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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
A.
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:
(1)
On the north: The boundary line of the existing residential
development adjacent to the existing Airport Industrial Park.
(2)
On the south: The southerly boundary of the City-owned
lands bordered by the State Wildlife Management Area.
(3)
On the east: The eastern boundary of the lands owned
by George F. Pettinos, Inc., now George F. Pettinos, LLC.
(4)
On the west: Nonresidential properties located within
the boundary of Hogbin Road.
B.
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:
(1)
On the north: The area of Route 47/Route 55 interchange
south of the Cumberland Crossing and the Millville Town Center developments.
(2)
On the south: The area of the former Ball-Foster Glass
Manufacturing Plant, including residential neighborhoods in South
Millville.
(3)
On the east: The area consisting of the Center City
neighborhood and adjacent areas.
(4)
On the west: The area consisting of the Third Ward
neighborhood and extending to the Maurice River.
A.
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.
B.
The City shall retain all necessary authority and
control for the redevelopment of the redevelopment area set forth
in the redevelopment plan.
C.
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.
A.
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.
B.
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.
C.
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.
A.
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:
(1)
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.
(2)
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.
(3)
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.
(4)
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.
(5)
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.
(6)
A proposed financial agreement conforming to the provisions
contained in N.J.S.A. 40A:20-9.
B.
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.
A.
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.
B.
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:
(1)
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
(2)
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.
A.
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.
B.
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.
A.
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.
B.
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.
C.
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.
D.
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.
