The Mayor and Council of the City of Hoboken may enter into
agreements with developers for tax abatement on commercial, industrial
or residential improvements or projects, pursuant to the provisions
of P.L. 1977, c. 12, providing for the exemption from real property taxation
of improvements or projects for a period of five years. The following
procedures shall govern agreements for tax abatement entered into
by the Mayor and Council and developers:
A. Improvements.
[Amended 1-2-1985 by Ord. No. 330]
(1) All improvements, as defined in N.J.S.A. 54:4-3.96, shall be exempt
from local real property taxes only upon review, evaluation and approval
by resolution of the governing body on each individual application.
Application shall be upon the form approved by the Director of the
Division of Local Government Services, Department of Community Affairs.
(2) Applicants shall apply for tax exemption on improvements prior to
the commencement of construction of the improvement, provided that
the applicant must file a proper application with the Tax Assessor,
within 60 days of the completion of the improvement, in order to be
eligible for tax exemption thereon.
(3) Every properly completed application for exemption of one or more
improvements, which is filed within 60 days of the completion of the
improvement, shall be reviewed and decided by the governing body not
later than within 60 days of its filing.
B. Projects.
(1) Applicants for tax abatement on projects shall provide the Mayor
and Council with an application setting forth:
(a)
A general description of the project for which abatement is
sought.
(b)
A legal description of all real estate necessary for the project.
(c)
Plans, drawings and other documents as may be required by the
Mayor and Council to demonstrate the structure and design of the project.
(d)
A description of the number, classes and types of employees
to be employed at the project site within two years of completion
of the project.
(e)
A statement of the reasons for seeking tax abatement on the
project and a description of the benefits to be realized by the applicant,
if tax abatement is granted.
(f)
Estimates of the cost of completing such project.
(g)
A statement showing:
[1]
The real property taxes currently being assessed at the project
site.
[2]
Estimated tax payments that would be made annually by the applicant
on the project during the period of tax abatement.
[3]
Estimated tax payments that would be made by the applicant on
the project during the first full year following the termination of
the tax abatement agreement.
(h)
A description of any lease agreements between the applicant
and proposed users of the project and a history and description of
the user's business.
(i)
Such other pertinent information as the Mayor and Council may
require.
(2) Upon approval of an ordinance authorizing an agreement for tax abatement
for a particular project, the Mayor and Council of the City of Hoboken
shall enter into a written agreement with the applicant for the abatement
of local real property taxes. The agreement shall provide for the
applicant to pay to the City of Hoboken, in lieu of full property
tax payments, an amount annually to be computed by using either of,
but not a combination of, the formulas set out in N.J.S.A. 54:4-3.102.
Such agreements may also provide for tax phase-in pursuant to Subsection
c of N.J.S.A. 54:4-3.101. All tax abatement agreements hereunder shall
be in effect for a period of not more than five years starting with
the date of completion of the project.