[Adopted 11-5-1998 by Ord. No. 1449-98]
The City of Passaic, pursuant to N.J.S.A. 54:4-3.150
et seq., herewith adopts the environmental opportunity zone tax exemption
program and may provide an appropriate graduated property tax exemption
for approved applicants who intend to remediate contaminated property
and return it to productive use in accordance with the terms and conditions
of this article.
Where used in this article, the following terms
shall be defined as indicated:
Any discharged hazardous substance as defined pursuant to
Section 3 of P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11b), hazardous
waste as defined pursuant to Section 1 of P.L. 1976, c. 99 (N.J.S.A.
13:1E-38), or pollutant as defined pursuant to Section 3 of P.L. 1977,
c. 74 (N.J.S.A. 58:10A-3).
Any qualified real property that has been designated by the city as an environmental opportunity zone pursuant § 275-13.
Any remedial action that requires the continued use of institutional
controls but does not require the use of an engineering control.
Any parcel of real property that is now vacant or underutilized
and which is in need of remediation due to a discharged or threatened
discharge of a contaminant.
All necessary action to investigate and clean up or respond
to any known, suspected or threatened discharge of contaminants, including,
as necessary, the preliminary assessment, site investigation, remedial
investigation and remedial action.
The cost associated with the implementation of a remediation,
including all direct and indirect legal, administrative and capital
costs, engineering costs and annual operation, maintenance and monitoring
cost.
The Municipal Tax Assessor appointed pursuant to the provisions of Chapter 9 of Title 40A of the New Jersey Statutes.
The assessed value of the qualified real property designated
as an environmental opportunity zone as determined by the Assessor
at the time the tax exemption is approved, regardless of any improvement(s)
made to the qualified real property thereafter, as if the designation
of the environmental opportunity zone had not occurred.
Any remedial action that does not require the continued use
of engineering or institutional controls in order to meet the established
health risk or environmental standards.
The following procedures shall apply to all
applications for tax exemption pursuant to this article:
A.
The application for tax exemption and a form of the
suggested financial agreement shall be made available at the Tax Assessor's
office.
B.
The application shall be on a form prescribed by the
city in conformance with the form prepared by the Director of the
Division of Taxation, in the Department of Treasury of the State of
New Jersey.
C.
Every application shall contain such information as
the city deems appropriate, together with all information required
by this article and the Review Committee. The Review Committee shall
be comprised of two persons appointed by the Council and one person
appointed by the Mayor for a term of one year.
D.
Every application shall have attached thereto a copy
of a memorandum of agreement or administrative consent order executed
between the applicant and the New Jersey Department of Environmental
Protection for the qualified real property described in the application.
E.
Once completed, an original and four copies of the
application shall be submitted to the Review Committee. The Review
Committee shall determine if the application is complete and, if not,
communicate deficiencies with the applicant; assist the applicant
in preparing the financial agreement for all applications that are
deemed complete and acceptable; and provide the City Council, within
a reasonable period of time, with a copy of the completed application,
the financial agreement and its written comments and recommendations
with regard to whether it recommends or does not recommend the application.
F.
If the Review Committee recommends a tax exemption
for qualified real property, it may recommend terms and conditions
in the financial agreement that are fair and reasonable to both the
city and the owner, given the equity the owner will put into the project,
the assistance he needs to complete the project and the city's need
for fair reimbursement. If the Review Committee does not recommend
the application, it shall and must set forth its reasons in writing
and provide a report to City Council. City Council may undertake an
independent evaluation of the application if it chooses to do so and
may hear from the applicant.
G.
The City Council shall thereafter review each application package and may approve any application and financial agreement by resolution, to the extent it is consistent with this article, and shall amend § 275-13 of this article to specifically reference the qualified real property subject to the terms of this article.
H.
An exemption that is granted shall take effect upon
the approval by the city and it shall be recorded and made a permanent
part of the city's official tax records, which records shall contain
a notice of the termination date of the exemption.
I.
The applicant shall deliver a copy of the resolution
approving the exemption to the Division of Local Government Services
in the Department of Community Affairs.
The following qualified real properties are
designated as environmental opportunity zones within the City of Passaic:
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(Reserved)
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A.
Each approved exemption shall be evidenced by a city
resolution authorizing the financial agreement for tax exemption and
an executed agreement.
B.
The tax exemption may be for a period of up to 10
years or up to 15 years, at the option of the City Council, if the
qualified real property is to be remediated with a limited restricted
use remedial action or an unrestricted use remedial action.
C.
If the qualified real property is to be remediated
with a limited restricted use remedial action or an unrestricted use
remedial action at the outset, then the tax exemption may initially
be approved for a period up to 15 years, if that is deemed appropriate
by the city.
D.
The property tax exemption shall end when the difference
between the real property taxes otherwise due and payments made in
lieu of those taxes equals the total remediation cost for the qualified
real property, even if that should occur prior to expiration of the
full term of the tax exemption, or in accordance with any other terms
set forth in the financial agreement.
E.
By February 1 of each year after the exemption is
approved, the applicant shall provide the Review Committee with a
certification describing the remediation costs expended at the property
during the previous year. The form of the certification shall be determined
by the Review Committee.
Each approved exemption shall be evidenced by
a financial agreement between the city and the applicant. The financial
agreement shall be on a form to be completed by the applicant. The
form of the suggested financial agreement shall be made available
at the Tax Assessor's Office.
A.
Payments in lieu of real property taxes may be computed
as a portion of the real property taxes otherwise due, according to
the following schedule, or as otherwise set forth in the financial
agreement, to the extent those terms are not inconsistent with this
section:
(1)
In the first tax year following execution of a memorandum
of agreement or administrative consent order, no payment in lieu of
taxes is otherwise due.
(2)
In the second tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
10% of taxes otherwise due.
(3)
In the third tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
20% of taxes otherwise due.
(4)
In the fourth tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
30% of taxes otherwise due.
(5)
In the fifth tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
40% of taxes otherwise due.
(6)
In the sixth tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
50% of taxes otherwise due.
(7)
In the seventh tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
60% of taxes otherwise due.
(8)
In the eighth tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
70% of taxes otherwise due.
(9)
In the ninth tax year following execution of a memorandum
of agreement or administrative consent order, an amount not less than
80% of taxes otherwise due.
(10)
In the tenth tax year following execution of
a memorandum of agreement or administrative consent order, the exemption
shall expire and the full amount of the assessed real property taxes,
taking into account the value of the real property in its remediated
state, shall be due.
B.
Where a property tax exemption has been extended for
an additional period of time, up to a maximum of 15 years, because
the applicant intends to implement limited restricted use remedial
action or unrestricted use remedial action, then the city may provide
for a different schedule for the payment in lieu of real property
taxes in the financial agreement, which payments may not exceed the
length of the extended property tax exemption.
C.
The payments required pursuant to this article shall
be made in quarterly installments according to the same schedule as
real property taxes are due and payable. Payment shall be made to
the Tax Collector.
A.
Failure to make required payments in lieu of tax shall
result in the termination of the exemption. In addition, the city
may implement in-rem tax foreclosure and any other remedies provided
by Title 54 of the Revised Statutes or other applicable laws.
B.
Any termination of the memorandum of agreement at
the option of the applicant shall result in the termination of the
exemption except if an administrative consent order is issued in its
place.
C.
Failure to comply with any conditions in this article
or the financial agreement shall result in the termination of the
exemption.
The following conditions must be complied with
if the tax exemption is to remain in effect:
A.
The qualified real property must be remediated in
compliance with the remediation standards adopted by the Department
of Environmental Protection pursuant to P.L. 1993, c. 139 (N.J.S.A.
58:10B-1 et seq.).
B.
The owner of the property must enter into a memorandum
of agreement or administrative consent order with the Department to
perform the remediation and complete the remediation pursuant to the
agreement or order.
C.
Once remediated, the environmental opportunity zone
must be used for a commercial, residential or other productive purpose
as approved by the city and incorporated in the financial agreement
during the time period for which the real property tax exemption is
given.
No exemption shall be granted pursuant to this
article with respect to any qualified real property for which property
taxes are delinquent or remain unpaid or for which penalties for nonpayment
of taxes are due.
The in-lieu payments shall be made in quarterly installments according to the same schedule as real property taxes are due and payable. Failure to make these payments shall result in the termination of the exemption. In addition to the remedy set forth herein, the payments in lieu of tax required by § 275-16 of this article shall be enforced in the same manner as is provided for in real property taxes.
The Tax Assessor or other person designated
by the city shall be responsible for administering the terms of the
financial agreement throughout the period of exemption.
With the approval of City Council, any tax exemption
approved by the city may be assigned to a subsequent owner of the
environmental opportunity zone.
