The Township Council may enter into agreements with developers
for tax abatement on commercial, industrial, and multiple dwelling
(apartments) improvements or for Class 4 projects (commercial, industrial,
senior citizen, age-restricted apartments) providing for the abatement
of real property taxation on projects and improvements via agreement
for a period of five calendar years.
The following procedures shall govern agreements for tax abatement
entered into by the Township Council and developers:
A. Improvements.
(1) All improvements, as defined in N.J.S.A. 40A:21-3, shall be abated
by agreement real property taxes, if approved by the Tax Assessor
after proper application has been made. Application shall be upon
the form approved by the Director of the Division of Local Government
Services, Department of Community Affairs.
(2) Applicants should file a preliminary application for abatement on
improvements prior to the commencement of construction of the improvements,
and the applicant must file a proper, final application with the Tax
Assessor within 30 days of the completion of the improvement, in order
to be eligible for tax exemption thereon.
(3) Every properly completed application for exemption of one or more
improvements which is filed within 30 days of the completion of the
improvement shall be approved and allowed by the Assessor not later
than within 60 days of filing.
B. Projects.
(1) All projects, as defined in N.J.S.A. 40A:21-3, should have a preliminary
application for abatement filed prior to the commencement of construction
of the project, and the applicant must file a proper, final application
with the Tax Assessor within 30 days of the completion of the project,
in order to be eligible for tax abatement thereon.
(2) Applicants for tax abatement on projects shall provide the Township
Council with an application setting forth:
(a)
A general description of the project for which abatement is
sought;
(b)
A legal description of all real estate necessary for the project;
(c)
Plans, drawings and other documents as may be required by the
Township Council to demonstrate the structure and design of the project;
(d)
A description of the number, classes and types of employees
to be employed at the project site within two years of completion
of the project;
(e)
A statement of the reasons for seeking tax abatement on the
project, and a description of the benefits to be realized by the applicant
if tax abatement is granted;
(f)
Estimates of the cost of completing such project;
(g)
A statement showing:
[1] The real property taxes currently being assessed at the project site;
[2] Estimated tax payments that would be made annually by the applicant
on the project during the period of tax abatement; and
[3] Estimated tax payments that would be made by the applicant on the
project during the first full year following the termination of the
tax abatement agreement;
(h)
A description of any lease agreements between the applicant
and proposed users of the project, and a history and description of
the user's business; and
(i)
Such other pertinent information as the Township Council may
require.
Upon approval of an ordinance authorizing an agreement for tax
abatement for a particular project or improvements, the Township Council
shall enter into a written agreement with the applicant for the abatement
of local real property taxes. The agreement shall provide for the
applicant to pay to the Township of Gloucester in lieu of full property
tax payments an amount annually to be computed by using the tax phase-in
method pursuant to Subsection c of N.J.S.A. 40A:21-10. All tax abatement
agreements hereunder shall be in effect for a period of five calendar
years starting with the date of completion of the project.