City of Hackensack, NJ Payment In Lieu of Parking

When the proposed construction and use of any new building or structure or the proposed enlargement or increase in the capacity of new use of any existing building or structure results in practical difficulty or undue hardship in complying with the off-street parking requirements of the City Zoning and Planning Ordinance, the Planning Board and/or Zoning Board of Adjustment, in its discretion, upon finding(s) that such difficulty or undue hardship exists, and if the applicant is otherwise in accord with the provisions of the Municipal Land Use Act, may permit the applicant to elect to contribute to the City's Parking Improvement Program (PIP) Trust Fund in lieu of providing the total number of parking spaces required by City ordinance.

§ 26-59 Areas eligible for participating in parking improvement program

Pursuant to the Local Redevelopment and Housing Law ("LRHL"),[1] certain areas within the City have been designated as areas in need of redevelopment or areas in need of rehabilitation. The designated areas are those most in need of additional off-street parking and most adversely affected by the granting of parking waiver variances. Construction of additional off-street parking by the City will serve new and existing residents, and patrons and applicants requesting parking variances.

[1]

Editor's Note: See N.J.S.A. 40A:12A-1 et seq.

Projects submitted to the Planning Board and/or the Zoning Board of Adjustment that are sited within a duly designated area in need of redevelopment or area in need of rehabilitation will be eligible for participating in the parking improvement program.

§ 26-60 Number of parking spaces for which variance is requested.

The Planning Board and/or Board of Adjustment, when reviewing an application for development which requests a parking space variance, shall determine the number of off-street parking spaces required for the application to conform to the requirements of the City zoning and planning ordinance, and then shall establish the number of parking spaces for which the applicant seeks a variance.

The provisions of this section of the zoning and planning ordinance creating the parking improvement program shall not allow the waiver of required off-street parking spaces or facilities, where they can be installed by the applicant without undue difficulty or hardship, unless the approving authority, by resolution, agrees in its sole discretion that it has an excess supply of available on or off-street parking in the area of the development project.

The contribution and payment of the PIP fee, in lieu of providing the required off-street parking spaces, shall only be made at the request of an applicant, who would otherwise be required to install off-street parking based upon the applicant's proposed use, and is unable to do so in accordance with the requirements of the zoning and planning ordinance.

§ 26-61 PIP fee for off-tract parking improvements.

The applicant agrees, at its request, to be assessed a PIP fee for each parking space not otherwise provided by the applicant as required by the City zoning and planning ordinance.

The City has determined 400 square feet to be the parking industry standard for a nine-foot-by-eighteen-foot parking stall, including drive aisles and other common areas associated with the development of a parking lot or parking garage.

The PIP fee to be assessed by the City for each parking space for which the applicant seeks a waiver shall be calculated as follows, until otherwise amended or revised by ordinance:

[Amended 9-6-2022 by Ord. No. 40-2022]

Affordable rental residential unit	$25,000
Market-rate rental residential unit	$25,000
Commercial/retail/office lease unit	$25,000
For-sale condominium unit	$25,000

In addition to the per parking space PIP fee assessment, the applicant shall pay pursuant to N.J.S.A. 40:55-D-3.2 the reasonable fees assessed by the municipality or applicable land use board for review of the developer's application and supporting information as well as preparation of documents necessary to effectuate the purpose of this article, including but not limited to attorney review, parking consultant, engineering cost estimates and appraisal services.

In the event that the applicant has provided the City with other payments, waived tax appeal rebates, deeded or contributed by nominal lease real property, constructed off-site improvements, constructed replacement parking facilities, etc., the City Council in its sole discretion may credit the applicant with the reasonable value of such payment, contribution and/or improvements toward the PILOP required.

§ 26-62 Payment of PIP fee by applicant.

The timing of the PIP fee payment shall be in the discretion of the approving authority. Payment by the applicant of the PIP fee assessed may be imposed as follows:

Upon the granting of the variance by the Planning Board or Board of Adjustment.

In the case of a development project at the time that the applicant or the successor to the applicant's approvals secures their building permits.

Over a term of years, in the event the PIP payment exceeds $250,000, to be authorized by resolution of the City Council. The payment term shall not be in excess of five years, payable in yearly installments, with legal interest.

To secure payment of applicant's obligation to the PIP Trust Fund, a municipal assessment for a local improvement pursuant to N.J.S.A. 40:56 et seq. shall be placed upon applicant's real estate which was the subject of the parking variance.

The provisions of N.J.S.A. 40:56 et seq. shall apply in the event of a default or late payment.

§ 26-63 Collection of PIP fee assessment.

In the event that the Planning Board or Zoning Board of Adjustment approves by resolution payment of the PIP fee by installment, a real estate assessment shall be collected by the municipal tax assessor's office in the manner proscribed by statute and the funds so collected shall be turned over to the City Chief Financial Officer for deposit into the City's Parking Improvement Program Trust Fund.

In the event that the applicant is directed by the Planning Board or Zoning Board of Adjustment to pay the PIP fee assessment in a single lump sum, the assessment shall be collected by the City Chief Financial Officer for deposit into the City's Parking Improvement Program Trust Fund.

§ 26-64 Deposit of PIP Fee Assessment.

The City may apply to the State of New Jersey, Department of Community Affairs, Local Finance Board pursuant to administrative rule, for its approval and establishment of a dedicated and restricted trust fund for deposit of the PIP fees assessed by the authority pursuant to the parking space variance, as determined by the Planning Board or Zoning Board of Adjustment.

§ 26-65 Use of PIP Fee Assessment.

The assessed fees collected and deposited into the Parking Improvement Program Trust Fund shall be dedicated to provide for: engineering and design; traffic and other feasibility studies; acquisition through purchase or condemnation; erection, construction of or installation of off-street parking facilities, parking structures, or equipment; and other associated parking project development costs. The expenditure of such funds for said purposes shall be made by the City Manager or his or her designee at the time and in the manner determined by the City to be in the best interests of the City in providing off-street parking.