FISCAL NOTE TO


SENATE, No. 1169


STATE OF NEW JERSEY

 

DATED: DECEMBER 13, 1996

 

 

      Senate Bill No. 1169 of 1996 amends P.L.1994, c.83, which permitted the sale of Bound Brook Armory to the Borough of Bound Brook. The parcel was originally conveyed to the State by the borough for one dollar. The bill would provide that the consideration to be paid to the State by the borough for the sale and conveyance of the property to also be one dollar, notwithstanding any agreement or mortgage note to the contrary previously entered into between the State and the borough.

      The Department of Military and Veterans' Affairs (DMAVA), with the Office of Management and Budget concurring, estimates the bill will result in a loss of $28,500 per year for nine years, including the current fiscal year, or a total loss of $256,500 to the State. This amount represents the payments to be paid by the borough to the State pursuant to an agreement made between DMAVA and the borough, as represented by the Department of the Treasury and dated June 29, 1995, for the sale of the armory. DMAVA further states that the sale of the property was made with considerable effort and concessions to establish the price and payment schedule and to ensure that the State received fair market value for improvements made to the property.

      The Office of Legislative Services concurs with the department's fiscal estimates and also notes that, according to the Department of the Treasury, the first payment of $28,500 has been made to the State and would thus need to be reimbursed to the borough pursuant to this bill.     

This fiscal note has been prepared pursuant to P.L.1980, c.67.