N.J. Admin. Code § 19:31C-3.24 - Redevelopment agreements; designated redevelopment agreement

(a) The following concern redevelopment agreements required:

1. Except as otherwise specifically provided to the contrary in this subchapter, all redevelopment within the Fort Monmouth Project Area shall be implemented pursuant to a redevelopment agreement or the designated redevelopment agreement. The Authority or EDA as designated redeveloper shall be a party to, and empowered to enforce, all redevelopment agreements concerning property or projects within the Fort Monmouth Project Area. Without limiting the generality of the foregoing sentence, where the Authority has consented to the designation of an area in need of redevelopment or rehabilitation and to the adoption of a redevelopment plan by a host municipality pursuant to the LRHL, the Authority or EDA as designated redeveloper shall be a necessary party to, and empowered to enforce, any redevelopment agreement entered into between the host municipality and the redeveloper.

2. It shall be a condition of each final site plan or final subdivision approval granted by the planning boards that the applicant shall enter into a redevelopment agreement with the Authority or EDA as designated redeveloper for the project that is the subject of the application, unless the project is exempt from the requirement of a redevelopment agreement pursuant to (b) below.

(b) Exemptions: The following types of projects shall not be considered redevelopment for the purposes of this subchapter and shall not require a redevelopment agreement:

1. Applications exempt from site plan review involving alterations to individual, detached one- or two-family homes and accessory uses; and

2. The Authority or EDA as designated redeveloper in its discretion may waive the requirement for a redevelopment agreement in respect of projects involving only minor site plan or minor subdivision approval, where such waiver would not be contrary to the purposes and intent of the provisions of this subchapter or the Reuse Plan.

(c) The following concern the EDA as designated redeveloper of certain properties:

1. Under 52:27I-33.a, the EDA is designated as a designated redeveloper for any property acquired by or conveyed to the Authority.

2. The Authority and EDA shall enter into a designated redevelopment agreement detailing the terms and conditions of the designated redeveloper relationship. The designated redevelopment agreement between the Authority and EDA is not reproduced in this subchapter, but a current copy of the agreement, as the same may be amended or modified from time to time, shall be kept in the offices of the Authority.

3. The EDA shall be a necessary party to any redevelopment agreement concerning any property or project acquired by the Authority unless the EDA has not assumed the role of designated redeveloper.

4. The designated redevelopment agreement shall provide that, when the EDA undertakes a specific project, an addendum to the agreement will be added that contains, without being limited to, the following provisions regarding the specific project:

i. A provision limiting the use of the property to the uses permitted pursuant to the Reuse Plan and this subchapter;

ii. A provision requiring the commencement and completion of the project within a period of time that the Authority and the EDA fix as reasonable;

iii. A provision that any lease may provide that all improvements shall become the property of the Authority or EDA as designated redeveloper; and

iv. Such other covenants, provisions, and continuing controls as may be deemed necessary to effectuate the purposes of the Fort Monmouth Economic Revitalization Authority Act.

5. When the EDA undertakes a specific project, the Authority shall review and approve the proposed project as set forth in 19:31C-3.1 9(c)1ii. Such approval shall require the affirmative vote of seven members of the FMERA Board.

(d) The following concern the required contents of redevelopment agreements:

1. All redevelopment agreements pertaining to properties or projects within the Fort Monmouth Project Area shall designate the redeveloper of the property or project that is the subject of the agreement, and at a minimum shall also contain the following, which shall be covenants running with the land prior to completion of the project as evidenced by the Authority's issuance of a certificate of completion as provided in (f) below:

i. A provision limiting the use of the property to the uses permitted pursuant to the Reuse Plan, and this subchapter and/or, where applicable, to the uses permitted pursuant to the LRHL redevelopment plan adopted by the host municipality with the Authority's consent;

ii. A provision requiring the redeveloper to commence and complete the project within a period of time that the Authority or EDA as designated redeveloper deems reasonable; and

iii. A provision restricting transfer and providing that the redeveloper shall be without power to sell, lease, or otherwise transfer the property, project, or redevelopment agreement, or any part thereof, prior to the completion of the project, without the written consent of the Authority or EDA as designated redeveloper.

2. All redevelopment agreements shall require that the covenants required pursuant to (d)1i through iii above shall be incorporated into a declaration of covenants and restrictions to be recorded against the subject property, subject to expiration upon the issuance of a certificate of completion as provided in (f) below.

3. Redevelopment agreements entered into in connection with an LRHL redevelopment project shall contain a provision pursuant to 40A:12A-39.e whereby the host municipality delegates to the Authority or EDA as designated redeveloper the right and ability to enforce the redevelopment agreement and to take other actions pursuant to the powers granted to the host municipality or redevelopment entity by the LRHL, including, but not limited to, declaring redeveloper defaults and the issuance of certificates of completion for the project, unless the Authority or EDA as designated redeveloper in its sole discretion determines otherwise.

(e) The following concern optional contents of a redevelopment agreement:

1. Redevelopment agreements pertaining to properties or projects within the Fort Monmouth Project Area may contain the following as appropriate under the circumstances:

i. Representations and warranties of the redeveloper (for example, qualified to do business in New Jersey, no financial problems, no legal problems, has or will have wherewithal to construct the project, all previously submitted information is accurate, etc.);

ii. A guaranty of the redeveloper's performance or payment may be required (for example, where redeveloper is a "shell" entity, the parent company or controlling individuals may be required to guaranty performance or payment), and where third party guaranty of redeveloper's performance or payment or both is provided, representations and warranties of the guarantor;

iii. Where the property is owned by the Authority or EDA as designated redeveloper and to be conveyed by the Authority or EDA as designated redeveloper to the redeveloper, and a separate agreement is not in place in respect of such conveyance, the terms and conditions of the conveyance, including purchase price, time frame for closing, etc.;

iv. In connection with a conveyance of property owned by the Authority or EDA as designated redeveloper, a limited right of reverter, exercisable by the Authority or EDA as designated redeveloper if the redeveloper has not commenced construction of the project within the agreed upon project timetable or otherwise defaults in the performance of its obligations under the redevelopment agreement, resulting in termination of the agreement and redeveloper status;

v. In connection with a lease of property by the Authority or EDA as designated redeveloper, the lease terms may provide that all improvements shall become the property of the Authority or EDA as designated redeveloper at the expiration or termination of the lease term;

vi. Where applicable, the scope and responsibility for costs of due diligence and environmental matters, including remediation if required, and site access terms and agreements, including indemnification of the Authority or EDA as designated redeveloper in connection therewith;

vii. Where applicable, provisions relating to the financing of the project and financial assistance, if any, to be provided or facilitated for the project;

viii. Cross-default provisions relating to any financial agreement between the host municipality and the redeveloper in connection with the project;

ix. Provisions addressing the rights and obligations of project mortgagees, in the event of a redeveloper event of default;

x. Provisions whereby the redeveloper agrees to defray the costs of the Authority or EDA as designated redeveloper arising out of or in connection with the negotiation, preparation and performance of the Authority's obligations or of obligations of EDA as designated redeveloper, pursuant to the redevelopment agreement, and arrangements for the payment thereof;

xi. Where applicable, provisions relating to the posting of performance and maintenance bonds for project-related improvements as may be required pursuant to the site plan or subdivision approvals for the project, and such other matters as might be addressed in a developer's agreement required as a condition of planning board approval of the project; and

xii. Any other covenants, provisions, conditions, or contingencies, or continuing controls as may be deemed necessary or desirable by the Authority or EDA as designated redeveloper to effectuate and achieve the purposes of the Fort Monmouth Economic Revitalization Authority Act and the effective redevelopment of the project and the Fort Monmouth Project Area.

(f) The following concern certificates of completion:

1. Unless the redevelopment agreement provides otherwise, the Authority or EDA as designated redeveloper shall issue certificates of completion for all redevelopment projects within the Fort Monmouth Project Area, upon completion thereof in accordance with the requirements of the redevelopment agreement.

2. Upon completion of any project subject to a redevelopment agreement within the Fort Monmouth Project Area, and the issuance of certificates of occupancy by the code official of the host municipality for such project, the applicant may apply to the Authority for a certificate of completion.

3. The application for a certificate of completion shall be submitted on a properly completed and signed Authority application form, which shall request the following information:

i. The applicant's certification to the Authority that all improvements have been completed in accordance with the redevelopment agreement and project approvals;

ii. Copies of all certificates of occupancy for the project issued by the code official of the host municipality; and

iii. A certification by the applicant that the redevelopment agreement is in full force and effect and the applicant is not aware of any default or event of default in the performance of its obligations thereunder, or of any facts which, upon the giving of notice would constitute an event of default thereunder.

4. The Authority or EDA as designated redeveloper may inspect the project to ensure it was completed in accordance with the redevelopment agreement. If the project is deemed completed in compliance with the requirements of the redevelopment agreement, the Authority or EDA as designated redeveloper shall issue a certificate of completion for the project. The certificate of completion shall constitute a recordable, conclusive determination of the satisfaction and termination of the agreements and covenants with respect to the project in the declaration of covenants recorded against the subject property pursuant to the terms of the redevelopment agreement.

5. Within 30 days after receipt of the application, the Authority or EDA as designated redeveloper shall provide the redeveloper with the certificate of completion, or a written statement setting forth in detail the reasons why it believes that the redeveloper has failed to complete the project in accordance with the provisions of the redevelopment agreement or is otherwise in default of its obligations thereunder and what reasonable measures or acts will be necessary in the reasonable opinion of the Authority or EDA as designated redeveloper for the redeveloper to be entitled to the certificate of completion.

Notes

N.J. Admin. Code § 19:31C-3.24