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Redevelopment Programs
Urban Enterprise Zones
The New Jersey Urban Enterprise Zone Program was stimulates
economic development and job creation in the designated areas.
Participating businesses are eligible to receive incentives,
including sales tax exemptions for building materials, equipment
and supplies invested or used at the certified site, corporation
tax benefits, and unemployment insurance rebates.
The Urban Enterprise Zones Program works closely with the New
Jersey Redevelopment Authority to offer low- or no-interest
loans, equity investments loan guarantees, and technical
assistance.
Smart Growth Predevelopment
Funding Loans and guarantees up to $1 million are provided
for non-contamination–related site preparation costs, including
land assemblage, demolition, removal of waste materials, and
engineering. Qualifying commercial, industrial, office, or
mixed-use projects must be part of a local development plan.
Brownfield Development
Significant incentives are provided to developers who remediate
and redevelop contaminated sites. A developer may enter into a
redevelopment agreement with the Secretary of Commerce that
allows for recovery of up to 75% of the cost of remediation once
the redevelopment project has begun to realize the new tax
revenues in an amount sufficient to cover the cost of
remediation.
Redevelopment Areas
Municipalities may designate publicly or privately owned lands
that are abandoned or underperforming as redevelopment areas.
This designation provides the municipality with various tools to
spur redevelopment including the condemnation of property, the
use of tax exemptions, favorable bond financing, and the
creation of revenue allocation districts.
Redevelopment Area Bond Financing
Municipalities are allowed to issue tax-exempt bonds for
projects within a redevelopment area; the bonds are secured by
PILOTs and/or special assessments on the property benefiting
from the improvements.
Revenue Allocation Districts (RAD)
The creation of a RAD within a redevelopment area provides a
municipality with a unique financing alternative for
redevelopment. In these districts, bonds or notes may be secured
by a number of revenue sources including the property tax
increment, as well as incremental revenue from PILOTs, parking
taxes, and sales and use taxes retained by the municipality.
Long-Term Tax Exemption
This incentive authorizes municipalities to exempt redevelopment
projects from local property tax for a term of up to 35 years.
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