Action in Trenton & Policy News Update for Week of August 30, 2010
Christie Vetoes Low-interest Loan Measure
Gov. Chris Christie vetoed
a bill (S1794, Lesniak) that would have extended the reach of a state financing
authority, giving businesses in towns bordering already eligible areas access
to low-interest loans. Christie said the measure would duplicate efforts
already under way and "frustrate" the mission of the New Jersey
Redevelopment Authority, which tries to help get businesses started in urban
areas. The bill would have allowed businesses in municipalities next to those
urban areas to get help, such as low-interest loans. In his veto, Christie said
the NJ EDA "should serve as the starting point for businesses seeking
financial assistance in the state" and the bill would create an
"unnecessary duplication of efforts." Sen. Lesniak said it was
intended to open up blighted portions of towns that border urban areas for
redevelopment funding. "If you live in one side of the street, in Linden,
you aren't eligible for economic development support," he said. "If
you lived on the other side of the street, in Roselle, you would be."
Lesniak said the front office offered to work with him to develop a
"broader urban redevelopment package."
Jump Starting Wind Energy
On August 19, Gov. Chris Christie signed the Offshore Wind Economic Development
Act (S2036-Sweeney/A2873-Chivukula), jump-starting plans to develop
electric-generating turbines off the New Jersey coast. The legislation directs
the state Board of Public Utilities to provide financial assistance for
projects supporting the offshore wind program and eventually to require that a
percentage of electricity sold within the state be generated by offshore wind
facilities. The goal is to have at least 1,100 mega-watts of electricity coming
from the wind projects. The measure, approved with bi-partisan support in June,
also calls for $100 million in tax credits for companies developing offshore
wind. The state Energy Master Plan calls for the development of 3,000 megawatts
of offshore wind by 2020. The BPU has received proposals to build wind turbines
12 to 20 miles off the coast from four power companies.
Comptroller Report Criticizes Tax Abatements
Comptroller Matt
Boxer's office has released a 30-page report calling for reforms of the state
law allowing tax abatements meant to spur development in blighted areas
designated as "in need of redevelopment." According to the report,
"standards concerning these designations seem to be loosely applied and
rarely reviewed." Boxer said abatements take tax dollars away from school
districts and counties, displacing the tax burden. The report recommends the
restructuring of payments under abatements and more involvement from county and
state governments, as well as school districts and taxpayers. Read the report.
In response,
the NJ League of Municipalities stated: "The suggestion that counties and
school districts somehow suffer because of abatements fails to account for the
fact that municipalities alone bear the burden for uncollected property taxes
and for successful tax appeals. Counties and school districts are guaranteed
100% of their tax levy, regardless of the collection rate or the outcome of tax
appeals.”
Further,
municipal officials are responsible for the collection of property taxes used
to support school districts and county governments. Accordingly, the local
officials who implement tax abatements have NO interest in increasing the
reliance of other jurisdictions on this regressive revenue source. And we
fear that increased involvement by these entities and greater State oversight
will only further delay and discourage local development initiatives, which are
vital for producing immediate jobs for our fellow citizens and long-term ratable
growth. Abatements, particularly long term PILOTs (payments in lieu of
taxes) are a very positive economic engine for governments to cooperate with
and encourage development and investment of private capital into their
community."
Sen.
Michael Doherty (R-Warren), a member of the Senate Budget and Appropriations
Committee, has asked the Office of Legislative Services to draft legislation
that would address Boxer's concerns.
Senator Tom
Kean has introduced legislation (S1021) that
would address some of these issues. "My legislation is sorely needed to
help bring transparency to exemptions and abatements. The Comptroller's report
should serve as a wake-up call for those who have opposed these reforms in the
past." Additionally, Senator Kean reintroduced legislation that would
require municipalities to report all long and short-term financial and tax
agreements to DCA and would make reporting a condition for receipt of
discretionary aid given to municipalities.
Re-thinking the Energy Master Plan
In response to Governor
Christie's call for the Board of Public Utilities (BPU) to revisit the state's Energy
Master Plan (EMP) in light of current economic conditions, the BPU is holding
three stakeholder meetings to discuss 2008 assumptions and current economic
conditions. NAIOP New Jersey has forwarded a copy of our Energy Master Plan
Response document to new BPU President Lee Solomon. We applaud Governor
Christie for stating concerns about the EMP's additional cost burdens for
businesses and sharing his goal to craft a plan that positions New Jersey to
reap the economic benefits of being a leader in the renewable and sustainable
energy industry. We have offered our support in crafting energy policies that
drive economic growth, manufacturing revitalization and green jobs creation. Information on Stakeholder Meetings.
Read NAIOP New Jersey's Energy Master Plan
Response Document.
Christie Wants to Improve
Business Retention Incentive
On July 29,Gov. Christie proposed beefing up the
BRRAG (Business Retention and Relocation Assistance Grant) program, saying the
change would be key to retaining companies like Honeywell, which was
considering moving its headquarters (where it employs 1,200 people), to another
state. The Governor proposes to expand the BRRAG tax credit program from one
year to six, and increase the amount of money per employee to $2,225 per employee,
Lt. Gov. Kim Guadagno said. The change must be approved by the
Democrat-controlled Legislature. "There's not going to be a real choice in
the matter here for us and for the legislature," Christie said. "We
have to modernize our programs."
Office of Smart Growth to be Revamped The Office of Smart Growth, created
to coordinate growth in state agencies, will be renamed the Office of Planning
Advocacy, and control will be given to Lt. Gov. Kim Guadagno. Guadagno said the
OSG failed at its mission to prevent regulations from stifling job creation,
and she plans to rebuild the program from the bottom up.Did You Know...?
Are you aware of a law the New Jersey Department
of Environmental Protection (NJDEP) follows rules that place a cap on the amount of
oversight costs (fees) NJDEP can charge for a specific site? Read more in this article provided by NAIOP member
EWMA.
DPAC Reception September 14 On September 14, Mountain Development Corp. will host a
Food & Wine Pairing Reception to benefit the Developers Political Action
Committee. The event will be held at "32 Church" in Montclair, 6:15 -
8:15 PM. For details and to RSVP, please contact Kathleen Iola at 732-729-9900.