National Green Building Standard ICC 700-2008, which was approved by the American National Standards Institute as an American National Standard on January 29, 2009.
The bill clarifies that the net benefits test to be undertaken with regard to State tax revenues to be pledged for an incentive grant under the Act shall determine whether the benefits are of a positive value to the State and that such test may take into account indirect economic benefits and non-financial community revitalization objectives.
Finally, the bill adds the following definitions to the Act:
· "Ancillary infrastructure project" means public structures or improvements that are located outside the project area of a redevelopment project, provided a developer has demonstrated that the redevelopment project would not be economically viable without such improvements.
· "Developer contributed capital" means any and all capital contributed by a developer toward the costs of a redevelopment project.
· "Infrastructure improvements in the public right-of-way" mean public structures or improvements located in the public right of way that are located within a project area or that constitute an ancillary infrastructure project or a major transit facility.
· "Major transit facility" means a train station or bus terminal located along on a commuter rail line or bus route operated by New Jersey Transit Corporation or the National Railroad Passenger Corporation (Amtrak), that is undertaken as part of a redevelopment project and that is located within or directly adjacent to the project area, provided a developer has demonstrated that the redevelopment project would not be economically viable without such facility.
· "Maximum incentive amount" means 35 percent of the total redevelopment project costs, except that the costs incurred in connection with the construction, reconstruction, rehabilitation or improvement of infrastructure improvements or the dedication of land to open space and any remediation thereof may be funded up to 100 percent.
· "Municipal redeveloper" means a municipal government or a redevelopment agency, as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3), acting on behalf of a municipal government that is an applicant for a redevelopment incentive grant agreement.
· "Smart growth area" means an area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), a designated center, or a designated growth center in an endorsed plan; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); a growth area designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the Pinelands Protection Act, P.L.1979, c.111 (C.13:18A-8); an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.) and approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection.
· "Total redevelopment project cost" means the total cost incurred in connection with the redevelopment project including, without limitation, remediation costs, soft costs and capitalized interest paid to third parties, but excluding any costs for which the project has received other State or local funding.
