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No. 07-150
Date of Adoption
Mav 24, 2007
RESOLUTION TO PRESERVE AND CONTINUE THE SUCCESSES
OF THE URBAN ENTERPRISE ZONE (UEZ) PROGRAM AND
TO SUPPORT THE EFFORT OF UEZ'S TO COMPETE FOR
EMPLOYMENT AND INVESTMENT OPPORTUNITIES
WHEREAS, in 1983 the State of New Jersey created art Act to provide for the
estabIisl1ment of Urban Enterprise Zones in certain areas of the State suffering from
economic distress, and authorizing various measures to stimulate economic activity; and
WHEREAS, the legislative findings ill N.J.S.A. 52:27H-61 identify the presence of
"severe and persistent deterioration" of urban centers, characterized by high
unemployment, low investment of new capital, blighted conditions, and deteriorating tax
bases; and
\VHEREAS, the Act also finds that "the economic revitalization of these areas requires
application of the skills' and entrepreneurial vigor of private enterprise; and it is the
responsibility of govenlluent to provide a framework within which encouragement (can)
be given to (the private sector for);
1. private capital investment in these areas
2. to remove and/or abate disincentives to these areas
3. to (employ) mechanisms to restore the economic viability amlprosperity of
these areas"; and
'VHEREAS, there are many qualifying municipalities within the Urban Enterprise Zone
community whose local economies are characterized by all o.r some of the following,
including;
1. a high percentage of small, family owned (mom & pop) businesses
. 2. a.high dependency on entrepryneurs with a lack of regional and national
chainstores
3. finite land resources and other challenges for the physical expansion of
commercial ac~ivity, including; infill redevelopment, adaptive reuse,
brownfields conversion; and
"'HEREAS, the DEZ Assistance Escrow Fund is generated by local retail business sales
tax and is primary economic dev.elopmellt project funding source for DEZ municipalities
and UEZ municipalities are experiencing a reduction in the sales tax collections due to;
1. a high attrition rate of retail businesses due to the; (a) DEZ Program hiring
requirements, (b) the cumbersome (19 page) DEZ legislative tax exemption
rebate program, (c) increasing State DEZ regulation and administrative
program restrictions
2. the statutory reduction in the percentage of escrowerl" sales tax retained; and
'VHEREAS, the Governor's Office of Economic Growth has vowed to bring a stable
business environment to the State of New Jersey as to allow businesses to be confident in
making long tenn investments in the State and the present DEZ Program Legislation has
provisions that make long term economic investments prohibitive;
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Council of the Borough
of Carteret that the present DEZ legislation and administrative policy be amended to:
1. make pennanent a 100% level of the 3.5% state sales tax collection transfer
rate to the local zone assistance funds and the program be reauthorized for 10
additional years
2. remove any hiring requirements for a business to remain DEZ certified
3. abolish the sales tax rebate program and return to the previous sale tax
exemption policy
4. require a 60 day public comment period prior to any program administrative or
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07-150
PAGE ?
NO.
3. abolish the sales tax rebate program and return to the previous sale tax
_ exemption policy
4. require a 60 day public' comment period prior to any program administrative or
policy changes and UEZ Authority majority vote on same; and
BE IT FURTHER RESOLVED, that these legislative actions will have the desired
effect of;
1. stabilizing the capitalization of the UEZ Zone Assistance Escrow Fund
2. improving the attraction of private investment into the UEZ
3. increased balanced employment opportunities for UEZ community residents;
and
BE IT FURTHER RESOLVED, that a copy of tIns resolution be sent to the UEZ
Mayors Commission Chainnan and our State legislators and that the Commission and Qllr
State legislators are urged to support this resolution through State statute amendin"g
legislation and a State administered hi-alUmaI review ofUEZ qualifying municipalities to
measure impacts of this corrective action both pre and post legislation, to abate the
aggravated statewide losses of small businesses, to stabilize employment and attract
private investment to New Jersey's urban centers.
Adopted this 241h day of May, 2007
and certified as a true copy of the
original 011 May 25, 2007.
KATHLEENM. BARNEY, RMC/CMC
Mnnicipal Clerk
COUNCILMAN
RECORD OF COUNCIL VOTE
I YES NO NY A.B, COUNCIL!\.'IAN
YES NO NY A,B.
X
BELLINO
DIAZ
KRUM
X
X
X
x ~ Indicate Vote AS ~ Ab5ent NV ~ Not Voting XOR - Indit:atc:'i VOle to Overrule Veto
Adopted at a meeting of the i\'funicipaJ Council