MAKING REDEVELOPMENT HAPPEN
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THE PLAYERS
ATLANTIC COUNTY IMPROVEMENT AUTHORITY Provides Leadership; Serves as Coordinator for All Parties/Redevelopment Efforts Provides Extensive Redevelopment Powers
Acquire Property and Install Infrastructure Extend Credit or Make Loans to Redevelopers Negotiate Redevelopment Agreements with Redevelopers
Provides Conduit Borrowing Powers Coordinates with Other Agencies (e.g., CRDA, NJDEP, NJDOT, NJRA)
COUNTY OF ATLANTIC Provides Initial Funding Provides Supplemental Expertise to ACIA (financial, planning, engineering and legal) Potential Additional Support through Possible Credit Enhancement
LOCAL GOVERMENTAL UNITS Designates Redevelopment/Rehabilitation Areas – Foundation for Redevelopment Provides Zoning Regulations through Redevelopment Plan Provides Financial Assistance (e.g., financial agreements and/or contribution of land)
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THE LAWS
County Improvement Authorities Law (NJSA 40:37A-44 et seq.)
Local Redevelopment and Housing Law (NJSA 40A:12A-1 et seq.)
Redevelopment Area Bond Financing Law (NJSA 40A:12A-65 et seq.)
Long Term Tax Exemption Law (NJSA 40A:20-1 et seq.)
Five-Year Exemption and Abatement Law (NJSA 40A:21-1 et seq.)
New Jersey Economic Opportunity Act of 2013 (NJSA 52:27D-489p et seq.)
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THE GOAL
SPUR REDEVELOPMENT Generate Ratables Create Jobs (temporary and
permanent) Remediate Contamination Improve/Construct Infrastructure Eliminate and Prevent Blight
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THE STRATEGY ACIA Serves as Leader/Coordinator of
Redevelopment Effort by: Identifying redevelopment opportunities; Preparing comprehensive transaction-by-transaction
strategy to employ various redevelopment tools; and Implementing such strategy.
County May Supplement ACIA Expertise with Outside and In-house Professionals and Potentially Provide Credit Support as Necessary and Appropriate
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THE INITIATIVE Applications from municipalities for grants
Grants in form of professional services Value up to $50,000
ACIA will assemble professionals – planning, engineering, financial and legal
ACIA team will review applications and select applicants based on following criteria:
Designated Redevelopment/Rehabilitation Area Ownership Interest/Site Control Willingness of municipality to consider PILOTs, increased
density, or and/contribution of land and/or funds
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THE APPLICATION ACIA Initiative Application
Applicants identify and describe potential parcels/areas to be redeveloped
Provide information about such parcels/areas to allow ACIA Team to evaluate based on previously identified criteria
Applications due to ACIA by June 1, 2015 ACIA to select candidates by July 1, 2015
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THE SUCCESS STORIES
Bayonne Crossing Retail Center, Bayonne, NJ
Kaplan Gateway Project, Carteret, NJ
Elberon/Wakefern Warehouse Project, Elizabeth, NJ
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HUDSON COUNTY IMPROVEMENT AUTHORITY
2009 – HCIA, City of Bayonne, Bayonne Redevelopment Agency and County of Hudson participated in multi-public body financing through NJEIT
Redevelopment project – remediation of former petroleum site and construction of 356,000 SF “big box” retail project
Secured by PILOTs, letter of credit during construction, and City and County guarantees
10 different public entities, over 80 public votes, 23 different governmental approvals, and endured multiple lawsuits, all during an economic recession
Severely contaminated 30-acre parcel replaced with new retail center that generates tax revenue, UEZ revenue and thousands of construction and full-time jobs
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BOROUGH OF CARTERET (“Borough”) & CARTERET REDEVELOPMENT AGENCY
(“CARA”)
Redevelopment Project – 384 residential units & 15,000 sq ft of retail space
Borough and CARA acquired some properties for project, including by eminent domain
CARA issued $6,250,000 Redevelopment Area Bonds (“RABs”) to finance:
Infrastructure improvements associated with the project (tax-exempt) Pre-construction costs, such as acquisition, demolition & remediation
(taxable) RABs secured by PILOTs, Special Assessment & Borough Guaranty PILOTs generated by project exceed debt service on RABs; Borough
retains excess revenues Project revitalized area characterized by abandoned and decaying
houses and buildings, and remediated environmentally contaminated properties
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UNION COUNTY IMPROVEMENT AUTHORITY
2010 – Union County Improvement Authority (“UCIA”) allocated a portion of Union County’s Recovery Zone Bond allocation to Wakefern project in City of Elizabeth
UCIA issued $44,499,000 in Recovery Zone Facility Bonds (“RZFBs”) – a federal program permitting governments to issue tax-exempt, private activity bonds to spur private investment in new projects
TD Bank purchased RZFBs from UCIA and provided a construction loan and revolving line of credit to Elberon Development Co., LLC (“Elberon”)
Financing program also included reallocated volume cap from City of Elizabeth, County of Union and State volume cap from State of New Jersey
Wakefern Food Corp. is a wholesale distribution cooperative, supplying over 200 stores with groceries and other merchandise along the eastern seaboard. For 50 years, Elberon owned and managed the warehouse in Elizabeth.
Elberon used the proceeds to demolish old warehouse and, in its place, construct a new 524,000 sq ft state-of-the-art warehouse for Wakefern Food Corp. in Elizabeth
Project generated approximately 130 construction jobs and is expected to create over 345 permanent jobs
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