N.J. Admin. Code § 7:36-24.1

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

Section 7:36-24.1 - Project agreement

(a) Each Green Acres development project shall have a project agreement, which shall be executed by the nonprofit and the Department. The project agreement shall set out the rights and responsibilities of the nonprofit and the Department in regards to the development project and shall contain all information identified in (c) below.

(b) Green Acres shall send the project agreement to the nonprofit for approval and signature after the funding award made under N.J.A.C. 7:36-23.3(b) has received legislative appropriation. The nonprofit shall ensure that the project agreement is approved and signed by the nonprofit's attorney, and executed by the person authorized under the resolution described at N.J.A.C. 7:36-22.4(a)2 or an updated resolution submitted by the nonprofit.

(c) The project agreement shall contain:

1. A description of the project facility(ies) to be developed;

2. The estimated cost of the development project;

3. The amount of the Green Acres funding award pursuant to N.J.A.C. 7:36-23.3(b) and the nonprofit's matching share of the cost of the development project;

4. The following conditions:

i. That the nonprofit shall make and keep the lands accessible to the public;

ii. That the nonprofit shall agree not to convey the lands unless:

(1) The transferee is the State, a local government unit, another nonprofit, or the Federal government, if permitted by the applicable Green Acres laws;

(2) The lands will continue to be held for public recreation and conservation purposes, and

(3) The Commissioner approves the transfer in writing prior to the nonprofit's offering, for sale or conveyance, of any of its interest in the project site. This requirement for written approval is met if an intended transferee is named in the project agreement executed under this section; and

iii. That the nonprofit shall agree to execute and donate to the State, at no charge, a permanent conservation restriction, historic preservation restriction, or both, as applicable, on the project site, in a form prepared by the State. The conservation or historic preservation restriction shall include:

(1) The conditions governing the use, future development, and maintenance of the project site; the public access to the project site; and the conveyance of any interest in the project site;

(2) The State's right to enforce the conditions of the restriction; and

(3) The remedies available to the State in the event the nonprofit does not comply with the conditions of the restriction;

5. Any other special conditions;

6. The project period during which the development project must be completed, generally two years from the effective date of the project agreement;

7. The requirements for recordkeeping and project administration; and

8. Other terms and conditions, including a statement of the remedies described at (j) through (m) below and a statement of the requirements for maintenance, use, development, and disposal or diversion of parkland as described at N.J.A.C. 7:36-25 and 26.

(d) The nonprofit shall return the signed project agreement to Green Acres.

(e) Upon receipt of the project agreement executed in accordance with (b) above, the Department shall establish an account from which Green Acres shall disburse the matching grant.

(f) After the project agreement has been fully executed by the State, Green Acres shall send to the nonprofit a copy of the fully executed project agreement and a Development Payment Request form that the nonprofit shall use to request a disbursement of funds under N.J.A.C. 7:36-24.5.

(g) The nonprofit shall record and return to Green Acres the conservation restriction or historic preservation restriction, as applicable, contained in the project agreement as required under N.J.A.C. 7:36-24.5(e).

(h) Green Acres may extend the project period established in the project agreement upon request, if the nonprofit demonstrates that it is making a good faith effort to complete the project in an expeditious manner.

(i) The Department and the nonprofit shall execute an amendment to the project agreement to reflect any supplemental funding provided under N.J.A.C. 7:36-24.3.

(j) In addition to any other rights or remedies available to the Department under law, if the nonprofit does not comply with any of the requirements of the project agreement; the conservation restriction and/or historic preservation restriction, as applicable, required under (c)4iii above; this chapter; or the Green Acres laws, or if the nonprofit makes any material misrepresentation in the project application and/or the documentation submitted in support of the application, the Department may take any of the following actions:

1. Issue a written notice of noncompliance directing the nonprofit to take and complete corrective action within 30 days of receipt of the notice. If the nonprofit does not take corrective action, or if the corrective action taken is not adequate in the judgment of the Department, then the Department may take any of the actions described at (j)2 through 5 and (k) below;

2. Withhold a matching grant disbursement or portion thereof;

3. Order suspension of work on the project for a period of not more than 45 days after the date of the stop work order, unless the Department and the nonprofit agree to an extension of that period;

i. A stop work order shall contain the reasons for the issuance of the stop work order, a clear description of the work to be suspended, instructions as to the issuance of further orders by the nonprofit for materials or services, and suggestions for minimizing costs;

ii. Upon receipt of the stop work order, the nonprofit shall immediately comply with the terms of the order and take all reasonable steps to minimize the incurring of costs allocable to the work covered by the order;

iii. The Department shall, within the period of the stop work order or any extension of it, either rescind the stop work order, terminate the work covered by the order, or authorize the resumption of work; and

iv. If the Department rescinds a stop work order or if the period of a stop work order or an extension of it expires, the nonprofit shall promptly resume the suspended work. The Department shall, as necessary, make an equitable adjustment to the project period;

4. Terminate the project agreement; and/or

5. Demand immediate repayment of all Green Acres funding that the nonprofit has received.

(k) If the nonprofit fails to comply with any of the terms of the project agreement; the conservation restriction and/or historic preservation restriction, as applicable, required under (c)4iii above; this chapter; or the Green Acres laws, the Department may initiate suit for injunctive relief or to seek specific enforcement, without posting bond, it being acknowledged that any actual or threatened failure to comply will cause irreparable harm to the State and that money damages will not provide an adequate remedy.

(l) If the Department incurs legal or other expenses, including its own personnel expenses, for the collection of payments due or in the enforcement or performance of any of the nonprofit's obligations under the project agreement; the conservation restriction and/or historic preservation restriction, as applicable, required under (c)4iii above; this chapter; or the Green Acres laws, the nonprofit shall pay these expenses on demand by the Department.

(m) The Department is not required to mitigate any damages to the nonprofit resulting from the nonprofit's noncompliance with the terms of the project agreement; the conservation restriction and/or historic preservation restriction, as applicable, required under (c)4iii above; this chapter; or the Green Acres laws.

N.J. Admin. Code § 7:36-24.1