The bill amends existing legislation to require municipalities to share payments received in lieu of property taxes with school districts, ensuring that local educational institutions benefit from urban renewal projects. It mandates that urban renewal entities submit a written application to the municipality for approval before proceeding with any projects, which must also be shared with the county's board of commissioners and the school district's superintendent. The application must detail the proposed project's nature, estimated costs, and a fiscal plan outlining expected annual gross revenue and expenditures.

Furthermore, the bill introduces new definitions and clarifications regarding financial agreements between municipalities and urban renewal entities, emphasizing the need for transparency and communication throughout the project approval process. It specifies that these agreements must include provisions for sharing payments in lieu of taxes and outline profit limitations for urban renewal entities. Municipal governing bodies are required to allow a 10-day review period for counties and school districts to submit recommendations on long-term tax exemption applications, and mayors must share their recommendations with these entities. The bill also includes provisions for urban renewal entities to certify the number of school-age children residing in approved projects, which will help determine the amount to be remitted to school districts.

Statutes affected:
Introduced: 40A:20-3, 40A:20-8, 40A:20-9, 40A:20-12