A municipality shall not require that a maintenance
guaranty required pursuant to Section 41 of P.L. 1975, c. 291 (N.J.S.A.
40:55D-53), be in cash or that more than 10% of a performance guaranty
pursuant to that section be in cash. At the developer's option, some
or all of a maintenance guaranty may be in cash or more than 10% of
a performance guaranty in cash.
The cost of the installation of improvements
for the purposes of Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53),
shall be estimated by the Municipal Engineer based on documented construction
costs for public improvements prevailing in the general area of the
municipality. The developer may appeal the Municipal Engineer s estimate
to the governing body. The governing body shall decide the appeal
within 45 days of receipt of the appeal in writing by the Municipal
Clerk. After the developer posts a guaranty with the municipality
based on the cost of the installation of improvements as determined
by the governing body, legal action may be instituted within one year
of the posting in order to preserve the right to a judicial determination
as to the fairness and reasonableness of the amount of the guaranty.
The approving authority shall, for the purposes
of Section 41 of P.L. 1975, c. 291 (N.J.S.A. 40:55D-53), accept a
performance guaranty or maintenance guaranty which is an irrevocable
letter of credit if it:
A. Constitutes an unconditional payment obligation of
the issuer running solely to the municipality for an express initial
period of time in the amount determined pursuant to Section 41 of
P.L. 1975, c. 291 (N.J.S.A. 40:55D-53);
B. Is issued by a banking or savings institution authorized
to do business in this state;
C. Is for a period of time at least one year; and
D. Permits the municipality to draw upon the letter of
credit if the obligor fails to furnish another letter of credit which
complies with the provisions of this section 30 days or more in advance
of the expiration date of the letter of credit or such longer period
in advance thereof as is stated in the letter of credit.
If an approving authority includes as a condition
of approval of an application for development pursuant to P.L. 1975,
c. 291 (N.J.S.A. 40:55D-1 et seq.), the installation of streetlighting
on a dedicated public street connected to a public utility, then upon
notification in writing by the developer to the approving authority
and governing body of the municipality that the streetlighting on
a dedicated public street has been installed and accepted for service
by the public utility and that certificates of occupancy have been
issued for at least 50% of the dwelling units and 50% of the floor
area of the nonresidential uses on the dedicated public street or
portion thereof indicated by section pursuant to Section 29 of P.L.
1975, c. 291 (N.J.S.A. 40:55D-38), the municipality shall, within
30 days following receipt of the notification, make appropriate arrangements
with the public utility for and assume the payment of, the costs of
the streetlighting on the dedicated public street on a continuing
basis. Compliance by the municipality with the provisions of this
section shall not be deemed to constitute acceptance of the street
by the municipality.
[Amended 5-22-2007 by Ord. No. 2079-2007]
Where the need for off-tract improvements for
water, sewer, drainage and street improvements and for other improvements
as provided by law are, in whole or in part, made necessary by the
application, a determination of the pro-rata contribution of the applicant
for said off-tract improvements shall be made.
A. Allocation of costs; criteria in determining allocation.
The allocation of costs for off-tract improvements as between the
applicant, other property owners and the Borough or any one or more
of the foregoing shall be determined by the board of jurisdiction,
with the assistance of the appropriate Borough agencies, on the basis
of the total costs of the off-tract improvements, the needs created
by the application, population and land use projections for the general
area of the applicant's property and other areas to be served by the
off-site improvements, the estimated time of construction of the off-site
improvements and the condition and periods of usefulness, which periods
may be based upon the criteria of N.J.S.A. 40A:2-22. Requirements
for off-tract improvements shall be consistent with N.J.S.A. 40:55D-42.
In addition, the following criteria may also be considered, as well
as any other reasonable criteria the board of jurisdiction feels are
necessary to protect the health, safety and general welfare of the
Borough:
(1) Streets, curbs, sidewalks, shade trees, streetlights,
street signs and traffic light improvements may also be based upon
the anticipated increase of traffic generated by the application.
In determining such traffic increase, the board of jurisdiction may
consider traffic counts, existing and projected traffic patterns,
quality of roads and sidewalks in the area and other factors related
to the need created by the application and the anticipated benefit
thereto.
(2) Drainage facilities may also be based upon or be determined
by the drainage created by or affected by a particular land use based
on:
(a)
The rate, quality and volume of water discharged
from the site postdevelopment.
(b)
The use, condition or status of the remaining
area in the drainage basin.
(3) Water supply and distribution facilities, including
but not limited to fire hydrants, may also be based upon the added
facilities required by the total anticipated water use requirements
of the applicant and other properties in the general area benefitting
therefrom.
(4) Sewerage facilities may be based upon the proportion
that the total anticipated volume of sewage effluent of the applicant's
property and other properties connected to the new facility bears
to the existing capacity of existing sewerage facilities, including
but not limited to lines and other appurtenances leading to and servicing
the applicant's property. Consideration may also be given to the types
of effluent and particular problems requiring special equipment or
added costs for treatment.
B. Determination of cost of improvements. The cost of
installation of the required off-tract improvements shall be determined
by the board of jurisdiction with the advice of the Borough Engineer
and appropriate Borough agencies.
C. Manner of construction. When those estimates are received,
the Mayor and Borough Council shall then decide whether the off-tract
improvement is to be constructed:
(1) By the Borough as a general improvement.
(2) By the applicant at its sole cost and expense.
(3) By the applicant under a formula providing for partial
reimbursement by the Borough for benefits to properties other than
the subject property.
D. Amount of contribution.
(1) If the improvement is to be constructed by the Borough
as a general improvement, the applicant shall be required to provide
a cash deposit to the Borough equal to the applicant's pro-rata fair
share of the improvement.
(2) If the improvement is to be constructed by the applicant,
then it shall be consistent with the developer's agreement.
E. Payment of allocated cost.
(1) The estimated costs of the off-tract improvement allocated
to the applicant if deposited in cash shall be paid by the applicant
to the Borough Treasurer, who shall provide a suitable depository
therefor, and such funds shall be used only for the off-tract improvements
for which they are deposited or improvements serving the same purpose,
unless such improvements are not initiated by the Borough within a
period of 10 years from the date of payment, after which time said
funds so deposited shall be returned, together with accumulated interest
or other income thereon, if any.
(2) In the event that the payment by the applicant to
the Borough Treasurer provided for herein is less than its share of
the actual cost of the off-tract improvements, and the developer has
not completed its development, then it shall be required to pay its
appropriate share of the cost thereof.
(3) In the event that the payment by the applicant to
the Borough Treasurer provided for above is more than its appropriate
share of the actual cost of installation of the off-tract improvements,
it or its successor or assigns shall be repaid an amount equal to
the difference between the deposit and its share of the actual cost.
(4) If the applicant shall deem that any of the amounts
so estimated by the board of jurisdiction are unreasonable, it may
challenge them and seek to have them revised in appropriate proceedings
brought to compel subdivision or site plan approval.
(5) If the applicant and the board of jurisdiction cannot
agree with respect to the applicant's fair share of the actual cost
of the off-tract improvement, no approval shall be granted; provided,
however, that the applicant may challenge such determination and seek
to have it revised in appropriate judicial proceedings in order to
compel subdivision or site plan approval.
F. Installation of improvements by applicant. At the
discretion and option of the Borough and with the consent of the applicant,
the Borough may enter into a contract with the applicant providing
for the installation and construction of the off-tract improvements
by the applicant upon contribution by the Borough of the remaining
unallocated portion of the cost of the off-tract improvement.
G. Compliance with design criteria. Should the applicant
and the Borough enter into a contract for the construction and erection
of the off-tract improvements to be done by the applicant, it shall
observe all requirements and principles of this chapter in the design
of such improvements.
H. Resolution of cost-assessment conflicts. Where the
applicant or any property owner cannot agree with the board of jurisdiction
and the governing body as to the appropriate share of the cost of
any off-tract improvement or the manner in which it was assessed as
a local or general Borough improvement, that dispute shall be resolved
in a court of appropriate jurisdiction.