Township of East Hanover, NJ Chapter 129A Special Improvement District

[HISTORY: Adopted by the Township Council of the Township of East Hanover 3-14-2011 by Ord. No. 3-2011.[1] Amendments noted where applicable.]

GENERAL REFERENCES

Land use and zoning — See Ch. 95.

[1] Editor’s Note: This ordinance also repealed former Ch. 129A, Special Improvement District, adopted 12-27-2005 by Ord. No. 36-2005, as amended.

§ 129A-1 Findings.

The East Hanover Township Council hereby finds:

A. That the properties and/or businesses in Property Classes 4A and 4B are an integral, vital economic and social component within the Township and that the creation of a Special Improvement District (the "District") including such properties and/or businesses will serve to enhance the safety, welfare and economic growth of the District and, consequently, the residents of the Township as a whole.

B. That through creation of a District management corporation to provide administrative and other services, the property owners, businesses, consumers and all inhabitants of the District will benefit, and the Township will have added ability to promote economic growth and employment.

C. That it is in the best interests of the Township to create a Special Improvement District and a management corporation to administer the District.

D. That all costs for the administration and management of the District should be funded by a special assessment imposed and collected by the Township on Class 4A and 4B properties within the District. Such levy shall be collected by the Township and shall be transferred to the District management corporation to effectuate the purposes of this chapter and to exercise the powers granted to it pursuant to this chapter.

§ 129A-2 Purpose.

This chapter authorizes the formation of a Special Improvement District pursuant to N.J.S.A. 40:56-65 et seq. (hereinafter, "the Act"), comprising all Property Class 4A and 4B property as defined herein within the Township of East Hanover, which properties are set forth in detail by block, lot and street address in Appendix A hereof.[1]

[1] Editor's Note: Appendix A is included at the end of this chapter.

§ 129A-3 Establishment of District.

A. Based upon the findings hereinabove set forth and the interests of the business owners, merchants and property owners comprising the District, there is hereby established the East Hanover Partnership as a Special Improvement District within the Township of East Hanover pursuant to the provisions of the Act.

B. The District shall consist of all properties within the Township designated as Property Class 4A and 4B by the Tax Assessor of the Township. The District specifically excludes all residential property, and no residential property shall be subject to any assessments imposed or collected under this chapter, pursuant to N.J.S.A. 40:56-66. In any case where there is a mixed use which includes a Class 4A or 4B use with another class, the Assessor shall determine the amount of any assessment based upon the proportion of the mixed use which is either Class 4A or 4B. The properties comprising the District are set forth in Appendix A hereof.[1]

[1] Editor's Note: Appendix A is included at the end of this chapter.

C. Any properties hereinafter designated as Class 4A or 4B shall be included in the District and shall be subject to the provisions of this chapter.

D. All Class 4A or 4B properties within the District shall be designated as Tier I, Tier II, or Tier III, which designation is set forth below and in Appendix A hereof.

(1) Tier I properties shall be all Class 4A and 4B properties located along Ridgedale Avenue (including West Ridgedale Avenue and South Ridgedale Avenue, but with the exception of certain Tier III properties, noted below), Route 10, Eagle Rock Avenue, Murray Road, Littel Road, and River Road (from Route 10 to Deforest Avenue).

(2) Tier II properties shall be all Class 4A and 4B properties located along Deforest Avenue, West Street, Farinella Drive and Mt. Pleasant Avenue.

(3) Tier III properties shall be all Class 4A and 4B properties located along Kane Place, Merry Lane, Great Meadow Lane, Melanie Lane, Columbia Turnpike, Dixon Place, and the portion of Ridgedale Avenue between Phyldan Road and the East Hanover Township border.

E. The purpose of these tier classifications is the recognition that certain properties are likely to receive more benefit from the Special Improvement District than others. Accordingly, the properties have been classified into tiers for purposes of establishing fair and appropriate levels of assessments, as set forth in § 129A-5 of this chapter and as may be amended and adjusted by the District management corporation from time to time to maintain a fair and equitable apportionment.

§ 129A-4 District management corporation.

A. There is hereby created East Hanover Community Partnership (hereinafter "EHCP") which shall be the management corporation for the Special Improvement District. East Hanover Partnership shall be organized as a nonprofit corporation.

B. The membership of EHCP shall consist of all owners of real property subject to assessment under this chapter, with each such property being entitled to one vote per property. In the event that a property has more than one owner, such as a corporate entity, partnership, joint venture, association, etc., the owners shall designate one such owner to act as the representative for that property for purposes of this chapter.

C. The Board of Directors of the EHCP shall consist of 11 persons who shall in the first instance be selected by the Mayor with the advice and consent of the Township Council. This organizing Board shall, upon appointment, assume the management of the District and shall adopt bylaws which shall include the following relative to future boards:

(1) Class I. Voting members:

(a) Township Council liaison.

(b) Four members who work in or own property in the District, to be selected by the Mayor with the advice and consent of the Council.

(c) Six members selected by election by the members of record as of the election date.

(2) Class II. Nonvoting members:

(a) The East Hanover Township Administrator.

(b) The Chief of the East Hanover Police Department or his designee.

(c) The Township Engineer or his designee.

D. The organizing Board shall serve until December 31, 2006, prior to which an election shall be held for the six elected Class I members whose terms shall begin January 1, 2007. Prior to taking office, the six persons elected shall draw lots for the length of term, with two to serve one year, two to serve two years and two to serve three years. Thereafter, all such directors shall be elected for a three-year term. The appointed Class I members shall draw lot for the length of term, with two to serve one year and two to serve two years. Thereafter all such appointed directors shall be appointed to a two-year term. The Township Council liaison shall be selected annually by the Township Council.

E. In the case of a vacancy among the elected directors, the Board shall appoint a replacement for the remainder of the term vacated. In the case of a vacancy among the appointed members, the Mayor, with the advice and consent of the Township Council, shall fill the vacancy for the remainder of the term.

F. All Board members shall serve on a volunteer basis, without compensation of any kind.

G. The officers of EHCP shall be elected from the Class I Board members by a majority vote of the Class I Board members and shall consist of the following: president, one or more vice presidents, secretary and treasurer.

H. EHCP, as the managing entity, shall have all powers necessary and requisite to effectuate the purposes of this chapter and the District. Such powers shall include, without limitation:

(1) Adoption of bylaws for the regulation of the affairs of EHCP and the conduct of its business and the prescribing of rules, regulations and policies in connection with the performance of its functions and duties.

(2) Employment of such persons as may be required to carry out the business of EHCP, and to fix and pay their compensation from funds available to the management entity.

(3) Retention of legal counsel.

(4) Application, acceptance, administration, and compliance with requirements respecting an appropriation of funds or a gift, grant or donation of property or money.

(5) Making and executing agreements which may be necessary or convenient to the exercise of the powers and functions of the management entity, including contracts with any person, firm, corporation, government agency or other entity.

(6) Administration and management of its own funds and accounts and payment of its own obligations.

(7) Borrowing money from private lenders and from government entities.

(8) Funding the improvement of the exterior appearance of properties in the District through grants or loans.

(9) Funding the rehabilitation of properties in the District.

(10) Acceptance, purchase, rehabilitation, sale, lease or management of property in the District.

(11) Enforcing the conditions of any loan, grant, sale or lease made by the management entity.

(12) Provision of security, sanitation, and other services to the District, supplemental to those normally provided by the Township.

(13) Undertaking improvements designed to increase the safety or attractiveness of the District to businesses which may wish to locate there or to visitors to the District, including but not limited to litter cleanup and control, landscaping, parking areas, and facilities and those improvements generally permitted for pedestrian malls under N.J.S.A. 40:56-66, pursuant to pertinent regulations of the East Hanover Township Council.

(14) Publicizing and promoting the District and the businesses included within the District boundaries.

(15) Recruitment of new businesses to fill vacancies in and to balance the business mix of the District.

(16) Organizing special events in the District.

(17) Providing special parking arrangements for the District.

(18) Providing temporary decorative lighting for the District.

(19) Taking any other actions that are necessary and proper to achieve the purposes of this chapter and that are otherwise permitted by law.

I. The district management corporation shall have no power of condemnation or eminent domain.

§ 129A-5 Assessments.

A. All costs of improvements and maintenance, other than those costs of improvements and maintenance normally incurred by the Township of East Hanover out of general funds, shall be determined and approved pursuant to N.J.S.A. 40:56-80 or N.J.S.A. 40:56-85, as determined by the management entity. Assessments shall be determined by multiplying the current assessed valuation, as determined by the Tax Assessor of the Township for real estate tax purposes, multiplied by a rate or rates to be established based upon the tier classification of each property. Such rates for the respective tiers shall be subject to amendment and adjustment by the District management corporation as is necessary to assure a consistent and fair apportionment among the various property owners within each tier classification. The basis for the different ratios between the respective tiers is to apportion the assessments so that the assessment charged most closely approximates the respective benefits received. Notwithstanding the above, no single owner shall be required to pay an annual assessment greater than $40,000 as its assessment on its total property holdings within the District.

B. Assessments shall be due and payable quarterly on February 1, May l, August 1 and November 1 of each year, with a ten-day grace period, after which dates, if unpaid, shall become delinquent, with interest charged as set forth below and reverting back to the due date on any quarterly installment of assessments.

(1) For the first $1,500, the rate shall be 8% per annum.

(2) For all amounts in excess of $1,500, the rate shall be 18% per annum.

C. The Tax Collector of the Township of East Hanover may affix a penalty not to exceed 6% of the delinquent assessment as billed prior to the end of the fiscal year for the most recent fiscal year only.

D. Unpaid special assessments shall become a lien against the underlying property and shall be collectible in the same manner as any other municipal property taxes and assessments as provided by the laws of the State of New Jersey.

E. Any property owner who would be assessed greater than $25,000 per year may, in lieu of the payment of annual assessments as set forth above, make a single payment based upon the present value of 10 times the annual investment, calculated on the basis of 5% interest per year. The District recognizes that, to the extent that any property owner's assessment exceeds $25,000 annually, said property owner by making one lump sum upfront payment may ultimately pay less than otherwise would have been paid annually over the ten-year period. However, the Township will obtain the benefit of realizing the present value of the ten-year total, and the upfront lump sum payment will also be extremely helpful for startup of the District and provide early necessary funding to begin improvements much sooner than otherwise possible.

§ 129A-6 Annual budgets; reports.

A. The management entity shall operate on a calendar-year basis, January 1 through December 31, inclusive.

B. Not later than December 1 of each year, the management entity shall submit a detailed business plan and budget for the upcoming year, for approval by the Township Council pursuant to N.J.S.A. 40:56-84. The budget shall be accompanied by a report explaining how the budget contributes to the goals and objectives for the District.

C. The budget shall be introduced, approved, amended and adopted by resolution passed by not less than a majority of the full membership of the Township Council.

(1) The budget shall be introduced in writing at a meeting of the Township Council. Approval thereof shall constitute a first reading which may be by title. Upon approval of the budget by the Township Council, the Council shall fix a time and place for the holding of a hearing on the budget.

(2) The budget shall be advertised after approval. The advertisement shall contain a copy of the budget and shall set forth the date, time and place of the hearing. It shall be published not fewer than 10 days prior to the date fixed for the hearing in an official newspaper of the Township.

(3) No budget shall be held until a public hearing has been held thereon and all persons having an interest therein shall have been given an opportunity to present objections. The hearing shall be held not fewer than 28 days after approval of the budget. The public hearing shall be held at the time and place advertised but may be adjourned from time to time until the hearing is closed.

(4) The budget as advertised shall be read in full at the public hearing, or by title if:

(a) At least one week prior to the date of the hearing a complete copy of the approved budget as advertised:

[1] Shall be posted in a public place where public notices are customarily posted in the principal municipal building: and

[2] Is made available to each person requesting the same during that week and during the public hearing: and

(b) The Township Council shall by resolution passed by not less than a majority of the full membership determine that the budget shall be read by its title and declare that the conditions set forth in Subsection C(4) have been met.

(5) After closing the hearing, the Township Council may adopt the budget by title, without amendments, or may approve amendments as provided in Subsection C(6) of this section before adoption.

(6) The Township Council may amend the budget during or after the public hearing provided that:

(a) No amendment by the Council shall be effective until taxpayers and all persons having an interest therein shall have been granted a public hearing thereon, if the amendment:

[1] Adds a new item in an amount in excess of 1% of the total amount as stated in the approved budget: or

[2] Increases or decreases any item by more than 10%.

[3] Increases the amount to be raised pursuant to N.J.S.A. 40:56-80 by more than 5% unless the same is made pursuant to an emergency temporary appropriation only.

(b) Notice of hearing on the amendment shall be advertised at least three days before the date set therefor. The amendment shall be published in full in the same manner as an original publication and shall be read in full at the hearing and before adoption.

(7) Final approval shall be by resolution adopted by a majority of the full membership of the Township Council and may be by title.

D. The management entity shall cause an annual audit of its books, accounts and financial sections to be made and filed with the East Hanover Township Council. Such audit shall be completed and delivered to the Council within four months after the close of the fiscal year. A certified duplicate copy of the audit shall be filed with the Director of the Division of Local Government Services in the State Department of Community Affairs within five days of the filing with the Township. The management entity shall employ a certified public accountant licensed by and practicing within the State of New Jersey to perform the required audit.

E. The management entity shall submit an annual report to the Township Council pursuant to N.J.S.A. 40:56-80 within 30 days of the close of the fiscal year. The report shall consist of a narrative covering the previous year's operation and detailed financial statements.

F. All books, records, accounts and reports of the management entity shall be available at reasonable times for public inspection.

§ 129A-7 Municipal powers retained.

Notwithstanding the creation of the Special Improvement District, the Township of East Hanover expressly reserves and retains all its police powers and other rights and powers related to the area within the District.

§ 129A-8 Debt obligations.

The Special Improvement District shall be obligated to satisfy all debts, loans and financial liabilities incurred by the management entity. The management entity may not borrow an amount that exceeds the approved budget for the fiscal year. The Charter of the District shall include a clause incorporating this language.