New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31AA - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Subchapter 1 - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Section 19:31AA-1.3 - Eligibility criteria

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An
				  applicant and co-applicant, if applicable, shall be eligible to receive an
				  incentive award for a project only if the applicant demonstrates to the
				  Authority, at the time of application, that:
1. Without the incentive award, the project
				  is not economically feasible;
2.
				  With the incentive award, the new supermarket or grocery store will operate on
				  a full-time basis during both the eligibility period and commitment period, and
				  will be economically and commercially viable by the last year of the commitment
				  period;
3. The application is for a
				  project located in a food desert community;
4. If the applicant is seeking a financing
				  gap tax credit:
i. A project financing gap
				  exists; and
ii. Except for
				  demolition and site remediation activities, the applicant has not commenced any
				  construction at the site of the project prior to submitting an application,
				  unless the Authority determines that the project would not be completed without
				  the award;
5. If the
				  applicant is seeking an initial operating cost tax credit, an initial operating
				  shortfall will exist;
6. The
				  applicant will comply with the prevailing wage and affirmative action
				  requirements at N.J.A.C. 19:31AA-1.13;
7. The supermarket or grocery store shall:
i. Accept benefits from Federal nutrition
				  assistance programs, including, but not limited to: Supplemental Nutrition
				  Assistance Program (SNAP) and the Special Supplemental Nutrition Program for
				  Women, Infants, and Children (WIC);
ii. Maintain at least 10 percent of retail
				  space dedicated to fresh and/or frozen fruit and vegetables;
iii. Meet the definition of new supermarket
				  or grocery store; and
iv. Hold at
				  least one public listening session annually in the food desert community in
				  which the supermarket or grocery store is located about the supermarket or
				  grocery store's product offerings and operations. Notice of the listening
				  session shall be prominently displayed at the entrance of the supermarket or
				  grocery store and provided to the Authority at least seven days in advance of
				  the meeting. The applicant shall keep reasonably comprehensible minutes of all
				  its listening sessions showing the time and place, the subjects discussed, and
				  any public comment, which minutes shall be promptly made available to the
				  public;
8. The opening of
				  the supermarket or grocery store for business to the public shall be within the
				  earlier of six months of the receipt of a temporary certificate of occupancy
				  for the supermarket or grocery store or three years of executing the incentive
				  award agreement corresponding to the project. The Authority may approve
				  six-month extensions if the applicant is using best efforts, with all due
				  diligence, to proceed with the project;
9. The applicant has complied with all
				  requirements for filing tax and information returns and for paying or remitting
				  required State taxes and fees by submitting, as a part of the application, a
				  tax clearance certificate, as described at
				  N.J.S.A.
				  54:50-39; and
10. If the application includes a
				  co-applicant, the applicant and co-applicant must demonstrate the following:
i. The co-applicant has complied with all
				  requirements for filing tax and information returns and for paying or remitting
				  required State taxes and fees by submitting, as a part of the application, a
				  tax clearance certificate, as described at
				  N.J.S.A.
				  54:50-39;
ii. The co-applicant's organizational purpose
				  encompasses the proposed participation;
iii. The co-applicant has the financial and
				  operational capability to provide the proposed contribution or
				  services;
iv. The co-applicant's
				  proposed capital, real property, or services will materially affect and serve
				  the anticipated customers or support the project or operation of the
				  supermarket or grocery store; and
v. The co-applicant's receipt and sale of the
				  tax credits is necessary to finance the project.