Bill > S2338

Introduced Session

This bill establishes the Landfills, Brownfields, and Contaminated Sites Redevelopment Incentive Program (program), to be administered by the New Jersey Economic Development Authority (EDA), in consultation with the Department of Environmental Protection (DEP). The program is to provide economic incentives for developers who undertake redevelopment projects on the premises of legacy landfills, brownfield sites, or contaminated sites within redevelopment zones. As provided in the bill, developers that are approved to participate in the program are entitled to an exemption to the extent of 50 percent from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). In addition, receipts from retail sales of certain tangible personal property and sales of certain services to a developer for the exclusive use or consumption of the developer is to be exempt from the taxes imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). As provided in the bill, retail sales of energy and utility service to a developer or group of developers who meet certain requirements is to be exempt from the taxes imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). The EDA is required to develop an application, review, and approval process for a developer to participate in the program. The EDA is to review and approve up to five applications for participation in the program over a period of not more than five years. Following approval of an application by the board of the EDA, but prior to the start of any remediation or redevelopment at the site of the redevelopment project, the EDA is to enter into a redevelopment agreement with the developer. The chief executive officer of the EDA is required to negotiate the terms and conditions of the redevelopment agreement on behalf of the State. The developer is required to complete the remediation and redevelopment by a date no later than seven years after the date on which the EDA and the developer execute the redevelopment agreement. The developer may be eligible for an additional period of not more than three years to complete the redevelopment project if the developer demonstrates, and the EDA finds, that the benefits received under the program are continuing to assist in the redevelopment of the site, and that if the benefits are no longer provided the developer would be unable to continue making progress in the redevelopment of the site. Under the bill, a developer that enters into a redevelopment agreement with the EDA is required to comply with certain environmental standards, green building standards, and labor and workforce requirements. No later than six months after the date the EDA and a developer execute a redevelopment agreement, and every six months thereafter until completion of the project, the developer is required to submit an update of the status of the redevelopment project to the EDA and to the DEP, including the closure and remediation costs incurred by the developer. Unless the EDA determines that extenuating circumstances exist, the EDA's approval of any benefit under the program are required to expire if the EDA, the DEP, or both, do not timely receive this status update. The EDA may rescind an award of any benefit under the program if a redevelopment project fails to advance in accordance with the redevelopment agreement. Under the bill, the EDA may audit, or cause to be audited, at any time, any developer receiving benefits under the program. In addition, the EDA, in consultation with the Director of the Division of Taxation in the Department of the Treasury, may, until the completion of the redevelopment project, require a developer to provide additional information relevant to the administration of the program and to analyze and report on the program's use and benefits. Beginning one year after the effective date of the bill, and every year thereafter, the EDA is required to prepare a report on the implementation, use, and benefits of the program, and submit the report to the Governor and the Legislature.

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Nilsa Cruz-Perez (D)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 03/21/2022)

Official Document