[HISTORY: Adopted by the City Council of the City of Cape May 11-17-2008 by Ord. No. 165-2008. Amendments noted where applicable.]
GENERAL REFERENCES
Administration of government — See Ch. 10.
Zoning — See Ch. 525.
As used in this chapter:
BUSINESS IMPROVEMENT DISTRICT or DISTRICT
The Business Improvement District; an area within the City designated by this chapter as an area in which a special assessment shall be imposed on properties within the District for the purposes of promoting the economic and general welfare of the District and the City.
BUSINESS OWNER
Any individual or entity that owns and/or operates a business, occupation or trade in the District, or owns a seasonal rental property within the District, which shall consist of, without limitation, all such individuals or entities that are required to have a City-issued mercantile license and/or any New-Jersey-issued license. The owner of any vacant commercial property within the District shall also be deemed to be a business owner for the purposes of this chapter.
CITY
The City of Cape May, County of Cape May, State of New Jersey.
CITY COUNCIL
The governing body of the City of Cape May.
DISTRICT MANAGEMENT CORPORATION or CORPORATION
The Washington Street Mall Management Company, Inc., a nonprofit Corporation created and incorporated pursuant to N.J.S.A. 15A:1-1 et seq., and designated by this chapter to receive funds collected by a special assessment within the Business Improvement District as authorized by N.J.S.A. 40:56-65 et seq.
The City Council of the City of Cape May thereby find as follows:
A. 
The business community of the City should be encouraged to provide self-help and self-financing programs to meet its business needs, goals and objectives.
B. 
Certain areas within the City, as described in this chapter by lot and block number and by street address, as more specifically set forth on Schedule A,[1] will benefit from being designated as a "Business Improvement District."
[1]
Editor's Note: Schedule A is included at the end of this chapter.
C. 
A district management corporation will assist the City in promoting economic growth and employment within the District and will provide administrative and other services to benefit the businesses, employees, residents and consumers in the District. Such services will be in addition to the services already provided to the District by the City.
D. 
A special assessment shall be imposed and collected by the City in the manner set forth in this chapter, and all of the special assessments shall be transferred to the District Management Corporation to exercise the powers given to it by this chapter and to effectuate the purposes of N.J.S.A. 40:56-65 et seq. It shall be the obligation of the City to turn over to the Corporation all of the funds which have been collected.
E. 
It is in the best interests of the City and the public to create the District and to designate the District Management Corporation pursuant to the provisions of N.J.S.A. 40:56-65 et seq.
A. 
There is hereby created and designated within the City of Cape May a Business Improvement District pursuant to N.J.S.A. 40:56-65 et seq., which shall be known as the "Cape May Business Improvement District," and which shall consist of all of the properties described by tax map lot and block number, and street address, as set forth on Schedule A,[1] attached hereto.
[1]
Editor's Note: Schedule A is included at the end of this chapter.
B. 
The boundaries of the District and all of the properties located within the District may be modified from time to time by an ordinance duly adopted by the governing body.
All of the business owners owning and/or occupying properties included in the District, as described in this chapter, except for those exempted by this chapter, shall be subject to having imposed thereon by the City a special assessment for the purposes of promoting the economic and general welfare of the District and the City. Such funds raised by the special assessments shall be spent on those purposes permitted by N.J.S.A. 40:56-65 et seq., and specified in the annual budget approved pursuant to said statute and this chapter.
A. 
All costs of cleaning and maintenance, which shall include, without limitation, seasonal decorations, flowers and other plantings, and additional cleaning and maintenance beyond the general cleaning and maintenance ordinarily provided by the City of Cape May out of general funds, as well as other enhancements and promotional expenditures, shall be determined and approved pursuant to N.J.S.A. 40:56-80 or N.J.S.A. 40:56-85, as determined by the District Management Corporation. Each property within the District that is not exempt shall be subject to a special assessment based on the following:
[Amended 9-21-2021 by Ord. No. 440-2021]
(1) 
Each property with a total amount of square footage of interior space plus, if applicable, patio space that is used and permitted by the City for outside seating of 800 square feet or less shall be assessed an annual fee of $550. The assessment herein will be subject to a 3% annual increase beginning in 2023 and applicable every year thereafter.
(2) 
Each property with a total amount of square footage of interior space and, if applicable, patio space that is used and permitted by the City for outside seating of more than 800 square feet shall be assessed an annual fee of $880.The assessment herein will be subject to a 3% annual increase beginning in 2023 and applicable every year thereafter.
B. 
The amount required under Subsection A shall be paid by each business owner which owns and/or occupies the property within the District as of December 1 and the preassessment year. In the event a business owner of a property within the District changes during the assessment year, the new business owner shall assume any unpaid obligations of the prior business owner.
C. 
The foregoing assessment shall be collected by the City as a special assessment against the business owners within the District. The assessment shall be payable in full on or before the April 1 of each year. Failure by any business owner to pay the required amount due for the special assessment shall be cause for a revocation of any City-issued mercantile license in accordance with the procedures set forth in Chapter 310, Article I. No mercantile license will be issued if there are any unpaid special assessments in the present or any prior year.
[Amended 12-17-2019 by Ord. No. 386-2019]
D. 
The City shall only be responsible for the administration of the assessment and budgetary process required under this chapter and, in that capacity, shall be charged with the responsibility of billing and collecting the assessments and remitting to the District Management Corporation the amounts collected. The City shall not be liable to the District Management Corporation for any amounts not collected, which shall be the sole and exclusive responsibility of the District Management Corporation without any recourse to the City.
Individuals or entities that own or occupy the following properties are exempt from the special assessment of this chapter:
A. 
Property owned by a municipal, county, state or federal government.
B. 
Property used exclusively for a residential purpose (except for seasonal rental properties).
C. 
Exempt properties, under the New Jersey Real Estate Tax laws, including public school property, church property, cemeteries, parochial school property, exempt charity-owned property, and other such exempt property.
D. 
Properties owned by nonprofit recreational, cultural or fraternal organizations and used for that purpose.
The nonprofit Corporation created pursuant to N.J.S.A. 15A:1-1, known as the "Washington Street Mall Management Company, Inc.," is hereby designated as the District Management Corporation for the District. Said corporation is hereby designated as eligible to receive and spend funds collected as special assessments within the District. It shall conduct its business in accordance with the Open Public Meetings Law.[1] It shall have no power of condemnation or eminent domain. It shall regularly file copies of the minutes of its meetings with the City Clerk in order that such minutes may be conveniently available to the public for inspection, and it shall be subject to the Open Public Records Act.[2]
[1]
Editor's Note: See N.J.S.A. 10:4-6 et seq.
[2]
Editor's Note: See N.J.S.A. 47:1A-1 et seq.
The District Management Corporation, created pursuant to N.J.S.A. 15A:1-1 et seq., shall be created in compliance with the following:
A. 
The members of the District Management Corporation shall consist of a representative of each business owner operating within the District and which is not exempt from the special assessment under this chapter.
B. 
The Board of the District Management Corporation shall consist of 10 members.
C. 
The members of the Board shall be appointed by the members of the District Management Corporation in accordance with the bylaws of the District Management Corporation, but subject to the terms and conditions of this chapter.
D. 
The Board shall be composed of individuals from the following categories:
(1) 
Three individuals, each of whom own property and are business owners in the District.
(2) 
Three individuals, each of whom rent property and are business owners in the District.
(3) 
One individual that operates a business or profession within the City but outside of the District.
(4) 
One member of City Council.
(5) 
The Cape May City Manager, without vote.
(6) 
One resident of Cape May who does not qualify for appointment under the above Subsection D(1), (2) or (3).
E. 
The terms of all Board members, except the member of City Council, shall be for three years. However, the initial appointments, made in the year in which this chapter is adopted, shall be for terms to expire as follows:
(1) 
One category D(1) and one category D(2) Board member shall serve until October 31, 2009;
(2) 
One category D(1) and one category D(2) Board member shall serve until October 31, 2010;
(3) 
One category D(1) and one category D(2) Boards member shall serve until October 31, 2011;
(4) 
The category D(3) and D(6) Board members shall serve until October 31, 2011.
F. 
The City Council member's term shall be a year from July 1 to June 30, and he or she shall be appointed by the City Council annually at its reorganization meeting.
G. 
The Chairperson shall be appointed by the Board of the District Management Corporation in accordance with its bylaws and articles of incorporation.
H. 
All Board members shall serve without compensation; however, out-of-pocket expenses may be reimbursed.
I. 
The Board shall also consist of two alternate class Board members appointed by the members of the District Management Corporation.
(1) 
The term for each alternate class Board member shall be three years.
(2) 
One alternate class Board member shall be an individual who qualifies under category D(1) and one alternate class Board member shall be an individual who qualifies under category D(2).
(3) 
The alternate class Board members shall be designated at the time of their appointment as "Alternate No. 1" and "Alternate No. 2." Alternate members may participate in the proceedings but may not be counted for a quorum or vote, except in the absence or disqualification of a regular member. In the event of one or more vacancies, Alternate No. 1 shall be permitted to fill the first vacancy and Alternate No. 2 shall be permitted to fill the second vacancy at the same meeting.
A. 
The governing body of the City of Cape May hereby designates the Washington Street Mall Management Company, Inc. ("District Management Corporation"), a nonprofit Corporation, as the District Management Corporation for the District.
B. 
Each business owner, or its designee, shall be a member of the District Management Corporation, and each such member shall have one vote for determining all matters that require the vote of the members.
C. 
The District Management Corporation, in addition to acting as an advisory board to the governing body, shall also have all powers necessary and requisite to effectuate the purposes of this chapter, including but not limited to:
(1) 
Adopt bylaws for the regulation of its affairs and the conduct of its business, and prescribe rules, regulations and policies for the performance of its functions and duties;
(2) 
Employ such persons as may be required, and fix and pay their compensation from funds available to the Corporation;
(3) 
Apply for, accept, administer and comply with requirements respecting an appropriation of funds or a gift, grant or donation of property or money;
(4) 
Make and execute agreements which may be necessary or convenient to the exercise of the power and functions of the Corporation, including contract with any person, firm, Corporation, government agency or entity;
(5) 
Administer and manage its own funds and accounts and pay its own obligations;
(6) 
Borrow money from private lenders for periods not to exceed 180 days, and government entities for that or longer periods, subject to the approval of City Council for any debt that exceeds the sum of $10,000 in any budget year or results in the total aggregate of outstanding debt to exceed the sum of $25,000;
(7) 
Fund the improvement of exterior appearance of properties in the District through grants and loans, subject to the approval of City Council for any debt that exceeds the sum of $10,000 in any budget year or results in the total aggregate of outstanding debt to exceed the sum of $25,000;
(8) 
Enforce the conditions of any loan, grant, sale or lease made by the Corporation;
(9) 
Provide security, sanitation and other services in the District supplemental to those normally supplied by the City of Cape May;
(10) 
Undertake improvements designed to increase safety and attractiveness of the District to businesses which may locate there or visitors to the District, including but not limited to parking, litter cleanup and control, landscaping, signage, and those improvements generally permitted for pedestrian malls under N.J.S.A. 40:56-66, pursuant to pertinent regulations of the governing body;
(11) 
Publicize, promote and plan for the District and the businesses included within the District boundaries;
(12) 
Recruit new businesses to fill vacancies in, and to balance the business mix of, the District;
(13) 
Organize special events in the District;
(14) 
Provide special parking arrangements for the District;
(15) 
Provide temporary decorative lighting in the District; and
(16) 
Effectuate the purpose and intent of N.J.S.A. 40:56-66, as amended.
The District Management Corporation shall not discriminate against anyone because of age, race, creed, color, national origin, ancestry, marital status, gender or handicap.
A. 
The fiscal year of the District and of the Corporation shall be the calendar year. The Corporation shall submit, no later than December 1 of the preassessment year, a detailed annual budget for approval by the Council.
B. 
The budget shall be submitted with a report which explains how the budget contributes to the goals and objectives of the District. The budget shall be reasonably itemized.
C. 
The budget shall be processed and adopted by the Council in accordance with the following procedures, as set forth in N.J.S.A. 40:56-84:
(1) 
The budget shall be introduced, approved, amended and adopted by resolution passed by not less than a majority of the full membership of the City Council. The procedure shall be as follows:
(a) 
Introduction and approval;
(b) 
Public advertising;
(c) 
Public hearing;
(d) 
Amendments and public hearings, if required;
(e) 
Adoption.
(2) 
The budget shall be introduced, in writing, at a meeting of the Council. Approval thereof shall constitute a first reading which may be by title. Upon the approval of the budget, the Council shall fix the time and place for the holding of a public hearing on the budget. The hearing shall be held not less than 28 days after approval of the budget.
(3) 
The budget shall be advertised after approval. The advertisement shall contain a copy of the budget and shall set forth the date, the time and place of the hearing. It shall be published at least 10 days prior to the date fixed therefor in a newspaper circulating in the City.
(4) 
No budget shall be adopted until a public hearing has been held thereon and all persons having an interest therein shall have been given an opportunity to present objections.
(5) 
The public hearing shall be held at the time and place specified in the advertisement thereof, but may be adjourned from time to time until the hearing is closed. The budget, as advertised, shall be read at the public hearing in full, or it may be read by its title, if:
(a) 
At least one week prior to the date of the hearing, a complete copy of the approved budget, as advertised:
[1] 
Shall be posted in a public place where public notices are customarily posted in the City Hall; and
[2] 
It is made available to each person requesting same during that week and during the public hearing.
(b) 
The Council shall, by resolution passed by not less than a majority of the full membership, determine that the budget shall be read by its title and declare that the conditions set forth in Subsection C(5)(a) above have been met.
(6) 
After closing the hearing, the Council may adopt the budget by title, without amendments, or may approve amendments before adoption, as provided in Subsection C(7) below.
(7) 
The Council may amend the budget during or after the public hearing. No amendment by the Council shall be effective until taxpayers and all persons having an interest therein shall have been granted a public hearing thereon, if the amendment shall:
(a) 
Add a new item in an amount in excess of 1% of the total amount as stated in the approved budget;
(b) 
Increase or decrease any item by more than 10%; or
(c) 
Increase the amount to be raised pursuant to § 16 of P.L. 5052, c. 134 (N.J.S.A. 40:56-80) by more than 5%, unless the same is made pursuant to an emergency temporary appropriation only.
(8) 
Final adoption of the budget shall be by resolution, adopted by the majority of the full membership of the Council, and may be by title.
D. 
Monies appropriated and collected on account of annual improvement costs, and costs of operating and maintaining the Business Improvement District, shall be credited to a special account. Any balances to the credit of the account and remaining unexpended at the end of the fiscal year shall be conserved and applied towards the financial requirements of the succeeding year.
E. 
The City shall pay over funds to the Corporation on a schedule to be agreed upon between the Council and the Corporation.
F. 
The annual costs of operating, maintaining and improving the District, assessed, collected and appropriated, shall be reported to the Council as provided in N.J.S.A. 40:56-80.
By December 1 of each pretax year, a review of the assessment list, per Schedule A,[1] attached, shall be done as follows:
A. 
The City Tax Assessor shall prepare a list of all business owners in the District which may be subject to the special assessment. The list will include the Tax Map block and lot, street address and the mailing address of the business owner.
B. 
The assessment list, when so prepared, shall be filed in the office of the City Clerk on or before August 1 of the preassessment year and be available there for inspection.
C. 
The Council shall annually meet to consider including or excluding certain business owners from the special assessment, based upon the criteria set forth in § 505-6, at least 10 days after a notice of hearing has been published once in the official newspaper and mailed to the named owners of all tracts, parcels and lots of property proposed to be included or excluded from the list. The notice shall set forth the time and place of meeting and set forth the purpose of such meeting, but may refer to the assessment list for further particulars.
D. 
When the Council shall have approved the amended assessment list, the City Clerk shall forthwith certify a copy of the assessment list with such changes, if any, to the Cape May City Assessor by no later than December 1 of the preassessment year.
[1]
Editor's Note: Schedule A is included at the end of this chapter.
The Corporation shall cause an annual audit of its books, accounts and financial transactions to be made and filed with the Council and, for that purpose, the Corporation shall employ a New Jersey Certified Public Accountant. The annual audit shall be completed and filed with the Council within four months after the close of the fiscal year of the Corporation, and a certified duplicate copy of the audit shall be filed with the Director of the Division of Local Government Services in the Department of Community Affairs within five days of the filing of the audit with the Council.
The Corporation shall, within 30 days of the close of each fiscal year, make an annual written report of its activities for the preceding fiscal year to the Council.
Notwithstanding the creation of the Business Improvement District, the City expressly retains all its police powers and other rights and powers and authority over the area designated as the "Business Improvement District."
Any ordinance or part of an ordinance inconsistent with this or any part of this chapter is hereby repealed as to the inconsistent provisions.