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-1.8 - Approval letter; incentive award agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon receipt of a recommendation from the
				  Authority staff on the project, the Board shall determine whether or not to
				  approve the application, the maximum amount of tax credits and the maximum
				  percentage amount of allowed tax credits, and promptly notify the applicant,
				  any co-applicant, and the Director of the Division of Taxation in the New
				  Jersey Department of the Treasury of the determination.
1. The Board's award of the credits will be
				  subject to conditions subsequent that must be met in order to retain the
				  credits. An approval letter setting forth the conditions subsequent will be
				  sent to the applicant and any co-applicant. Such conditions shall include, but
				  not be limited to, the requirement that the project complies with the
				  Authority's prevailing wage requirements,
				  N.J.S.A.
				  34:1B-5.1, and affirmative action
				  requirements,
				  N.J.S.A.
				  34:1B-5.4, as set forth at N.J.A.C.
				  19:31AA-1.13, and that the project does not violate any environmental law
				  requirements, including, but not limited to, the Flood Hazard Area Control Act
				  Rules, N.J.A.C. 7:13. The approval letter shall also provide the requirements
				  necessary for the Authority to execute the incentive award agreement.
2. For a financing gap tax credit the
				  approval letter shall:
i. Require
				  documentation evidencing project financing and planning approvals, including
				  the submittal of executed financing commitments, documents that evidence site
				  control by the applicant or an affiliate of the applicant, a copy of the site
				  plan approval, a copy of an executed agreement with the operator of the
				  supermarket or grocery store at the site of the project, and a copy of all
				  required permits and planning and zoning approvals and permits; and
ii. Provide estimated dates of completion for
				  the opening of the supermarket or grocery store for business to the public and
				  include a requirement for periodic progress reports.
3. For an initial operating cost tax credit
				  the approval letter shall:
i. Require
				  documentation evidencing project and financing approvals, including the
				  submittal of executed financing commitments, documents that evidence site
				  control by the applicant or an affiliate of the applicant, a copy of all
				  executed leases, licenses, or other occupancy agreements executed by the
				  applicant for space at the supermarket or grocery store, and a copy of all
				  required permits; and
ii. Provide
				  the estimated date of the opening of the supermarket or grocery store for
				  business to the public and include a requirement for periodic progress
				  reports.
4. Absent
				  extenuating circumstances or the Authority's determination, in its sole
				  discretion, the Authority's approval of the tax credits shall expire if the
				  applicant or co-applicant, as applicable, does not submit the documentation
				  required at (a)2 and 3 above within one year after approval of the
				  application.
5. If the Authority
				  does not receive a periodic progress report when required, or if the progress
				  report demonstrates unsatisfactory progress or inadequate information, then the
				  Authority may rescind the commitment of the incentive award. If the Authority
				  rescinds an incentive award or the approval of an award expires, the Authority
				  may designate another new supermarket or grocery store as the first or second
				  new supermarket or grocery store.
6. If the terms of the financing commitment
				  in the evidence required by the approval letter are materially different from
				  the projected terms in the application, the Authority may re-evaluate the
				  project financing gap or the amount of initial operating shortfall and reduce
				  the size of the incentive award accordingly or may rescind the commitment of
				  the incentive award.