New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31V - ASPIRE PROGRAM RULES › Subchapter 1 - ASPIRE › Section 19:31V-1.3 - Eligibility criteria

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Prior
				  to March 1, 2029, a developer and co-applicant, if applicable, shall be
				  eligible to receive an incentive award for a redevelopment project only if the
				  developer demonstrates to the Authority at the time of application that:
1. Without the incentive award, the
				  redevelopment project is not economically feasible;
2. With the incentive award, the
				  redevelopment project will be economically and commercially viable for the
				  duration of the eligibility period;
3. A project financing gap, which includes
				  consideration of the project's reasonable and appropriate return on investment
				  exists, or the Authority determines that the redevelopment project's reasonable
				  and appropriate return on investment is below the market rate of return and
				  supports an incentive award of all or a portion of the project financing
				  gap;
4. The redevelopment project,
				  except a commercial project that is predominantly film production uses, is
				  located in the incentive area;
5.
				  Except for demolition and site remediation activities, the developer has not
				  commenced any construction at the site of the redevelopment project prior to
				  submitting an application. However, the Authority may determine that the
				  redevelopment project would not be completed without the award or, in the event
				  the redevelopment project is to be undertaken in phases, the requested
				  incentive award is limited to only phases for which construction has not yet
				  commenced;
6. The redevelopment
				  project shall comply with minimum environmental and sustainability
				  standards;
7. The redevelopment
				  project shall comply with the Authority's affirmative action requirements,
				  adopted pursuant to
				  N.J.S.A.
				  34:1B-5.4, as provided at N.J.A.C.
				  19:31V-1.14(a);
8. During the
				  eligibility period, each worker employed to perform construction work at the
				  redevelopment project shall be paid not less than the prevailing wage rate for
				  the worker's craft or trade, as determined by the Commissioner of the
				  Department of Labor and Workforce Development pursuant to
				  N.J.S.A.
				  34:11-56.25 et seq., and 34:11-56.58 et seq.
				  For construction work, prevailing wage shall apply to all work done by tenants
				  at the redevelopment project;
9.
				  During the eligibility period, each worker employed to perform building
				  services work at the redevelopment project, whether pursuant to contract by the
				  developer, or a commercial tenant, commercial subtenant, or other commercial
				  occupant, shall be paid not less than the prevailing wage rate for the worker's
				  craft or trade, as determined by the Commissioner of Labor and Workforce
				  Development pursuant to
				  N.J.S.A.
				  34:11-56.25 et seq., and 34:11-56.58 et seq.,
				  except that this requirement shall not apply to workers employed to perform
				  building services work by a commercial tenant, commercial subtenant, or other
				  commercial occupant that has a leasehold interest or other occupancy right in a
				  redevelopment project, which leasehold interest or other occupancy right
				  encompasses less than 5,000 square feet of space within the project. For
				  purposes of this paragraph, square feet shall mean the rentable area of the
				  building or structure in the lease but does not include the tenant's
pro rata
portion of common areas. In the event a portion of a
				  redevelopment project is undertaken by a tenant and the tenant has a leasehold
				  of more than 55 percent of space in the building owned or controlled by the
				  developer, the requirement that each worker employed to perform building
				  service work at the building be paid not less than the prevailing wage shall
				  apply to the entire redevelopment project and all tenants therein. The
				  requirement in this paragraph shall not apply to residential tenants or
				  residential subtenants;
10. The
				  redevelopment project shall be completed, and the developer shall be issued a
				  temporary certificate of occupancy for the redevelopment project facilities by
				  the applicable enforcing agency within four years of executing the incentive
				  award agreement corresponding to the redevelopment project. However, if the
				  Governor declares an emergency, the Chief Executive Officer of the Authority
				  may grant an extension for the duration of the emergency and the Board of the
				  Authority, upon recommendation of the Chief Executive Officer, may grant two
				  additional six-month extensions, provided that on an ongoing basis:
i. The extensions are due to the economic
				  disruption caused by the emergency;
ii. The project is delayed due to
				  unforeseeable acts related to the project beyond the developer's control and
				  not due to the developer's fault or negligence;
iii. The developer is using best efforts,
				  with all due diligence, to proceed with the completion of the project and the
				  issuance of the temporary certificate of occupancy; and
iv. The developer has made and continues to
				  make all reasonable efforts to prevent, avoid, mitigate, and overcome the
				  delay;
11. A
				  redevelopment project with a project cost in excess of $ 50,000,000 may
				  complete the redevelopment project in phases and have the temporary certificate
				  of occupancy issued no more than six years from the date on which the incentive
				  award agreement is executed, provided that:
i.
				  Each phase shall be $ 50,000,000 or more, except for the last phase;
ii. The developer shall obtain a temporary
				  certificate of occupancy for each phase; and
iii. The first temporary certificate of
				  occupancy shall be obtained within four years of executing the incentive award
				  agreement;
12. The
				  developer 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;
13. The developer, all principals of the
				  developer, and any affiliate of the developer, is not more than 24 months in
				  arrears of any financing obligation for the redevelopment project at the time
				  of application, in accordance with
				  N.J.S.A.
				  34:1B-325.a;
14. Except for a residential project, food
				  delivery source, or a health care or health services center, the overall public
				  assistance provided to the project will result in a net positive economic
				  benefit to the State; and
15. If
				  the application includes a co-applicant, the developer and co-applicant
				  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 in Section 1 at
				  P.L.
				  2007, c. 101
				  (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 residents, tenants, or customers of the tenants of the
				  redevelopment project; and
v. The
				  co-applicant's receipt and sale of the tax credits is necessary to finance the
				  redevelopment project.