[Adopted 12-6-1977 by Ord. No. 77-1; amended in its entirety 1-18-1994 by Ord. No. 93-30 (Ch. 201, Art. II, of the 1986 Code)]
The Mayor and Council may enter into agreements with developers
for tax abatement on commercial, industrial or residential improvements
or projects, pursuant to the provisions of P.L. 1991, c. 441,[1] providing for the exemption from real property taxation
of improvements or projects for a period of five years.
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
The following procedures shall govern agreements for tax abatement
entered into by the Mayor and Council and developers:
A.Â
Improvements.
(1)Â
All improvements, as defined in P.L. 1991, c. 441,[1] shall be exempt from local real property taxes, if approved
by the Tax Assessor, after proper application has been made. Application
shall be upon the form approved by the Director of the Division of
Local Government Services, Department of Community Affairs.
[1]
Editor's Note: N.J.S.A. 40A:21-3.
(2)Â
Applicants shall be encouraged to apply for tax exemption on improvements
prior to the commencement of construction of the improvement, provided
that the applicant must file a proper application with the Tax Assessor
within 30 days of the completion of the improvement in order to be
eligible for tax exemption thereon.
(3)Â
Every properly completed application for exemption of one or more
improvements which is filed within 30 days of the completion of the
improvement shall be approved and allowed by the Assessor.
B.Â
Projects.
(1)Â
Applicants for tax abatement on projects shall provide the Mayor
and Council with an application setting forth:
(a)Â
A general description of the project for which abatement is
sought.
(b)Â
A legal description of all real estate necessary for the project.
(c)Â
Plans, drawings and other documents, as may be required by the
Mayor and Council, to demonstrate the structure and design of the
project.
(d)Â
A description of the number, classes and types of employees
to be employed at the project site within two years of completion
of the project.
(e)Â
A statement of the reasons for seeking tax abatements on the
project and a description of the benefits to be realized by the applicant
if tax abatement is granted.
(f)Â
Estimates of the cost of completing such project.
(g)Â
A statement showing:
[1]Â
The real property taxes currently being assessed at the project
site;
[2]Â
Estimated tax payments that would be made annually by the applicant
on the project during the period of tax abatement; and
[3]Â
Estimated tax payments that would be made by the applicant on
the project during the first full year following the termination of
the tax abatement agreement.
(h)Â
A description of any lease agreements between the applicant
and proposed users of the project and a history and description of
the user's business.
(i)Â
If the project is a multiple dwelling, a description of the
number and types of dwelling units to be provided, a description of
the common elements or general common elements and a statement of
the proposed included rentals or sales prices of the dwelling units
according to type and of the rental lease or resale restrictions to
apply to the dwellings units reflecting low- or moderate-income housing.
(j)Â
Such other pertinent information as the Mayor and Council may
require.
(2)Â
Upon approval of an ordinance authorizing an agreement for tax abatement
for a particular project, the Mayor and Council shall enter into a
written agreement with the applicant for the abatement of local real
property taxes. The agreement shall provide for the applicant to pay
to the Borough of Penns Grove in lieu of full property tax payments
an amount annually to be computed by using either, but not a combination,
of the formulas set out in N.J.S.A. 40A:21-10. Such agreements may
also provide for tax phase-in pursuant to N.J.S.A. 40A:21-10c. All
tax abatement agreements hereunder shall be in effect for a period
of not more than five years starting with the date of completion of
the project.
[Amended 7-5-2017 by Ord.
No. 2017-5]
