ASSEMBLY BUDGET COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4709
STATE OF NEW JERSEY
DATED: JUNE 26, 2024
The Assembly Budget Committee reports favorably Assembly Bill
No. 4709.
This bill provides the New Jersey Economic Development
Authority (EDA) with monies to be used to purchase properties from
the New Jersey Transit Corporation (NJT) that the EDA identifies as
suitable for, among other purposes, development, rehabilitation, and
leasing opportunities that maximize the development potential of the
properties.
Under the bill, the EDA would be permitted to access funds from
the EDA’s economic growth account in an amount not less than
$35,000,000. Purposes for which these funds may be used under the
bill would include construction, reconstruction, rehabilitation,
improvements, alterations, equipping, maintenance, and repairs of
certain properties that are identified as suitable to economic growth
potential. The EDA would also be permitted to award and enter into
construction contracts, purchase orders, and other contracts with
respect to such properties.
Additionally, the bill appropriates an amount not to exceed $65
million from the General Fund to the EDA for the purpose of
purchasing properties from NJT that are identified by the EDA to
maximize the development potential of such properties.
Under the bill, the EDA would be required to purchase the
properties at a price based on appraisals obtained by the EDA of the
highest and best use value of the properties, and NJT would be
required to maintain a participation interest in each property. The bill
also provides that if the EDA sells or leases any of these properties to a
public or private entity, the EDA would be required to pay no less than
33 percent of the proceeds of the sale or lease, as applicable, to NJT.
The bill requires the EDA to notify the Joint Budget Oversight
Committee (JBOC) that properties have been identified, but before the
purchase of any land, in order for the EDA and NJT to provide JBOC
with a joint presentation regarding details of the proposed conveyance.
The bill further requires the EDA to notify JBOC before developing,
redeveloping, constructing, reconstructing, rehabilitating, renovating,
selling, leasing, subleasing, or contributing as an investment the
properties acquired from NJT. This EDA presentation would detail
the intended actions to be taken with respect to the properties.
FISCAL IMPACT:
Fiscal information for this bill is unavailable.