New Jersey § 34:1b-387

§ 34:1b-387.

a. A cultural arts institution shall be eligible to receive a tax credit under the

program only if the cultural arts institution is eligible pursuant to subsection b.

of this section and submits a program application to the authority that results in

completion of a cultural arts project. b. At the time of application, a cultural arts institution seeking tax credits pursuant

to the program shall demonstrate to the authority: (1) that the proposed cultural arts project will result in a capital investment of

at least $5,000,000; (2) the structure and terms of the financial, corporate, and real estate instruments

to be utilized to successfully complete and then operate the cultural arts project; (3) that construction has not commenced at the site of the cultural arts project prior

to submitting an application, unless the authority determines that the cultural arts

project would not be completed without an award of tax credits under the program; (4) the value of the tax credit that is necessary in each year of the eligibility

period, in order for the cultural arts institution to finance the establishment of

the cultural arts project; (5) the total aggregate value of the tax credits for the entire eligibility period

that is necessary in order for the cultural arts institution to finance the establishment

of the cultural arts project; (6) that the cultural arts project shall comply with the standards established by

the authority through regulation based on 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 in order to reduce environmental degradation and encourage long-term cost

reduction; (7) that the cultural arts project shall comply with the authority's affirmative action

requirements, adopted pursuant to section 4 of P.L.1979, c. 303 ( C.34:1B-5.4 ); (8) a description of the significant economic, social, planning, employment, and other

benefits that would accrue to the State, county, or municipality from the cultural

arts project; (9) that during the eligibility period, each worker employed to perform construction

work and building services work at the cultural arts project shall be paid not less

than the prevailing wage rate for the worker's craft or trade, as determined by the

Commissioner of Labor and Workforce Development pursuant to P.L.1963, c. 150 ( C.34:11-56.25 et seq. ) and P.L.2005, c. 379 ( C.34:11-56.58 et seq. ). In the event the cultural arts project constitutes a lease of more than 55 percent

of a single facility, these requirements shall apply to construction work and building

services work at the entire facility. In the event the cultural arts project constitutes a lease of more than 35 percent

of a single facility, these requirements shall apply to construction work at the entire

facility; (10) that during the eligibility period, the cultural arts institution shall partner

with one or more local community organizations that provide support and services to

Work First New Jersey program recipients, in order to provide work activity opportunities

and other appropriate services to Work First New Jersey program recipients, which

activities and services may include, but shall not be limited to: work-study programs,

internships, sector-based contextualized literacy training, skills-based training

in growth industries in the State, and job retention and advancement services; (11) that the timing of the award of tax credits under the program shall allow for

the successful completion and operation of the cultural arts project demonstrated

through an independent market study submitted by the applicant showing there is demand

for a cultural arts institution facility at the proposed project site and that it

is expected to be successful; and that the cultural arts institution has a strong

prior track record of success or an independent analysis demonstrates that a newly

formed cultural arts institution will be successful; (12) a project financing gap exists, or the authority determines that the cultural

arts project will generate a below market rate of return. The authority shall evaluate past and projected fundraising efforts of the cultural

arts institution to determine whether a project financing gap exists; (13) that the cultural arts institution will have ownership of, or lease space in,

the cultural arts institution facility and operate or hold an operating agreement

for at least the eligibility period; and (14) that the cultural arts institution will have at least 20 percent equity in the

cultural arts project, which equity interest may include amounts contributed through

government grants, not including economic subsidies provided by the authority, received

by the cultural arts institution; provided, however, for a cultural arts project located

in a government-restricted municipality, the equity required shall not be less than

10 percent. c. Prior to the board considering an application submitted by a cultural arts institution,

the authority shall confirm with the Department of Labor and Workforce Development,

the Department of Environmental Protection, and the Department of the Treasury whether

the cultural arts institution is in substantial good standing with the respective

department, or has entered into an agreement with the respective department that includes

a practical corrective action plan. The cultural arts institution shall certify that any contractors or subcontractors

that will perform work at the cultural arts project: (1) are registered as required

by “The Public Works Contractor Registration Act,” P.L.1999, c. 238 ( C.34:11-56.48 et seq. ); (2) have not been debarred by the Department of Labor and Workforce Development

from engaging in or bidding on Public Works Contracts in the State; and (3) possess

a tax clearance certificate issued by the Division of Taxation in the Department of

the Treasury. The authority may also contract with an independent third party to perform a background

check on a cultural arts institution.