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Fort Monmouth Economic Revitalization Authority S-917/A-597

Fort Monmouth Economic Revitalization Authority S-917/A-597. Overview: Fort Monmouth . BRAC recommended closure of Ft. Monmouth in Aug. 2005 April 2006: Gov. Corzine signed legislation that created the Fort Monmouth Economic Revitalization Planning Authority (FMERPA)

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Fort Monmouth Economic Revitalization Authority S-917/A-597

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  1. Fort Monmouth Economic Revitalization AuthorityS-917/A-597

  2. Overview: Fort Monmouth • BRAC recommended closure of Ft. Monmouth in Aug. 2005 • April 2006: Gov. Corzine signed legislation that created the Fort Monmouth Economic Revitalization Planning Authority (FMERPA) • In September of 2010, Fort Monmouth’s General Strong and his staff will be moving to Aberdeen, Maryland • Civilian Adjunct is already in Aberdeen and 1,000 Fort Monmouth personnel have already left • In September 2011, flags come down at Fort Monmouth, and remaining 4,000 employees will be gone

  3. Overview: Fort Monmouth • Fort Monmouth has provided $3.2 Billion in economic activity to New Jersey • 57% of the Fort’s employees live outside the three host municipalities • 52% of the 15,000 jobs associated with suppliers and contractors to the Fort are located 20 miles or more away from the Fort • Fort Monmouth is made up of 1,126 acres of land and its closing will have a significant Statewide, Regional and Local impact

  4. Fort Monmouth Economic Revitalization Planning Authority • FMERPA was created legislatively in 2006 to prepare a “master plan” for the conversion of Fort Monmouth • After years of planning, FMERPA finalized the Fort Monmouth Reuse and Redevelopment Plan and submitted it to the Dept. of Defense (DoD) and HUD on September 4, 2008 for certification and approval • As of this date, the plan is still awaiting the approval of HUD • The Planning Authority’s mission is complete, a plan has been developed and now it needs to be implemented • DoD now requires the creation of a Local Redevelopment Authority (LRA) so they can transfer ownership of the property to the State of New Jersey.

  5. S-917: Fort Monmouth Economic Revitalization Authority PAGE 2, Section 2 • Under S-917, the Planning Authority will be dissolved since its work is done and the Revitalization Authority will be created to implement the Plan submitted to Department of Defense (DoD). The Revitalization Authority’s purpose and mission is to implement the approved Fort Monmouth Reuse and Redevelopment Plan (Page 6, Sections 4 and 5) • This Revitalization Authority will serve as the DoD required Local Redevelopment Authority (LRA) so that the Department of Defense can convey the Fort Monmouth property to New Jersey. • It also will work to attract the necessary investors and employers to recreate the 5,000 direct and 15,000 indirect jobs being lost in our region as a result of the closure of Ft. Monmouth. The Revitalization Authority will oversee the day-to-day redevelopment efforts of Fort Monmouth as outlined in the approved Plan

  6. S-917: Fort Monmouth Economic Revitalization Authority’s Board PAGE 8, Section 8 VOTING MEMBERS (9) • 3 Appointees of the Governor • Member of the Monmouth County Board of Chosen Freeholders • Mayors from Eatontown, Oceanport, Tinton Falls • Member of the Governor’s Staff • Chairman of the NJ Economic Development Authority NON-VOTING MEMBERS (4) Commissioners of Transportation, Environmental Protection, Labor and Community Affairs

  7. S-917: Fort Monmouth Economic Revitalization Authority’s Board Page 9, Section 8d • Annually elects a Chairman and Vice Chairman from among their Board members • For most State Authorities the Governor appoints the Chairman

  8. S-917: Ethics Provisions Including Pay to Play and Financial Disclosure • Page 10, Section 8g (1), (2), (3): to ensure the integrity of the Authority board members, all members will be required to file financial disclosure and conflicts of interest forms and comply with Pay to Play law

  9. S-917: Ethics Provisions Including Pay to Play and Financial Disclosure Proposed Amendment: While the existing State Pay to Play statute already applies, procurements by State Authorities and the developers/contractors submitting bids, the amendments re-state the requirements of Pay to Play within the legislation.

  10. S-917: Fort Monmouth Economic Revitalization Authority’s Board Proposed Amendment: Allow Monmouth County Freeholders to offer three names for one of Governor’s appointments. Person must be a resident of Monmouth County.

  11. S-917: Supermajority Requirements Page 9, Section 8e • 7 affirmative votes of the 9 voting members will be REQUIRED to vote do any of the following: • Adopt or revise the Plan that was submitted to Dept. of Defense • Adopt or revise the development and design guidelines or land use regulations adopted by the Authority. NOTE: the land use guidelines will be based on municipalities adopted master plans • Enter into designated redeveloper agreement with the EDA • Condemn property within Fort Monmouth for easements, rights of way, provision of utilities, streets, roads or other infrastructure required to implement the Plan • Designate any portion of the Fort Monmouth property “in need of rehabilitation”

  12. S-917: Supermajority Requirements • 7 affirmative votes of the 9 voting members will be REQUIRED to vote to do the following: Any action to adopt any amendments to the Plan as listed on Page 19, Section 15e, paragraph 1, which would require a variance, specifically: • A use or principal structure in a district restricted against such use or principal structure • A continuation or expansion of a nonconforming use • Deviation from a specification or standard pursuant to land use regulations adopted by the authority • An increase in the permitted floor area ratio as established by the land use regulations adopted by the authority • Height of a structure which exceeds by 10 feet or 10 percent the maximum height permitted in the district for a structure

  13. S-917: Supermajority Requirements Proposed Amendment • Any change in DENSITY must first be approved by the host municipality's zoning board. If the application is denied, then the application CANNOT be approved by Authority • Affirmative votes of 7 out of 9 voting Authority members mustratify the Authority’s operating budget • Affirmative votes of 7 out of 9 voting Authority members mustratify any project undertaken by the EDA

  14. S-917: Fort Monmouth Economic Revitalization Authority’s Staff/Ex Dir Page 3, Section 2e and Page 7, Section 6a,b,c,d • Existing employees from New Jersey Economic Development Authority (EDA) will work fulltime for Authority and for the moment the Dept. of Defense will fund the annual budget and staff salaries at 90%. Eventually this DoD funding will be phased out. • The Revitalization Authority will enter an agreement with EDA for the establishment, operation and financial support of the office. Annually, the EDA will submit a budget for approval by the Revitalization Authority for the operation of the Authority’s office. • The Revitalization Authority Board will conduct a national search for an Executive Director with experience in BRAC conversions. They will be responsible for interviewing and hiring the Executive Director. • The Revitalization Authority’s Executive Director will be charged with carrying out the day-to-day operations of the redevelopment of Ft. Monmouth pursuant to the approved Plan.

  15. S-917: Fort Monmouth Economic Revitalization Authority/NJEDA Page 3, Section 2f and Page 19 New Jersey Economic Development Authority (NJEDA) will serve as designated redeveloper to the Revitalization Authority • NJEDA has a 30 year history in real estate development and business assistance • Over $20 Billion in assistance has been delivered to more the 10,400 projects since 1974, leveraging $43 Billion in public/private investments and creating more than 304,000 new jobs • The role of the EDA, throughout the State, is to facilitate economic growth and development • The EDA has substantial and significant experience partnering with local communities and leveraging public-private partnerships

  16. S-917: Fort Monmouth Economic Revitalization Authority/NJEDA • The Revitalization Authority will dictate how various parcels of the Plan are redeveloped and will determine which are handled by the EDA, the Authority or private developers. As the Revitalization Authority’s designated redeveloper, the EDA will be able to provide its expertise and advice on how to approach redevelopment and also provide financing as needed.

  17. S-917: Fort Monmouth Economic Revitalization Authority/NJEDA Page 3, Section 2f and Page 16, Section 14a Designated Redeveloper Agreement • Redevelopment agreement entered into by the Authority and the EDA MUST be approved by a supermajority, 7 out of 9 members • Agreement will detail terms and conditions of redeveloper relationship, including tasks delegated to EDA

  18. S-917: Fort Monmouth Economic Revitalization Authority/NJEDA Page 17, Section 14a Powers EDA does NOT have: • Cannot change/adopt design guidelines, land use regulations • Cannot be considered the Local Redevelopment Authority • Cannot declare an area in need of redevelopment • Cannot appoint the Advisory Committee

  19. S-917: Fort Monmouth Economic Revitalization Authority/NJEDA • NJEDA’s Real Estate Division oversees the identification, analysis, acquisition, development, management and potential sale of real estate projects which are critical to the economic development of New Jersey • NJEDA has renovated over 9.25 million square feet of new space since 1979 and leveraged more than $1.3 billion in public/private investments • In 2009 alone, EDA provided more than $670 million in financing assistance, business incentives and tax credits to over 400 companies, not-for-profit organizations and municipalities, which served as a catalyst for more than $1.65 billion in new public/private investments. • NJEDA 2009 efforts are expected to create 9,600 new, permanent jobs and over 14,300 construction jobs

  20. NJEDA Real Estate Projects • Technology Centre of New Jersey • Developed in 1996, sits on 50 acres in North Brunswick on Rte. 1 on the “Research and Development” corridor between Princeton and Rutgers Universities • More than $100 million has been invested in facilities and improvements on this property, which is located within the Greater New Brunswick Innovation Zone • Commercialization Center for Innovative Technologies (CCIT) • The Technology Centre is also home to CCIT, which is one of the most recognized incubators of its kind in the world. • It originally opened in 2002 with 20,000 square feet and was expanded in 2005 to 46,000 square feet with the addition of 10 lab units, business accelerator office space and flexible conference facilities

  21. NJEDA Real Estate Projects • Tech III and the Biotechnology Development Center (BDC) • Tech III is an 80,000 square-foot building that is currently occupied by CCIT and the Rutgers University Technology Center II and the BDC includes 26,000 square feet of generic wet lab space • Among its real estate activities in 2008, the EDA approved $11.5 million in funding to fit out 38,000 square feet of wet laboratory space in two buildings on the Technology Centre campus • Waterfront Technology Center at Camden • The Waterfront Technology Center at Camden is a five-story, 100,000-square-foot facility that is the first of several technology structures planned for the site • The Center is currently 90-percent occupied or committed under Letters of Intent and houses over 600 employees.

  22. NJEDA Real Estate Projects On behalf of the State, the EDA is often asked to assist in implementing real estate projects that advance New Jersey’s economic objectives. Those projects: • Greystone Psychiatric Hospital • EDA designated to oversee the design, development, and construction of the new Greystone Hospital • Completed in 2008, the 450,000 square-foot, state-of-the-art facility features 450 beds in a single, self-contained building that includes a treatment mall with over 21 rooms for various activities and a large auditorium • Liberty Science Center • EDA facilitated both the financing and project management services for the expansion and renovation of the Liberty Science Center • The project included an addition of 100,000 square feet of new space, as well as retrofitting the existing 195,000 square feet

  23. Revitalization Authority: Funding for Redevelopment • Due to the fiscal crisis in NJ, we can not expect to see any funding from the state • Federal representatives are ready and willing to go to federal government for appropriations • This legislation creates mechanisms for the authority to generate revenue to fund its redevelopment. • Funding Mechanisms: • Special Improvement District • Transportation Planning District • Infrastructure District • Revenues generated from these mechanisms can only be spent on projects within the authority for the enhancement of the redevelopment • Do not want to place the burden on local residents to have to fund redevelopment in project area • Funding needed for roadway improvements, infrastructure improvements, transportation improvements

  24. Municipalities Will Assess and Collect Property Taxes Page 15, Section 11ab • Municipality will collect full taxes for municipal, county, fire, and school including water and sewer. • If a property is an EDA or Authority project, and is leased or rented to a private entity, the lessee will make a payment-in-lieu-of-taxes equal to what would have been paid in taxes.

  25. Municipalities May Be Paid to Provide Services to Revitalization Authority Page 14, Section 9ff The Revitalization Authority can contract with a public entity for maintenance of parks, recreation centers, schools, sewerage, transportation, water and other municipal facilities in connection with Fort Monmouth property.

  26. BRAC Closures Nationally and their Funding

  27. BRAC Closures Nationally • Fort Devens • Ayer, Shirley and Harvard, MA • 4,400 acres • Closed in 1996 • Job Loss: • 4,000 Military • 2,900 Civilian • Organization: • Redevelopment responsibility went to MassDevelopment • MassDevelopment is MA’s version of NJEDA • Board of Directors: 11 members ALL appointed by MA Governor • Regulatory Board: 12 members- 2 from each of the 3 towns and 6 appointed by MA Governor

  28. BRAC Closures Nationally • Lowry Air Force Base; Denver, CO. • 1,866 Acres • Closed in 1994 • Jobs Lost: • 4,052 Military • 2,275 Civilian • Quasi-Public organization formed between Cities of Denver and Aurora; 10 member Board of Directors

  29. Special Improvement District • What is a Special Improvement District? • An area within the project area in which a special assessment on the property shall be imposed for the purposes of promoting the economic and general welfare of the project area • For an area to be considered a special improvement district, the host municipality must also adopt a resolution designating it as such • Purpose of a Special Improvement District: • To generate revenue from the district to pay for projects needed to promote the district, i.e.- marketing, advertising, clean up projects, beautification projects, upgrades to infrastructure • If the host municipality incurs any costs in implementing the assessment of the fees, than they shall be reimbursed from the fees generated • Current Special Improvement Districts in Monmouth County: • Freehold Boro • Highlands • Keyport • Red Bank

  30. Transportation Planning District • What is the Transportation Planning District? • All of the lands which comprise the project area • A transportation plan is developed with participation from: state departments and agencies, corporations, commissions, boards and authorities; metropolitan planning organizations; county and local municipalities within the jurisdiction of the planning district • What is the purpose of the Transportation Plan: • To establish goals and policies for all modes of transportation • To quantify future transportation needs arising from future development • To set forth proposed projects to meet future needs prioritized over 5 year increments • The transportation plan shall be in accordance with state, county and applicable regional transportation master plans

  31. Transportation Planning DistrictCont. • After the Authority adopts the transportation plan, it may assess fees on development to pay for the implementation of the transportation plan • The authority may allow for credits to be applied towards those fees, if the developer incurs other costs to further the transportation plan • The authority is allowed to exempt or reduce the development fee if the development is determined to have a “beneficial, neutral, or minor” impact on the transportation needs • The funds generated by these fees will be under the control of the Authority • The purpose of this fee is to also not place the costs of the transportation improvements on the backs of the taxpayers of the host municipality. Those benefiting from the transportation improvements should contribute to them

  32. Infrastructure District • The infrastructure district will be comprised of any or all lands within the project area, as adopted by resolution of the Authority • The purpose of the infrastructure district is to generate fees from the businesses in the district to pay for the necessary infrastructure improvements • The authority will impose a “franchise fee” to collect this assessment

  33. Infrastructure District • What is the Franchise Fee? • Up to 50% of the Sales and Use Tax • How is fee assessed: • At point of sale transactions within the infrastructure district • Exclusions to fee: • Alcoholic beverages • Cigarettes • Retail Sales of motor vehicles • Manufacturing Machinery • Equipment or apparatus • Energy • Anything else that is currently not subjected to Sales and Use Tax • There is no difference to the consumer; they still pay 7% tax • The fee shall be uniform throughout the district • This fee like the Special Improvement, and Transportation fee is to generate revenue for the authority to make necessary improvements from those benefiting from it, and NOT on the backs of residents

  34. Here to Answer Questions Senator Jennifer Beck Assemblyman Declan O’Scanlon Assemblywoman Caroline Casagrande Tel: 732-933-1591/732-866-1695 Email: senbeck@njleg.org asmoscanlon@njleg.org aswcasagrande@njleg.org

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