[Adopted 2-14-2012 by Ord. No. 3960]
The purpose of this article is to establish a policy and procedure
for the Township's receipt, review and consideration of applications
for tax abatements and/or tax exemptions pursuant to the Long Term
Tax Exemption Law (N.J.S.A. 40A:20-1 et seq.), the Five-Year Exemption
and Abatement Law (N.J.S.A. 40A:21-1 et seq.), the New Jersey Housing
Mortgage Finance Agency Law (N.J.S.A. 55:14K-1 et seq.) and any other
applicable law (hereinafter collectively referred to as the "exemption
laws") to offer financial assistance for development projects located
in an area in need of redevelopment or an area in need of rehabilitation,
as such areas are defined under the Local Redevelopment and Housing
Law (N.J.S.A. 40A:12A-1 et seq.), as well as any affordable housing
project as such project may be defined under applicable law, including,
but not limited to, the New Jersey Housing Mortgage Finance Agency
Law.
The Township hereby establishes a policy whereby it shall accept,
review and consider an application, submitted in accordance herewith,
for tax abatements and/or tax exemptions pursuant to applicable law.
However, this article does not commit or require the Township to approve
any application submitted in accordance herewith. In considering each
application, the Township shall consider, in part, the benefits of
the development project for the Township and the impact of any tax
abatement and/or exemption requested on the budget of the Township.
A.
Applicants for tax abatement and/or exemption shall submit an application
and the fee and escrow payments established by this article, in a
form attached hereto, setting forth:
(1)
A general description of the project for which abatement and/or exemption
is sought;
(2)
A legal description of all real estate necessary for the project;
(3)
Plans, drawings and other documents as may be required by the Township
to demonstrate the structure and design of the proposed project;
(4)
A statement of the reasons for seeking tax abatement and/or exemption
on the project and a description of the benefits to be realized by
the applicant if a tax abatement/exemption is granted. Included in
this statement shall be the details of any state, county or local
financial contributions including loans or grants of any kind.
(5)
Estimates of the costs of completing the project;
(6)
A statement showing:
(a)
The real property taxes currently being assessed at the project
site;
(b)
Estimated annual service charges that would be made annually
by the applicant on the project during the term of the proposed tax
abatement/exemption; and
(c)
Estimated tax payments that would be made by the applicant on
the project during the first full year following termination of the
tax abatement/exemption agreement;
(7)
A description of any lease agreement between the applicant and proposed
users of the project and a history and description of the users' business;
(8)
A form of financial agreement containing, at a minimum, the terms
and conditions set forth below;
(9)
A pro-forma and/or other fiscal analysis demonstrating the need for
the tax abatement and/or exemption;
(10)
A description of any contribution to the project requested of
or proposed by the Township or the Redevelopment Agency including,
but not limited to, contributions from the Township Affordable Housing
Trust Fund or in-kind contributions in the nature of construction
of public improvements such as roads or infrastructure;
(11)
Such other pertinent information as may be required by the Township.
B.
Applicants shall submit applications for an abatement or exemption to the Township Manager. Following receipt of a completed application as set forth above, the Township shall review same to determine whether an abatement and/or exemption for new construction shall be granted following an individual review and evaluation of each application submitted to the Township. The Township Manager shall notify the Township Council upon receiving an application as soon as practicable after the filing of an application with the Township. All applications shall be forwarded by the Township Manager to the appropriate staff for review, including, but not limited to the Chief Financial Officer; the Township Attorney; the Tax Assessor; and the Township Planner. If the application involves property within the Renaissance Redevelopment Area or any other redevelopment area subject to the Redevelopment Agency's jurisdiction, the Redevelopment Agency shall be forwarded a copy of the application for their review, except where such application was initially submitted to the Redevelopment Agency and reviewed by the Agency in accordance with § 345-16C. Within 60 days of filing of the application, the Township Manager shall forward a copy of the completed application and review memoranda to the Township Council.
C.
No abatement and/or exemption shall be granted pursuant to this article
and the exemption laws except upon written application by an applicant
filed with the Township Manager, and subsequent review and approval
of the application and financial agreement by the Township Council
in accordance with this article.
A.
The authorization to enter into a financial agreement must be granted
by ordinance regardless of the approval procedure contained in the
exemption laws. Any financial agreement shall contain those terms
required by the exemption laws, including, but not limited to:
(1)
The applicant shall pay to the municipality, in lieu of full property
tax payments, an amount annually to be computed by one, but in no
case a combination of the cost basis formula, gross revenue basis
formula, or tax phase-in basis formula, all as defined in the exemption
laws and incorporated by reference herein as if set forth fully.
(2)
All tax abatements/exemptions applied for and granted pursuant to
the exemption laws and this section shall be in effect for a period
of no more than 30 full years following the date of completion of
the project or 35 years from execution of a financial agreement.
B.
No abatement and/or exemption shall be granted, or financial agreement
entered into pursuant to the exemption laws or this article, with
respect to any property for which property taxes are delinquent or
remain unpaid, or for which penalties for nonpayment of taxes are
currently then due and owing.
C.
The financial agreement shall be recorded by the applicant and made
a permanent part of the official tax records of the Township, which
records shall contain a notice of termination date thereof.
D.
Within 30 days following execution of a financial agreement, pursuant
to the exemption laws and this section, the Township shall forward
a copy of the agreement to the Director of Local Government Services
in the Department of Community Affairs.
A.
If any provisions for tax abatements and/or tax exemptions are not
set forth herein, the applicant and Township shall rely upon the provisions
set forth in the exemption laws.
B.
The Franklin Township Redevelopment Agency shall attach a copy of
this article to each redevelopment agreement and each redevelopment
agreement shall contain the following provision: "The Developer acknowledges
that any application for a Tax Abatement and/or Tax Exemptions must
be submitted to the Township of Franklin in accordance with the provisions
of Ordinance No. 3954-11."
C.
Before the execution of any redevelopment agreement, the redeveloper
shall inform the Redevelopment Agency as to whether a tax abatement
and/or tax exemption will be sought. If the redeveloper plans to submit
for a tax abatement and/or tax exemption the following procedure shall
be followed:
(2)
The Executive Director of the Redevelopment Agency may waive the requirements of § 345-14A if it is determined that the information is not yet available.
(3)
The Redevelopment Agency shall review and comment on the application.
(4)
The Executive Director shall forward the application and the Redevelopment
Agency's comments to the Township Council for their review and advisory
input to the Redevelopment Agency, prior to the Agency's execution
of a redevelopment agreement with the redeveloper.
A.
The fee for each application under this article shall be $500. In addition, the applicant shall submit with its application the sum of $5,000, except in such case where the application is filed with the Redevelopment Agency in accordance with § 345-16C to be held in escrow for the payment of professional review services which are reasonably necessary for the review, processing, research and/or memorialization of any application including the drafting or review of any financial agreement. These services may include, but need not be limited to, an attorney, financial advisor, professional planner, professional engineer, and/or other professional as deemed reasonable and necessary by the Township. To the extent that the initial escrow is not sufficient the applicant, upon notice by the Township shall submit such additional escrow payment as are necessary to complete the processing of the application. The escrow accounts shall be administered in accordance with Chapter 112, Article XXVIII, of the Code of the Township of Franklin.
Upon termination of a financial agreement referenced hereunder,
a project shall be subject to all applicable real property taxes as
provided by state law and regulation, as well as local ordinances.
However, nothing herein shall prohibit a project, upon termination
of a financial agreement, from qualifying for and receiving the full
benefits of any other tax preferences provided by law.
Attached hereto is the form of application an applicant shall
use in submitting a request for a tax abatement or exemption.[1]
[1]
Editor's Note: The tax abatement/exemption application form is included at the end of this chapter.
