[Added 8-21-2012 by Ord. No. 15-12]
Whenever it shall be necessary or convenient to carry out its powers under the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq. ("the Redevelopment Law"), the governing body shall be empowered to establish an escrow account to fund the services in accordance with the terms and conditions herein.
[Added 8-21-2012 by Ord. No. 15-12]
Such an escrow account is to be funded by a party seeking the performance of the services.
[Added 8-21-2012 by Ord. No. 15-12]
The amount deposited into the escrow account shall be as agreed upon by the governing body and the depositor and may be replenished as needed or as otherwise specified by the parties.
[Added 8-21-2012 by Ord. No. 15-12]
Whenever an amount of money in excess of $5,000 shall be deposited into an escrow account by a depositor, the money, until released or applied to the purposes for which it is deposited, including the depositor's portion of the interest earned thereon, except as otherwise provided in this section, shall continue to be the property of the depositor and shall be held in trust by the governing body.
[Added 8-21-2012 by Ord. No. 15-12]
The governing body shall place the deposit in a banking institution or savings and loan association in this state insured by an agency of the federal government, or in any other fund or depository approved for such deposits by the state, in an account bearing interest at the minimum rate currently paid by the institution or depository on time or savings deposits. The governing body shall notify the depositor, in writing, of the name and address of the institution or depository in which the deposit is made and the amount of the deposit.
[Added 8-21-2012 by Ord. No. 15-12]
The governing body shall not be required to refund an amount of interest paid on a deposit which does not exceed $100 for the year. If the amount of interest exceeds $100, that entire amount shall belong to the depositor and shall be refunded to the depositor by the governing body annually or at the time the deposit is repaid or applied to the purposes for which it was deposited, as the case may be; except that the governing body may retain for administrative expenses a sum equivalent to no more than 10% of that entire amount which shall be in lieu of all other administrative and custodial expenses.
[Added 8-21-2012 by Ord. No. 15-12]
Prior to the acceptance of any deposit monies, the governing body shall enter into a written agreement with the Depositor that, without limitation, identifies the designated redevelopment area, and contains representations that (1) the money is to be held and expended in accordance with this article, (2) the acceptance of any deposit money does not ensure or suggest that the governing body will ultimately authorize the documents or activity resulting from the performance of the services, and (3) except in instances where the depositor has already been designated as the redeveloper for the designated redevelopment or rehabilitation area in accordance with the Redevelopment Law, the acceptance of any deposit money does not ensure or suggest that the depositor or any party of the depositor's choosing shall be designated as the redeveloper of the designated redevelopment or rehabilitation area. In no event shall the governing body enter into such an agreement or accept such monies prior to the designation of the subject area as an area in need of redevelopment or rehabilitation and the adoption of a redevelopment plan, both in accordance with the Redevelopment Law.