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

Summary

An Assembly Commerce, Economic Development and Agriculture Committee statement to Assembly, No. 4226, State of New Jersey, dated May 13, 2024, reporting the bill favorably with committee amendments. The bill would extend to June 30, 2028, from June 30, 2026, the deadline to submit a temporary certificate of occupancy for certain residential and mixed use parking projects under the Economic Redevelopment and Growth Grant program. It would let developers of certain mixed use parking projects exclude a visitor center, youth center, or both from the application, or assign it to a municipal redeveloper. The bill also revises the definition of "project cost" to include capitalized interest paid to third parties and up to 20 percent of total project cost for costs not directly related to construction.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

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. 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.

File and source

File

2024-05-13_ACE_A4226_S1.htm

Size

9,326 bytes

SHA-256

95f26425cd9b6e3262abab755defb2de80ae9aa0569af83f43b46421d80062c9

Our copy

2024-05-13_ACE_A4226_S1.htm

Original

No public link identified.