[HISTORY: Adopted by the Township Council of the Township
of Maple Shade as indicated in article histories. Amendments noted
where applicable.]
GENERAL REFERENCES
Hotel and motel room occupancy tax — See Ch. 89.
[Adopted 8-23-2012 by Ord. No. 2012-11]
A.
The Township hereby determines to utilize the authority granted under
Article VIII, Section I, Paragraph 6, of the New Jersey Constitution
to establish the eligibility of commercial and industrial structures
for five-year tax exemptions and abatements as authorized by N.J.S.A.
40A:21-1 et seq., but only to the extent set forth herein.
B.
This article authorizes the Township of Maple Shade to grant exemptions
up to a five-year period to commence and take effect in the 2012 tax
year and thereafter. This article shall lapse, unless readopted, in
the 2021 tax year and no exemptions shall be granted after December
31, 2021 tax year without such readoption.
A.
The definitions contained in N.J.S.A. 40A:21-3 are incorporated herein
by reference as if set forth at length. As used in this article, words
shall have the meanings as so defined unless a different meaning is
expressed.
B.
EXEMPTION
QUALIFYING COMMERCIAL OR INDUSTRIAL STRUCTURE
(1)
(2)
The following words, terms, phrases, when used in this article shall
have the meaning ascribed to them in this subsection, consistent with
the provisions of N.J.S.A. 40A:21-3, except where the context clearly
indicates a different meaning:
That portion of the Assessor's full and true value of
any improvement, conversion alteration, or construction not regarded
as increasing the taxable value of a property pursuant to the Act.[1]
Shall refer to:
A structure or parts thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof,
which will tend to maintain or provide gainful employment within the
Township, assist in the economic development of the Township, maintain
or increase the tax base of the Township. It shall not include any
structure or part thereof used or to be used by any business relocated
from another qualifying municipality unless: the total square footage
of the floor area of the structure or part thereof used or to be used
by the business at the new site together with the total square footage
of the land used or to be used by the business at the new site exceeds
the total square footage of that utilized by the business at its current
site of operations by at least 10%; and the property that the business
is relocating to has been the subject of a remedial action plan costing
in excess of $250,000 performed pursuant to an administrative consent
order entered into pursuant to authority vested in the Commissioner
of Environmental Protection under P.L. 1970, c.33 (N.J.S.A. 13:1D-1
et al.), the "Water Pollution Control Act," P.L.1977, c.74 (N.J.S.A.
58:10A-1 et seq.), the "Solid Waste Management Act," P.L.1970, c.39
(N.J.S.A. 13:1E-1 et seq.), and the "Spill Compensation and Control
Act," P.L. 1976, c.141 (N.J.S.A. 58:10-23.11 et seq.).
The term "commercial structure" relates to office, retail and
like uses, but does not include multiple-dwelling-type (three or more
rental units) structures. In the event a structure includes a mix
of commercial and multiple-dwelling uses, the exemption shall only
apply to that component of the structure relating to commercial, as
opposed to multiple-dwelling use.
[1]
Editor's Note: According to the preamble of Ord. No.
2012-11, "the Act" refers to the Five-Year Exemption and Abatement
Law, N.J.S.A. 40A:21-1 et seq.
A.
For properties located in designated areas of rehabilitation or redevelopment, tax exemptions are available for the Assessor's full and true value of "improvements" to existing qualifying commercial and industrial structures as may be granted by the governing body on an individual basis, after review, evaluation and approval of each application by resolution. The application procedure for seeking such an exemption shall be consistent with the procedures outlined in § 181-4. However, the granting of an exemption under this section shall not require the adoption of an ordinance nor a written tax agreement. An "improvement" is defined under N.J.S.A. 40A:21-3n, which definition is fully incorporated herein, and includes the renovation, rehabilitation, repair, and alteration of an existing building that improves the safety and attractiveness of the building but does not include ordinary painting, repairs, and replacement of maintenance items nor the enlargement of the volume of an existing structure by more than 30%.
B.
For properties located in designated areas of rehabilitation or redevelopment,
tax exemptions are available for the construction of commercial and
industrial structures pursuant to the procedures set forth in the
Act and in this article. The term "construction" is defined under
N.J.S.A. 40A:21-3g, which definition is fully incorporated herein,
and includes the construction of a new commercial or industrial building
or the enlargement of an existing commercial or industrial building
by more than 30%, but shall not mean the conversion of an existing
building or structure to another use.
A.
Applicants for tax exemption and abatement shall submit an application,
approved by the Director of the Division of Taxation in the Department
of Treasury and currently on file with the Township, to the Tax Assessor
specifying the following:
(1)
A general description of a project for which exemption and abatement
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
Council to demonstrate the structure and design of the project;
(4)
A description of the number, classes and type of employees to be
employed at the project site within two years of completion of the
project (if applicable);
(5)
A statement of the reasons for seeking tax exemption and abatement
on the project, and a description of the benefits to be realized by
the applicant if a tax agreement is granted;
(6)
Estimates of the cost of completing such project;
(7)
A statement showing:
(a)
The real property taxes currently being assessed at the project
site;
(b)
Estimated tax payments that would be made annually by the applicant
on the project during the period of the agreement; and
(c)
Estimated tax payments that would be made by the applicant on
the project during the first full year following the termination of
the tax agreement;
(8)
A description of any lease agreement between the applicant and proposed
users of the project, and a history and description of the applicant's
businesses;
(9)
Such other pertinent information as the Township of Maple Shade may
require.
B.
Separate applications shall be filed for each building involved in
a phased project.
C.
A preliminary application is required to be filed with the Township
Tax Assessor prior to the issuance of a construction permit for the
project. The final application shall be filed with the Township Clerk
and Tax Assessor no later than 30 days, including Saturdays and Sundays,
following the completion of the improvement or construction. "Completion"
means that the subject improvement is substantially ready for the
intended use for which it is constructed. Such completion may be evidenced
by the issuance of a certificate of occupancy or like document by
the Township's building inspectors.
D.
The Township Council shall have full discretion to accept, deny or
revise the application and shall not be subject to any time limitations
to make a determination.
E.
No exemption shall be granted or tax agreement entered into pursuant
to this article for any property for which property taxes are delinquent
or remain unpaid, or for which penalties for nonpayment of taxes are
due.
A.
If the Township Council grants the exemption for the project, the
Council shall adopt an ordinance authorizing a tax agreement for the
particular project. The Council shall enter into a written agreement
with an applicant for the exemption of local property taxes. The agreement
shall provide for the applicant to pay the municipality in lieu of
full property taxes an annual amount to be computed in accordance
with N.J.S.A. 40A:21-10 utilizing one of the following: a) the cost
basis; b) the gross revenue basis; or c) the tax phase-in basis, as
set forth therein.
B.
All tax agreements entered into shall be in effect for no more than
the five full years next following the date of completion of the project.
C.
All projects subject to tax agreement as provided herein shall be
subject to all applicable federal, state and local laws and regulations
on pollution control, worker safety, discrimination in employment,
housing provision, zoning, planning and building code requirements.
D.
The Clerk of the Township of Maple Shade is authorized to forward
a copy of all executed agreements entered into pursuant to this article
to the Director of the Division of Local Government Services in the
Department of Community Affairs within 30 days of the date of execution.
The percentage which the payment in lieu of taxes bears to the
property taxes which would have been paid had an abatement not been
granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the
property to be included in the valuation of the municipality for determining
equalization for county apportionment and school aid during the term
of the tax abatement agreement covering the property.
In the event a property owner subject to a tax agreement ceases
to operate or disposes of the property or fails to meet the conditions
for qualifying for the exemption, the local property taxes due for
all the prior years subject to exemption and for the current year
shall be payable as if no exemption had been granted. The Township
Tax Collector shall notify the property owner within 15 days of the
date of disqualification of the amount of taxes due. In the event
the subject property has been transferred to a new owner and it is
determined that the new owner will continue to use the property pursuant
to the qualifying conditions, and no tax or payment in lieu of tax
shall be delinquent, the exemption shall continue and the agreement
shall remain in effect.
A.
No exemption or abatement shall be granted or tax agreement entered
into with respect to any property for which property taxes are delinquent
or remain unpaid or for which penalties for nonpayment of taxes are
due or for which other municipal charges are due.
B.
All tax agreements entered into pursuant to this article shall be
subject to the condition that all taxes and other municipal charges
shall be kept current to the extent the same are assessed. In the
event that taxes and charges go unpaid for more than six months beyond
the date upon which such amounts become due, then the agreement shall
terminate and the property restored to full assessment. This condition
shall be binding and effective, notwithstanding the absence of any
reference to the same in the tax agreement.
A.
An applicant for tax exemption under this article shall agree, as
a condition to receiving the exemption, not to file a tax appeal challenging
the assessment granted under this article.
B.
In the event that the Township implements a revaluation or reassessment
during the exemption period for any property, the exemption shall
continue to apply but at a valuation level consistent with the revaluation
or reassessment.
C.
The granting of an exemption for a particular property shall not
prejudice the right of the Township to appropriately examine and revise
the assessment during the five-year exemption period in the event
the base assessment is found to be improperly valued and assessed.
At the termination of an agreement for tax exemption or abatement
authorized pursuant to this article, the project shall be subject
to all applicable real property taxes, as provided by state and local
law and regulations, provided that nothing herein shall be deemed
to prohibit the project or improvement at the termination of the agreement
for tax abatement from qualifying and receiving the full benefits
of any other tax preference as provided by law.
An additional improvement, conversion or construction completed
on a property already granted a previous exemption pursuant to this
article during the period in which the previous exemption is in effect
shall qualify for an additional exemption under the standards identified
in this article. The additional improvement, conversion or construction
shall be considered as separate for purposes of calculating the exemption,
except that the assessed value of any previous improvement, conversion
or construction shall be added to the assessed valuation as it was
prior to that improvement, conversion or construction for the purpose
of determining the assessed value of the property for which any additional
exemption is to be subtracted.
A.
The following fees are to be paid at the time that an application
is submitted for tax exemption and/or exemption and abatement.
B.
The following fees are based on the estimated cost of the improvement:
Estimated Cost
|
Fee
| |
---|---|---|
0 to $50,000
|
1%
| |
$50,001 to $150,000
|
1.2%
| |
$150,001 to $300,000
|
1.4%
| |
$300,001 to $500,000
|
1.6%
| |
$500,001 and above
|
1.8%
|
C.
Provided, however, that the maximum fee shall not exceed $10,000
on a single tax exemption or tax exemption and abatement application.
[Added 10-24-2013 by Ord. No. 2013-15]
[Adopted 5-22-2014 by Ord. No. 2014-07]
This article sets forth the procedures to be followed by the
Township in the review and consideration of applications for tax exemptions
of real property taxes pursuant to N.J.S.A. 40A:20-1 et seq. and the
administration of financial agreements authorized by the Council.
As used in this article, the following terms shall have the
meanings indicated:
The Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq.
A contract entered into between the Township and a qualified
entity pursuant to the Act.
An application for a long-term tax exemption submitted to
the Township containing the information and data required to be submitted
pursuant to § 18-15A hereof.
Substantially ready for the intended use for which the building
or structure is constructed, as evidenced by a temporary certificate
of occupancy or a permanent certificate of occupancy, whichever is
issued first.
Calendar days.
A limited-dividend entity satisfying the qualifications set
forth in N.J.S.A. 40A:20-5, a nonprofit entity satisfying the qualifications
of N.J.S.A. 40A:20-5.1, or the New Jersey Economic Development Authority,
which seeks to enter into a financial agreement with the Township
pursuant to N.J.S.A. 40A:20-1 et seq. to undertake a project pursuant
to an adopted redevelopment plan for the redevelopment of all or any
part of a redevelopment area; or a project necessary, useful or convenient
for the relocation of residents displaced or to be displaced by the
redevelopment of all or any part of one or more redevelopment areas;
or a low- and moderate-income housing project.
Any work or undertaking pursuant to a redevelopment plan
adopted pursuant to the Local Redevelopment and Housing Law, N.J.S.A.
40A:12A-1 et seq., which has as its purpose the redevelopment of all
or any part of a redevelopment area, including any industrial, commercial,
residential or other use, and may include any buildings, land, including
demolition, clearance or removal of buildings from land, equipment,
facilities, or other real or personal properties which are necessary,
convenient, or desirable appurtenances, such as, but not limited to,
streets, sewers, utilities, parks, site preparation, landscaping,
and administrative, community, health, recreational, educational and
welfare facilities.
A.
Form of application. All applications shall be submitted by an entity
utilizing the application form on file with the office of the Township
Clerk and adopted by the Council, which application may be amended
from time to time. The application shall include but not be limited
to:
(1)
A general statement of the nature of the proposed project, that the
undertaking conforms to all applicable municipal ordinances, and that
the project accords with the Redevelopment Plan and Master Plan of
the Township, or, in the case of a redevelopment relocation housing
project, provides for the relocation of residents displaced or to
be displaced from a redevelopment area, or, in the case of a low-
and moderate-income housing project, the housing units are restricted
to occupation by low- and moderate-income households.
(2)
A description of the proposed project outlining the area included
and a description of each unit thereof if the project is to be undertaken
in units and setting forth architectural and site plans as required.
(3)
A statement prepared by a qualified architect or engineer of the
estimated cost of the proposed project in sufficient detail as required
by the Township, including the estimated cost of each unit to be undertaken.
(4)
The source, method and amount of money to be subscribed through the
investment of private capital, setting forth the amount of stock or
other securities to be issued therefor or the extent of capital invested
and the proprietary or ownership interest obtained in consideration
therefor.
(5)
A fiscal plan for the project outlining a schedule of annual gross
revenue, the estimated expenditures for operation and maintenance,
payments for interest, amortization of debt and reserves, and payments
to the Township to be made pursuant to a financial agreement to be
entered into with the Township.
(7)
Schedule of the construction of the project.
(8)
An estimate by the entity as to the number and type of jobs to be
created by the project during the period of construction and the number
and type of permanent jobs to be created by the project within one
year after the completion date.
B.
Form of financial agreement. The proposed agreement shall be prepared
by the applicant and submitted as a separate part of the application.
The agreement shall be in the form of a contract requiring full performance
within 30 years from the date of completion of the project and shall
include the following:
(1)
Profits of or dividends payable by the entity shall be limited according
to terms appropriate for the type of entity in conformance with the
provisions of the Act.
(2)
All improvements and land, to the extent authorized pursuant to N.J.S.A.
40A:20-12, in the project to be constructed or acquired by the entity
shall be exempt from taxation in accordance with the Act and this
chapter.
(3)
The entity shall make payments for Township services in accordance
with the requirements of the Act.
(4)
The entity shall submit annually, within 90 days after the close
of its fiscal year, its auditor's reports to the Mayor and Council
and to the Director of the Division of Local Government Services in
the Department of Community Affairs.
(5)
The entity shall, upon request, permit inspection of property, equipment,
buildings and other facilities of the entity, and also permit examination
and audit of its books, contracts, records, documents and papers by
authorized representatives of the Township or the state.
(6)
In the event of any dispute between the parties, matters in controversy
shall be resolved by arbitration in the manner provided in the agreement.
(7)
The agreement shall be terminable by the entity in the manner set
forth within the Act.
(8)
The entity shall at all times prior to the expiration or termination
of the agreement remain bound by the provisions of the Act and executed
agreement.
(9)
The agreement shall contain detailed representation and covenants
as to the manner in which the entity proposes to use, manage or operate
the project.
(10)
The agreement shall set forth the method for:
(a)
Computing gross revenue for the entity;
(b)
The method of determining insurance;
(c)
Operating and maintenance expenses paid by a tenant which are
ordinarily paid by a landlord;
(d)
The plans for financing the project, including the estimated
total project cost, the amortization rate on the total project cost,
the source of funds, the interest rates to be paid on the construction
financing, the source and amount of paid-in capital;
(e)
The terms of mortgage amortization or payment of principal on
any mortgage;
(f)
A good-faith projection of initial sales prices of any condominium
units and expenses to be incurred in promoting and consummating such
sales; and
(g)
The rental schedules and lease terms to be used in the project.
(11)
The agreement shall set forth the appropriate annual service
charge schedule to be followed for the payment in lieu of taxes in
accordance with N.J.S.A. 40A:20-12.
(12)
The agreement shall include a provision for the Township's
levy of an annual administrative fee equal to 2% of the annual service
charge pursuant to N.J.S.A. 40A:20-12b.
(13)
The agreement shall require the timely submission of a certified
audit of the total project cost and a certified audit of the fiscal
operations of the project and shall require timely payment of all
municipal taxes, fees and charges arising out of the agreement or
in any way arising out of the property. The financial agreement shall
provide that the failure to comply with the requirement to submit
certified audits, make payment of municipal taxes, fees and charges,
or failure to comply with any material condition of the agreement
shall be grounds for the Township to terminate the agreement, and/or
to exercise such other remedies as may be provided by statute, municipal
ordinance or the financial agreement.
C.
Discretionary terms of financial agreement. The Township may, in
its discretion, approve a financial agreement that contains terms
related to the following:
(1)
Transfer to another entity: a provision that the Township will consent
to the sale of the project by the entity to another urban renewal
entity, its successors or assigns, owning no other project at the
time of the transfer and that, upon assumption by the transferee urban
renewal entity of the transferor's obligations under the financial
agreement, the tax exemption and improvements thereto and, to the
extent authorized by N.J.S.A. 40A:20-12, the land shall continue and
inure to the transferee entity, its respective successors and assigns.
(2)
Purchasing entity net profits. The purchasing entity's net profits,
if any, shall be computed commencing with the date of acquisition
of the project.
(3)
Selling entity. The date of transfer of title of the project to the
purchasing entity shall be considered to be the close of the fiscal
year of the selling entity.
(4)
Payment of reserve. Within 90 days after the date of the transfer
of title, the selling entity shall pay the Township the amount of
the reserve, if any, maintained pursuant to N.J.S.A. 40A:20-15 and
N.J.S.A. 40A:20-16.
(5)
Administrative fee. The Township shall levy an administrative fee
in the amount of 2% of the annual service charge for the processing
of any request to sell the project and continue the tax exemption
pursuant to the terms of the agreement upon transfer.
D.
Application fee. The following fees are to be paid at the time that
an application is submitted for consideration by the Township based
on the estimated cost of the improvements as follows; provided, however,
that the maximum fee shall not exceed $10,000 for a single application:
Estimated Cost
|
Fee
| |
---|---|---|
$0 to $50,000
|
1%
| |
$50,001 to $150,000
|
1.2%
| |
$150,001 to $300,000
|
1.4%
| |
$300,001 to $500,000
|
1.6%
| |
$500,001 and above
|
1.8%
|
E.
All applicants shall submit one original and 10 copies of an application
for exemption to the Township Manager in person or by certified mail
at:
Township of Maple Shade
| |
Municipal Building
| |
200 Stiles Avenue
| |
Maple Shade Township, NJ 08052
|
F.
Distribution of application. Within five days of receipt of an application,
the Township Manager shall simultaneously distribute one copy of the
application to each of the following for their review and recommendations
to the Township Manager:
G.
Scope of review.
(1)
Community Development review.
(a)
Upon receipt of an application, the Director of Community Development
shall conduct a complete review of the project. Such review shall
take into consideration the suitability, propriety, and accuracy of
the property, description(s), plan(s) and estimate(s) submitted, the
degree to which the project complies with the Township's development
goals as expressed in the Township's Master Plan, zoning ordinances,
and redevelopment plans and the degree of economic necessity of the
tax abatement for the project.
(b)
Based upon the review, the Director of Community Development
shall submit a recommendation to approve or disapprove the application
to the Township Manager within 20 days of receipt of the application.
Such recommendation shall include any changes to the application that
may be deemed necessary by the Director of Community Development,
as well as a detailed explanation as to the analysis conducted to
arrive at such recommendation.
(2)
Financial review.
(a)
Upon receipt of an application, the Chief Financial Officer
shall conduct a financial review of the application, including a cost
and benefit analysis of the proposed project. In addition, the Chief
Financial Officer shall obtain written certifications of the information
contained within the application. Those certifications shall include
the following:
[1]
Certification of the Tax Assessor as to:
[a]
The taxes levied on the real property included
within the project in both the year in which the application was filed
and the immediately preceding year.
[b]
The current status of payments due for real estate
taxes, service charges and/or municipal liens of any type arising
from the property included within the project or from any other property
owned by the entity.
[c]
The current status of payments due for any financial
agreement then in force and effect to which the entity is a party.
[d]
The status of payments due for water and sewer
services provided to the real property included within the project
or other real property within the Township in which the entity has
an interest.
[e]
The precise identity of all real property included
within the project, including the metes and bounds description, all
tax block and lot designations and corresponding street addresses,
as well as a survey or plotting of the property on the Official Tax
Map.
[f]
The owner of record as recorded in the office for
each tax lot included within the project.
[g]
The tax assessment for land and improvements then
in effect for each tax lot included within the project.
[h]
The total amount assessed on all real property
included within the project in the calendar year immediately preceding
its acquisition by the Township, the Township's agent, the entity
or the entity's agent.
[i]
The taxes levied on the real property included
within the project in both the year in which the application was filed
and the immediately preceding year.
(b)
Based upon the review, the Chief Financial Officer shall submit
a recommendation to approve or disapprove the application to the Township
Manager within 20 days of receipt of the application. Such recommendation
shall include any changes to the application that may be deemed necessary
by the Chief Financial Officer, as well as a detailed explanation
as to the analysis conducted to arrive at such recommendation.
(3)
Legal review.
(a)
Upon receipt of an application, the Township Solicitor shall
conduct a review as to the form and legality of the application. In
addition, the Township Solicitor shall obtain written certifications
from Township officials as necessary to substantiate the information
contained in the application. The Township Solicitor shall:
[1]
Review any financial agreements then in force and effect to
determine the extent to which each party to the application is a party
to any other agreements with the Township and whether they are current
on their obligations in those agreements.
[2]
Make a determination as to the propriety of the application.
Applications shall be deemed proper in those cases where they are
presented in the proper form, satisfy the requirements of this chapter
and all other applicable statutes and ordinances and for which no
delinquency has been found with respect to any payments due to the
Township.
[3]
Where an application is deemed proper, the Township Solicitor
shall prepare an ordinance in the form necessary to authorize the
exemption and shall prepare the form of the financial agreement. All
financial agreements shall be in the form filed with the Township
Clerk. The authorizing ordinance shall be signed by the Township Solicitor
as to form and legality and submitted, together with the financial
agreement, to the Township Manager.
[4]
Where an application is deemed improper or deficient, the Township
Solicitor shall prepare a correspondence outlining those aspects of
the application that are deficient and shall forward the correspondence
to the Township Manager for consideration.
[5]
The Township Solicitor shall submit a recommendation to approve
or disapprove the application to the Township Manager within 20 days
of receipt of the application.
(b)
Failure of the Township Solicitor to submit his or her recommendation
to the Township Manager within the set time frame shall relieve the
Township Manager of his or her obligation to consider the Township
Solicitor's recommendation.
(4)
Township Manager. Upon receipt of the recommendations of the Director
of Community Development, the Chief Financial Officer, and Township
Solicitor, the Township Manager shall submit three copies of the application
to the Township Council with a recommendation to approve the application
or a recommendation to reject the application. The recommendation
whether to approve or reject the application shall occur within 60
days after receipt of the application by the Township Manager.
H.
Township Council consideration. Upon receipt of an application submitted
by the applicant, as well as the Township Manager's recommendation,
the Council shall place the application on its agenda for consideration.
Upon review, the Council shall adopt a resolution either approving
the application or disapproving the application. In the event of a
disapproval, the Council may suggest changes to the application in
order secure an approval.
(1)
Where an application is disapproved by the Council, the applicant
may revise the application and resubmit it to Mayor and Council for
its consideration in accordance with this § 18-15. Where
an application is resubmitted within a two-year period from the date
the disapproving resolution of the Council was adopted, the application
fee shall be waived.
A.
Council findings. Any agreement approved by the Council must include
determinations as to:
(1)
The relative benefits of the project to the redevelopment of the
redevelopment area when compared to the costs, if any, associated
with the tax exemption; and
(2)
An assessment of the importance of the tax exemption to be granted
in obtaining the development of the project and influencing the locational
decisions of probable occupants of the project or units of the project.
B.
Approval of financial agreement. The terms the tax exemption and
form of a financial agreement shall be approved by ordinance of the
Council, and notice of adoption of the ordinance shall be published
in accordance with N.J.S.A. 40:49-2 and N.J.S.A. 40A:20-12.
C.
Execution of financial agreement. Upon adoption of an ordinance by
the Township Council authorizing the exemption and financial agreement,
it shall be the responsibility of the Township Clerk to insure that
the financial agreement is fully executed. No financial agreement
shall be considered to be in force and effect unless and until it
has been signed by the entity and the Township Manager and dated and
certified by the Township Clerk by signature and affixing the Township
Seal.
D.
Township Clerk certification. When housing is to be constructed,
acquired or rehabilitated by an entity, the land upon which the housing
is situated shall be exempt from taxation for a period of time as
set forth within the agreement. The exemption shall be allowed following
the Township Clerk's certification to the Township Tax Assessor
that the agreement has been entered into and is in effect. The delivery
of a certified copy of the Council's ordinance approving the
tax exemption and financial agreement, along with a copy of the financial
agreement by the Township Clerk, to the Township Tax Assessor shall
constitute the required certification.
E.
Transmittal to Director of Division of Local Government Services.
The Township Clerk shall transmit a certified copy of the Council's
ordinance approving the tax exemption and financial agreement with
the entity, along with a copy of the agreement itself, to the Director
of the Division of Local Services.
A.
The financial agreement shall establish a schedule of annual service
charges to be paid over the term of the exemption period, which shall
be in stages as follows:
(1)
For the first stage of the exemption period, which shall commence
with the date of completion of the unit or of the project, as the
case may be, and continue for a time of not less than six years nor
more than 15 years, as specified in the financial agreement, the urban
renewal entity shall pay the Township an annual service charge for
municipal services;
(2)
For the second stage of the exemption period, which shall not be
less than one year nor more than six years, as specified in the financial
agreement, an amount equal to either the amount determined pursuant
to N.J.S.A. 40A:20-11 or 20% of the amount of taxes otherwise due
on the value of the land and improvements, whichever shall be greater;
(3)
For the third stage of the exemption period, which shall not be less
than one year nor more than six years, as specified in the financial
agreement, an amount equal to either the amount determined pursuant
to N.J.S.A. 40A:20-11 or 40% of the amount of taxes otherwise due
on the value of the land and improvements, whichever shall be greater;
(4)
For the fourth stage of the exemption period, which shall not be
less than one year nor more than six years, as specified in the financial
agreement, an amount equal to either the amount determined pursuant
to N.J.S.A. 40A:20-11 or 60% of the amount of taxes otherwise due
on the value of the land and improvements, whichever shall be greater;
and
(5)
For the final stage of the exemption period, the duration of which
shall not be less than one year and shall be specified in the financial
agreement, an amount equal to either the amount determined pursuant
to N.J.S.A. 40A:20-11 or 80% of the amount of taxes otherwise due
on the value of the land and improvements, whichever shall be greater.
B.
If the financial agreement provides for an exemption period of less
than 30 years from the completion of the entire project, or less than
35 years from the execution of the financial agreement, the financial
agreement shall set forth a schedule of annual service charges for
the exemption period which shall be based upon the minimum service
charges and staged adjustments set forth in this section.
C.
Notwithstanding the above, the minimum service charge shall not be
less than the amount of the total taxes levied against all real property
of the project area in the last full tax year in which the area was
subject to taxation.
D.
The annual service charge shall be paid to the Township on a quarterly
basis in a manner consistent with the Township's tax collection
schedule.
E.
The entity shall be entitled to credit for the amount, without interest,
of the real estate taxes on land paid by it in the last four proceeding
installments against the annual service charge.
F.
All exemptions granted shall terminate at the time prescribed in
the financial agreement.
During the period of construction of a project, the Tax Assessor
and Construction Code Official shall each be responsible for oversight
of the project and the agreement as follows:
A.
Permits and inspections. Upon receipt of an executed financial agreement,
the Construction Code Official shall cause permits to be issued upon
the application of the entity and shall cause inspections of all work
activity to be conducted in the manner provided by applicable Township
ordinances. The Construction Code Official shall notify the Tax Assessor
of any failure by the entity to properly apply for permits to begin
or complete construction within the time frame set forth in the financial
agreement. When permits are issued, the Construction Code Official
shall be responsible for notifying the Tax Assessor of such issuance.
B.
Quarterly report to Assessor. From the date of the execution of a
financial agreement until the issuance of a permanent certificate
of occupancy for the project, the Construction Code Official shall
report to the Tax Assessor each quarter as to the status of the permit
and construction activity on the project. Upon the total or partial
completion of construction, the Construction Code Official shall issue
a certificate of occupancy in the appropriate form and shall be responsible
for filing a copy of every certificate with the Tax Assessor.
C.
Assessments and taxes.
(1)
When a permanent or temporary certificate of occupancy is issued
for a project granted a tax exemption pursuant to the Act, the Tax
Assessor shall reflect the improvements and land thereof, as authorized,
on the exempt property list or as otherwise required by state statute.
Further, the Tax Assessor shall exempt the assessment of all improvements
covered by the financial agreement during the period the exemption
remains in effect. Assessments for land shall remain taxable throughout
the term of the exemption, except as otherwise provided.
(2)
At any time that the Tax Assessor causes the assessment on the improvements
or land of a project to be removed, in whole or in part, from taxable
to exempt status, he or she shall so notify the Tax Collector in writing
so as to insure the commencement and payment of annual service charges,
pursuant to the terms of the financial agreement.
D.
Collection and audit. Upon receipt of an executed financial agreement,
the Tax Assessor shall note within his or her book of accounts a record
of the execution of the agreement and the dates provided for commencement
and completion of construction. The Tax Collector shall thereafter
continue to levy taxes and collect payment thereof on the property
until the occurrence of the following:
(1)
In the event that a certificate of occupancy is issued for the project,
the Tax Collector shall immediately cease to levy or collect taxes
on the portion of the assessed value covered by the certificate of
occupancy and shall instead commence billing the entity the estimated
annual service charge (in lieu of taxes) as required by the financial
agreement. Where the financial agreement is authorized pursuant to
the Act, taxes on the value of the land shall continue to be levied
and collected according to the laws of New Jersey.
E.
Certified project costs. When a certificate of occupancy for a project
is issued, in addition to the steps outlined above, the entity shall
submit to the Chief Financial Officer, the Tax Collector and the Tax
Assessor a copy of a certified total project cost audit prepared by
a certified public accountant, along with an independent and qualified
architect's certification required by the Act, within 90 days
from the date of issuance of the certificate of occupancy.
(1)
The Tax Assessor shall review the certified total project cost audit
and the architect's certification and make a determination as
to the acceptability of the audit. If the audit is deemed unacceptable
it may be performed by the Township's designated auditor and
the cost thereof shall be borne by the entity. The Tax Assessor shall
be responsible for billing the entity for the cost of the audit. Once
the audit is accepted, if its findings cause any change in the basis
to be used in the determination of the annual service charge, net
profit or excess profits, the Tax Assessor shall bill the entity for
any adjustment. The Tax Assessor shall also maintain a copy of an
approved certified total project cost audit in its permanent files.
(2)
Upon adoption of an ordinance authorizing an amendment to the financial
agreement, as result of the certified total project costs, the Tax
Assessor shall bill the entity for the cost of the audit services
and for any additional service charges resulting from an adjustment
of the estimated service charges, and thereafter the annual service
charges or excess profits, if owed, shall be billed to the entity.
The Township Clerk shall be responsible for distributing and filing
executed copies of the financial agreement, as amended, in the same
manner as set forth for in the financial agreement.
F.
Breach of material terms. In the event that the entity fails to commence
or complete construction of the project within the time required by
the agreement, or fails to make payment of annual service charges
(in lieu of taxes) as required by the agreement, or otherwise fails
to satisfy a material condition of the agreement, the Tax Assessor
shall notify the Township Solicitor of the default by the entity.
(1)
The Township Solicitor shall thereupon take steps necessary to terminate
the financial agreement and to advise the Tax Assessor and the Tax
Collector of the actions to be taken regarding the assessment and
collection of real estate taxes.
(2)
The Township Solicitor shall also be responsible for the preparation
of such ordinance necessary to authorize the termination of the financial
agreement.
(3)
Upon adoption of such an ordinance, the Township Clerk shall be responsible
for filing and distributing the ordinance in accordance with the procedures
established in the financial agreement and shall provide a copy of
the ordinance to the Director of the Division of Local Government
Services.
A.
Operation of project. Upon completion of the construction project
and the issuance of a permanent certificate of occupancy, the entity
shall continue to operate the project according to the terms of the
financial agreement until the agreement terminates or expires.
B.
Billing and payment.
(1)
During the term of the agreement, the Tax Collector shall bill quarterly
service charges to the entity in a manner consistent with the Township's
tax collection schedule.
(2)
The bills shall reflect the taxes due on the value of all land included
within the project and all service charges (in lieu of taxes), or
other fees or charges due on the improvements as required by the agreement.
(3)
If authorized by law, the land upon which housing is constructed,
acquired or rehabilitated by an entity may be exempt from taxation
during the term of the financial agreement.
(4)
Irrespective of the date of issuance, any bill for annual service
charges or other Township charges shall be deemed to have been issued
on the first day of each calendar quarter and to be due and payable
within 30 calendar days thereafter.
(5)
Where annual service charges are billed on the basis of estimated
or projected figures, any payments thereof shall be reconciled upon
the submission of a certified audit. In such instance, the entity
shall make any additional or required payments within 90 days after
the close of its fiscal year. Any additional payment by an entity
shall be submitted, along with a statement by a certified public accountant
attesting that the additional payment was the actual amount due based
upon the gross revenue or total project cost as computed in accordance
with provisions of the Act and the financial agreement.
(6)
All payments due to the Township arising out of the financial agreement
which are not paid as of the date due shall be subject to the same
charges for penalties and interest as arrears then in effect for nonpayment
of real estate taxes.
(7)
The Tax Collector shall accept all payments made pursuant to an effective
and valid financial agreement and shall maintain books of account
as to each agreement.
(8)
Payments of real estate taxes and service charges.
(a)
Except as otherwise required by law, the Tax Collector shall
apply payments received for real estate taxes in the following order:
first, amounts due for penalties and interest on taxes, and then amounts
due for the principal of tax payments.
(c)
The entity shall be responsible for making timely payments for
real estate taxes and service charges directly to the Tax Collector.
C.
Annual administration fee. In addition to payment of the annual service
charge (in lieu of taxes), an entity shall be required to pay an annual
administrative fee to the Township. The annual administration fee
shall be paid on February 1 of each year. In the event the entity
granted the exemption pursuant to the Act does not pay the annual
administrative fee, such delinquency shall be grounds for rescission
or termination of the exemption.
D.
Annual audits.
(1)
Where required by law or by the financial agreement, an entity shall
submit a certified audit prepared by a certified public accountant
of the financial performance of the project.
(2)
A certified audit shall be submitted each year within 90 days after
the end of the fiscal year of the entity to the Township Tax Assessor
with a simultaneous copy to the Township Clerk for archival purposes.
(3)
As part of or in addition to the submission of a certified audit,
the entity shall submit a statement prepared by a certified public
accountant attesting to the net profits and the percentage of excess
profits utilized to maintain reserves authorized pursuant to the provisions
of the Act.
(4)
The Tax Assessor shall review each audit upon submission and make
a determination as to any adjustment required in the annual service
charge (in lieu of taxes), net profit and/or excess profits.
E.
Noncompliance (non payment). If an entity fails to comply with the
requirements for timely payment of real estate taxes and service charges
during the term of the financial agreement, the Tax Assessor shall
have the responsibility to enforce the terms of the financial agreement
through the below procedure. Such procedure shall not be the Township's
sole remedy, but rather shall be used in addition to such other remedies
as may be provided by the law and the terms of the financial agreement.
(1)
In the case where any payment due to the Township pursuant to a financial
agreement, whether arising from real estate taxes or service charges
(in lieu of taxes) is in arrears for a period of six months or more,
the Tax Assessor shall notify the entity that unless the total amount
due, including penalties and interest, and subsequent charges are
brought to current status within a period of 30 days from the date
of the notification, the exemption and financial agreement shall be
rescinded. If the entity fails to comply with such notice, the Tax
Assessor shall recommend that the Township Solicitor prepare an ordinance
rescinding the exemption and the financial agreement and shall notify
the Tax Assessor of the pending action.
(2)
Where an exemption and financial agreement is rescinded, the entity
shall have 30 calendar days to seek reinstatement of the exemption
and financial agreement, which shall only be permitted when all obligations
of the entity or person receiving the benefit of an exemption are
satisfied and made current. Upon satisfaction of all obligations,
the Tax Assessor shall recommend that the Township Solicitor prepare
an ordinance to reinstate the exemption and financial agreement for
the remainder of its term.
(3)
It shall be the responsibility of the Township Clerk to file and
distribute copies of all ordinances to rescind or reinstate an exemption
and financial agreement.
F.
Remedies for nonpayment. In the event of any nonpayment, as outlined in Subsection E, in addition to the remedies outlined therein, the entity by signing the agreement agrees that the Township shall have the same rights to enforce liens and commence foreclosure proceedings against its project as though the nonpayment were real estate taxes. The Township may exercise such rights by following the procedures established by state statutes and local ordinances for the collection of delinquent real estate taxes.
G.
Noncompliance with audit submission. If an entity fails to comply
with the requirements for timely submission of its certified audit
during the term of the financial agreement, the Tax Assessor shall
have the responsibility to enforce the terms of the financial agreement
through the below procedure. Such procedure shall not be the Township's
sole remedy, but rather shall be used in addition to such other remedies
as may be provided by the law and the terms of the financial agreement.
(1)
Where any certified audit required to be submitted pursuant to a
financial agreement is delinquent for a period of three months or
more from the date required to be submitted, the Tax Assessor shall
notify the entity that unless the audit is submitted in proper form
within 30 days from the date of notification, the exemption and financial
agreement shall be rescinded. If the entity fails to comply with the
notice, the Tax Assessor shall recommend that the Township Solicitor
prepare an ordinance rescinding the exemption and financial agreement,
which shall cause the project or unit thereof to be assessed according
to the general laws of taxation.
(2)
Where an exemption and financial agreement are rescinded, the entity
shall have 30 calendar days to seek reinstatement of the exemption
and financial agreement, which shall only be permitted when all obligations
of the entity or person receiving the benefit of an exemption are
satisfied and made current. Upon satisfaction of all obligations,
the Tax Assessor shall recommend that the Township Solicitor prepare
an ordinance to reinstate the exemption and financial agreement for
the remainder of its term.
(3)
It shall be the responsibility of the Township Clerk to file and
distribute copies of all ordinances to rescind or reinstate an exemption
and financial agreement.
(4)
The Township, at its option, may choose not to exercise its right
to rescind or terminate, but instead cause an equivalent audit to
be conducted by qualified personnel under the Township's direction.
Where this option is elected, the Township shall utilize the resulting
audit as the basis for billing as if it had been submitted by the
entity. Further, the Township shall have the right to bill the entity
for the cost of conducting an audit. Exercise of this option by the
Township shall not in any way preclude or waive the right of the Township
to terminate an exemption for any other default, declare the exemption
and financial agreement void or other such remedies as may be provided
by law, regulation or the terms of the financial agreement.