Welcome to the New Jersey Chapter of NAIOP, the commercial real estate development association.         
 

NAIOP New Jersey Weekly Update

Week of February 20, 2012


Contact Barbara Morford to Request Your Subscription to our Friday policy update, the WeekEnder Brief (read a sample)


Foreclosures to Boost Affordable Housing Stock?

Senators Ray Lesniak and Barbara Buono have introduced legislation (S-1566) to transform foreclosed homes into affordable housing. The bill would create the New Jersey Foreclosure Relief Corporation and would allow municipalities to buy foreclosed houses through the state's $268 million affordable housing trust fund, and thereby earn two-for-one credit toward their affordable housing obligations. If municipalities decide not to buy the vacant homes, the Corporation would be able to purchase them through federal and state financing sources and deed restrict them as affordable housing for three decades. The corporation could also issue bonds to buy and sell vacant foreclosed houses with the goal of selling them at market rates. Assemblyman Jerry Green is expected to introduce the Assembly version of the measure, which Lesniak says will create more than 10,000 new affordable homes: "It does not address the ongoing complex, incomprehensible and so far insolvable obligations of municipalities, but it will make those obligations more readily attainable," he said. S-1566 was released unanimously by the Senate Economic Growth Committee on Thursday.     

      

Incentives Panel, Sen. President Sweeney to Headline March 7 Public Policy Symposium

Our March 7 Public Policy Symposium will feature a Public/Private Panel Discussion on The NJ Comeback: Attracting and Retaining Jobs and Tenants. Confirmed speakers: Caren Franzini, NJ EDA; Tracye McDaniel, Choose New Jersey; Ted Zangari, Sills Cummis & Gross, PC; David Opper, CB Richard Ellis; Tim Lizura, NJ EDA; Mayor John McCormac, Woodbridge; Todd Anderson of The Hampshire Companies; and Lauren Moore, NJ Business Action Center. The panel will engage in an interactive dialogue that will give you a comprehensive understanding of the life cycle of a development project relative to New Jersey's business climate, tax policy and incentive programs (financial and otherwise), as well as lessons learned and likely trends. The program begins with remarks from and a Q&A session with Senate President Steve Sweeney. Registration is open at www.naiopnj.org. Remember: if you paid your dues by January 15, 2012 check your email for the 50% discount code.

 

$1 Billion Incentive Bill Advances

Legislation (S-1562/A-2442) sponsored by Senator Ray Lesniak and Assemblyman Al Coutinho to beef up business incentive programs was approved by the Senate Economic Growth Committee on Thursday. The measure would increase the maximum total amount of tax credits allowable under the Urban Transit Hub Tax Credit Act from $1,500,000,000 to $2,500,000,000, and under the Grow New Jersey Assistance Act from $200,000,000 to $400,000,000.

 

State Strategic Plan Hearings Underway 

The State Planning Commission is conducting a series of February - March public hearings on the Christie Administration's State Strategic Plan. Find the schedule and locations here. If you attend, we would appreciate hearing your feedback on the issues raised (by you and others). Please share your thoughts with Mike McGuinness or Barbara Morford at 732-729-9900.

    

Permit Extension Bill Advances  Assembly Majority Leader Lou Greenwald's Permit Extension legislation (A-1338) was approved, with amendments, by the Assembly Housing and Local Government Committee on January 30 (the Senate version is S-743/Sarlo). The bill would: extend the permit/approval deadline to December 31, 2014; expand upon the current Permit Extension Act to include the Highlands and Pinelands; clarify that sewer capacity reservation agreements are covered under PEA; and conform with the State Strategic Plan's "economic zones" (rather than planning areas) once the final State Strategic Plan is adopted in 2013.


The 215th session of the New Jersey Legislature began on January 10. Links to the new session:


215th Legislature Leadership

215th Legislature Roster

215th Legislature Senate Committees

215th Legislature Assembly Committees

215th Legislature Joint Committees





 





Read the Latest Government Affairs News
February 2012 edition

NAIOP NJ Policy Committees Meetings

Energy & Sustainability Committee: February 28
Legislative Committee
Regulatory Affairs Committee

If you are interested in joining one of our Policy Committees, please contact Barbara Morford.
Older Stories

Christie Announces State Strategic Plan On October 19, the Christie Administration announced the "State Strategic Plan", which sets statewide planning goals, guiding principles, steps for coordination across government, and an implementation agenda. "New Jersey's challenges are too great to be approached in the stratified, haphazard and unrealistic manner that has characterized previous statewide planning efforts. This is a plan that will foster job growth in a sensible, sustainable and truly effective manner over the long term," said Governor Christie, who said his plan will "position New Jersey for sustained job growth, competitiveness and prosperity."

 

Of special note are the following: Tom Michnewicz of Somerset Development, a long-standing member and Past President of NAIOP NJ, has a seat on the Planning Commission; Transportation, Logistics and Distribution (TLD) Centers are a targeted industry that will be entitled to special treatment and advantages; and of the six priority industry clusters, the TLD sector represents the second highest number of workers (364,429), the highest % NJ wages, and the highest total wages.

 

Noting that conflicting state regulations and inconsistent application of rules and standards discourage economic development, Christie also signed Executive Order No. 78, which requires each Department and Agency of state government to develop strategies that integrate the strategic plan into: program and rule changes; annual capital spending plans; intra- and inter-agency coordination efforts; and staff training. Read the Plan here. Read Executive Order No. 78 HERE.


COAH Fee Moratorium is Law
At a bill signing ceremony August 24 (video), Acting Governor Kim Guadagno signed into law legislation (S-2974 Lesniak/Sweeney, A-4221Coutinho/Bucco /Burzichelli) that places a two-year moratorium on the 2.5% non-residential COAH fee for eligible projects beginning July 2011 and ending July 2013. Read the law.  


NJ EDA Announces Energy Efficiency Loan Program New Jersey-based commercial, institutional or industrial entities (including 501(c)(3) organizations) that have received an approved Energy Reduction Plan under the New Jersey Board of Public Utilities' Pay for Performance program may be eligible for supplemental financing through the EE RLF.  Financing, in the form of low-interest loans, can be used to support up to 80% of total eligible project costs, not to exceed $2.5 million or 100% of total eligible project costs from all public State funding sources. Read more here.


NAIOP NJ Comments on Energy Plan NAIOP NJ's Energy Task Force prepared comments on the Draft Energy Master Plan which were submitted on August 25, 2012. Read NAIOP NJ's comments.

Vertical GDP is Law The revamped “Vertical GDP” legislation is now law. Advanced by NAIOP NJ and the Smart Growth Economic Development Coalition, the measure expands general development plan approvals to any project of at least 150,000 square feet of commercial space or at least 100 residential units. The original Vertical GDP bill passed both houses in January, but was conditionally vetoed in March by Governor Christie, who asked that the legislation be amended to allow mixed-use projects to be authorized for general development plan approval, and also to permit such approval for any municipality, rather than only those located in a smart-growth area designated for a greater density of development. NAIOP NJ supported the governor’s Conditional Veto and the changes to the bill, and both houses of the Legislature concurred.

Are You Ready for Mandatory LSRP? All parties are required to hire a licensed site remediation professional (LSRP) by May 7, 2012, and to then proceed with the remediation without Department pre-approval.  However, a party may choose to opt-in to the LSRP remediation program prior to May 7, 2012. To opt in, the person must complete the LSRP Notification of Retention or Dismissal Form available here. The person remediating the site who elects to opt-in shall provide his/her signature in Section F of the form.  Submission of this certification results in automatic Department approval.  The Department will not be issuing a separate approval. The person certifying the form may proceed with the remediation upon submittal of the certified form. For more information about opting in, please click here.
 

Time of Application Law is in Force The Time of Application law took effect on May 5, 2011. A major victory for NAIOP NJ and the industry, the new law ensures that the development regulations in effect on the date of submission of an application shall govern the review of that application. A copy of the law as signed by the Governor is available here.
 
 
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