This article is enacted pursuant to the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. and the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.
The governing body of the City finds and declares that there are areas within the City which are blighted or in need of redevelopment by private enterprise. The governing body further finds and declares that tax incentives are useful economic stimulants to encourage private capital and participation by private enterprise to contribute toward the restoration of deteriorated or neglected properties. It is the intent and purpose of this article to provide this economic stimulus for private enterprise to develop those areas of the City which are in need of redevelopment.
As used in this article, the following terms shall have the following meanings unless the context clearly indicates that a different meaning is intended:
- GROSS REVENUE
- Annual gross revenue or gross shelter or annual gross rents, as appropriate, and other income, for each urban renewal entity designated pursuant to this article. The financial agreement shall establish the method of computing gross revenue for the entity, and the method of determining insurance, operating and maintenance expenses paid by a tenant which are ordinarily paid by a landlord, which shall be included in the gross revenue.
- HOUSING PROJECT
- Any work or undertaking to provide decent, safe and sanitary dwellings for families in need of housing. The undertaking may include any buildings, land (including demolition, clearance or removal of buildings from land), equipment, facilities, or other real or personal properties or interests therein, which are necessary, convenient or desirable appurtenances of the undertaking such as streets, sewers, water, utilities, parks, site preparation, landscaping, and administrative, community, health, recreational, educational, welfare, commercial, or other facilities.
- LIMITED-DIVIDEND ENTITY
- An urban renewal entity incorporated pursuant to Title 14A of the New Jersey statutes, or established pursuant to Title 42 of the New Jersey statutes, for which the profits and the entity are limited as set forth in N.J.S.A. 40A:20-3.
- NET PROFIT
- The gross revenues of the urban renewal entity less all operating and nonoperating expenses of the entity which shall be determined in accordance with generally accepted accounting principles and in accordance with the provisions set forth in N.J.S.A. 40A:20-3.
- NONPROFIT ENTITY
- An urban renewal entity incorporated pursuant to Title 15A of the New Jersey statutes for which no part of its net profits inures to the benefit of its members.
- REDEVELOPMENT AREA
- An area determined to be in need of redevelopment and for which a redevelopment plan has been adopted by the governing body of the City pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.
- REDEVELOPMENT PLAN
- Plan adopted by the governing body of the City for the redevelopment of all or any part of a redevelopment area. This plan shall be sufficiently complete to indicate its relationship to definite municipal objectives as to appropriate land uses, public transportation and utilities, recreational and municipal facilities, and other public improvements, and to indicate proposed land uses and building requirements in the redevelopment area.
- REDEVELOPMENT PROJECT
- Any work or undertaking pursuant to a redevelopment plan adopted pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., which has as its purpose the redevelopment of all or any part of a redevelopment area, including any commercial, industrial, residential or other use, and may include any buildings, land (including demolition, clearance or removal of buildings from land), equipment, facilities, or other real or personal properties which are necessary, convenient or desirable appurtenances such as streets, sewers, utilities, parks, site preparation, landscaping, and administrative, community, health, recreational, educational and welfare facilities.
- TOTAL PROJECT COST
- The aggregate of the items as related to a unit of a project if the project is undertaken in units, or to the total project if the project is not undertaken in units, all of which are limited by and approved as part of the financial agreement and as set forth in N.J.S.A. 40A:20-3.
- URBAN RENEWAL ENTITY
- A limited-dividend entity or a nonprofit entity which enters into a financial agreement with the governing body of the City to undertake a project pursuant to a redevelopment plan for the redevelopment of all or any part of a redevelopment area.
[Amended 8-16-2005 by Ord. No. 30-2005]
Pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq., the Planning Board and the governing body of the City have designated the following areas as redevelopment areas and approved redevelopment plans for those areas:
Airport redevelopment area. Pursuant to ordinances previously adopted, the following area with the following boundaries is an area in need of redevelopment pursuant to N.J.S.A. 40A:12A-5:
On the north: The boundary line of the existing residential development adjacent to the existing Airport Industrial Park.
On the south: The southerly boundary of the City-owned lands bordered by the State Wildlife Management Area.
On the east: The eastern boundary of the lands owned by George F. Pettinos, Inc., now George F. Pettinos, LLC.
On the west: Nonresidential properties located within the boundary of Hogbin Road.
Center city redevelopment area. Pursuant to ordinances previously adopted, the following area with the following boundaries is an area in need of redevelopment pursuant to N.J.S.A. 40A:12A-5:
On the north: The area of Route 47/Route 55 interchange south of the Cumberland Crossing and the Millville Town Center developments.
On the south: The area of the former Ball-Foster Glass Manufacturing Plant, including residential neighborhoods in South Millville.
On the east: The area consisting of the Center City neighborhood and adjacent areas.
On the west: The area consisting of the Third Ward neighborhood and extending to the Maurice River.
The governing body of the City may enter into a financial agreement with an urban renewal entity for the undertaking of a project that is in accordance with an approved redevelopment plan.
The City shall retain all necessary authority and control for the redevelopment of the redevelopment area set forth in the redevelopment plan.
The undertaking of a project by an urban renewal entity pursuant to a redevelopment plan shall be deemed a delegation of the City's powers to undertake the project, which is limited by the terms of the financial agreement and the provisions of applicable state law.
Any duly formed corporation, partnership, limited partnership, limited partnership association, or other unincorporated entity may qualify as an urban renewal entity under state law if its certificate of incorporation or other similar certificate or statement as may be required by law contains the provisions set forth in N.J.S.A. 40A:20-5.
When authorized by the financial agreement, the urban renewal entity may acquire by purchase or lease, plan, develop, construct, alter, maintain or operate housing, senior citizen housing, business, commercial, industrial, administrative, community, health, recreational, educational, cultural, or welfare projects, or any combination of two or more of these types of improvements in a single project.
Each urban renewal entity qualifying under this article shall have and may exercise those powers conferred by law for the form of entity selected as shall be necessary for the operation of the business of the entity and as shall be consistent with the provisions of N.J.S.A. 40A:20-6 and 7.
Every urban renewal entity qualifying under this article and applicable state law, before proceeding with any projects, shall make written application to the governing body of the City for approval thereof. The application shall be in a form and shall certify to those facts and data as shall be required by the City, and shall include but not be limited to the following:
A general statement of the nature of the proposed project, that the undertaking conforms to all applicable City ordinances, and that the project is consistent with the redevelopment plan and Master Plan of the City.
A description of the proposed project outlining the area included and a description of each unit thereof if the project is to be undertaken in units. It shall set forth architectural and site plans as required.
A statement prepared by a qualified architect or engineer of the estimated cost of the proposed project in the detail required, including the estimated cost of each unit to be undertaken.
The source, method and amount of money to be subscribed through the investment of private capital, setting forth the amount of stock or other securities to be issued therefor or the extent of capital invested and the proprietary or ownership interested obtained in consideration therefore.
A fiscal plan for the project outlining a schedule of annual gross revenue, the estimated expenditures for operation and maintenance, payments for interest, amortization of debt and reserves, and payments to the City to be made pursuant to a financial agreement to be entered into with the City.
A proposed financial agreement conforming to the provisions contained in N.J.S.A. 40A:20-9.
The application shall be addressed and submitted to the Director of Economic Development. Within 60 days of his or her receipt of the application, the application shall be submitted with his or her recommendations to each member of the governing body. The governing body shall by resolution approve or disapprove the application. In the event of disapproval, changes may be suggested to secure approval. An application may be revised and resubmitted.
Every approved project shall be evidenced by a financial agreement between the City and the urban renewal entity. The financial agreement shall be prepared by the urban renewal entity and submitted as a separate part of its application for project approval. Any amendments or modifications of the agreement made thereafter shall be by mutual consent of the City and the urban renewal entity, and shall be subject to approval by resolution of the governing body upon recommendation of the Director of Economic Development.
The financial agreement shall be in the form of a contract requiring full performance within 30 years from the date of completion of the project, and shall include the documents and information required by N.J.S.A. 40A:20-9 and 10.
The financial agreement approved shall include findings by the governing body of the City setting forth appropriate tax exemption provisions and an appropriate annual service charge schedule which shall be based upon the provisions set forth in N.J.S.A. 40A:20-12 and the governing body's determinations as to:
The relative benefits of the project to the redevelopment of the redevelopment area when compared to the cost, if any, associated with the tax exemption; and
An assessment of the importance of the tax exemption to be granted in obtaining the development of the project and in influencing the locational decisions of probable occupants of the project or units of the project.
The exemptions shall be claimed and allowed in the same or similar manner as in the case of other real property tax exemptions, provided that no such claim shall be allowed unless the City wherein the property is situated shall certify that a financial agreement with an urban renewal entity for the development or the redevelopment of the property has been entered into and is in effect as required by state law.
During the term of any tax exemption, in lieu of any taxes to be paid on the improvements of the project, the urban renewal entity shall pay an annual service charge on a quarterly basis to the City. The annual service charge shall be computed and determined in accordance with the provisions of N.J.S.A. 40A:20-12.
The duration of the tax exemption for urban renewal entities shall be a maximum term for all projects as follows: a term of not more than 30 years from the completion of the entire project, or not more than 35 years from the execution of the financial agreement between the City and the urban renewal entity. If the project is undertaken in units, the time period shall be completed from the completion of each unit.
The financial agreement may provide for a tax exemption period of less than 30 years from the completion of the entire project, or less than 35 years from the execution of the financial agreement. All tax exemptions granted shall terminate at the time prescribed in the financial agreement.
The tax exemption shall apply only so long as the urban renewal entity and its project remain subject to applicable state law and this article. An urban renewal entity may at any time after the expiration of one year from the completion date of the project notify the governing body of the City that it relinquishing its status on a date certain designated in the notice.
Upon the termination of the tax exemption, the project and improvements and all affected parcels shall be assessed and subject to taxation as are other taxable properties within the City.
If the financial agreement permits the conveyance of condominium units pursuant to applicable state law, then the provisions of N.J.S.A. 40A:20-14 apply.
If the urban renewal entity is a limited dividend entity, it shall be subject to the conditions and limitations set forth in N.J.S.A. 40A:20-15 during the period of the financial agreement and tax exemption.
If the urban renewal entity is a nonprofit entity, it shall be subject to the conditions and limitations set forth in N.J.S.A. 40A:20-16 during the period of the financial agreement and tax exemption.
The City or any redevelopment entity is authorized by resolution to make any land owned by it available for use for a project by an urban renewal entity, by private sale, at such prices and upon such terms and conditions as shall be agreed upon by the governing body of the City or redevelopment entity and the urban renewal entity.