HomeMy Public PortalAboutOrd. 20-20No. #20 -20 -of fhe
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Councilman Presents the following Ordinance Seconded by Councilman _
AN ORDINANCE OF THE BOROUGH OF CARTE' RE,T
RE- ADOPTING, AMENDING AND RE- STATING ORDINANCE
NO. 94-23, FINALLY ADOPTED MAY 26,1994
WHEREAS, the "Five Year Exemption and Abatement Law ", N.J.S.A. 40A:21 -1 et seq.
(hereinafter the "Exemption and Abatement Law) was enacted into law on or about
January 18,1992; and
WHEREAS, the Exemption and Abatement Law was enacted in order to consolidate
various prior statutes authorized by Article VIII, Section 1, paragraph 6 of the New
Jersey Constitution permitting municipalities to grant, for periods of five (5) years,
exemptions or abatements, or both, from taxation, in areas in need of rehabilitation,
thereby promoting the construction and/or rehabilitation of conunercial and industrial
structures in areas threatened with economic and social decline; and
WHEREAS, on May 26, 1994, the Borough of Carteret (the `Borough ") adopted
Ordinwrce No. 94 -23, entitled "An Ordinance Providing for the Abatement and/or
Exemption from Local Property Taxes for the hnprovement to or Construction of
Commercial or Industrial Structures'; and
WHEREAS, by Ordinance No. 94 -23, the Borough established a redevelopment and tax
abatement area for certain properties specified therein and provided that redevelopment
projects located in such area were eligible for exemption from, and /or abatement of real
property taxes subject to the terms and provisions set forth in said ordinance; and
WHEREAS, pursuant to Section 4 of the Exemption and Abatement Law (N.J.S.A.
40A:21 -4), applications for exemption or abatement may not be filed to take initial effect
in the eleventh (I I tax year after the adoption of such an ordinance, or any tax year
thereafter, unless such ordinance is readopted by the governing body; and
WHEREAS, the Borough Council now desires to re- adopt, amend and restate Ordinance
No. 94 -23 to permit the exemption of taxes for certain Commercial or Industrial
Structures (as defined herein) located within certain Areas in Need of Rehabilitation (as
defined herein) in the Borough subject to the terms and provisions of this ordinance; and
WHEREAS, by Resolution No. 18 -127, the Borough designated the property commonly
known as Block 301, Lots 3, 4 and 5, and Block 402, Lots 24 and 25 tax map of the
Borough (the "217 -233 & 237 Roosevelt Avenue Redevelopment Area") an area in need
of redevelopment pursuant to the Local Redevelopment and Housing Law, N.J.S.A.
40A: 12A-1 et seq. (the "Redevelopment Law "); and
WHEREAS, on November 17, 2019, the Borough and Mid -State Federal Credit Union
( "MFCU ") entered into a Purchase and Sale Agreement (the "Purchase and Sale
Agreement "), pursuant to which MFCU will purchase, from the Borough, property in the
217 -233 & 237 Roosevelt Avenue Redevelopment Area designated at Block 301, Lots 3,
4 and 5 ( °217 -233 Roosevelt Avenue "), and the Borough will purchase, from MFCU,
property in the 217 -233 & 237 Roosevelt Avenue Redevelopment Area designated at
Block 402, Lots 24 and 25 ( "237 Roosevelt Avenue "), and MFCU will construct, on 217-
233 Roosevelt Avenue, a new Credit Union Facility (the "Credit Union Project"); and
WHEREAS, the Purchase and Sale Agreement provides that MFCU may, in connection
with the Credit Union Project, apply for a short-term tax abatement in accordance with
terms set forth therein.
NO. #20 -20
PAGE 2
NOW, THEREFORE, BE IT ORDAINED BY THE BOROUGH COUNCIL Or
THE BOROUGH Or CARTERET, IN THE COUNTY OF MIDDLESEX, NEW
JERSEY THAT ORDINANCE NO. 94 -23, FINALLY ADOPTED MAY 26,1994, IS
RE- ADOPTED, AMENDED AND RESTATED TO PROVIDE AS FOLLOWS:
Section 1. Statement of Intention The Borough, pursuant to the Exemption and
Abatement Law, makes known its intention to utilize the tax exemption and abatement
provision enacted by the New Jersey Legislature to authorize five (5) year exemptions for
certain commercial or industrial projects.
Section 2. Definitions Terms used as defined terns herein shall have the meaning
assigned to such terms at N.J.S.A. 40A:21 -3 or as set forth below:
"Agreement" shall mean a tax agreement entered into between a Developer and the
Borough under the Exemption and Abatement Law, including all amendments and
supplements thereto;
"Application" shall mean the information required to be submitted by a Developer
seeking an Exemption and/or Abatement, in a form prescribed by the Director of the
Division of Taxation in the Department of,the Treasury, approved by the Assessor and
otherwise conforming to the requirements of Section 5 hereof;
"Area in Need of Rehabilitation" shall mean a portion of the Borough which has been
determined to be an area in need of rehabilitation or redevelopment pursuant to the
Redevelopment Law, a "blighted area" as determined pursuant to the "Blighted Areas
Act," N.J.S.A. 40:55 -21.1 et seq., or which has been determined to be in need of
rehabilitation pursuant to N.J.S.A. 54:4 -3,72 et seq, N.J.S.A. 54:4 -3.95 et seq., or
N.J.S.A, 54:4 -3:121 et seq.;
"Assessor" shall mean the assessor of the Borough;
"Borough Attorney" shall mean the attorney -at -law appointed by the Borough
to serve as the municipal attorney;
`Borough Clerk" shall mean the clerk of the Borough;
"Borough Council' shall mean the governing body of the Borough;
"Commercial or Industrial Structure" shall mean a structure or part thereof used for the
manufacturing, processing or assembling of material or manufactured products, or for
research, office, industrial, commercial, retail, recreational, hotel or motel facilities, or
warehousing purposes, or for any combination thereof, which the governing body
determines will tend to maintain or provide gainful employment within the municipality,
assist in the economic development of the municipality, maintain or increase the tax base
of the municipality and maintain or diversify and expand commerce within the
municipality. It shall not include any structure or part thereof used or to be used by any
business relocated Rom another qualifying municipality unless: the total square footage
of the floor area of the structure or part thereof used or to be used by the business at the
new site together with the total square footage of the land used or to be used by the
business at the new site exceeds the total square footage of that utilized by the business at
its current site of operations by at least ten percent (10 %) and the property that the
business is relocating to has been the subject of a remedial action plan costing in excess
of $250,000 performed pursuant to an administrative consent order entered into pursuant
to authority vested in the Commissioner of Environmental Protection under N.J.S.A.
13:1D -1 et seq., the "Water Pollution Control Act," N.J.S.A. 58:10A -1 et seq., the "Solid
Waste Management Act," N.J.S.A. 13:113-1 et seq., and the "Spill Compensation and
Control Act," N.J.S.A. 58:10-23.11 etseq.;
"Completion' shall mean' substantially ready for the intended use for which a building or
structure is conshueted, improved or converted;
NO. #20 -20
PAGE 3
"Developer" shall mean the person or entity who owns the Property, or has a leasehold or
other interest in the Properly, such as through an easement or purchase and sale
agreement, who is undertaking a Project and who is seeking or receiving an exemption,
including an assignee in any case where the Borough Council has approved the
assignment thereof,
"Exemption" shall near that portion of the assessor's full and true value of any
improvement or construction not regarded as increasing the taxable value of a property
pursuant to the Exemption and Abatement Law mid this ordinance;
"Project" shall mean the Property and the improvements to be constructed thereon which
are the subject of an Agreement and are located within an Area in Need of Rehabilitation
and, when used in this Ordinance, shall mean the Credit Union Project;
"Property" shall mean the real property subject to an Agreement;
"State" shall mean the State of New Jersey; and
"Tax Collector" shall mean the tax collector of the Borough.
Section 3. Eligible Project Construction of a Commercial Structure constituting the
Credit Union Project on Block 301, Lots 3, 4 and 5, all of which are located in the 217-
233 & 237 Roosevelt Avenue Redevelopment Area, is eligible to receive a five-year
Exemption as provided herein upon meeting the following qualifications:
(A) Acknowledgment in an agreement with the Borough, applicable to the Project,
that the Developer may apply for such Exemption;
(B) Written application to the Borough Assessor filed not later than thirty (30) days,
including Saturdays and Sundays, following completion of the Project;
(C) Payment of all municipal taxes and charges must be current;
(D) The applicant must provide a certificate of occupancy or any other permit or
approval required by the Borough; and
(E) The construction and operation of the commercial and industrial structure(s) must
be in compliance with any and all applicable federal, state and local health and safety
codes and regulations.
Section 4. Authorization of Tax Exemption: Approval of Forms of Agreements The
Borough hereby grants Exemption to the Credit Union Project in accordance with the
Exemption and Abatement Law and the terms hereof. The Exemption for the Credit
Union Project will be effective upon the filing of an Application, with the Assessor, by
the Developer for the Credit Union Project, the approval of same as set forth herein in
Section 5, and the execution of an Agreement applicable to the Credit Union Project.
The Borough hereby approves the form of the Agreement attached hereto as Exhibit A
and authorizes the Mayor, upon submission of an Application and approval thereof in
accordance with Section 5 hereof, to execute such Agreement in substantially the same
form as that attached hereto as Exhibit A, with such additions, modifications or deletions
as the Mayor may deem necessary, after consultation with the Assessor and /or the
Borough Attorney.
Section S. Application for Exemption No Exemption shall be granted nor any
Agreement executed by the Mayor unless the Developer shall first have filed an original
and three (3) copies of an Application with the Assessor.
No. #20 -20
(A) Contents ofApplication
rnc 4
In addition to the application form provided by the Director of the Division of
Taxation, Application for an Exemption shall provide the Assessor with the information
required under N.J.S.A. 40A:21 -9.
(B) Approval of -Application
The Assessor shall approve or reject an Application within fifteen (15) days of
receipt of same. If the Assessor fails to reject an Application with such fifteen (15) day
period, the Application will be deemed to have been approved. If the Assessor rejects an
Application, the Assessor shall detail, with reasonable specificity, the manner in which
the Application was inconsistent with this ordinance and the Agreement approved hereby.
Section 6. Execution of Agreement Upon approval of an Application, the Mayor is
hereby authorized and directed to execute the Agreement, which provides for the
Developer of the Project to make payments to the Borough in lieu of full property tax
payments in annual anrounts to be computed pursuant to procedures set forth in the
Agreement.
Section 7. Real Property Taxes In addition to the payments required in lieu of property
taxes pursuant to Section 6 of this ordinance, the Developer shall be liable for all real
estate taxes assessed and levied against the Property that is not otherwise exempt under
the Exemption and Abatement Law, the Agreement or this ordinance.
Section 8. Tax Delinquency No Exemption shall be granted pursuant to this ordinance
with respect to any property for which real estate taxes or other municipal charges are
delinquent or remain unpaid, or for which penalties and interest for non- payment of taxes
are due.
Section 9. Payment in Quarterly Installment; Enforcement The payment in lieu of
property taxes shall be made and enforced in accordance with the terms and provisions of
the Agreement.
Section 10. Property Taxes Subject to Exemption The Exemption of real property taxes
provided pursuant to this ordinance shall apply to property taxes levied for municipal
purposes, school proposes, county /government purposes, and for the purposes of funding
any other property tax exemptions or abatements.
Section 11, Conformance with Statutory and Regulatory Requirements The Project
shall be subject to all applicable federal, State and local laws and regulations on pollution
control, worker safety, discrimination in employment, housing provision, zoning,
planning and building code requirements.
Section 12. Inspection The Property shall be subject to an inspection by the Borough on
an annual basis to ensure that it complies with all ordinances, regulations, and safety
codes of the Borough. Any Property which is determined to be in violation of any
ordinance, regulation, and /or safety code of the Borough, shall be subject to any penalties
and fines, or any other remedial action permitted by State law.
NO. #20 -20
PAGE
Section 13, Severability If any provision of this ordinance is legally invalid or is
hereafter found to be legally invalid, the remainder of the ordinance shall remain in full
force and effect.
Section 14. Reveal All prior ordinances or parts of prior ordinances inconsistent
herewith are hereby repealed.
Section IS. Effective Date This ordinance shall take effect upon final passage and
publication of notice thereof in accordance with the laws of the State.
RECORD OF COUNCIL VOTE
COUNCILMAN
YES
NO
NV
A.B.
COUNCILMAN
YES
NO
NV
A.R.
BELLINO
X
JOHAL
X
DIAZ
X
KRUM
X
DIMASCIO
X
•NAPLES
X
X - Indicate Vote
An - Absent NV -Not Voting XOR- Indicates Vote to Overrule Veto
Adopted on first reading of the Council
Adopted on second readin after ring
the Borough of Carteret, N.I., on November 16, 2020
December 10 2020
APPROVED RY I
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-
MAYOR
MANIC] L RK
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EXHIBIT A
FORM OF TAX AGREEMENT FOR CREDIT UNION PROJECT
AFFIDAVIT OF PUBLICATION
The following is a true copy of an Ordinance or Resolution of
the Borough of Carteret that has appeared in the Home News
Tribune, a newspaper which is printed in Freehold, New
Jersey and published in Neptune, in said County and State and
of general circulation in said county. One 1 time(s), once in
each issue as follows:
November 19, 2020
Notary Public of New Jersey
DANA ARDHEVAL
NOTARY. PUBLIC OF NEW JERSEY
M'y Commission Expires IM2/2022
Sworn and subscribed before
me this f t' 0r day of
f1 /
Car'mela Pogorzelski
Acting Municipal Clerk
AFFIDAVIT OF PUBLICATION
The following is a true copy of an Ordinance or Resolution of
the Borough of Carteret that has appeared in the Home News
Tribune, a newspaper which is printed in Freehold, New
Jersey and published in Neptune, in said County and State and
of general circulation in said county. One 1 time(s), once in
each issue as follows:
December 16, 2020
Notary Public of New Jersey
DANA C, ARCHEVAL
NOTARY PUBLIC OF NEW JERSEY
My COMMISSIon Expires 111212022
Sworn and subscribed before
me this /� 4 A day of bel em er ,:�)X
i
i
Carmela Pog'orzelski
Acting Municipal Clerk