New Jersey Administrative Code › Title 2 - AGRICULTURE › Chapter 76 - STATE AGRICULTURE DEVELOPMENT COMMITTEE › Subchapter 16 - NONPROFIT ACQUISITION PROJECTS: PROJECT AGREEMENT, NEGOTIATIONS FOR PURCHASE OF PROJECT SITE, DISBURSEMENTS, ACCOUNTING AND RECORDKEEPING REQUIREMENTS › Section 2:76-16.1 - Project agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Committee shall send the project agreement to the nonprofit. The nonprofit shall ensure that the project agreement is approved and signed by the nonprofit's attorney, and executed by the person authorized under the resolution described at 2:76-13.3(a)2. The project agreement shall contain:
1. An identification of the parcels to be acquired or preserved as part of the project site;
2. The estimated cost of acquisition of the project site; and
3. The following conditions:
i. That the nonprofit shall, for lands acquired in fee simple title, ensure that the lands are maintained for agricultural use and production pursuant to 2:76-6.1 5;
ii. That the nonprofit shall, for lands acquired in fee simple title, agree not to sell, lease, exchange, or donate the lands unless:
(1) The lands will continue to be maintained for agricultural use and production pursuant to 2:76-6.1 5;
(2) The Committee is notified that the restricted farm is being offered for sale, exchange or donation; and
(3) The Committee approves the transfer in writing prior to the nonprofit's offering, for sale or conveyance, of any of its interest in the land. This requirement for written approval is met if an intended transferee is named in the project agreement executed under this section;
iii. That the nonprofit shall, in the case of the acquisition of a development easement, agree not to convey the development easement except to the Federal government, the State, a local unit of government, or another qualifying tax exempt nonprofit organization for farmland preservation purposes;
iv. That the nonprofit shall, at the time of acquisition of lands in fee simple title, agree to execute a deed of easement. The deed of easement shall be recorded in the same manner as a deed and shall run with the land. The deed of easement shall contain the following:
(1) Restrictions consistent with the provisions of 2:76-6.1 5 and approved by the Committee;
(2) The Committee's right to enforce the conditions of the restrictions;
(3) The remedies available to the Committee in the event the nonprofit does not comply with the conditions of the restrictions;
(4) A reimbursement provision which requires the nonprofit that sells or donates any interest in any lands acquired with a grant by the Committee, that the nonprofit shall pay to the Committee 50 percent of the net proceeds. For purposes of this section, "net proceeds" means the amount of compensation received by the nonprofit in excess of any unreimbursed costs; and
(5) Other special conditions as appropriate;
v. That the nonprofit shall, at the time of acquisition of a development easement, agree to execute a deed of easement. The deed of easement shall be recorded in the same manner as a deed and shall run with the land. The deed of easement shall contain the following:
(1) Restrictions consistent with the provisions of 2:76-6.1 5 and approved by the Committee;
(2) The Committee's right to enforce the conditions of the restrictions;
(3) The remedies available to the Committee in the event the nonprofit does not comply with the conditions of the restrictions; and
(4) Other special conditions as appropriate;
vi. The requirements for recordkeeping and project administration pursuant to 2:76-16.4; and
vii. Other terms and conditions, including a statement of the remedies described at (f) through (i) below.