The bill amends the New Jersey Aspire Program by clarifying definitions and criteria related to government-restricted municipalities, which now include specific financial and population conditions. It introduces a municipal revitalization index distress score of at least 40 as a new criterion for eligibility. The bill also updates definitions related to economic development incentives and outlines requirements for redevelopment projects seeking incentive awards, including the inclusion of developer fees in project costs and the introduction of a "project financing gap" concept. Additionally, it mandates that developers demonstrate economic feasibility without the award and comply with environmental standards, while allowing exemptions from certain wage requirements for projects with a labor agreement.

Significant changes include the deletion of provisions that allowed the Economic Development Authority to reduce tax credits based on actual financing gaps and the introduction of a five-year tax exemption for improvements made under the Aspire Program, with potential extensions. The bill also establishes a community benefits agreement for larger projects, requiring community engagement and oversight. It modifies the net benefits analysis for developers in government-restricted municipalities, allowing a lower threshold for tax credit eligibility. Furthermore, it introduces phased tax abatements for improvements and extends reductions in utility connection fees for Aspire Program projects, ensuring equitable treatment for developers. Overall, the bill aims to enhance accountability and ensure that redevelopment projects yield tangible benefits for the State and local communities.

Statutes affected:
Introduced: 34:1B-323, 34:1B-325, 34:1B-326, 34:1B-328, 40:14B-22.3