[Ord. 6PSF-G, 10-16-2019]
This Chapter shall be known as the Land Bank of the City of
Newark.
[Ord. 6PSF-G, 10-16-2019]
It is the purpose of this Chapter to establish the land bank
of the City of Newark and authorize the designation of a land bank
entity by separate ordinance, which will use available resources to
facilitate the return of vacant, blighted, abandoned and tax-delinquent
properties to productive use, thereby combating community deterioration,
creating economic growth and stabilizing the housing market.
[Ord. 6PSF-G, 10-16-2019]
This Chapter is adopted in accordance with the provisions of
P.L. 2019, c.159 N.J.S.A. 40A:12A-74 et seq., as enacted by the New
Jersey Legislature and signed into law by the Governor on July 10,
2019.
[Ord. 6PSF-G, 10-16-2019]
Means the City of Newark and hereinafter referred to as "City",
"City of Newark" or "Municipality".
Means a public land bank entity, or a non-profit land bank
entity.
Means property subject to a land banking agreement.
Means an agreement between a municipality and a land bank
entity to act on behalf of the municipality to hold, maintain and
lease or convey property owned by the municipality and not needed
for any public purpose.
Means a non-profit entity, established pursuant to the "New
Jersey Nonprofit Corporation Act," N.J.S.A. 15A:1-1 et seq., that
has entered into a land banking agreement.
Means a redevelopment entity that has entered into a land
banking agreement.
Means either:
A redevelopment entity designated by the municipality pursuant
to Section 4 of the "Local Redevelopment and Housing Law," P.L.1992,
c.79 (C.40A:12A-4); and
A county improvement authority designated by the municipality
to act as a redevelopment entity pursuant to the "county improvement
authorities law," P.L. 1960, c.183 (C.40:37A-44 et seq.) for the purpose
of entering into a land banking agreement with said entity, without
regard to whether the county improvement authority is otherwise acting
as a redevelopment entity in the municipality; and
The municipality itself, or one of its departments or agencies,
but only if the municipality is executing redevelopment responsibilities
directly pursuant to Section 4 of P.L. 1992, c. 79 (C.40A:12A-4).
In such cases, the designated redevelopment entity shall not need
to adopt separate ordinances or resolutions, as appropriate, for the
purpose of adopting a land banking agreement or amendments pursuant
to Subsections d and e of Section 5 of P.L. 2019, c. 159 and the adoption
of one ordinance to create the land banking agreement, and one ordinance
for each amendment thereto shall suffice. Termination notice requirements,
prescribed by Section 14 of P.L. 2019, c.159, also shall not be necessary.
Means an agreement between a municipality and land bank entity,
pursuant to Subsection f of Section 5 of P.L. 2019, c. 159.
[Ord. 6PSF-G, 10-16-2019]
a.
The City may enter into a land banking agreement with a redevelopment
entity, and designate the redevelopment entity as its land bank entity;
or
b.
The City may enter into a land banking agreement with a non-profit
entity so long as the by-laws of the non-profit entity provide that
the Chief Financial Officer of the City serves on the board of the
non-profit entity, ex officio.
[Ord. 6PSF-G, 10-16-2019]
The City of Newark shall enter into a land banking agreement
with a designated land banking entity. The land banking agreement
shall meet the following requirements and follow the following procedures:
a.
The land banking agreement shall establish the responsibilities of
the land bank entity and shall specify the terms and conditions under
which the land bank entity may acquire property on behalf of the City
of Newark, demolish and otherwise clear buildings and conduct other
site improvements located on the property, maintain and secure the
property, conduct other activities on the property, and, notwithstanding
the provisions of the "Local Lands and Buildings Law," P.L. 1971,
c. 199 (C.40A:12-1 et seq.), lease or convey property held on behalf
of the City of Newark.
b.
The land banking agreement shall provide for such municipal oversight
of the land bank entity as the City of Newark deems necessary and
appropriate and shall establish the manner in which any costs and
revenues, including proceeds of the sale or leasing of land bank property
shall be distributed.
c.
The land bank entity shall not lease any land bank property for an
individual term of more than 99 years. Land bank property that is
leased, or conveyed by the land bank entity, shall be subject to ordinances
adopted pursuant to the "Municipal Land Use Law," P.L. 1975, c. 291
(C.40:55D-1 et seq.), any redevelopment plan enacted pursuant to the
"Local Redevelopment and Housing Law," P.L. 1992, c.79 (C.40A:12A-1
et al.), and other applicable State statutes following the lease or
conveyance.
d.
Prior to submission of the land banking agreement for approval by
the Newark Municipal Council, the administration shall hold a public
meeting to solicit the advice of the public on the substance and intent
of the land banking agreement.
e.
The ordinance comprising the land banking agreement shall include
findings establishing the need for land bank activity in the City
of Newark, the public purpose that Newark intends the land bank entity
to pursue, and the qualifications of the land bank entity to carry
out the responsibilities established pursuant to the New Jersey Land
Bank Law.
f.
The land banking agreement shall be adopted by an ordinance of the
Newark Municipal Council and then by resolution of the Governing Body
or board, as appropriate, of the land bank entity.
g.
The land banking agreement may be amended at any time by an ordinance
of the Newark Municipal Council and then by resolution of the Board
of Directors of the land bank entity.
h.
The City may authorize a land bank entity to hold property in trust on behalf of the City. The land banking agreement shall establish whether a trust agreement shall provide authorization to the land bank entity to convey property, lease property, and conduct other land banking activities without municipal authorization for each individual conveyance, and other action. If provided in the land banking agreement, each trust agreement shall provide the land bank entity with all the powers of property ownership, subject to the potential termination of the land banking agreement pursuant to Section 14 of P.L. 2019, c.159 and Section 18:15-8.
i.
The land bank entity is not subject to the requirements of the "Local
Public Contracts Law," P.L. 1971, c.198 (C.40A:11-1 et seq.), in accordance
with a land banking agreement or with contracts entered by the land
bank entity in accordance with the land banking agreement. Public
bidding is not necessary to enter into a land banking agreement, or,
unless otherwise stated in the land banking agreement, for contracts
entered into by the land bank entity in accordance with the land banking
agreement.
[Ord. 6PSF-G, 10-16-2019]
Pursuant to the land banking agreement or any subsequent amendment
thereto, the land bank entity may be designated by the City of Newark
to:
a.
Acquire properties on its behalf through contribution, gift, grant,
bequest, purchase or otherwise, whether or not the property is located
in an area designated as a redevelopment area or an area in need of
rehabilitation; and
b.
Act as its agent, or in place of its municipal officer, with respect to acquisition of property, including but not limited to purchase of tax and other liens, foreclosure of tax and other liens, and individual abandoned property takings pursuant to paragraph (2) of Subsection c of Section 37 of the "New Jersey Urban Redevelopment Act," P.L. 1996, c.62 (C.55:19-56), on behalf of the City of Newark and to acquire and hold in trust such properties on behalf of the City of Newark; provided, however, that nothing in this Section shall authorize the use of eminent domain beyond that use already permitted by law; and
c.
The City of Newark, through the land banking agreement, may authorize the land bank entity to hold in trust on behalf of the City any property or properties held by the City and not being used for any public purpose, whether or not the property is located in an area designated as a redevelopment area or an area in need of rehabilitation, without public bidding and at such prices and upon such terms as the City deems reasonable in accordance with parameters that may be established in the land banking agreement. The trust agreement with the land bank entity shall be conditioned on the City's ability to regain control of the properties pursuant to Section 14 of P.L. 2019, c.159 and Section 18:15-8; and
d.
The City of Newark, through the land banking agreement, or through
the adoption of a separate ordinance, may assign any tax liens or
other liens to the land bank entity, subject to the provisions of
R.S. 54:5-112 and R.S. 54:5-113, except that the liens may be assigned
with or without consideration and at such prices and upon such terms
as the City deems reasonable; and
e.
If the Municipal Council adopts an ordinance pursuant to Subsection d and permits the land bank entity to retain a portion of the interest payments on one or more tax liens, or the proceeds from one or more sheriff's sales or short sales, or both, then the City shall retain the authority to, at any time, by ordinance, restrict the amount of one or both of these funding sources that may be retained by the land bank entity following the date of adoption of the ordinance. The terms of a tax lien assignment pursuant to this Subsection shall remain intact, without restriction by a subsequent ordinance, for no less than one year; and
f.
The land banking agreement between the City and a land bank entity, may provide that properties held by the land bank entity in trust on behalf of the City pursuant to Subsections a, b, c, or d of this Section, are held in trust by the entity on behalf of the City for a public purpose and shall be exempt from property taxation until or unless leased or conveyed by the entity on behalf of the City or used by the entity for a purpose that is not eligible for exemption from taxation; and
g.
In leasing or conveying land bank property, unless the property is
part of an area in need of redevelopment, a redevelopment entity shall
not be subject to the provisions of section 9 of P.L. 1992, c. 79
(C.40A:12A-9), but shall be subject to any terms and conditions set
forth in the land banking agreement.; and
h.
With the approval of the Municipal Council, the land bank entity
may act as a land bank entity for more than one municipality at the
same time, subject to the provisions of the "Uniform Shared Services
and Consolidation Act," P.L. 2007, c.63 (C.40A:65-1 et seq.).
[Ord. 6PSF-G, 10-16-2019]
a.
The City of Newark through the land banking agreement or a separate
ordinance, may provide that a limited series of annual payments shall
be made by the municipality to the land bank entity following one
or more fiscal years during which a conveyance of one or more land
bank properties from the land bank entity to a private owner occurs,
provided that:
1.
Each payment that the City commits to making pursuant to this Subsection
shall be anticipated in the municipal budget adopted for the fiscal
year during which the payment shall be made.
2.
A payment budgeted pursuant to this subsection shall be limited by
the terms of the ordinance, but this payment shall not exceed 50%
of property taxes or payments in lieu of taxes due and payable in
the fiscal year for all properties that had been land bank properties
within the 10 fiscal years prior to the fiscal year for which the
payment is budgeted. If a property has been conveyed by the land bank
entity more than once, then property taxes and payments in lieu of
taxes due and payable for that property shall not be applied to increase
the annual limitation established pursuant to this Chapter.
3.
An ordinance adopted pursuant to this section may only be applied
to real property on which no property tax has been paid, or payment
in lieu of taxes collected, for at least two years prior to the property
becoming a land bank property; and such ordinance may be applied to
any individual conveyance, any group of conveyances, or all future
conveyances that fit these criteria.
b.
The distribution of any proceeds associated with the sale and leasing
of land bank property shall be addressed in the land banking agreement
itself and in amendments thereto. Distributions to the land bank entity
pursuant to this Subsection may be made in addition to payments provided
pursuant to paragraph a and adhere to the following:
1.
Proceeds associated with the sales and leasing of land bank property,
and all other proceeds obtained by the land bank entity on behalf
of the municipality under the ordinance, shall be maintained in one
or more accounts, separate from all other accounts maintained by the
entity serving as the land bank entity.
2.
The account or accounts shall be deemed to be government records
and subject to the provisions of P.L. 1963, c. 73 (C.47:1A-1 et seq.),
commonly known as the "Open Public Records Act."
c.
For the purposes of this section, "conveyance" shall not be construed
to include a lease.
[Ord. 6PSF-G, 10-16-2019]
a.
After entering a land banking agreement, the land bank entity may
modify its bylaws or other governing documents to address actions
taken on land bank property, including but not limited to, the leasing
and conveyance of land bank property so long as such modifications
are consistent with the provisions of the land banking agreement.
b.
Within six months after designation by the City of Newark, the land
bank entity shall create a community advisory board, which shall consist
of representatives of recognized community associations and non-profit
organizations operating within the municipality, including those associations
and organizations active in areas where the land bank entity anticipates
holding properties.
c.
The land bank entity shall adopt policies and procedures to ensure
that the community advisory board is provided with adequate information
and opportunity to provide valued input into the decisions of the
land bank entity in its capacity as a land bank entity.
d.
In coordination with the City of Newark and the community advisory
board, the land bank entity shall, within a reasonable time, create,
maintain, and make publicly available on its website, a database listing
all current and former land bank properties, each owner of record
since each property became a land bank property, and the sales price
of each land bank property that has been purchased by the land bank
entity on behalf of the City.
e.
Beginning 30 days after the land bank entity publishes a database
and every six months thereafter, in accordance with the guidance provided
by the Division of Local Government Services in the Department of
Community Affairs, the land bank entity shall update those State agencies
identified by the division concerning any changes to the database.
To the extent that the database includes properties in foreclosure
proceedings, and properties foreclosed within the six month reporting
period, the land bank entity shall take reasonable steps to ensure
that the information provided is both accurate and consistent with
any corresponding information provided by any State agency, or by
the Judiciary.
f.
In coordination with the City of Newark and the Community Advisory
Board, the land bank entity shall incorporate into the online database:
1.
A list of all vacant and abandoned properties within the municipality;
and
2.
A mechanism to allow the public to offer suggestions concerning what
properties should be labeled as vacant and abandoned; and
3.
An interactive mapping component to allow the public to visualize
the impact of land banking and the extent of vacant and abandoned
properties within the municipality.
g.
On an annual basis, the Community Advisory Board shall report on
the accuracy, integrity, accessibility, and comprehensiveness of the
database established. Each annual report shall be accessible to the
public through the website of the City of Newark and the land bank
entity.
h.
The land bank entity shall provide an annual report to the Newark
Municipal Council and the public describing the properties being held
by it as a land bank entity and the activities that it carried out
during the year as a land bank entity.
[Ord. 6PSF-G, 10-16-2019]
a.
To the extent that the statute under which a redevelopment entity
was established, Section 4 of P.L. 1992, c. 79 (C.40A:12A-4), confers
on that entity the power to borrow funds and incur debt, the redevelopment
entity may exercise those powers in furtherance of its land banking
obligations subject to the conditions and limitations set forth in
Section 4 of P.L. 1992, c.79 (C.40A:12A-4) or P.L. 1960, c.183 (C.40:37A-44
et seq.).
b.
To the extent that the statute under which the redevelopment entity
was established, Section 4 of P.L. 1992, c. 79 (C.40A:12A-4), provides
that the City may guarantee its debt or other borrowing, the City
may also guarantee its debt or other borrowing under the same terms
and conditions, in furtherance of the entity's obligations as a land
bank entity.
c.
The guaranteeing of debt and borrowing of funds permitted under paragraph
a and b of this section shall only be permitted so long as the land
banking agreement itself also explicitly permits these actions.
[Ord. 6PSF-G, 10-16-2019]
a.
The City may, by ordinance, terminate the land banking agreement
at any time, with or without cause, by providing the land bank entity
with one year's notice of termination from the date of the adoption
of that ordinance subject to:
1.
Termination of the land banking agreement under paragraph a., shall
not affect the status of any transaction properly entered into by
the land bank entity prior to termination.
2.
Within 90 days following the date of termination, the land bank entity
shall convey and transfer to the City, possession of all land bank
property without consideration; provided, however, that the City of
Newark and the entity may agree to allow the entity to retain possession
and control over any properties that are the subject of a pending
transaction by the entity until completion of the transaction, and
until the end of any lease.
b.
With or without one year's notice to the land bank entity, the City
may, by ordinance, terminate the land banking agreement upon notification
of a determination from the County Prosecutor, or the Corporation
Counsel, that the land bank entity, or a director or officer of the
land bank entity while acting in their official role, has breached
an essential duty of the land banking agreement based upon an act
or omission:
1.
In violation of the land bank entity's duty of loyalty to the City
and the general welfare of the residents of the City;
2.
Involving a knowing violation of criminal law; or
3.
Resulting in the receipt by a director or officer of the land bank
entity, or by an associate of such person, of an improper personal
benefit.
[Ord. 6PSF-G, 10-16-2019]
The transfer and sale of any properties, tax liens and other
City owned property to the land bank entity shall be subject to Municipal
Council approval.
