Loading...
ORDINANCE 2017-07 ORDINANCE 2017-7 ORDINANCE OF THE TOWNSHIP COUNCIL OF CHERRY HILL AUTHORIZING REAL PROPERTY TAX EXEMPTION AND PAYMENTS IN LIEU OF TAXES FOR PROPERTY KNOWN AS BLOCK 510.01 LOTS 1, 2 and 3 PURSUANT TO THE LONG TERM TAX EXEMPTION LAW, N.J.S.A. 40A:20-1, ET SEQ. WHEREAS, Jewish Federation of Southern New Jersey owns the property known as Block 510.01, Lots 1, 2, and 3 on the official Tax Map of Cherry Hill Township, Camden County, New Jersey, and plans to sell those lots (the "Property") to 1721 Springdale Urban Renewal Associates LLC. created for the purpose of constructing on the Property a 100% affordable senior and supportive needs housing development which will meet in part the Township's obligation to provide low and moderate income housing in the Township; and WHEREAS, Pennrose Properties, LLC ("Sponsor") intends to apply for Low Income Housing Tax Credits ("LIHTC") through the New Jersey Housing and Mortgage Finance Agency ("NJHMFA") for the purpose of funding the development of 100% affordable senior and supportive needs housing development; and WHEREAS, Sponsor has formed 1721 Springdale Urban Renewal Associates LLC. Pursuant to the laws of the State of New Jersey for the purpose of, alone or as the managing general partner of a limited partnership (the "Owner"), proceeding with the development of 100% affordable senior and supportive needs housing development; and WHEREAS, the proposed development will be subject to the rules and regulations of the United States Department of Housing and Urban Development, LIHTC and NJHMFA; and WHEREAS, the Long Term Tax Exemption Law of New Jersey, N.J.S.A. 40A:20-1, et seq. permits a municipality to enter into a financial agreement with an urban renewal entity exempting real property from tax assessment and accepting payments in lieu of taxes where the property is developed for the purpose of providing low and moderate income housing; and WHEREAS, as part of its application for LIHTC finding, it is necessary for the Sponsors to provide the NJHMFA proof of municipal support in the form of a tax abatement under the New Jersey Long Term Tax Abatement Law. NOW, THEREFORE, BE IT ORDAINED by the Township Council of the Township of Cherry Hill, in the County of Camden, State of New Jersey, as follows: 1. The Township Council of Cherry Hill finds that the development will serve to meet in part the Township's obligation to provide low and moderate income housing under the New Jersey Fair Housing Act, as part of the Township's 2016 Housing Element and Fair share Plan. 2. The Township Council makes such determination and findings by virtue of and pursuant to and in conformity with the Long Term Tax Exemption Law of the State of New Jersey,N.J.S.A. 40:20-1, et seq. 3. The land and proposed improvements, upon completion of the low and moderate income housing development thereon, shall be exempt from real property taxation as provided in N.J.S.A. 40A:20-1, et seq. 4. The Clerk of the Township shall deliver a certified copy of this Ordinance approving the tax exemption and financial agreement to the Tax Assessor. 5. Upon adoption of the financial agreement, a certified copy of this Ordinance and the financial agreement shall be transmitted to the Director of the Division of Local Government Services. 6. In lieu of real property taxes, the Owner shall make payment to Cherry Hill Township of an annual service charge for municipal services supplied to the housing development in an amount equal to five percent (5%) of the annual gross revenue derived from such housing development as defined in N.J.S.A. 40A:20-3. Said payments are to commence upon the initial occupancy of the development. The Township shall remit five percent (5%) of this annual service charge to Camden County. 7. The tax exemption from real property taxation hereby granted shall continue for the earlier to occur of(a) the passage of thirty (30) years from the completion of the development or (b) a determination by the Owner and the Township that the development is no longer useful, but shall not extend longer than thirty- five (35) years from the effective date of this Ordinance. 8. The Township will consent to the sale of the Property, and a continuation of the tax abatement set forth herein, provide the requirements of N.J.S.A. 40A:20-10 are met, including the payment of an administrative fee in accordance with N.J.S.A. 40A:20-10(d). 9. The Township of Cherry Hill shall require of the Owner the following: a. A copy of the nonprofit corporation's Certificate of Incorporation shall be filed with the Township Clerk. b. If applicable, a copy of the Certificate of Limited Partnership shall be filed with the Township Clerk. c. The Owner shall submit annually, within ninety (90) days after the close of its fiscal year, its auditor's reports to the Mayor and Township Council of the Township. d. The Owner shall, upon request of the Township, permit inspection of the property, equipment, buildings and other facilities of the entity, and also permit examination and audit of its books, contracts, records, documents and papers by authorized representatives of the Township and the State. e. Proof shall be provided to the Township of adherence to the provisions of any federal regulatory agreement or other federal regulations serving to regulate the operation of the development. 10. The NJHMFA may rely upon this Ordinance for the approval of the LIHTC application by the Sponsors and funding of the development. 11. The appropriate Township officials are hereby authorized and directed to execute a Financial Agreement reflecting the aforesaid annual service charge in lieu of taxes. 12. One copy of this Ordinance shall be placed on file with the Township Clerk and with the Tax Assessor of the Township. 13. This Ordinance shall become effective twenty (20) days after passage and published as required by law. INTRODUCED: MARCH 13, 2017 ADOPTED: MARCH 27,2017 MAYOR , CHARLES CAHN COU CIL PRESIDENT ATTEST: NANCY L. AFFOS, ' • TOWNSHIP CLERK