[Adopted 1-18-1996 by Ord. No. 96-2]
All improvements, conversions or construction of multiple dwellings and commercial and industrial structures located in areas in need of rehabilitation in the Township shall be eligible for exemptions and abatements from tax in accordance with this article, which is being adopted pursuant to N.J.S.A. 40A:21-1 et. seq.
A. 
In determining the value of real property, the Township shall regard up to the Assessor's full and true value of the improvements or conversion alterations as not increasing the value of the property for up to five years, notwithstanding that the value of the property to which the improvements or conversion alterations are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing prior to the improvement or conversion alterations, unless an abatement is granted pursuant to Subsection B or there is damage to the multiple dwelling through action of the elements sufficient to warrant reduction.
B. 
An abatement for a multiple dwelling may be granted with respect to the property for a total of up to five years, but the annual amount of the abatement may not exceed 30% of the total cost of the improvements or conversion alteration, and the total amount of the abatements granted to a single property shall not exceed the total cost of the conversion alteration or improvement.
In the case of commercial or industrial structures, in determining the value of the real property, the Township will regard up to the Assessor's full and true value of the improvements as not increasing the value of the property to which the improvements are made for a period of five years, notwithstanding that the value of the property to which the improvements are made is increased thereby. During the assessment period the assessment on the property shall not be less than the assessment thereon immediately before the improvements were made, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
A. 
The Township shall enter into a tax agreement with each taxpayer who is granted a tax abatement or exemption for construction of commercial or industrial structures or multiple dwellings. All tax agreements shall be applied for and granted by the Township on a project basis.
B. 
Each applicant for a tax exemption or abatement for the construction of a commercial or industrial structure or a multiple dwelling shall provide the Township Council with an application which includes the following:
(1) 
A general description of a project for which exemption and abatement is sought.
(2) 
A description of all real property necessary for the project.
(3) 
Plans, drawings and other documents as may be required by the Township Council.
(4) 
A description of the number, class and type of employees to be employed by the project site within two years of completion of the project.
(5) 
A statement of the reasons for seeking tax exemption and abatement on the project and a description of the benefits to be realized by the applicant if the tax agreement is granted.
(6) 
Estimates of the costs of completing the project.
(7) 
A statement showing the real property taxes currently being assessed at the project site; the estimated tax payments that would be made annually by the applicant on the project during the period of the agreement; and the estimated tax payments that would be made by the applicant on the project during the first full year following the termination of the agreement.
(8) 
If the project is a commercial or industrial structure, a description of any lease agreement between the applicant and the proposed users of the project and a history and description of the users' businesses.
(9) 
If the project is a multiple dwelling, a description of the number and types of dwelling units to be provided, a description of the common elements or general common elements and a statement of the proposed initial rental and sale prices of the dwelling units according to type of rental lease or resale restriction to apply to the dwelling units respecting low- or moderate-income housing.
(10) 
Such other pertinent information as the Township may request with respect to the application.
C. 
Upon adoption of an ordinance authorizing the execution of a tax agreement for a particular project, the Township Council may enter into a written tax agreement with the applicant for exemption or abatement. An agreement shall provide for the applicant to pay to the Township, in lieu of full property tax payments, an amount annually to be computed by one, but in no case a combination, of the following formulas:
(1) 
Cost basis. The agreement may provide for the applicant to pay the Township, in lieu of full property tax payments, an amount equal to 2% of the cost of the project. For purposes of the agreement "the cost of the project" means only the cost or fair market value of direct labor and all materials used in the construction, expansion or rehabilitation of all buildings, structures and facilities at the project site, including the costs of, if any, land acquisition and land preparation; provision for roads, utilities, drainage facilities and parking facilities; together with architectural, engineering, legal, surveying, testing and contractor's fees associated with the project, which the applicant shall cause to be certified and verified to the Township Council by an independent and qualified architects, following completion of the project.
(2) 
Gross revenue basis. The agreement may provide for the applicant to pay to the Township, in lieu of full property tax payments, an amount annually equal to 15% of the annual gross revenues of the project. For purposes of this agreement, "annual gross revenues" means the total annual gross rental and other income payable to the owner of the project from the project. If in any leasing, any real estate or assessments on the property included in the project, any premiums for fire or other insurance on or concerning property included in the project, or any operation or maintenance expenses ordinarily paid by the landlords are to be paid by the tenants, those payments shall be computed and deemed to be part of the rent and shall be included in gross revenue. The tax agreement shall establish the method for computing the revenues and may establish a method of arbitration by which either the landlord or the tenant may dispute the amount of the payments so included in the annual gross revenue.
(3) 
Tax phase-in basis. The agreement may provide for the applicant to pay to the Township, in lieu of full property tax payments, an amount equal to a percentage of the taxes otherwise due, according to the following schedule:
(a) 
In the first full year, no payment in lieu of taxes otherwise due.
(b) 
In the second tax year, an amount not less than 20% of the taxes otherwise due.
(c) 
In the third tax year, an amount not less than 40% of this taxes otherwise due.
(d) 
In the fourth year, an amount not less than 60% of the taxes otherwise due.
(e) 
In the fifth year, an amount not less than 80% of the taxes otherwise due.
D. 
Within 30 days after execution of a tax agreement, the Township shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
A. 
No exemption or abatement shall be granted pursuant to this article except upon application therefor filed with and and approved by the Assessor. Every application shall be in the form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of the applicants by the Township, and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, of the completion of the improvement, conversion alteration or construction.
B. 
The granting of an exemption or an exemption and abatement or a tax agreement shall be recorded and made a permanent part of the official tax records of the Township, which record shall contain a notice of termination date thereof.
A. 
The Arbor Glen project described in Schedule A attached hereto[1] is located in an area in need of rehabilitation as defined in N.J.S.A. 40A:21-1 et seq. The Township Council authorizes a tax agreement for the Arbor Glen project. Pursuant to this article, the Township Council may enter into a tax agreement for the exemption and abatement of local real property tax for the Arbor Glen property which is described in Schedule A. The tax agreement shall provide for exemption and abatement of tax which is computed in accordance with a formula permitted by this article and is otherwise consistent with this article.
[1]
Editor's Note: Schedule A is on file in the offices of the Township Clerk.