Bill Text: NJ A3063 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes "port support zone" surrounding certain ports and marine terminals.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-09-24 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A3063 Detail]
Download: New_Jersey-2012-A3063-Introduced.html
Sponsored by:
Assemblyman ALBERT COUTINHO
District 29 (Essex)
SYNOPSIS
Establishes "port support zone" surrounding certain ports and marine terminals.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a port support zone surrounding certain ports and marine terminals, supplementing Title 32 of the Revised Statutes, and amending P.L.2009, c.90.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New Section) The Legislature finds and declares that:
a. The Panama Canal expansion project, which will create a new lane of traffic along the canal to accommodate larger, modern container ships, designated "Post-Panamax" ships, will double the capacity of the canal upon the completion of the project in 2014.
b. Upon the completion of the expansion of the Panama Canal, there will be an increase in demand along the Eastern Seaboard for ports to accommodate Post-Panamax ships.
c. Large container ships, such as Post-Panamax ships, are not currently able to enter Port Newark or the Elizabeth Port Authority Marine Terminal (collectively referred to as "Port Newark-Elizabeth Port Authority Marine Terminal" or "the port") because the navigational height of these ships exceeds the navigational clearance of the Bayonne Bridge.
d. In order to accommodate the navigational height of these Post-Panamax container ships, the Port Authority of New York and New Jersey decided to raise the roadway of the Bayonne Bridge from a 151-foot to a 215-foot navigational clearance.
e. It is in the public interest to establish a Port Newark-Elizabeth Port Authority Marine Terminal support zone to assist in the expected increase in shipping volume at the port.
2. (New Section) As used in this act:
"Overweight vehicle" means any commercial motor vehicle, whether registered in this State or elsewhere, with a gross vehicle weight rating (GVWR) of 100,000 or more pounds.
"Port support zone" means and includes the area within a five-mile radius of the outermost boundary of the Port Newark-Elizabeth Port Authority Marine Terminal.
3. (New Section) No amendment or revision to any zoning ordinance shall change the classification of a district zoned for commercial or industrial purposes and located within the port support zone.
4. (New Section) Notwithstanding any law, rule, regulation, or ordinance to the contrary, an overweight vehicle may travel along any road reasonably contiguous to the Port Newark-Elizabeth Port Authority Marine Terminal, so long as that road is within an industrial or commercial zone of that municipality.
5. Section 3 of P.L.2009, c.90 (C.52:27D-489c) is amended to read as follows:
3. As used in sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.):
"Applicant" means a developer proposing to enter into a redevelopment incentive grant agreement.
"Ancillary infrastructure project" means public structures or improvements that are located in the public right-of-way outside the project area of a redevelopment project, provided a developer or municipal redeveloper has demonstrated that the redevelopment project would not be economically viable without such improvements.
"Authority" means the New Jersey Economic Development Authority established under section 4 of P.L.1974, c.80 (C.34:1B-4).
"Developer" means any person who enters or proposes to enter into a redevelopment incentive grant agreement pursuant to the provisions of section 9 of P.L.2009, c.90 (C.52:27D-489i). A developer also may be a municipal government or a redevelopment agency as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Eligible revenue" means the property tax increment and any other incremental revenues set forth in section 11 of P.L.2009, c.90 (C.52:27D-489k).
"Incentive grant" means reimbursement of all or a portion of the project financing gap of a redevelopment project through the State or a local Economic Redevelopment and Growth Grant program pursuant to section 4 or section 5 of P.L.2009, c.90 (C.52:27D-489d or C.52:27D-489e).
"Infrastructure improvements in the public right-of-way" mean public structures or improvements located in the public right of way that are located within a project area or that constitute an ancillary infrastructure project.
"Municipal redeveloper" means a municipal government or a redevelopment agency acting on behalf of a municipal government as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3) that is an applicant for a redevelopment incentive grant agreement.
"Project area" means land or lands under common ownership or control including through a redevelopment agreement with a municipality or as otherwise established by a municipality.
"Project financing gap" means the part of the total redevelopment project cost, including return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, developer contributed capital, which shall not be less than 20 percent of the total project cost, and investor or financial entity capital or loans for which the developer, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources.
"Project revenue" means all rents, fees, sales, and payments generated by a project, less taxes or other government payments.
"Property tax increment" means the amount obtained by:
(1) multiplying the general tax rate levied each year by the taxable value of all the property assessed within a project area in the same year, excluding any special assessments; and
(2) multiplying that product by a fraction having a numerator equal to the taxable value of all the property assessed within the project area, minus the property tax increment base, and having a denominator equal to the taxable value of all property assessed within the project area.
For the purpose of this definition, "property tax increment base" means the aggregate taxable value of all property assessed which is located within the redevelopment project area as of October 1st of the year preceding the year in which the redevelopment incentive grant agreement is authorized.
"Qualifying economic redevelopment and growth grant incentive area" means Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a center as designated by the State Planning Commission; an area zoned for development pursuant to a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6) or subject to a redevelopment plan adopted by the New Jersey Meadowlands Commission pursuant to section 20 of P.L.1968, c.404 (C.13:17-21); any land owned by the New Jersey Sports and Exposition Authority, established pursuant to P.L.1971, c.137 (C.5:10-1 et seq.), within the boundaries of the Hackensack Meadowlands District as delineated in section 4 of P.L.1968, c.404 (C.13:17-4); a pinelands regional growth area, a pinelands town management area, a pinelands village, or a military and federal installation area established pursuant to the pinelands comprehensive management plan adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.); a transit village, as determined by the Commissioner of Transportation; the port support zone, as defined pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill); and federally owned land approved for closure under a federal Base Realignment Closing Commission action.
"Redevelopment incentive grant agreement" means an agreement between, (1) the State and the New Jersey Economic Development Authority and a developer, or (2) a municipality and a developer, or a municipal ordinance authorizing a project to be undertaken by a municipal redeveloper, under which, in exchange for the proceeds of an incentive grant, the developer agrees to perform any work or undertaking necessary for a redevelopment project, including the clearance, development or redevelopment, construction, or rehabilitation of any structure or improvement of commercial, industrial, residential, or public structures or improvements within a qualifying economic redevelopment and growth grant incentive area or a transit village.
"Redevelopment project" means a specific work or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer within a project area and any ancillary infrastructure project associated therewith.
"Redevelopment utility" means a self-liquidating fund created by a municipality pursuant to section 12 of P.L.2009, c.90 (C.52:27D-489l) to account for revenues collected and incentive grants paid pursuant to section 11 of P.L.2009, c.90 (C.52:27D-489k), or other revenues dedicated to a redevelopment project.
"Revenue increment base" means the amounts of all eligible revenues from sources within the redevelopment project area in the calendar year preceding the year in which the redevelopment incentive grant agreement is executed, as certified by the State Treasurer for State revenues, and the chief financial officer of the municipality for municipal revenues.
"Transit village" means a community with a bus, train, light rail, or ferry station that has developed a plan to achieve its economic development and revitalization goals and has been designated by the New Jersey Department of Transportation as a transit village.
(cf: P.L.2011, c.89, s.6)
6. Section 9 of P.L.2009, c.90 (C.52:27D-489i) is amended to read as follows:
9. a. The authority is authorized to enter into a redevelopment incentive grant agreement with a developer for any redevelopment project located within a qualifying economic redevelopment and growth grant incentive area that does not qualify as such area solely by virtue of being a transit village.
b. The decision whether or not to enter into a redevelopment incentive grant agreement is solely within the discretion of the authority and the State Treasurer, provided that they both agree to enter into an agreement.
c. The Chief Executive Officer of the New Jersey Economic Development Authority, in consultation with the State Treasurer shall negotiate the terms and conditions of any redevelopment incentive grant agreement on behalf of the State.
d. The redevelopment incentive grant agreement shall specify the amount of the incentive grant to be awarded the developer, the frequency of payments, and the length of time, which shall not exceed 20 years, during which that reimbursement shall be granted. Except for redevelopment incentive grant agreements with a municipal redeveloper, in no event shall the combined amount of the reimbursements under redevelopment incentive grant agreements with the State or municipality exceed 20 percent of the total cost of the project , except that any redevelopment incentive grant agreement with a developer for a project within the port support zone, as that term is defined in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall not exceed 35 percent of the total cost of the project. For the purposes of calculating the total cost of all projects, the cost of infrastructure improvements in the public right-of-way and publicly owned facilities shall not be included. The amount of the redevelopment incentive grant for a municipal redeveloper may include the total cost of such infrastructure improvements and publicly owned facilities.
e. The authority and the State Treasurer may enter into a redevelopment incentive grant agreement only if they make a finding that the State revenues to be realized from the redevelopment project will be in excess of the amount necessary to reimburse the developer for its project financing gap. This finding may be made by an estimation based upon the professional judgment of the Chief Executive Officer of the New Jersey Economic Development Authority and the State Treasurer.
f. In deciding whether or not to recommend entering into a redevelopment incentive grant agreement and in negotiating a redevelopment agreement with a developer, the Chief Executive Officer of the New Jersey Economic Development Authority shall consider the following factors:
(1) the economic feasibility of the redevelopment project;
(2) the extent of economic and related social distress in the municipality and the area to be affected by the redevelopment project;
(3) the degree to which the redevelopment project will advance State, regional and local development and planning strategies;
(4) the likelihood that the redevelopment project shall, upon completion, be capable of generating new tax revenue in an amount in excess of the amount necessary to reimburse the developer for project costs incurred as provided in the redevelopment incentive grant agreement;
(5) the relationship of the redevelopment project to a comprehensive local development strategy, including other major projects undertaken within the municipality;
(6) the need of the redevelopment incentive grant agreement to the viability of the redevelopment project; and
(7) the degree to which the redevelopment project enhances and promotes job creation and economic development.
g. (1) A developer that has entered into a redevelopment incentive grant agreement with the authority and the State Treasurer pursuant to this section may, upon notice to and consent of the authority and the State Treasurer, pledge and assign as security or support for any loan or bond, any or all of its right, title and interest in and to such agreements and in the incentive grants payable thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement. Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.
(2) Any pledge of incentive grants made by the developer shall be valid and binding from the time when the pledge is made and filed in the records of the authority. The incentive grants so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof. Neither the redevelopment incentive grant agreement nor any other instrument by which a pledge under this section is created need be filed or recorded except with the authority.
(cf: P.L.2010, c.10, s.9)
7. This act shall take effect immediately.
STATEMENT
This bill establishes a "port support zone" surrounding the Port Newark-Elizabeth Port Authority Marine Terminal ("the port"). The port support zone will assist the port with the increase in shipping volume at the port expected upon the completion of the expansion of the Panama Canal and the raising of the roadway of the Bayonne Bridge. Currently, large, modern container ships, such as Post-Panamax ships, are not able to enter the port because the navigational height of these ships exceeds the navigational clearance of the Bayonne Bridge. The port support zone includes the area within a five-mile radius of the outermost boundary of the port.
The bill provides that, notwithstanding any law, rule, regulation, or ordinance to the contrary: (1) no amendment or revision to any zoning ordinance shall change the classification of a district zoned for commercial or industrial purposes and located within the support zone; and (2) an overweight commercial vehicle may travel along any road reasonably contiguous to the port, so long as that road is within an industrial or commercial zone of that municipality.
Finally, the bill amends current law to increase the allowable amount of redevelopment incentive grants awarded for the port support zone. The bill provides that any redevelopment incentive grant agreement with a developer for a project within the port support zone shall not exceed 35 percent of the total cost of the project. Under current law, the combined amount of the reimbursements permitted under redevelopment incentive grant agreements with the State or municipality cannot exceed 20 percent of the total cost of the project.
