[HISTORY: Adopted by the Mayor and Council of the Borough
of Metuchen 5-2-2016 by Ord. No.
2016-10. Amendments noted where applicable.]
Pursuant to N.J.S.A. 40:56-68b the Council makes the following
findings with respect to the area described in attached Exhibit A
("District")[1]:
A.
The Area will benefit from being designated as a special improvement
district;
B.
A district management corporation will provide administrative and
other services to benefit the businesses, employees, residents and
consumers should the Area be declared a SID pursuant to N.J.S.A. 40:56-65
et seq. (the "Act");
C.
That a special assessment shall be imposed and collected by the municipality
with the regular property tax payment or payment in lieu of taxes
or otherwise, and that all or a portion of these payments shall be
transferred to the district management corporation to effectuate the
purposes of the Act and to exercise the powers given to it by this
ordinance; and
D.
That it is in the best interests of the Borough of Metuchen (the
"Borough") and the public to create a SID and to designate a district
management corporation.
[1]
Editor's Note: Exhibit A may be found as an attachment to
this chapter.
Pursuant to the Act, a SID is hereby created and designated
within the Borough.
A.
The goals of the SID are as follows:
(1)
Beautification, cleanliness, maintenance and design standards;
(2)
Marketing, advertising, public relations and events;
(3)
Business recruitment and retention;
(4)
Coordination of downtown activities and clearinghouse for information;
and
(5)
Integration of new developments with existing business district.
B.
Except as noted in Subsection C of this section, the SID shall consist of the properties designed and listed on Exhibit A[1] by tax block and lot numbers and by street addresses.
The District shall be subject to special assessments on all affected
properties within the District, which assessment shall be imposed
by the Borough for the purposes authorized by the Act.
[Amended 12-17-2018 by Ord. No. 2018-28]
[1]
Editor's Note: Exhibit A may be found as an attachment to
this chapter.
C.
All commercial properties, multi-family rental properties with four
or more units and mixed use properties within the District are deemed
included in the assessing and taxing provisions of this chapter and
are expressly subject to assessment and payment of taxes for SID purposes,
including properties making payments in lieu of taxes. Specifically
exempted from such assessment and payment are all properties which
are only improved with less than four residential units and no commercial
space, plus properties otherwise exempt from the payment of taxes
on real property.
There is hereby created and designated with the Borough of Metuchen
a Special Business Improvement Zone that shall be described as the
same area as the SID Area established by this chapter. The Corporation,
as hereinafter defined, shall NOT have the power of eminent domain.
[Amended 12-12-2022 by Ord. No. 2022-22]
A.
General powers. The business and affairs of the District Management
Corporation shall be managed by a Board of Trustees which may exercise
all powers of the Corporation and perform all lawful acts for a corporation
pursuant to the laws of the state of New Jersey governing "not for
profit" corporations.
B.
Number, selection and tenure of trustees. The Corporation shall be
governed by a Board of Trustees consisting of 13 voting members and
one ex-officio non-voting member. The 13 voting members shall consist
of:
(1)
Four representatives of District owners. "District owner" shall be
defined as an owner of real estate within the District. A "District
owner" may or may not operate a business within the District in order
to be considered a "District owner";
(2)
Five representatives of District businesses. "District business"
shall be defined as a person, corporation or other business entity
operating a business within the District. A "District business" may
or may not own real estate within the District in order to be considered
a "District business";
(3)
One member of the Borough Council of Metuchen appointed by the Mayor
with the advice and consent of the Borough Council;
(4)
Two Metuchen residents who do not own commercial real estate and/or
operate a business in the District and who are not on the Borough
Council nor employed by the Borough;
(5)
One member of the Metuchen Arts Council to be appointed by and serves
at the pleasure of the Metuchen Arts Council.
In addition to the 13 voting members, there shall be two ex-officio
members of the Board with all powers and authority of a regular Board
member, however, shall not be entitled to vote on matters: 1) the
Administrator of the Borough of Metuchen or his/her designee, and
2) one member of the Metuchen Parking Authority to be appointed by
and serves at the pleasure of the Metuchen Parking Authority.
In the event that any category(ies) of a voting Board member
cannot be filled for any reason whatsoever, the District Management
Corporation shall set forth in its bylaws the terms and methods to
fill all seats on the Board of Trustees.
C.
Terms and appointment of Board of Trustees. The District Management
Corporation shall provide for, in its bylaws, the terms and appointment
or election of the four District owners, five District businesses
and the Metuchen resident voting members of the Board of Trustees.
The initial appointments and terms thereof to the Board of Trustees shall be as set forth in the Borough Code. It shall not necessary for the initial composition of the Board of Trustees to be in full compliance with § 162-4B above. However, after the initial appointments and expiration of terms, the composition of the Board shall be comprised as set forth in § 162-4B above.
A.
Metuchen Downtown Alliance, a NJ Non-Profit Corporation is hereby
designated as the District Management Corporation as defined in N.J.S.A.
40:56-66c (the "Corporation"). The Corporation shall have all powers
necessary and requisite to effectuate its purposes, including, but
not limited to, the power to:
(1)
Adopt and amend bylaws for the regulation of its affairs and the
conduct of its business and to prescribe rules, regulations, and policies
in connection with 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 the requirements respecting
an appropriation of funds or a gift, grants, loans, or donation of
property or money, however any application for a grant requiring matching
funds or loan from the Borough of Metuchen or from the Metuchen Parking
Authority, including but not limited to those set forth in N.J.S.A.
40:56-71.3, et seq., must be approved by the Mayor and Council of
the Borough of Metuchen;
(4)
Make and execute agreements which may be necessary or convenient
to the exercise of the powers and functions of the Corporation, including
contracts with any person, firm, corporation, governmental agency
or other entity;
(5)
Administer and manage its own funds and accounts and pay its own
obligations;
(6)
Borrow money from private lenders and from governmental entities,
but only as may be specifically approved by the Council in a plan
and budget pursuant to N.J.S.A. 56:65-80 and 84;
(7)
Fund the improvement of the exterior appearance of properties in
the District through grants or loans;
(8)
Fund the rehabilitation of properties in the District;
(9)
Accept, purchase, rehabilitate, sell, lease or manage property in
the District;
(10)
Enforce the conditions of any loan, grant, sale or lease made
by the Corporation;
(11)
Provide security, sanitation and other services to the District,
supplemental to those provided normally by the municipality;
(12)
Undertake improvements designed to increase the safety or attractiveness
of the District to businesses which may wish to locate there or to
visitors to the District, including, but not limited to, litter cleanup
and control, landscaping, recreational and rest area facilities and
artistic endeavors;
(13)
Publicize the District and the businesses included within the
District boundaries;
(14)
Recruit new businesses to fill vacancies in, and to balance
the business mix of, the District;
(15)
Organize special events in the District;
(16)
Provide special parking arrangements for the District, on a
temporary basis and with the approval of the Metuchen Parking Authority.
Properties operated by the Metuchen Parking authority are exempt from
all regulatory authority of the Corporation; and/or
(17)
Provide temporary decorative lighting in the District.
A.
All of the monies collected by assessment pursuant to this chapter
shall be spent solely to benefit the District consistent with the
goals and objectives set forth herein.
B.
The Borough shall transfer assessed payments to the Corporation,
quarterly on the fifteenth day of February, May, August and November,
as collected.
C.
Failure of any property owner to pay annual assessments shall be
treated in the same manner as a failure to pay property taxes, as
provided for in Title 54 of the New Jersey Statutes.
D.
The SID assessment shall be a percentage of the quarterly real estate
taxes due on each District block and lot calculated as follows: as
determined by the approved budget. There shall be no 2016 SID assessments.
The municipal services currently provided to the District and
paid for through the general fund of the Borough shall continue to
be provided by the Borough, and the cost of such services shall not
be transferred to the budget of the Corporation. Notwithstanding the
foregoing, such services may, in whole or in part, be provided by
the Corporation at municipal expense, in which event the services
shall be detailed in a plan of coordination which shall be developed
by the Corporation in consultation with the Council and approved annually
by the Corporation and the Council. The plan of coordination shall
specify how the services are to be provided and how the cost thereof
shall be reimbursed.
The initial and subsequent annual budgets shall be established
as provided for in this section.
A.
The fiscal year of the Corporation shall be January 1 to December
31.
B.
The 2016 estimate of initial operating expenses of the Corporation
required by N.J.S.A. 40:56-80 is set forth on Exhibit B. The Council
hereby approves of the transfers of $150,000 from the Borough to the
Corporation to fund the 2016 expenses.
C.
In years subsequent to 2016, the Corporation shall submit its annual
budget for approval no later than September 1 of the year preceding
the year for which budget approval is sought. In all subsequent years
the budget shall be processed and adopted by the Council in accordance
with procedures set forth in N.J.S.A. 40:56-84 and concurrently with
the procedures established in N.J.S.A. 40:56-80 respecting annual
estimates of cost and the preparation of the assessment roll.
D.
The budget shall be submitted with a report that explains how the
budget contributes to the goals and objectives for the SID. The budget
shall be reasonably itemized as follows:
E.
The Borough and Corporation shall strictly follow the procedures
set forth in N.J.S.A. 56-80 and 84 with respect to the adoption of
budgets, amendments thereof and the issuance of the assessment roll,
including public advertising, public hearing and adoption by resolution.
F.
The Corporation shall be responsible to refund the share of any refund,
resulting from a tax appeal and attributable to an assessment made
pursuant to this chapter.
The Corporation shall cause an annual audit of its books, accounts
and financial transactions to be made and filed with the Council together
with an annual financial statement, and for that purpose the Corporation
shall employ a certified public accountant of New Jersey. The annual
audit shall be prepared in accordance with accepted accounting standards
for nonprofit corporations and completed and filed with the Council
within four months after the close of the fiscal year of the Corporation.
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. Copies of forms CRI-200, CRI-200R and IRS 990, as necessary,
shall be filed with the Council no later than six months after the
closing of the Corporation's fiscal year-end.
The Corporation shall, within 30 days after the close of each
fiscal year, prepare an annual report of its activities for the preceding
fiscal year to be submitted to the Borough Mayor and Council.
Notwithstanding the creation of the District and the designation
of the Corporation, the Borough and Council shall retain police powers
relating to the District. The Council may at any time hereafter by
ordinance amend this chapter.
