N.J. Admin. Code § 19:65-2.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 19:65-2.4 - Application review and approval

(a) The preliminary review of a project application and the preliminary determination of its eligibility for Authority funds shall be conducted as follows:

1. The Executive Director shall review the application for completeness and prepare a summary as to potential eligibility of the project and forward the application and summary to the Authority.

2. The Authority shall, by resolution, preliminarily determine whether the project is of the character and type which is eligible to be an approved project. In the event the Authority has so determined, the applicant shall thereafter submit such other information as the Authority from time to time may request in accordance with the provisions set forth herein.

3. A preliminary determination of eligibility by the Authority pursuant to this Section shall in no event constitute a determination by the Authority that the project is an approved project.

4. After the Authority has made a preliminary determination of eligibility, the Authority shall conduct a public hearing in accordance with N.J.A.C. 19:65-2.7. Notwithstanding anything to the contrary herein, no further action under this section shall be taken until after such public hearing has been held.

(b) Approval and the reservation of funds for a project shall occur as follows:

1. After the public hearing has been held and the Authority has received an application that has been determined to be complete, the Authority, in accordance with the provisions of the Act and these rules, shall, by resolution, determine whether the project is an approved project and, if the project is determined to be an approved project, the Authority, at the time of such determination or thereafter, shall, by resolution, reserve funds, in one or more stages, for such approved project in an amount necessary to complete the approved project subject to any limitations described in these rules or in the Act.

2. In addition to considering information provided by the applicant, the Authority may utilize any relevant information or data which is within its knowledge or which is supplied by any Federal, State or local agency, or any other person, entity, group or association which has an interest in the project and which desires to provide such information to the Authority. Further, the Authority may approve a project with such modification and conditions as it deems necessary and appropriate.

3. The reservation of funds for an approved project shall be subject to such terms and conditions as the Authority shall deem necessary and appropriate; provided, that any such reservation of funds shall be subject to the following:

i. In the event the funds for such approved project are to be derived from the issuance of bonds by the Authority:

(1) The adoption of a bond resolution by the Authority containing such terms and conditions as the Authority shall deem necessary and appropriate and the approval of such bond resolution, prior to the adoption thereof, by the Treasurer of the State; and

(2) The approval for execution by the Authority of any agreements or contracts in connection with the loan or other use of the proceeds of the bonds for the approved project and the approval of the financing terms set forth in any such agreement or contract by the Treasurer of the State;

ii. In the event the funds for such approved project are to be derived through the making of an equivalent investment in accordance with N.J.A.C. 19:65-2.8 and/or a donation in accordance with N.J.A.C. 19:65-2.9, the approval for execution by the Authority of an agreement for credit with the licensee containing such terms and conditions as the Authority shall deem necessary and appropriate and the approval of the terms of the investments contained therein by the Treasurer of the State;

iii. In the event the funds for such approved project are to be derived from parking proceeds:

(1) The State Treasurer may require that a financial plan demonstrating the need, schedule and use for moneys placed in the special fund be approved by the State Treasurer prior to allocation; and

(2) The approval for execution by the Authority of any agreements or contracts in connection with the loan or other use of the parking proceeds for the approved project;

iv. In the event the funds for such approved project are to be derived from the issuance of parking proceeds bonds by the Authority:

(1) The adoption of a parking proceeds bond resolution by the Authority containing such terms and conditions as the Authority shall deem necessary and appropriate; and

(2) The approval for execution by the Authority of any agreements or contracts in connection with the loan or other use of the proceeds of the parking proceeds bonds for the approved project;

v. In the event the funds for such approved project are to be derived from the Atlantic City Fund created and established pursuant to section 44 of P.L. 1995, c.18 (N.J.S.A. 5:12-161.1), the approval for execution by the Authority of any agreements or contracts in connection with the loan or other use of the funds derived from the Atlantic City Fund for the approved project.

(Reserved)

5. The reservation of funds for an approved hotel development project from the $ 100,000,000 set aside under P.L. 1993, c.159 shall be subject to such terms and conditions as the Authority shall deem necessary and appropriate, provided, that such reservation of funds shall be subject to the following:

i. The approval of the execution of an agreement between the Authority and a licensee setting forth the terms and provisions by which investment credit (as permitted under section 3 of P.L. 1984, c.218 (N.J.S.A. 5:12-144.1)) is to be calculated;

iii. The receipt of financing or other commitments by September 1, 1994 for the costs of the hotel development project in excess of those set forth in (b)5ii above;

iv. The establishment of a schedule of the stages of development of and incurrence of the costs in connection with the hotel development project to provide for the completion of the hotel development project on or before December 31, 1996 (or such later date as extended by the Authority upon a good faith showing of special circumstances or unforeseen occurrences); and

v. Agreement by the casino licensee that the investment in the hotel development project shall be credited at the times that the licensee's investment alternative tax obligation becomes due as set forth in section 3 of P.L. 1984, c.218 (N.J.S.A. 5:12-144.1), provided that, in the case of the licensee's Atlantic City investment obligation, in no event shall the investment credit exceed 75 percent of that portion of the licensee's Atlantic City obligation that is available for purposes other than the construction, rehabilitation or reconstruction of facilities for low and moderate income housing for any year.

6. The reservation of funds for an approved hotel development project from the $ 75,000,000 set aside under P.L. 1996, c. 118 shall be subject to such terms and conditions as the Authority shall deem necessary and appropriate, provided, that such reservation of funds shall be subject to the following:

ii. The amount of the reservation cannot exceed the lesser of the amount of investment credit (as permitted under section 3 of P.L. 1984, c.218 (N.J.S.A. 5:12-144.1)) to which a licensee is entitled or 27 percent of the costs of the hotel development project reasonably related to constructing, reconstructing or rehabilitating the hotel units and appurtenant facilities excluding the costs reasonably related to space used for the conduct of casino gaming, ineligible costs of appurtenant facilities and, with respect to hotel development projects approved following September 16, 1996, costs associated with the acquisition of land; provided, that in no event shall the amount reserved exceed $ 52,500 per unit;

iii. The receipt of financing or other commitments by such date as may be specified by the Authority by resolution for the costs of the hotel development project in excess of those set forth in (b)6ii above;

iv. The establishment of a schedule of the stages of development of and incurrence of the costs in connection with the hotel development project to provide for the completion of the hotel development project on or before such date as may be specified by the Authority by resolution (or such later date as extended by the Authority upon a good faith showing of special circumstances or unforeseen occurrences);

v. Agreement by the licensee that the investment in the hotel development project shall be credited at the times that the licensee's investment alternative tax obligation becomes due as set forth in section 3 of P.L. 1984, c.218 (N.J.S.A. 5:12-144.1), provided that:

(1) The investment credit received by the licensee for its hotel development project shall be from the licensee's Atlantic City investment obligation that is available for purposes other than construction, reconstruction or rehabilitation of facilities for low and moderate income housing and the licensee's South Jersey investment obligation;

(2) In the case of the licensee's Atlantic City investment obligation, in no event shall the level of funding of the investment credit exceed 75 percent of that portion of the licensee's Atlantic City investment obligation that is available for purposes other than the construction, reconstruction or rehabilitation of facilities for low and moderate income housing for any year;

(3) In the case of the licensee's South Jersey investment obligation, in no event shall the level of funding of the investment credit exceed 25 percent of the licensee's South Jersey investment obligation for any year;

(4) No investment credits shall be funded if the licensee's total Atlantic City investment obligations that are available for the purposes of construction, reconstruction or rehabilitation of facilities for low and moderate income housing are in excess of the greater of the last full year of such obligations or a percentage specified by the Authority of the prior year end obligation balance; and

vi. Any funds which are remaining after all eligible applicants have received the maximum percentage of investment credit permitted under these rules shall be available for Authority investment in other eligible projects.

7. The reservation of funds shall be for such length of time, not exceeding 12 months, as the Authority shall determine in its discretion (which may be extended by the Authority, in its discretion, for an additional period or additional periods of not to exceed 12 months), during which time the conditions set forth above shall be satisfied.

(c) Final approval of an approved project for investment shall occur within the time period prescribed in accordance with (b)7 above. Final approval shall be granted through the adoption of a bond resolution or parking proceeds bond resolution and resolution relating to the authorization for execution of any agreements or contracts in connection with the loan or other use of the proceeds of the bonds or parking proceeds bonds or the approval for execution of an agreement for credit with the licensee, as applicable, or in accordance with the provisions of the Act and these rules.

(d) Receipt of investment credit by a licensee for an approved hotel development project from the $ 75,000,000 set aside under P.L. 1996, c. 118 shall be subject to such terms and conditions as the Authority shall deem necessary and appropriate, provided, that such receipt of investment credit shall be subject to the following:

1. With respect to hotel development projects approved on or prior to September 16, 1996:

i. The licensee shall have filed a fully complete project application on or before April 1, 1996;

ii. The licensee shall establish that the construction, reconstruction or rehabilitation of the hotel development project actually and substantially commenced on or before August 31, 1996; and

iii. The amount of investment credit to be received by the licensee shall not be greater than the difference between the amount of investment credit for the approved hotel development project that the licensee would have received had there been sufficient funds to receive investment credit in the amount of 27 percent of the eligible costs of the project and the amount which the Authority actually approved for the project.

2. With respect to hotel development projects approved following September 16, 1996:

i. The licensee shall have filed a fully complete project application by December 15, 1996;

ii. The licensee shall establish that the construction, reconstruction or rehabilitation of the hotel development project actually and substantially commenced within 12 months after the execution by the Authority of the agreement for credit with the licensee;

iii. The approved hotel development project commences, proceeds and is completed in accordance with the schedule of the stages of development of and incurrence of the costs as established under (b)6iv above which shall be made a part of the agreement for credit with the licensee. The licensee agrees that failure to comply in any material respect with said development schedule will result in the reversal by the Authority of investment credit previously received by the licensee in connection with such hotel development project; and

iv. The amount of investment credit to be received by the licensee shall not be greater than the lesser of the amount of investment credit (as permitted under section 3 of P.L. 1984, c.218 (N.J.S.A. 5:12-144.1)) to which a licensee is entitled or 27 percent of the costs of the hotel development project reasonably related to constructing, reconstructing or rehabilitating the hotel units and appurtenant facilities excluding costs reasonably related to space used for the conduct of casino gaming, ineligible costs of appurtenant facilities and costs associated with the acquisition of land.

3. For purposes of this section, actual and substantial commencement of a hotel development project shall not include the mere planning, preliminary or developmental work requisite to the hotel development project or the mere acquisition of land or real property. Factors to be considered when determining whether there has been actual and substantial commencement of a hotel development project, without limitation, are whether there has been actual and substantial excavation and/or construction at the hotel development project site and whether other work has been performed or actions have been taken which are necessary to accomplish the final construction of the hotel development project.

N.J. Admin. Code § 19:65-2.4

Amended by R.1987 d.213, effective 5/4/1987.
See: 19 New Jersey Register 404(b), 19 New Jersey Register 775(a).
Substantially amended.
Emergency Amendment, R.1993 d.478, effective 8/30/1993 (expires October 29, 1993).
See: 25 New Jersey Register 4514(a).
Adopted Concurrent Proposal, R.1993 d.605, effective 10/29/1993.
See: 25 New Jersey Register 4514(a), 25 New Jersey Register 5523(a).
Amended by R.1997 d.136, effective 3/17/1997.
See: 29 New Jersey Register 115(a), 29 New Jersey Register 934(a).
In (a)4, amended N.J.A.C. references; in (b), substituted "Approval" for "Project approval"; in (b)1, added reference to project funding limitations; in (b)3ii, amended N.J.A.C. references; in (b)5, added reference to the $ 100,000,000 set aside under P.L. 1993 c.159; in (b)5ii, increased licensee percentage; in (b)5iii, amended section reference; added (b)6 and 7; deleted existing (c) and recodified (c)1 as (c); and added (d).
Amended by R.1997 d.452, effective 10/20/1997.
See: 29 New Jersey Register 3708(a), 29 New Jersey Register 4562(b).
In (a), substituted "preliminary determination" for "determination"; in (b)1, added the clause regarding reservation of funds for projects determined to be approved projects by the Authority; inserted (b)3iii through (b)3v; in (b)7, changed the maximum time for reservation of funds from six months to 12 months; and in (c), inserted reference to parking proceeds bond resolutions.
Amended by R.2003 d.101, effective 3/3/2003.
See: 34 New Jersey Register 3177(a), 35 New Jersey Register 1274(a).
Rewrote (b)6v(1).