The bill amends New Jersey law concerning financial agreements for urban renewal projects, establishing that each approved project must be documented through a financial agreement between the municipality and the urban renewal entity, which requires approval by ordinance. The financial agreement will detail various stipulations, including profit limitations, tax exemptions for improvements, annual service charge payments for municipal services, and the submission of annual auditor reports. It also introduces arbitration provisions for dispute resolution and ensures that the urban renewal entity adheres to the law's requirements throughout the agreement's duration.

Additionally, the bill clarifies the duration of tax exemptions for urban renewal projects, allowing exemptions of up to 30 years from project completion or 35 years from the financial agreement's execution, with specific provisions for sequential projects. It establishes a structured schedule for annual service charges payable to the municipality, which may vary based on the project's nature and exemption duration. The bill mandates municipalities to report detailed information about each financial agreement to the county, enhancing transparency and accountability. It specifically amends the "Long Term Tax Exemption Law" to include new reporting requirements for agreements made after the effective date of P.L.2003, c.125, and is set to take effect three months post-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