S850

SENATE, No. 850

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 26, 1996

By Senator LaROSSA

An Act concerning the appointment of the board of the Capital City Redevelopment Corporation, the scope and funding of corporation projects, and amending and supplementing P.L.1987, c.58.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 3 of P.L.1987, c.58 (C.52:9Q-11) is amended to read as follows:

3. As used in this act, except where otherwise indicated:

a. "Board of Directors" or "board" means the board of directors of the Capital City Redevelopment Corporation;

b. "City" means the city of Trenton;

c. "Corporation" means the Capital City Redevelopment Corporation established pursuant to section 4 of this act;

d. "Director" means a director of the corporation;

e. "District" means the Capital City District delineated in section 6 of this act;

f. "Fund" means the Capital City Redevelopment [Loan and Grant] Fund established pursuant to section 11 of this act;

g. "Person" means any natural person or persons or any firms, partnerships, associations, societies, trusts, corporations, or other legal entities;

h. "Plan" means the Capital City Renaissance Plan adopted pursuant to this act;

i. "Project" means (1) the acquisition, construction, reconstruction, redevelopment, historic restoration, repair, alteration, improvement or extension of any building, structure or facility, or public area or (2) the acquisition and improvement of real estate and the extension or provision of utilities, access roads and other appurtenant facilities in connection therewith, or (3) programs and strategies which will enhance the vitality of the district as a place to live, visit, work and conduct business including tourism initiatives; such programs may be conducted outside the district so long as they are considered by the corporation to be integral to the effectuation of the plan, and provided that the work undertaken is consistent with the Capital City Renaissance Plan adopted pursuant to section 9 of this act; a project may also include planning, designing, acquiring, constructing, reconstructing or otherwise improving a building, structure or facility and extension or provision of utilities, access roads and other appurtenant facilities in connection therewith, or any redevelopment undertaken by any person pursuant to section 12 of this act; and

j. "Redevelopment" means a program of renewal through planning, conservation, rehabilitation, clearance, development and redevelopment, and historic restoration; and the construction and rehabilitation of commercial, industrial, public or other structures; and the grant, dedication or rededication of land as may be appropriate or necessary in the interest of the general welfare for streets, parks, playgrounds or other public purposes including recreational and other facilities appurtenant thereto.

(cf: P.L.1987, c.58, s.3)

2. Section 4 of P.L.1987, c.58 (C.52:9Q-12) is amended to read as follows:

4. a. There is established in the Executive Branch of the State Government a public body corporate and politic, with corporate succession, to be known as the Capital City Redevelopment Corporation. For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the corporation is allocated within the Department of the Treasury, but, notwithstanding that allocation the corporation shall be independent of any supervision or control by the department or by the State Treasurer or any officer or employee thereof. The corporation is constituted as an instrumentality of the State exercising public and essential governmental functions, and the exercise by the corporation of the powers conferred by this or any other act shall be deemed to be an essential governmental function of the State.

b. The board of directors of the corporation shall consist of the following: a member of the Executive Branch to be appointed by the Governor, [and] the State Treasurer, and one other high-ranking State officer designated by the Governor who shall [both] serve ex officio and may each designate, by written notification to the board, an alternate who shall act in their place with the authority to attend, vote and perform any duty or function assigned to them in their absence; [one other high-ranking State officer designated by the Governor;] the mayor of the city of Trenton, ex officio , who may designate by written notification to the board, an alternate from among the cabinet officers appointed by the mayor who shall act on behalf of the mayor in the absence of the mayor with the authority to attend, vote and perform any duty or function assigned to the mayor; and five public members appointed by the Governor with the advice and consent of the Senate, one of whom shall be a public employee of the State or city, one of whom shall have the city of Trenton as his principal place of business, and at least one of whom shall have the county of Mercer as his principal place of business. The five directors appointed by the Governor shall be residents of the State and shall have knowledge and expertise in the areas of economic development, urban planning, community affairs or finance;

c. Each public member shall serve for a term of four years and until the appointment and qualification of a successor, except that of the directors who are first appointed, three shall be designated to serve for terms of two years, and two shall be designated to serve for terms of four years, from the date of appointment. All vacancies shall be filled in the same manner as the original appointment but for the unexpired term only. The directors shall receive no compensation for their services, but may be reimbursed for their expenses in performing their official duties;

d. Each director, before entering upon the duties of office, shall take and subscribe an oath to perform the duties of the office faithfully, impartially and justly to the best of their ability. A record of these oaths shall be filed in the Office of the Secretary of State. Each director appointed by the Governor may be removed from office by the Governor, for cause, after a public hearing, and may be suspended by the Governor pending the completion of the hearing;

e. The Governor shall appoint a chairman from among the members of the board. The vice chairman shall be one of the five public members and shall be elected by majority vote of all the directors. The directors shall elect a secretary and a treasurer from among their number, and the same person may be elected to serve both as secretary and treasurer. Five directors shall constitute a quorum at any meeting of the board. Action may be taken and motions and resolutions adopted by the board at any meeting thereof by the affirmative vote of at least five directors. No vacancy in a directorship shall impair the right of a quorum to exercise all the powers and perform all the duties of the board;

f. Each director shall execute a bond to be conditioned upon the faithful performance of their respective duties in such form and amount as may be prescribed by the Director of the Division of Budget and Accounting in the Department of the Treasury. The bonds shall be filed in the office of the Secretary of State. At all times thereafter the directors shall maintain these bonds in full force. All costs of the bonds shall be borne by the corporation; and

g. The corporation may be dissolved by act of the Legislature if it has no debts or obligations outstanding or if adequate provision has been made for the payment or retirement of any outstanding debts or obligations. Upon dissolution of the corporation all property, funds and assets thereof shall be vested in the State, the city or the county, subject to the terms of the act of dissolution.

(cf: P.L.1987, c.58, s.4)

3. Section 11 of P.L.1987, c.58 (C.52:9Q-19) is amended to read as follows:

11. a. There is established in the State Treasury a nonlapsing, revolving fund to be known as the Capital City Redevelopment [Loan and Grant] Fund, and which shall be at the disposal of the executive director for carrying out the provisions of this act, and for no other purpose.

b. The State Treasurer may from time to time invest and reinvest those portions of the fund in investments in which other State funds may be invested.

c. There shall be included in the fund (1) all moneys appropriated and made available by the Legislature for inclusion therein, (2) any other moneys made available to the corporation from any source or sources, for its purposes, (3) any moneys repaid by persons pursuant to loan agreements under the terms of this act, which payments shall be transmitted to the State Treasurer for inclusion in the fund, and (4) any income, increment or interest derived from investment or reinvestment.

(cf: P.L.1987, c.58, s.11)

4. Section 12 of P.L.1987, c.58 (C.52:9Q-20) is amended to read as follows:

12. The fund created by this act shall be used by the corporation to undertake projects in accordance with the goals, objectives and priorities outlined in the plan and to make loans or grants for the purpose of financing projects which are consistent with the plan and promote the economic development of the district, or to purchase services, in a manner consistent with the implementation of the plan. Financing of projects pursuant to this act shall be in such form, amount and on such terms as the corporation shall believe necessary in order to assure the economic feasibility of a project and to assure, to the greatest degree compatible with that purpose, the full recovery of costs incurred by the [authority] corporation in the undertaking of the project. The [interest rate shall be sufficiently below the prevailing rate of interest] terms of the loan financing should be structured to attract private participation in the loan program. [The corporation shall assure by the terms of the financing of projects that at least 65% of the moneys appropriated to the fund shall be recovered and shall continue to be available for financing under this act.]

(cf: P.L.1987, c.58, s.12)

5. Section 15 of P.L.1987, c.58 (C.52:9Q-23) is amended to read as follows:

15. a. For the purpose of assuring regular and effective liaison between the corporation, other public agencies and officers having responsibilities in areas related to the operations of the corporation, and the public, the Governor shall establish a Capital District Oversight Committee to consist of the following: the Commissioner of the Department of Community Affairs, the Commissioner of the Department of Environmental Protection, the Commissioner of the Department of Transportation, the Attorney General, and the Superintendent of the Division of State Police in the Department of Law and Public Safety, or their designees, who shall all serve ex officio; the President of the City Council of the city of Trenton or his designee, ex officio; and nine public members, of whom five shall be citizen representatives and residents of the city of Trenton and four shall be representatives of the business sector of the city of Trenton who may live within or outside the city of Trenton, but shall be residents of the State, to be appointed as follows: two shall be appointed by the Governor, of whom one shall be a citizen representative and one shall represent the business sector; two shall be appointed by the Mayor of the city of Trenton, of whom one shall be a citizen representative and one shall represent the business sector; and five shall be appointed by the board, of whom three shall be citizen representatives and two shall represent the business sector.

b. Each public member shall serve for a term of three years and until the appointment and qualification of a successor, except that of the five members first appointed by the corporation, one citizen representative and one business representative shall each serve for a term of one year, one citizen representative and one business representative shall each serve for a term of two years, and one citizen representative shall serve for a term of three years; of the two members first appointed each by the Governor and the Mayor of the city of Trenton, one shall serve for a term of two years and one shall serve for a term of three years. In the event of a vacancy occurring during the unexpired term of office, a public member shall be appointed to serve for the unexpired term by the government entity which made the original appointment.

c. The Mayor shall designate the chairman of the committee, who shall serve in that position for the duration of his term. A chairman may be redesignated. Seven members of the committee shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the committee at any meeting thereof by the affirmative vote of at least seven members. No vacancy in the membership of the committee shall impair the right of a quorum to exercise all the powers and perform all the duties of the committee.

d. The committee shall study, and issue periodic reports assessing, first, the impact of the district on the provision of police and fire service within the city of Trenton and, thereafter, on any other areas of municipal activity which, in the committee's estimation, may be affected by the establishment of the district. The committee shall also study and report on the ways in which such municipal activity may be improved to enhance the attractiveness of the district. Based on these reports, the committee shall make recommendations to improve the efficiency or effectiveness of public agencies in enhancing the district.

e. [Upon appointment, the committee shall prepare a budget which shall contain an itemization of those expenses in order that the committee may fulfill its officially prescribed duties. The chairman shall submit a budget to the executive director on an annual basis, and the board shall provide funds within the limits of any funds appropriated or otherwise made available for the committee's purposes.] The members of the committee shall receive no compensation for their services, but may be reimbursed for their expenses in performing their official duties. [The committee is authorized to engage such employees, advisors or consultants as are necessary in order to fulfill its prescribed duties. These employees, advisors or consultants, as the case may be, shall be appointed without regard to the provisions of Title 11A of the New Jersey Statutes and shall receive such compensation as shall from time to time be fixed by the corporation within the limits of available appropriations therefor.]

f. All officers, departments, boards, agencies, divisions and commissions of the State are hereby authorized and empowered to render any services to the corporation as may be within the area of their respective governmental functions as fixed or established by law, and as may be requested by the corporation.

g. [The corporation shall refer each application for financial assistance made to the Capital City Redevelopment Loan and Grant Fund to the committee prior to taking formal action to approve or reject the application. The committee shall have 30 days from the date of referral to provide written comments on the application, and any comments provided within that time shall be a part of the record of the corporation's official action on the application.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

(cf: P.L.1987, c.58, s.15)

6. Section 17 of P.L.1987, c.58 (C.52:9Q-25) is amended to read as follows:

17. a. On or before February 1 of each year, the board shall submit a budget for the corporation to the State Treasurer for the State Treasurer's approval. The budget shall include those sums made available to the committee pursuant to section 15 of this act. The board shall file a copy of the budget with the governing body of the city of Trenton within 30 days of its approval. The board shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants, and the cost thereof shall be considered an expense of the corporation and a copy thereof shall be filed with the State Treasurer.

b. The executive director shall submit with the corporation's annual budget request a plan for expenditures from the Capital City Redevelopment [Loan and Grant] Fund for the upcoming fiscal year. This plan shall include, but not be limited to: performance evaluation of the expenditures made from the fund to date; a description of the various projects to be funded for the upcoming fiscal year; relocation assistance for the upcoming fiscal year; a copy of procedures developed by the corporation governing the operation of the loan and grant fund; a complete financial statement on the status of the State fund to date; and an estimate of expenditures from the State fund for the upcoming fiscal year. This information shall be used to assist the Legislature in determining the amount to appropriate to the State fund.

(cf: P.L.1987, c.58, s.17)

7. (New section) The corporation may enter into agreements with any individual, partnership, trust, association or corporation or any public agency under which the corporation and other entity or entities shall undertake a project as a joint venture, with the corporation providing such financial assistance, through loans, grants or the acquisition of an ownership interest in the project, and such technical or managerial assistance or advice, as the agreement may provide.

8. This bill shall take effect immediately.

STATEMENT

This bill makes various changes to the "Capital City Redevelopment Corporation Act," P.L.1987, c.58 (C.52:9Q-9 et seq.).

Specifically, the bill expands the definition of a "project" which the Capital City Redevelopment Corporation may undertake to include programs and strategies which will enhance the vitality of the district as a place to live, visit, work and conduct business, including tourism initiatives. Moreover, these programs may be undertaken outside the district, so long as they are considered by the corporation board as necessary to effectuate the Capital City Renaissance Plan.

Additionally, the bill allows the Trenton mayor and the high-ranking State officer designated by the Governor to designate an alternate to the board to serve in their absence.

The bill changes the name of the revolving fund to the "Capital City Redevelopment Fund." Under current law, the fund is referred to as the "Capital City Redevelopment Loan and Grant Fund."

The bill expands the corporation's mandate with respect to the fund to include the making of loans or grants to promote the economic development of the district or to purchase services, in a manner consistent with plan implementation. The bill removes the requirement that the interest rate be sufficiently below the prevailing rate of interest to attract private participation in the loan program and instead merely requires that the terms of the loan financing be structured to attract such participation. The bill also removes the requirement that the corporation assure by the terms of financing that at least 65 percent of the moneys appropriated to the fund be recoverable.

The bill allows the corporation to enter into joint venture agreements with any individual, partnership, trust, association, corporation or public agency in undertaking any project and to provide any financial or technical assistance it deems necessary in connection with the joint venture.

Finally, the bill removes the requirement that the Capital District Oversight Committee submit a budget to the executive director on an annual basis and removes the authorization of the committee to engage employees, advisors and consultants. The bill also removes the requirement that the corporation refer each application for financial assistance to the committee before taking formal action on it.

Makes various changes to "Capital City Redevelopment Corporation Act."