This bill amends the "Uniform Shared Services and Consolidation Act" to allow local units to enter into or renew shared services agreements specifically for the development and operation of warehouses within their shared territories. The amendments require that these agreements include terms and conditions for sharing the costs and revenues associated with the warehouse development, as well as specifying the square footage of the warehouse involved. Additionally, the bill mandates that the agreements outline the specific services to be performed, the standards of performance, estimated costs, payment procedures, and the duration of the agreement.

The intent of the bill is to provide municipalities with a mechanism to better manage warehouse developments, addressing concerns about overdevelopment or underutilization. Many municipalities have experienced situations where promised increases in property tax revenue from warehouse developments have not materialized, leading to empty or underused facilities. By establishing clearer guidelines for shared services agreements related to warehouses, the bill aims to enhance collaboration among local units and ensure that the financial benefits of such developments are more equitably distributed.

Statutes affected:
Introduced: 40A:65-7