New Jersey § 52:27d-489k3

§ 52:27d-489k3.

a. In connection with any economic redevelopment and growth grant project, the municipality

in which the project is located may issue bonds itself in the manner provided for

herein or pursuant to the “Local Redevelopment and Housing Law,” P.L.1992, c. 79 ( C.40A:12A-1 et al.) or may apply to an authority to issue bonds, regardless of whether the economic

redevelopment and growth grant project is undertaken pursuant to section 4 or section

5 of P.L.2009, c. 90 ( C.52:27D-489d or C.52:27D-489e ), which, in any case, may be secured by an incentive grant pledge, and may be further

secured by a municipal lien, by special assessments, or both a municipal lien and

special assessments, by the adoption of a resolution or ordinance, as applicable,

of the governing body of the municipality or the authority to that effect. The term of any bond secured in whole or in part by an incentive grant pledge shall

not exceed the eligibility period of the redevelopment incentive grant agreement that

provides for the incentive grant that is pledged. Nothing contained in sections 1 through 11 of P.L.2018, c. 97 ( C.52:27D-489k1 et seq. ) shall be construed as preventing the pledge, assignment, transfer, or sale of any

or all of a developer's right, title, and interest in and to a redevelopment incentive

grant agreement and in the incentive grants payable thereunder, and the right to receive

same, along with the rights and remedies provided to a developer under a redevelopment

incentive grant agreement in accordance with subsection g. of section 9 of P.L.2009, c. 90 ( C.52:27D-489i ) or subsection g of section 11 of P.L.2009, c. 90 ( C.52:27D-489k ), as applicable, or shall purport to limit the use of such pledge, assignment, transfer,

or sale with respect to the issuance of bonds hereunder or under other applicable

law. Furthermore, nothing contained in sections 1 through 11 of P.L.2018, c. 97 ( C.52:27D-489k1 et seq. ) shall prevent a State entity from financing an economic redevelopment and growth

grant project in accordance with the State entity's enabling legislation and section

9 of P.L.2009, c. 90 ( C.52:27D-489i ), which financing shall not be subject to the provisions of sections 1 through 11

of P.L.2018, c. 97 ( C.52:27D-489k1 et seq. ). b. A municipality may provide by ordinance for one or more special assessments on

the economic redevelopment and growth grant project in accordance with chapter 56

of Title 40 of the Revised Statutes, R.S.40:56-1 et seq. ; provided, however, the local improvements for which such special assessments may

be made may include any improvement in the economic redevelopment and growth grant

project whether or not listed at R.S.40:56-1 and, provided further, that the provisions of R.S.40:56-35 shall be applied so that if any installment of a special assessment shall remain

unpaid for 30 days after the time at which it shall become due, the municipality may

provide, by ordinance, either that: (1) the whole assessment or balance due thereon

shall become and be immediately due; or, (2) any subsequent installments which would

not yet have become due except for the default shall be considered as not in default

and that the lien for the installments not yet due shall continue; and provided,

further, that the ordinance may require that the assessments be payable in quarterly,

semi-annual, or yearly installments, with legal interest thereon, over a period of

years up to but in no event exceeding the period of years for which the bonds were

issued. In levying a special assessment on the lands or improvements, or both, on which

the economic redevelopment and growth grant project is located, the municipality may

provide that the amount of the special assessment shall be a specific amount, not

to exceed the cost of the improvements, plus any out-of-pocket costs or expenses incurred

in connection with such improvements, including, but not limited to, architectural,

engineering, financing, legal, and other professional fees, paid with respect to property

benefitted by the improvements. That specific amount shall, to the extent accepted by the owner of the property

benefitted, be deemed the conferred benefit, in lieu of the amount being determined

by the procedures otherwise applicable to determining the actual benefit conferred

on the property. Special assessments levied pursuant to an ordinance adopted under this subsection

shall constitute a municipal lien under R.S.40:56-33 . c. Upon adoption, a copy of the ordinance shall be filed for public inspection in

the office of the municipal clerk, and there shall be published in a newspaper, published

or circulating in the municipality, a notice stating the fact and the date of adoption

and the place where the ordinance is filed and a summary of the contents of the ordinance. The notice shall state that any action or proceeding of any kind or nature in any

court questioning the validity or proper authorization of the ordinance or the actions

authorized to be taken as set forth in the ordinance shall be commenced within 20

days after the publication of the notice. If no action or proceeding questioning the validity of the ordinance providing for

special assessments or other actions authorized by the ordinance shall be commenced

or instituted within 20 days after the publication of the notice, the county and the

school district and all other municipalities within the county and all residents and

taxpayers and owners of property therein shall be forever barred and foreclosed from

instituting or commencing any action or proceeding in any court questioning the validity

or enforceability of the ordinance or the validity or enforceability of acts authorized

under the ordinance, and the ordinance and acts authorized by the ordinance shall

be conclusively deemed to be valid and enforceable in accordance with their terms

and tenor. d. The municipality may include in the terms of a bond or contract, including an incentive

grant pledge, a provision that the pledge of an incentive grant or special assessments

shall constitute a municipal charge for the purposes of R.S.54:4-66 . e. The incentive grant pledge or special assessments, or both, may be assigned directly

by the municipality or the authority to the trustee for the bonds as payment or security

for the bonds, provided that the assignment of the pledge of a State incentive grant

shall be made only upon notice to and consent of the New Jersey Economic Development

Authority and the State Treasurer. Notwithstanding any law to the contrary, the assignment shall be an absolute assignment

of all the municipality's right, title, and interest in the incentive grant pledge

or special assessments, or both, or portion thereof, along with the rights and remedies

provided to the municipality under the agreement including, but not limited to, the

right of collection of payments due. Any interest that is subject to a lien established under this section shall not

be transferred, conveyed, assigned, disposed of, or sold, whether by tax sale or otherwise,

free and clear of the redevelopment incentive grant agreement and any incentive grant

pledges due thereunder while bonds are secured thereby, regardless of the consent

of the parties or order of any court, whether in law or in equity, unless any such

transfer or conveyance is provided for under the terms and conditions set forth in

the bond resolution or bond ordinance, as applicable. Any purchaser, transferee, successor, grantee, or assignee of such interest, whether

at a tax sale or otherwise, shall take title to such interest subject to the obligations

imposed by the redevelopment incentive grant agreement. Notwithstanding any provision in this section or in any other law to the contrary,

no purchaser, transferee, successor, grantee, or assignee shall be assigned a State

redevelopment incentive grant agreement or have any of the rights, duties, or obligations

of a State redevelopment incentive grant agreement without notice to and consent of

the New Jersey Economic Development Authority and the State Treasurer. Incentive grant pledges and special assessments assigned as provided hereunder shall

not be included in the general funds of the municipality, nor shall they be subject

to any laws regarding the receipt, deposit, investment, or appropriation of public

funds and shall retain such status notwithstanding enforcement of the payment or assessment

by the municipality or assignee as provided herein. The municipality shall be a “ person ” within the meaning of that term as defined in section 3 of P.L.1974, c. 80 ( C.34:1B-3 ); and the purpose described in this section shall be a “ project ” within the meaning of that term as defined in section 3 of P.L.1974, c. 80 ( C.34:1B-3 ). f. Notwithstanding the provisions of subsection g. of section 37 of P.L.1992, c. 79 ( C.40A:12A-37 ), the bonds issued pursuant to this section shall be issued as non-recourse obligations,

and shall not be considered to be direct and general obligations of the municipality,

and the municipality shall not be obligated to levy and collect a tax sufficient in

an amount to pay the principal and interest on the bonds when the same become due

and payable. The provisions of the “Local Government Supervision Act (1947),” P.L.1947, c. 151

( C.52:27BB-1 et seq. ) shall not apply to any bonds issued or authorized pursuant to this section and those

bonds shall not be considered gross debt of the municipality on any debt statement

filed in accordance with the “Local Bond Law,” N.J.S.40A:2-1 et seq. , and the provisions of chapter 27 of Title 52 of the Revised Statutes shall not apply

to such bonds. g. The proceeds from the sale of bonds and any funds provided by any department of

the State, authority created by the State, or bi-state authority, for the purposes

described in sections 1 through 11 of P.L.2018, c. 97 ( C.52:27D-489k1 et seq. ), or for the purpose of financing or refinancing an economic redevelopment and growth

grant project pursuant to section 5 of P.L.2009, c. 90 ( C.52:27D-489e ), shall not require compliance with public bidding laws, including the “Local Public

Contracts Law,” P.L.1971, c. 198 ( C.40A:11-1 et seq. ), or any other statute where the developer shall undertake the economic redevelopment

and growth grant project. The use of these funds shall be subject to public accountability and oversight by

the issuer of those bonds, regardless of whether the municipality, agency, or authority

provides the funds. h. A bond, whether issued by a municipality or an authority, shall be subject to the

review and approval of the Local Finance Board. That review and approval shall be made prior to approval of an ordinance or a resolution,

as may be required by the law pursuant to which the bonds are issued. The board shall be entitled to receive from the applicant an amount sufficient to

provide for all reasonable professional and other fees and expenses incurred by it

for the review, analysis, and determination with respect thereto. As part of its review, the board shall specifically solicit comments from the New

Jersey Economic Development Authority in addition to comments from the public. As part of the board's review and approval, it shall consider comments submitted,

and whether the issuance of the bond will adversely impact the financial stability

of the municipality or the service area of the authority. i. A municipality that has assigned any portion of the incentive grant pledge it receives

as payment or security for bonds, may, with the consent of the developer, the New

Jersey Economic Development Authority, and the State Treasurer, also pledge a portion

of the incentive grant pledge as payment or security for bonds in order to finance

or refinance any cost or expense of the municipality or authority. j. In the case of a municipality which is otherwise subject to tax or revenue sharing

pursuant to law and which assigns a portion of the incentive grant pledge or special

assessments to secure bonds issued by the municipality or the authority, the assigned

portion of the incentive grant pledge or special assessments shall not be considered

part of the tax or revenue sharing formula or calculation of municipal revenues for

the purpose of determining whether that municipality is obligated to make payment

to, or receive a credit from, any tax sharing or revenue sharing pool. k. Notwithstanding any law to the contrary, in the event that bonds shall be issued

that are secured by incentive grant pledges pursuant to a redevelopment incentive

grant agreement, the redevelopment incentive grant agreement shall not be terminated

for any reason after such bonds are issued and during the period that the bonds are

outstanding, except solely in the instances where the economic redevelopment and growth

grant project has not been completed within the period of time required by the redevelopment

incentive grant agreement, or the economic redevelopment and growth grant project

has materially changed without prior approval of the New Jersey Economic Development

Authority and the State Treasurer, in which cases the New Jersey Economic Development

Authority and the State Treasurer may terminate the redevelopment incentive grant

agreement in accordance with its terms. Nothing herein shall preclude the New Jersey Economic Development Authority or State

Treasurer from exercising its rights under the redevelopment incentive grant agreement

to compel specific performance or terminating the redevelopment incentive grant agreement

prior to the issuance of bonds for any reason in accordance with its terms.