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

Fort Monmouth Economic
Revitalization Authority
S-917/A-597
Overview: Fort Monmouth
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BRAC recommended closure of Ft. Monmouth in Aug. 2005
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April 2006: Gov. Corzine signed legislation that created the
Fort Monmouth Economic Revitalization Planning Authority
(FMERPA)
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In September of 2010, Fort Monmouth’s General Strong and
his staff will be moving to Aberdeen, Maryland
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Civilian Adjunct is already in Aberdeen and 1,000 Fort
Monmouth personnel have already left
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In September 2011, flags come down at Fort Monmouth, and
remaining 4,000 employees will be gone
Overview: Fort Monmouth
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Fort Monmouth has provided $3.2 Billion in economic
activity to New Jersey
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57% of the Fort’s employees live outside the three host
municipalities
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52% of the 15,000 jobs associated with suppliers and contractors to
the Fort are located 20 miles or more away from the Fort
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Fort Monmouth is made up of 1,126 acres of land and its closing will
have a significant Statewide, Regional and Local impact
Fort Monmouth Economic
Revitalization Planning Authority
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FMERPA was created legislatively in 2006 to prepare a “master plan” for
the conversion of Fort Monmouth
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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
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As of this date, the plan is still awaiting the approval of HUD
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The Planning Authority’s mission is complete, a plan has been developed
and now it needs to be implemented
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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.
S-917: Fort Monmouth Economic
Revitalization Authority
PAGE 2, Section 2
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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)
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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.
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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
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
S-917: Fort Monmouth Economic
Revitalization Authority’s Board
Page 9, Section 8d
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Annually elects a Chairman and Vice
Chairman from among their Board members
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For most State Authorities the Governor
appoints the Chairman
S-917: Ethics Provisions Including Pay to
Play and Financial Disclosure
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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
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.
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.
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:
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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”
S-917: Supermajority Requirements
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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:
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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
S-917: Supermajority Requirements
Proposed Amendment
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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
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Affirmative votes of 7 out of 9 voting Authority
members must ratify the Authority’s operating budget
Affirmative votes of 7 out of 9 voting Authority
members must ratify any project undertaken by the EDA
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S-917: Fort Monmouth Economic
Revitalization Authority’s Staff/Ex Dir
Page 3, Section 2e and Page 7, Section 6a,b,c,d
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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.
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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.
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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.
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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.
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
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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
S-917: Fort Monmouth Economic
Revitalization Authority/NJEDA
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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.
S-917: Fort Monmouth Economic
Revitalization Authority/NJEDA
Page 3, Section 2f and Page 16, Section 14a
Designated Redeveloper Agreement
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Redevelopment agreement entered into by the
Authority and the EDA MUST be approved by a
supermajority, 7 out of 9 members
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Agreement will detail terms and conditions of
redeveloper relationship, including tasks
delegated to EDA
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
S-917: Fort Monmouth Economic
Revitalization Authority/NJEDA
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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
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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
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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.
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NJEDA 2009 efforts are expected to create 9,600 new, permanent jobs and
over 14,300 construction jobs
NJEDA Real Estate Projects
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Technology Centre of New Jersey
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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)
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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
NJEDA Real Estate Projects
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Tech III and the Biotechnology Development Center (BDC)
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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
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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.
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:
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Greystone Psychiatric Hospital
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EDA designated to oversee the design, development, and construction
of the new Greystone Hospital
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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
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Liberty Science Center
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EDA facilitated both the financing and project management services
for the expansion and renovation of the Liberty Science Center
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The project included an addition of 100,000 square feet of new space,
as well as retrofitting the existing 195,000 square feet
Revitalization Authority: Funding for
Redevelopment
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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:
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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
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.
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.
BRAC Closures Nationally and their
Funding
LRA
State State $
Local $
Philadelphia Naval Yard
PA
$200,000,000
NS Roosevelt Roads
PR
$4,300,000
Ft. Monroe
VA
$2,000,000 (per year)
Riverbank APP
CA
$1,175,000
Brooks Redev Auth
TX
$1,600,000
$28,000,000
NAS Brunswick
ME
$242,000
$90,000
Seneca Army Depot
NY
$3,000,000
Naval Station Treasure Island
CA
River Ridge
IN
$370,000
Great Plains Dev Auth, KS Army
Ammunition Depot
KS
$750,000
Fort Harrison
IN
NAS Ingleside
TX
Red River Army Depot 1995
Realignment
TX
Red River 05 Closure
TX
Federal $
$170,350,000
$200,000
$2,300,000
$2,150,000
$1,900,000
$300,000
$4-6Mil TIF
$1,000,000
$4,000,000
$1,500,000
$2,400,000
$3,600,000
BRAC Closures Nationally
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Fort Devens
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Ayer, Shirley and Harvard, MA
4,400 acres
Closed in 1996
Job Loss:
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4,000 Military
2,900 Civilian
Organization:
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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
BRAC Closures Nationally
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Lowry Air Force Base; Denver, CO.
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1,866 Acres
Closed in 1994
Jobs Lost:
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4,052 Military
2,275 Civilian
Quasi-Public organization formed between Cities
of Denver and Aurora; 10 member Board of
Directors
Special Improvement District
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What is a Special Improvement District?
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Purpose of a Special Improvement District:
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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
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:
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Freehold Boro
Highlands
Keyport
Red Bank
Transportation Planning District
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What is the Transportation Planning District?
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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:
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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
Transportation Planning District Cont.
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After the Authority adopts the transportation plan, it may assess fees on
development to pay for the implementation of the transportation plan
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The authority may allow for credits to be applied towards those fees, if the
developer incurs other costs to further the transportation plan
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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
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The funds generated by these fees will be under the control of the
Authority
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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
Infrastructure District
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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
Infrastructure District
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What is the Franchise Fee?
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How is fee assessed:
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At point of sale transactions within the infrastructure district
Exclusions to fee:
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Up to 50% of the Sales and Use Tax
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
Here to Answer Questions
Senator Jennifer Beck
Assemblyman Declan O’Scanlon
Assemblywoman Caroline Casagrande
Tel: 732-933-1591/732-866-1695
Email:
[email protected]
[email protected]
[email protected]