Authorizes political subdivisions to require recipients of economic development incentives to enter into community benefits agreements.
Impact
If enacted, S2748 would significantly change the landscape of economic development incentives in New Jersey by ensuring that subsidies come with stipulations benefiting the community. This emphasis on community benefits aims to improve local economies and ensure residents gain from developments within their neighborhoods. The bill will formally structure the requirements that recipients of substantial subsidies must meet, potentially leading to broader support for local initiatives and sustainable economic practices.
Summary
Senate Bill S2748, introduced in New Jersey, seeks to empower political subdivisions to require developers to enter into community benefits agreements when receiving economic development subsidies exceeding $100,000. This bill establishes that any such subsidy can be conditioned upon a legally binding agreement that stipulates specific community contributions. Provisions could include local hiring initiatives, adherence to area wage and benefits standards, and the engagement of local firms for services and goods related to the project.
Contention
The bill may face contention, as some stakeholders could argue that it imposes additional burdens on developers, potentially discouraging investment in the state. Concerns may arise over the feasibility of compliance with community benefits agreements and whether these stipulations deter small businesses or startups from pursuing state incentives. Proponents of the bill argue that ensuring community benefits is crucial for promoting equitable economic development and supporting local workforce initiatives.