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 introduces a new requirement for the agreement to outline the procedure for payments and includes a provision that allows for periodic modifications of cost estimates based on actual experience.

The intent of the sponsors 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 and lower-than-expected tax revenues. By establishing clearer guidelines for shared services agreements related to warehouses, the bill aims to enhance collaboration among local units and improve financial outcomes from such developments.

Statutes affected:
Introduced: 40A:65-7