This article is intended to ensure a pro rata
share allocation of the costs for off-tract improvements necessitated
by new development.
As a condition of final subdivision or site
plan approval, the Planning Board may require an applicant for development
("developer") to pay its pro rata share of the cost of providing reasonable
and necessary circulation improvements, and water, sewerage, and drainage
facilities, including land and easements, located off-tract of the
property limits of the subdivision or development, but necessitated
or required by the development. "Reasonable and necessary" improvements
are those which bear a rational nexus to the needs created by, and
benefits conferred upon, clearly, directly, and substantially related
to the development in question. The Planning Board shall provide in
its resolution of approval the basis of the required improvements.
The capacity and design of proposed improvements shall be based upon
the circulation plan element and utility service plan of the adopted
Master Plan. The proportionate or pro rata amount of the cost of such
facilities within a related or common area shall be based on the following
criteria.
The Planning Board shall determine as part of
its approval process whether the off-site improvement is to be constructed
by the Township or the developer. The Planning Board shall not render
such determination until it receives the decision of the Township
governing body as to whether it will undertake construction of the
improvement in issue.
The Planning Board shall determine as part of
its approval process, with assistance from the Township Consulting
Engineer, as to whether the developer's proportionate payment for
the off-tract improvement shall be a cash deposit to the Township,
or by another form of bond or guaranty. In the event the payment is
in the form of a bond or other type guaranty, same must be in form
acceptable to the Township Solicitor.
Where the proposed off-tract improvement is
to be undertaken by the Township, the moneys required for the improvements
shall be deposited in a specially designated interest-bearing account
established by the Treasurer of the Township. The Treasurer shall
maintain a record indicating by whom and in what amount each contribution
has been made for said off-tract improvement. The Treasurer shall
apportion interest on the account to each specific contribution as
its balance relates to the total balance. All construction costs related
to the off-tract improvement shall be paid by the Treasurer from the
account. In the event any balance remains subsequent to the completion
of the improvement, any developer who has contributed to the account
for that specific improvement shall be entitled to a pro rata refund,
provided that a written petition is made to the Township for such
refund within one year of completion of the off-tract improvement.
Any moneys remaining following said one-year time period which have
not been refunded shall be applied in general to the Township's capital
improvement budget account. If the off-tract improvement is not commenced
within 15 years of deposit, all moneys and interest earned shall be
returned to the applicant.
The Planning Board may, as a condition of any
approval, require the applicant to install a public improvement of
greater size or capacity than required to service the applicant's
project. Such approval shall provide that the applicant is entitled
to reimbursement to a maximum amount equal to the difference between
the amount of such cost and expense by the developer and the developer's
pro rata share of the cost of such improvement. In such a case, the
Township shall determine all property specially benefited by the improvement
and of the value of the special benefit to each such property in accordance
with the provision set forth hereinabove. The Township shall then
assess all properties, other than the property of the developer, specially
benefiting from installation of any off-tract improvement in a manner
similar to that for local improvements. The Township may, in its sole
discretion, pay any remaining balance to the developer rather than
assess all other properties specifically benefiting from the installation
of the off-tract improvement. Principal amounts received by the Township
from such assessments, together with interest from property owners
who have elected to pay for said assessments over a period of years,
shall be credited to the real estate account of the developer's property.
In the case where there has been an apportionment of cost against
the Township for the required off-tract improvement, then the Township
shall pay its portion of costs of the developer not more than four
months after the completed improvements have been approved by the
Township Engineer. In the event of any default in payment of an assessment
levied by the Township as set forth hereinabove, then the Township
shall exercise its remedies as elsewhere provided; and, if thereafter
the balance of principal and interest due upon the subject assessment
has not been fully satisfied by payment to the Township and credit
thereof given to the real estate account of the developer's property,
then the Township shall forthwith pay said balance remaining due to
the developer, or his successor in interest.
The developer shall enter into an off-tract
improvement agreement with the Township setting forth the terms and
conditions for construction of the off-tract improvements required
to service the applicant's project as further set forth in the approval
resolution of the Township Planning Board. No Township permit shall
issue to the developer until such time as the off-tract improvement
agreement has been executed by the developer in the Township.