The bill amends New Jersey law concerning financial agreements for urban renewal projects, requiring that every approved project be documented through a financial agreement between the municipality and the urban renewal entity, which must be approved by ordinance. This financial agreement will detail various terms, including profit limitations, tax exemptions for improvements and land, annual service charge payments for municipal services, and mandates for annual reporting and inspections. It also allows for arbitration provisions in case of disputes and specifies the duration of tax exemptions, which can range from 30 to 50 years based on the project structure.

Additionally, the bill modifies the tax exemption process for urban renewal projects, stipulating that municipalities must certify the existence of a financial agreement to qualify for tax exemptions. It introduces structured schedules for annual service charges based on project revenues and outlines conditions for adjusting these charges. The bill emphasizes timely payments to the county and includes penalties for municipalities that fail to comply with the financial agreement terms. Furthermore, it amends the "Long Term Tax Exemption Law" to impose specific reporting requirements on municipalities regarding financial agreements, ensuring transparency and accountability in their financial dealings related to long-term tax exemptions. The act will take effect on the first day of the third month following its enactment.

Statutes affected:
Introduced: 40A:20-9, 40A:20-12
Advance Law: 40A:20-9, 40A:20-12
Pamphlet Law: 40A:20-9, 40A:20-12