N.J. Admin. Code § 17:49-6.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:49-6.1 - Minimum local government unit standards for entrance into a public-private agreement and operation of a project

(a) A local government unit, with approval by resolution of the governing body, may enter into a public-private partnership agreement with a private entity to develop, construct, reconstruct, repair, alter, improve, extend, operate, or manage a building, road, vertical structure, or facility, if:

1. The project, including any site acquisition, includes an expenditure of at least $ 10 million in public funds, or any expenditure of solely private funds; and

2. The project is financed in whole by the private entity,where the local government retains full ownership of the land upon which the project is completed.

(b) In order to pursue a public-private partnership project, a local government unit shall, at a minimum, possess an investment grade bond rating from at least one nationally recognized statistical rating agency.

(c) No project shall be exempt from the provision of the Local Bond Law, N.J.S.A. 40A:2-1et seq., the Local Authorities Fiscal Control Law, N.J.S.A. 40A:5A-1et seq., or any other law that may apply to a local government unit borrowing or financing, including, but not limited to, the review by, and approval of, the Local Finance Board or the Division of Local Government Services in the Department of Community Affairs.

(d) A local government unit shall complete the following steps to ensure a project meets the policy, risk allocation/transfer, funding, social equity, market readiness, legal, innovation, life cycle, and accelerated delivery requirements requisite within a public-private partnership agreement:

1. Step 1: Complete a self-assessment utilizing the initial screening criteria outlined in Treasury's Initial Screening Tool available at www.treasury.nj.gov/ p3screening1. A local government unit shall submit this self-assessment screening with their application to the Office of Public Finance; and

2. Step 2: Assuming successful completion of a self-assessment, report to the Office of Public Finance, through an email to p3@treas.nj.gov, that it is considering pursuing a public-private partnership. The local government unit shall conduct a project analysis, in conjunction with legal, financial, and other experts possessing the requisite minimum criteria set forth at N. J.A.C. 17:49-3.2, to determine the financial and technical viability of a potential project, prior to submission to the Office of Public Finance. A local government unit shall submit all supporting documents and requisite fees with its application to the Office of Public Finance, including information on the credentials of the experts retained for purposes of conducting the project analysis, as required by N.J.A.C. 17:49-6.5.

N.J. Admin. Code § 17:49-6.1

Adopted by 52 N.J.R. 898(a), effective 4/20/2020