N.J. Admin. Code § 17:49-6.6

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

Section 17:49-6.6 - Lease arrangements

(a) Any lease arrangement with a private entity pursuant to a public-private partnership agreement may provide that a private entity shall assume some or all of the financial and administrative responsibility for the development, construction, reconstruction, repair, alteration, improvement, extension, operation, and maintenance of a project, provided that the project is financed in whole by the private entity and the local government unit retains full ownership of the land upon which the project is located.

(b) A project may include a lease of a revenue-producing public building, road, structure, infrastructure, or facility in exchange for an up-front or structured financing by a private entity for the project, provided that the private entity is responsible for the management, operation, and maintenance of the building, road, structure, infrastructure, or facility.

(c) The private entity may receive some or all of the revenue generated by the building, road, structure, infrastructure, or facility and shall, in turn, operate the building, structure, infrastructure, or facility in accordance with local government standards.

(d) A lease term shall not exceed 30 years and shall be subject to all applicable laws governing leases by a local government unit.

(e) Upon completion of the lease term, subsequent revenue generated, and any capital improvements, shall revert to the local government unit.

(f) Leases may include lease back arrangements.

N.J. Admin. Code § 17:49-6.6

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