Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 4226 (May 13, 2024)

Summary

Assembly Commerce, Economic Development and Agriculture Committee statement to Assembly, No. 4226, with committee amendments, State of New Jersey, dated May 13, 2024. The committee reports favorably and with committee amendments Assembly Bill No. 4226, which as amended modifies deadlines for certain existing projects under the Economic Redevelopment and Growth Grant program and the definition of “project cost.” The statement says the bill extends the deadline to submit a temporary certificate of occupancy for certain residential and mixed use parking projects to June 30, 2028, and that current law sets June 30, 2026. It states that the committee amended the bill to change an inaccurate reference to the correct term, municipal redeveloper.

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

                     ASSEMBLY, No. 4226
                           with committee amendments



       STATE OF NEW JERSEY
                            DATED: MAY 13, 2024

          The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably and with committee
      amendments Assembly Bill No. 4226.
          As amended, this bill modifies deadlines for certain existing
      projects under the Economic Redevelopment and Growth Grant
      program (program) and modifies the definition of the term “project
      cost” under that program.

      Temporary Certificate of Occupancy Deadlines
          The bill extends the deadline for a developer to submit a temporary
      certificate of occupancy for certain qualified residential projects or
      mixed use parking projects to June 30, 2028. Under current law, the
      deadline to submit this documentation is June 30, 2026. Specifically,
      this extension would apply for any residential project or mixed use
      parking project: (1) that was approved after May 1, 2017; (2) that is
      located in a Garden State Growth Zone with a population over
      125,000, except not including those projects located in Atlantic,
      Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and
      Salem counties; and (3) for which the municipality in which the
      project is located submitted a letter of support to the chief executive
      officer of the Economic Development Authority identifying up to six
      projects prior to July 1, 2018.
          This bill also extends the deadline for a municipal redeveloper to
      submit a temporary certificate of occupancy for certain proposed
      mixed use parking projects to June 30, 2028. Under current law, the
      deadline to submit this documentation is June 30, 2026. This extension
      would apply for any mixed use parking project: (1) that is undertaken
      by a municipal redeveloper after July 29, 2022; (2) for which a
      redevelopment incentive grant is awarded; and (3) that is located in a
      Garden State Growth Zone with a population over 125,000, except not
      including those projects located in Atlantic, Burlington, Camden, Cape
      May, Cumberland, Gloucester, Ocean, and Salem counties.
                                    2

Modified Projects
     Additionally, the bill permits the developers of certain mixed use
parking projects to exclude a visitor center, youth center, or both from
the project application, or to assign the application to a municipal
redeveloper, provided that the project otherwise qualifies as a mixed-
use parking project. This permission to amend or assign an application
applies to any mixed use parking project: (1) that is undertaken by a
municipal redeveloper after July 29, 2022; (2) for which a
redevelopment incentive grant is awarded; (3) that is located in a
Garden State Growth Zone with a population over 125,000, except not
including those projects located in Atlantic, Burlington, Camden, Cape
May, Cumberland, Gloucester, Ocean, and Salem counties; and (4)
that was initially intended to be utilized by a visitor center or youth
center within or adjacent to a national historic park.
     Under current law, the redevelopment incentive grant award for
such a project is equal to 100 percent of the total project costs
allocated to the parking component combined with 80 percent of the
total project costs allocated to the non-parking component. Under the
bill, the maximum amount of any redevelopment incentive grant for
the modified project would be determined in the same manner as for
an unmodified project.

Project Cost
    This bill revises the definition of the term “project cost,” for the
purposes of the program, to include among other costs: capitalized
interest paid to third parties, the funding of a debt service reserve fund,
the cost of infrastructure improvements, including ancillary
infrastructure projects, and an amount not to exceed 20 percent of the
total project cost for costs not directly related to construction.
    The bill also provides that, for purposes of the definition of
“project cost,” capitalized interest paid to third parties is deemed to be
costs directly related to construction.

COMMITTEE AMENDMENTS:
    The committee amended the bill to change an inaccurate reference
to the correct term, municipal redeveloper.


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