SENATE ECONOMIC GROWTH COMMITTEE
STATEMENT TO
SENATE, No. 3097
STATE OF NEW JERSEY
DATED: MAY 16, 2024
The Senate Economic Growth Committee reports favorably Senate
Bill No. 3097.
As reported, this bill modifies certain deadlines for certain existing
projects under the Economic Redevelopment and Growth Grant
program (program) and modifies the definition of “project cost” for
purposes of the program.
Temporary Certificate of Occupancy Deadlines
This bill extends the deadline for a developer to submit a
temporary certificate of occupancy for certain qualified residential
projects or mixed use parking projects from June 30, 2026 to June 30,
2028. Specifically, this extension would apply for any residential
project or mixed use parking project: (1) that was approved after May
1, 2017; (2) that is located in a Garden State Growth Zone with a
population over 125,000, except not including those projects located in
Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester,
Ocean, and Salem counties; and (3) for which the municipality in
which the project is located submitted a letter of support to the chief
executive officer of the New Jersey Economic Development Authority
identifying up to six projects prior to July 1, 2018.
This bill also extends the deadline for a municipal redeveloper to
submit a temporary certificate of occupancy for certain proposed
mixed use parking projects from June 30, 2026 to June 30, 2028. This
extension would apply for any mixed use parking project: (1) that is
undertaken by a municipal redeveloper after July 29, 2022; (2) for
which a redevelopment incentive grant is awarded; and (3) that is
located in a Garden State Growth Zone with a population over
125,000, except not including those projects located in Atlantic,
Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and
Salem counties.
Modified Projects
Additionally, the bill permits the developers of certain mixed use
parking projects to exclude a visitor center, youth center, or both from
the project application, or to assign the application to a municipal
redeveloper, provided that the project otherwise qualifies as a mixed-
use parking project. This permission to amend or assign an application
applies to any mixed use parking project: (1) that is undertaken by a 2
municipal redeveloper after July 29, 2022; (2) for which a
redevelopment incentive grant is awarded; (3) that is located in a
Garden State Growth Zone with a population over 125,000, except not
including those projects located in Atlantic, Burlington, Camden, Cape
May, Cumberland, Gloucester, Ocean, and Salem counties; and (4)
that was initially intended to be utilized by a visitor center or youth
center within or adjacent to a national historic park.
Under current law, the redevelopment incentive grant award for
such a project is equal to 100 percent of the total project costs
allocated to the parking component combined with 80 percent of the
total project costs allocated to the non-parking component. Under the
bill, the maximum amount of any redevelopment incentive grant for
the modified project would be determined in the same manner as for
an unmodified project.
Project Cost
This bill revises the definition of the term “project cost,” for the
purposes of the program, to provide that an additional amount, not to
exceed 20 percent of the total project cost for costs not directly related
to construction, may only be included with respect to the cost of
infrastructure improvements. The bill also provides that, for purposes
of the definition of “project cost,” capitalized interest paid to third
parties is deemed to be costs directly related to construction.
The bill also amends the definition of “project cost” to include the
funding of a debt service reserve fund.