Financing Options for Atlantic County Municipalities, School Districts, Local Authorities & Fire Districts presented on September 15, 2015

1. MAKING REDEVELOPMENT
HAPPEN

2. THE PLAYERS
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 ATLANTIC COUNTY IMPROVEMENT AUTHORITY
 Provides Leadership; Serves as Coordinator for All Parties/Redevelopment Efforts
 Provides Extensive Redevelopment Powers
 Acquire Property and Install Infrastructure
 Extend Credit or Make Loans to Redevelopers
 Negotiate Redevelopment Agreements with Redevelopers
 Provides Conduit Borrowing Powers
 Coordinates with Other Agencies (e.g., CRDA, NJDEP, NJDOT, NJRA)
 COUNTY OF ATLANTIC
 Provides Initial Funding
 Provides Supplemental Expertise to ACIA (financial, planning, engineering and legal)
 Potential Additional Support through Possible Credit Enhancement
 LOCAL GOVERMENTAL UNITS
 Designates Redevelopment/Rehabilitation Areas – Foundation for Redevelopment
 Provides Zoning Regulations through Redevelopment Plan
 Provides Financial Assistance (e.g., financial agreements and/or contribution of land)

3. THE LAWS
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 County Improvement Authorities Law (NJSA
40:37A-44 et seq.)
 Local Redevelopment and Housing Law (NJSA
40A:12A-1 et seq.)
 Redevelopment Area Bond Financing Law (NJSA
40A:12A-65 et seq.)
 Long Term Tax Exemption Law (NJSA 40A:20-1
et seq.)
 Five-Year Exemption and Abatement Law (NJSA
40A:21-1 et seq.)
 New Jersey Economic Opportunity Act of 2013
(NJSA 52:27D-489p et seq.)

4. THE GOAL
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 SPUR REDEVELOPMENT
Generate Ratables
Create Jobs (temporary and permanent)
Remediate Contamination
Improve/Construct Infrastructure
Eliminate and Prevent Blight

5. THE STRATEGY
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 ACIA Serves as Leader/Coordinator of
Redevelopment Effort by:
 Identifying redevelopment opportunities;
 Preparing comprehensive transaction-by-transaction
strategy to employ various redevelopment tools; and
 Implementing such strategy.
 County May Supplement ACIA Expertise with
Outside and In-house Professionals and
Potentially Provide Credit Support as Necessary
and Appropriate

6. THE INITIATIVE
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 Applications from municipalities for grants
 Grants in form of professional services
 Value up to $50,000
 ACIA will assemble professionals – planning,
engineering, financial and legal
 ACIA team will review applications and select
applicants based on following criteria:
 Designated Redevelopment/Rehabilitation Area
 Ownership Interest/Site Control
 Willingness of municipality to consider PILOTs,
increased density, or and/contribution of land and/or
funds

7. THE APPLICATION
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 ACIA Initiative Application
 Applicants identify and describe potential
parcels/areas to be redeveloped
 Provide information about such parcels/areas to
allow ACIA Team to evaluate based on previously
identified criteria
 Applications due to ACIA by June 1, 2015
 ACIA to select candidates by July 1, 2015

8. THE SUCCESS STORIES
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 Bayonne Crossing Retail Center, Bayonne, NJ
 Kaplan Gateway Project, Carteret, NJ
 Elberon/Wakefern Warehouse Project, Elizabeth,
NJ

9. HUDSON COUNTY
IMPROVEMENT AUTHORITY9
 2009 – HCIA, City of Bayonne, Bayonne Redevelopment
Agency and County of Hudson participated in multi-
public body financing through NJEIT
 Redevelopment project – remediation of former
petroleum site and construction of 356,000 SF “big box”
retail project
 Secured by PILOTs, letter of credit during construction,
and City and County guarantees
 10 different public entities, over 80 public votes, 23
different governmental approvals, and endured multiple
lawsuits, all during an economic recession
 Severely contaminated 30-acre parcel replaced with new
retail center that generates tax revenue, UEZ revenue
and thousands of construction and full-time jobs

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11. BOROUGH OF CARTERET (“Borough”) &
CARTERET REDEVELOPMENT AGENCY
(“CARA”)
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 Redevelopment Project – 384 residential units & 15,000 sq ft of retail
space
 Borough and CARA acquired some properties for project, including by
eminent domain
 CARA issued $6,250,000 Redevelopment Area Bonds (“RABs”) to
finance:
 Infrastructure improvements associated with the project (tax-exempt)
 Pre-construction costs, such as acquisition, demolition & remediation
(taxable)
 RABs secured by PILOTs, Special Assessment & Borough Guaranty
 PILOTs generated by project exceed debt service on RABs; Borough
retains excess revenues
 Project revitalized area characterized by abandoned and decaying
houses and buildings, and remediated environmentally contaminated
properties

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13. UNION COUNTY IMPROVEMENT
AUTHORITY13
 2010 – Union County Improvement Authority (“UCIA”) allocated a portion of Union
County’s Recovery Zone Bond allocation to Wakefern project in City of Elizabeth
 UCIA issued $44,499,000 in Recovery Zone Facility Bonds (“RZFBs”) – a federal
program permitting governments to issue tax-exempt, private activity bonds to
spur private investment in new projects
 TD Bank purchased RZFBs from UCIA and provided a construction loan and
revolving line of credit to Elberon Development Co., LLC (“Elberon”)
 Financing program also included reallocated volume cap from City of Elizabeth,
County of Union and State volume cap from State of New Jersey
 Wakefern Food Corp. is a wholesale distribution cooperative, supplying over 200
stores with groceries and other merchandise along the eastern seaboard. For 50
years, Elberon owned and managed the warehouse in Elizabeth.
 Elberon used the proceeds to demolish old warehouse and, in its place, construct
a new 524,000 sq ft state-of-the-art warehouse for Wakefern Food Corp. in
Elizabeth
 Project generated approximately 130 construction jobs and is expected to create
over 345 permanent jobs

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