New Jersey § 34:1b-323

§ 34:1b-323.

As used in sections 54 through 67 of P.L.2020, c. 156 ( C.34:1B-322 through C.34:1B-335 ): “ Agency ” means the New Jersey Housing and Mortgage Finance Agency established pursuant to

P.L.1983, c. 530 ( C.55:14K-1 et seq. ). “ Authority ” means the New Jersey Economic Development Authority established by section 4 of

P.L.1974, c. 80 ( C.34:1B-4 ). “ Aviation district ” means all areas within the boundaries of the Atlantic City International Airport,

established pursuant to section 24 of P.L.1991, c. 252 ( C.27:25A-24 ), and the Federal Aviation Administration William J. Hughes Technical Center and

the area within a one-mile radius of the outermost boundary of the Atlantic City International

Airport and the Federal Aviation Administration William J. Hughes Technical Center. “ Board ” means the Board of the New Jersey Economic Development Authority, established by

section 4 of P.L.1974, c. 80 ( C.34:1B-4 ). “ Building services ” means any cleaning or routine building maintenance work, including but not limited

to sweeping, vacuuming, floor cleaning, cleaning of rest rooms, collecting refuse

or trash, window cleaning, securing, patrolling, or other work in connection with

the care or securing of an existing building, including services typically provided

by a door-attendant or concierge. “Building services” shall not include any skilled maintenance work, professional services,

or other public work for which a contractor is required to pay the “prevailing wage”

as defined in section 2 of P.L.1963, c. 150 ( C.34:11-56.26 ). “ Cash flow ” means the profit or loss that an investment property earns from rent, deposits,

and other fees after financial obligations, such as debt, maintenance, government

payments, and other expenses, have been paid. “ Collaborative workspace ” means coworking, accelerator, incubator, or other shared working environments that

promote collaboration, interaction, socialization, and coordination among tenants

through the clustering of multiple businesses or individuals. For this purpose, the collaborative workspace shall be the greater of: 2,500 of dedicated

square feet or 10 percent of the total property on which the redevelopment project

is situated. The collaborative workspace shall include a community manager, be focused on collaboration

among the community members, and include regularly scheduled education events for

the community members. The collaborative workspace shall also include a physical open space that supports

the engagement of its community members. “ Commercial project ” means a redevelopment project, which is predominantly commercial and , if located in a government-restricted municipality, contains 25,000 or more square feet , or if located in any other municipality, contains 50,000 or more square feet of office and retail space, industrial space, or film studios, professional stages,

television studios, recording studios, screening rooms, or other infrastructure for

film production, and may include a parking component. The term “ commercial project ” includes a redevelopment project comprised solely of a health care or health services

center, which contains not less than 10,000 square feet devoted to health care or

health services, and which may include a parking component. “ Developer ” means a person who enters or proposes to enter into an incentive award agreement

pursuant to the provisions of section 60 of P.L.2020, c. 156 ( C.34:1B-328 ), including, but not limited, to a lender that completes a redevelopment project,

operates a redevelopment project, or completes and operates a redevelopment project. “ Director ” means the Director of the Division of Taxation in the Department of the Treasury. “ Distressed municipality ” means a municipality that is qualified to receive assistance under P.L.1978, c.

14 ( C.52:27D-178 et seq. ), a municipality under the supervision of the Local Finance Board pursuant to the

provisions of the “Local Government Supervision Act (1947),” P.L.1947, c. 151 ( C.52:27BB-1 et seq. ), a municipality identified by the Director of the Division of Local Government Services

in the Department of Community Affairs to be facing serious fiscal distress, a SDA

municipality, or a municipality in which a major rail station is located. “ Economic development incentive ” means a financial incentive, awarded by the authority, or agreed to between the

authority and a business or person, for the purpose of stimulating economic development

or redevelopment in New Jersey, including, but not limited to, a bond, grant, loan,

loan guarantee, matching fund, tax credit, or other tax expenditure. “ Eligibility period ” means the period not to exceed 15 years for a commercial or mixed-use project or

the period not to exceed 10 years for a residential project specified in an incentive

award agreement during which a developer may claim a tax credit under the program , as such period shall be determined by the authority pursuant to subsection b. of

section 60 of P.L.2020, c. 156 ( C.34:1B-328 ) . “ Enhanced area ” means (1) a municipality that contains an urban transit hub, as defined in section

2 of P.L.2007, c. 346 ( C.34:1B-208 ); (2) the five municipalities with the highest poverty rates according to the 2017

Municipal Revitalization Index; and (3) the three municipalities with the highest

percentage of SNAP recipients according to the 2017 Municipal Revitalization Index. “ Environmental remediation costs ” means any costs incurred by a developer in the completion of any actions necessary

to investigate, clean up, or respond to a known, suspected, or threatened discharge

of contaminants, including, as necessary, the preliminary assessment, site investigation,

remedial investigation, and remedial action, pursuant to sections 23 through 43 and

section 45 of P.L.1993, c. 139 ( C.58:10B-1 et seq. ). “ Food delivery source ” means access to nutritious foods, such as fresh fruits and vegetables, through grocery

operators, including, but not limited to a full-service supermarket or grocery store,

and other healthy food retailers of at least 16,000 square feet, including, but not

limited to, a prepared food establishment selling primarily nutritious ready-to-serve

meals. “ Food desert community ” means a physically contiguous area in the State in which residents have limited

access to nutritious foods, such as fresh fruits and vegetables, and that has been

designated as a food desert community pursuant to subsection b. of section 38 of P.L.2020, c. 156 ( C.34:1B-306 ). “ Government-restricted municipality ” means a municipality in this State with a municipal revitalization index distress

score of at least 75, that met the criteria for designation as an urban aid municipality

in the 2019 State fiscal year, and that, on the effective date of P.L.2020, c. 156 ( C.34:1B-269 et al.), is subject to financial restrictions imposed pursuant to the “Municipal

Stabilization and Recovery Act,” P.L.2016, c. 4 ( C.52:27BBBB-1 et seq. ), or is restricted in its ability to levy property taxes on property in that municipality

as a result of the State of New Jersey owning or controlling property representing

at least 25 percent of the total land area of the municipality or as a result of the

federal government of the United States owning or controlling at least 50 acres of

the total land area of the municipality, which is dedicated as a national natural

landmark. “ Health care or health services center ” means an establishment that consists of not less than 10,000 square feet devoted to health care or health

services, where patients are admitted for or seek examination and treatment by one or more physicians, dentists, psychologists, or

other medical practitioners , and which is located in a municipality with a Municipal Revitalization Index distress score of at least 50, a distressed

municipality, or a qualified incentive tract . “ Hospitality establishment ” means a hotel, motel, or any business, however organized, that sells food, beverages,

or both for consumption by patrons on the premises. “ Incentive area ” means an aviation district ; a port district ; an area designated pursuant to the “State Planning Act,” P.L.1985, c. 398 ( C.52:18A-196 et seq. ), as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a Designated

Center, provided an area designated as Planning Area 2 (Suburban) or a Designated

Center shall be located within a one-half mile radius of the mid-point, with bicycle

and pedestrian connectivity, of a New Jersey Transit Corporation, Port Authority Transit

Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or ferry station,

including all light rail stations, or a high-frequency bus stop as certified by the

New Jersey Transit Corporation ; an area designated as a brownfield site pursuant to the “Brownfield and Contaminated

Site Remediation Act,” sections 23 through 43 and section 45 of P.L.1993, c. 139 ( C.58:10B-1 et seq. ); and an area of not less than 100 acres for which a licensed site remediation professional

has certified environmental remediation costs, as defined in this section and in accordance

with the “Site Remediation Reform Act,” sections 1 through 29 of P.L.2009, c. 60 ( C.58:10C-1 et seq. ), in an amount not less than $10,000,000, provided that any portion of such area

is located in an area that otherwise qualifies as an incentive area . “ Incentive award ” means an award of tax credits to reimburse a developer for all or a portion of the

project financing gap of a redevelopment project pursuant to the provisions of sections

54 through 67 of P.L.2020, c. 156 ( C.34:1B-322 through C.34:1B-335 ). “ Incentive award agreement ” means the contract executed between a developer and the authority pursuant to section

60 of P.L.2020, c. 156 ( C.34:1B-328 ), which sets forth the terms and conditions under which the developer may receive

the incentive awards authorized pursuant to the provisions of sections 54 through

67 of P.L.2020, c. 156 ( C.34:1B-322 through C.34:1B-335 ). “ Incubator facility ” means a commercial property, which contains 5,000 or more square feet of office,

laboratory, or industrial space, which is located near, and presents opportunities

for collaboration with, a research institution, teaching hospital, college, or university,

and within which at least 75 percent of the gross leasable area is restricted for

use by one or more technology startup companies. “ Individuals with special needs ” means individuals with mental illness, individuals with physical or developmental

disabilities, and individuals in other emerging special needs groups identified by

the authority, based on guidelines established for the administration of the Special

Needs Housing Trust Fund established pursuant to section 1 of P.L.2005, c. 163 ( C.34:1B-21.25a ) or developed in consultation with other State agencies. “ Labor harmony agreement ” means an agreement between a business that serves as the owner or operator of a

retail establishment, hospitality establishment, or distribution center and one or

more labor organizations, which requires, for the duration of the agreement: that

any participating labor organization and its members agree to refrain from picketing,

work stoppages, boycotts, or other economic interference against the business; and

that the business agrees to maintain a neutral posture with respect to efforts of

any participating labor organization to represent employees at an establishment or

other unit in the retail establishment, hospitality establishment, or distribution

center, agrees to permit the labor organization to have access to the employees, and

agrees to guarantee to the labor organization the right to obtain recognition as the

exclusive collective bargaining representatives of the employees in an establishment

or unit at the retail establishment, hospitality establishment, or distribution center

by demonstrating to the New Jersey State Board of Mediation, Division of Private Employment

Dispute Settlement, or a mutually agreed-upon, neutral, third party that a majority

of workers in the unit have shown their preference for the labor organization to be

their representative by signing authorization cards indicating that preference. The labor organization or organizations shall be from a list of labor organizations

which have requested to be on the list and which the Commissioner of Labor and Workforce

Development has determined represent substantial numbers of retail establishment,

hospitality establishment, or distribution center employees in the State. “ Low-income housing ” means housing affordable according to federal Department of Housing and Urban Development

or other recognized standards for home ownership and rental costs and occupied or

reserved for occupancy by households with a gross household income equal to 50 percent

or less of the median gross household income for households of the same size within

the housing region in which the housing is located. “ Major cultural institution ” means a public or nonprofit institution, not including an institution of higher

education, within this State that engages in the cultural, intellectual, scientific,

environmental, educational, or artistic enrichment of the people of this State, and

which institution is designated by the board as a major cultural institution. “ Major rail station ” means a railroad station that is located within a qualified incentive area and that

provides to the public access to a minimum of six rail passenger service lines operated

by the New Jersey Transit Corporation. “ Minimum environmental and sustainability standards ” means standards established by the authority in accordance with the green building

manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c. 132 ( C.52:27D-130.6 ), regarding the use of renewable energy, energy-efficient technology, and non-renewable

resources to reduce environmental degradation and encourage long-term cost reduction. “ Moderate-income housing ” means housing affordable according to federal Department of Housing and Urban Development

or other recognized standards for home ownership and rental costs and occupied or

reserved for occupancy by households with a gross household income equal to more than

50 percent, but less than 80 percent, of the median gross household income for households

of the same size within the housing region in which the housing is located. “ Municipal Revitalization Index ” means the index by the Department of Community Affairs ranking New Jersey's municipalities

according to eight separate indicators that measure diverse aspects of social, economic,

physical, and fiscal conditions in each locality. “ Port district ” means the portions of a qualified incentive area that are located within: a. the “ Port of New York District ” of the Port Authority of New York and New Jersey, as defined in Article II of the

Compact Between the States of New York and New Jersey of 1921; or b. a 15-mile radius of the outermost boundary of each marine terminal facility established,

acquired, constructed, rehabilitated, or improved by the South Jersey Port District

established pursuant to “The South Jersey Port Corporation Act,” P.L.1968, c. 60 ( C.12:11A-1 et seq. ). “ Program ” means the New Jersey Aspire Program established by section 56 of P.L.2020, c. 156 ( C.34:1B-324 ). “ Project cost ” means the costs incurred in connection with a redevelopment project by a developer

until the issuance of a permanent certificate of occupancy, or until such other time

specified by the authority, for a specific investment or improvement, including the

costs relating to lands, except the cost of acquiring such lands, buildings, improvements,

real or personal property, or any interest therein, including leases discounted to

present value, including lands under water, riparian rights, space rights, and air

rights acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated,

or improved, any environmental remediation costs, plus costs not directly related

to construction, including capitalized interest paid to third parties, of an amount

not to exceed 20 percent of the total costs and the cost of infrastructure improvements,

including ancillary infrastructure projects. When 100 percent of the residential units constructed in a residential project are

reserved for occupancy by low- and moderate-income households, the term “project cost”

shall also include the developer fees paid before acquiring permanent financing, as

well as the deferred developer fees approved pursuant to the rules established by

the agency. The fees associated with the application or administration of a grant under sections

54 through 67 of P.L.2020, c. 156 ( C.34:1B-322 through C.34:1B-335 ) shall not constitute a project cost. “ Project financing gap ” means the part of the total project cost, including reasonable and appropriate return

on investment, that remains to be financed after all other sources of capital have

been accounted for, including, but not limited to developer contributed capital, which

shall not be less than 20 percent of the total project cost, and investor or financial

entity capital or loans for which the developer, after making all good faith efforts

to raise additional capital, certifies that additional capital cannot be raised from

other sources on a non-recourse basis; provided, however, that for a redevelopment

project located in a government-restricted municipality, the developer contributed

capital shall not be less than 10 percent of the total project cost. Developer contributed capital may consist of cash, deferred development fees, costs

for project feasibility incurred within the 12 months prior to application, property

value less any mortgages when the developer owns the project site, and any other investment

by the developer in the project deemed acceptable by the authority, as provided by

regulations promulgated by the authority. Property value shall be valued at the lesser of: (i) the purchase price, provided

the property was purchased pursuant to an arm's length transaction within 12 months

of application; or (ii) the value as determined by a current appraisal. “ Project labor agreement ” means a form of pre-hire collective bargaining agreement covering terms and conditions

of a specific project that satisfies the requirements set forth in section 5 of P.L.2002, c. 44 ( C.52:38-5 ). “ Qualified incentive tract ” means (i) a population census tract having a poverty rate of 20 percent or more;

or (ii) a census tract in which the median family income for the census tract does

not exceed 80 percent of the greater of the Statewide median family income or the

median family income of the metropolitan statistical area in which the census tract

is situated. “ Quality childcare facility ” is a child care center licensed by the Department of Children and Families or a

registered family child care home with the Department of Human Services, operating

continuously, which has not been subject to an enforcement action, and which has and

maintains a licensed capacity for children age 13 years or younger who attend for

less than 24 hours a day. “ Reasonable and appropriate return on investment ” means the discount rate at which the present value of the future cash flows of an

investment equals the cost of the investment. In determining the “reasonable and appropriate return on investment,” an investment

shall not include any federal, State, or local tax credits. For a residential project that utilizes federal low-income housing tax credits awarded

by the agency, the “reasonable and appropriate return on investment” shall be based

on the approval of deferred developer fees pursuant to the rules established by the

agency. In the event that a residential project, which utilizes federal low-income housing

tax credits awarded by the agency, generates returns on equity other than federal

or local grants or proceeds from the sale of federal or local tax credits, the “reasonable

and appropriate return on investment” shall be based on both the discount rate at

which the present value of the future cash flows of an investment equal the cost of

the investment for the entire project, and when evaluating only the units financed

with federal low-income housing tax credits awarded by the agency, the approval of

deferred developer fees pursuant to the rules established by the agency. “ Redevelopment project ” means a specific construction project or improvement or phase of a project or improvement

undertaken by a developer, owner or tenant, or both, and any ancillary infrastructure

project. A redevelopment project may involve construction or improvement upon lands, buildings,

improvements, or real and personal property, or any interest therein, including lands

under water, riparian rights, space rights, and air rights, acquired, owned, developed

or redeveloped, constructed, reconstructed, rehabilitated, or improved. “ Residential project ” means a redevelopment project that is predominantly residential, intended for multi-family

residency, and may include a parking component. “ SDA district ” means an SDA district as defined in section 3 of P.L.2000, c. 72 ( C.18A:7G-3 ). “ SDA municipality ” means a municipality in which an SDA district is situated. “ Technology startup company ” means a for-profit business that has been in operation fewer than seven years at

the time that it initially occupies or expands in a qualified business facility and

is developing or possesses a proprietary technology or business method of a high technology

or life science-related product, process, or service, which proprietary technology

or business method the business intends to move to commercialization. The business shall be deemed to have begun operation on the date that the business

first hired at least one employee in a full-time position. “ Total project cost ” means the costs incurred in connection with the redevelopment project by the developer

until the issuance of a permanent certificate of occupancy, or upon such other event

evidencing project completion as set forth in the incentive grant agreement, for a

specific investment or improvement. “ Tourism destination project ” means a non-gaming business facility that will be among the most visited privately

owned or operated tourism or recreation sites in the State, and which has been determined

by the authority to be in an area appropriate for development and in need of economic

development incentive assistance, including a non-gaming business within an established

Tourism District with a significant impact on the economic viability of that district. “ Transit hub ” means an urban transit hub, as defined in section 2 of P.L.2007, c. 346 ( C.34:1B-208 ), that is located within an eligible municipality, as defined in section 2 of P.L.2007, c. 346 ( C.34:1B-208 ) and is located within a qualified incentive area. “ Transit hub municipality ” means a Transit Village or a municipality: a. which qualifies for State aid pursuant

to P.L.1978, c. 14 ( C.52:27D-178 et seq. ), or which has continued to be a qualified municipality thereunder pursuant to P.L.2007, c. 111 ; and b. in which 30 percent or more of the value of real property was exempt from

local property taxation during tax year 2006. The percentage of exempt property shall be calculated by dividing the total exempt

value by the sum of the net valuation which is taxable and that which is tax exempt. “ Transit Village ” means a municipality that has been designated as a transit village by the Commissioner

of Transportation and the Transit Village Task Force established pursuant to P.L.1985,

c. 398 ( C.27:1A-5 ).