Form EA-1 - Application for Exemption and Abatement
Form EA-3 - Notice to Applicants for Exemption and Abatement
§ 65-1. Statutory authority.
This article is enacted pursuant to the Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1, et seq.
§ 65-2. Findings and purpose.
§ 65-3. Definitions.
CONSTRUCTION -- The provision of a commercial or industrial structure, a new dwelling, or multiple dwelling, or the enlargement of the volume of any such structures by more than 30%. However, it shall not mean the conversion of an existing building or structure to another use.
CONVERSION -- The alteration or renovation of a nonresidential building or structure, hotel or motel, or motor hotel or guesthouse, in such a manner as to convert the building or structure from its previous use to use as a dwelling or multiple dwelling.
COOPERATIVE -- A housing corporation or association wherein the holder of a share or membership interest thereof is entitled to possess and occupy for dwelling purposes a house, apartment, or other unit of housing owned by the corporation or association, or to purchase a unit of housing owned by the corporation or association.
COST -- When used with respect to abatement for dwellings or multiple dwellings, only the cost or fair market value of direct labor and materials used in improving a multiple dwelling, or of converting another building or structure to a multiple dwelling, or of constructing a dwelling, or of converting another building or structure to a dwelling. The cost shall include any architectural, engineering, and contractors fees associated therewith, as the owner of the property shall cause to be certified to the governing body by an independent and qualified architect after completion of the project.
DWELLING -- A building or part of a building used, to be used, or held for use as a home or residence, including accessory buildings located on the same premises together with the land upon which such buildings are erected and which may be necessary for the fair enjoyment of the property, but it shall not mean any building or part of a building defined as a multiple dwelling pursuant to the Hotel and Multiple Dwelling Law, N.J.S.A. 55:13A-1 et seq.
EXEMPTION -- That portion of the Assessor's full and true value of any improvement, conversion, or construction not regarded as increasing the taxable value of a property pursuant to applicable state law.
HORIZONTAL PROPERTY REGIME -- A property submitted to a horizontal property regime pursuant to the Horizontal Property Act, N.J.S.A. 46:8A-1 et seq.
IMPROVEMENT -- A modernization, rehabilitation, renovation, alteration or repair which produces a physical change in an existing building or structure that improves the safety, sanitation, or attractiveness of the building or structure as a place for human habitation or work and which does not change its permanent use. In the case of a multiple dwelling, it includes only improvements which affect common areas or elements, or three or more dwelling units within the multiple dwelling. In the case of a multiple dwelling or commercial or industrial structure, it shall not include ordinary painting, repairs and replacement of maintenance items, or an enlargement of the volume of an existing structure by more than 30%. In no case shall it include the repair of fire or other damage to a property for which payment of a claim was received by any person from an insurance company at any time during the three-year period immediately preceding the filing of an application for tax exemption and abatement.
MULTIPLE DWELLING -- A building or structure meeting the definition of "multiple dwelling" set forth in the Hotel and Multiple Dwelling Law, N.J.S.A. 55:13A-1 et seq. It means for the purpose of improvement or construction the general common elements and common elements of a condominium, a cooperative, or a horizontal property regime.
§ 65-5. Commercial and industrial projects.
B. Exemptions for improvements shall be authorized on an individual basis after review, evaluation, and approval by the Tax Assessor and the governing body of the City.
§ 65-6. One- or two-unit residential dwellings.
§ 65-7. Multiple dwelling projects.
§ 65-8. Applications for tax agreements; contents.
A. A general description of a project for which exemption and abatement is sought.
B. A legal description of all real estate necessary for the project.
C. Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project.
D. A description of the number, classes and type of employees to be employed at the project site within two years of completion of the project.
E. 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 a tax agreement is granted.
F. Estimates of the cost of completing such project.
G. A statement showing the real property taxes currently being assessed at the project site; estimated tax payments that would be made annually by the applicant on the project during the period of the agreement; and estimated tax payments that would be made by the applicant on the project during the first full year following the termination of the tax agreement.
H. If the project is a commercial or industrial structure, a description of any lease agreements between the applicant and proposed users of the project, and a history and description of the users' businesses.
I. 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 rentals or sales prices of the dwelling units according to type and of any rental lease or resale restrictions to apply to the dwellings units respecting low- or moderate-income housing.
J. Such other pertinent information as the governing body may require.
§ 65-9. Formula for computation of payments in lieu of full property tax.
A. In the first full tax year after completion, no payment in lieu of taxes otherwise due.
B. In the second tax year, an amount not less than 20% of taxes otherwise due.
C. In the third tax year, an amount not less than 40% of taxes otherwise due.
D. In the fourth tax year, an amount not less than 60% of taxes otherwise due.
E. In the fifth tax year, an amount not less than 80% of taxes otherwise due.
§ 65-10. Duration of tax agreements.
B. All projects subject to a tax agreement as provided herein shall be subject to all applicable federal, state and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provisions, zoning, planning and building code requirements.
C. That percentage which the payment in lieu of taxes for a property bears to the property tax which would have been paid had an exemption and abatement not been granted for the property under the agreement shall be applied to the valuation of the property to determine the reduced valuation of the property to be included in the valuation of the municipality for determining equalization for county tax apportionment and school aid during the term of the tax agreements covering the properties, and at the termination of an agreement for a property, the reduced valuation procedure required under this section shall no longer apply.
D. Within 30 days after the execution of a tax agreement, the City Clerk shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
§ 65-11. Termination of agreement.
B. At the termination of a tax agreement, a project shall be subject to all applicable real property taxes as provided by state law and regulation and local ordinance; but nothing herein shall prohibit a project, at the termination of an agreement, from qualifying for and receiving the full benefits of any other tax preferences provided by law.
§ 65-12. Assessed value of property under exemption and abatement.
§ 65-13. Subsequent exemptions and abatements.
§ 65-14. Properties with delinquent taxes ineligible.
§ 65-15. Application filed and approval required from Tax Assessor.
§ 65-16. Statutory authority
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.
§ 65-17. Findings and purpose.
§ 65-18. Definitions.
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.
§ 65-19. Designation of redevelopment area and approval of redevelopment plan. [Amended 8-16-2005 by Ord. No. 30-2005]
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.
§ 65-20. Undertaking projects.
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.
§ 65-21. Urban renewal entity.
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.
§ 65-22. Application for project approval, form and contents.
(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.
§ 65-23. Financial agreement, form and contents.
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.
§ 65-24. Formulas for computation of annual service charge during period of tax exemption.
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.
§ 65-25. Duration of tax exemption.
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.
§ 65-26. Condominium units.
§ 65-27. Urban renewal entity which is a limited dividend entity.
§ 65-28. Urban renewal entity which is a nonprofit entity.
§ 65-29. Municipality or redevelopment agency authorized to make land available for project.