N.J. Admin. Code § 19:65-2.5

Current through Register Vol. 56, No. 9, May 6, 2024

Section 19:65-2.5 - Approval criteria

(a) The Authority shall approve projects in accordance with the guidelines and criteria set forth in the Act.

(b) The Authority shall require that the applicant establish before commencement of the project, among other things, the following:

1. In the case of projects involving construction, that the site for the proposed project is under the control of the applicant or that a governmental or public body or agency has manifested its intent to permit the applicant to acquire control over the site of the proposed project;

2. In the case of projects involving the loan of bond proceeds, that the project is sufficiently financially feasible such that it has the minimum characteristics of an investment in that a degree of assurance exists that interest and principal payments can be made and other terms of the proposed investment be maintained over the period thereof and that a loan of the bond proceeds in connection therewith would qualify for a bond rating of "C" or better;

3. That the applicant has the financial capability to undertake the project; and

4. That the project, with respect to projects not in Atlantic City, will result in minimal displacement of existing households; and with respect to projects in Atlantic City, in cases where displacement of commercial or residential facilities may be necessary, such displacement must be consistent with the Atlantic City Task Force on Housing and Community Development of March 24, 1983 and incorporated in the redevelopment plan known as "Inlet Community Redevelopment--A Balanced Community Concept and Strategy for Reinvestment, Atlantic City, New Jersey, October, 1983" (sometimes referred to as the "American Cities Plan") approved and adopted by the New Jersey Casino Control Commission.

(c) (Reserved)

(d) The Authority shall require that the applicant establish, among other things, with respect to hotel development projects, the following:

1. The construction, reconstruction or rehabilitation of the units is to be accomplished pursuant to a schedule of development so as to be completed on or before such date as shall be established by the Authority by resolution;

2. The cost of the construction, reconstruction or rehabilitation of appurtenant facilities shall be an amount commensurate with appurtenant facilities of a scope and size reasonable for use for the total number of units so constructed, reconstructed or rehabilitated;

3. The project does not include the construction, reconstruction or rehabilitation of any unit which was in existence and used or available for use as a hotel unit as of July 1, 1993 except when the project will result in the hotel units being upgraded to first class hotel units, and the cost of such construction reconstruction or rehabilitation exceeds 50 percent of the acquisition value of the structure as defined in N.J.A.C. 19:65-1.2. For purposes of this subsection, "first class hotel unit" shall mean a sleeping unit:

i. Containing at least approximately 325 square feet measured to the center of perimeter walls, including bathroom and closet space and excluding hallways, balconies and lounges;

ii. Containing private bathroom facilities; and

iii. To be held available and to be used regularly for the lodging of tourists and convention guests and conforming in all respects to the facilities requirements contained in the Casino Control Act, 5:12-27, except that the building or buildings containing units need not be operated as a part of one casino hotel facility nor be physically connected to a casino hotel;

4. The existence of a room block agreement executed by the licensee effective on or before the date the new rooms are put into service that requires certain units to be reserved, at certain times and under certain conditions agreeable to the Authority, for convention business;

5. A plan acceptable to the Authority pursuant to which employment opportunities are enhanced for Atlantic City residents both with respect to construction jobs and permanent employment; and

6. The licensee's Atlantic City investment obligations that are available for purposes of construction, reconstruction or rehabilitation of facilities for low and moderate income housing, less any obligations that are committed by agreement with the Authority for such purposes, shall not exceed the greater of a specified percentage of such obligation for any year or an amount in excess of the last full year of such obligation.

(e) Following approval of a hotel development project by the Authority, no change shall be made to the hotel development project unless prior written notification of such change has been provided to the Authority and approval has been granted as follows:

1. Any change to an approved hotel development project which may alter investment credit or materially change the nature, scope or size of the hotel development project, including, but not limited to, those which will result in an increase in the number of hotel rooms for which investment is sought, or result in a substitution of suites for first class hotel rooms, shall only be permissible by way of amendment to the project application and by prior approval of the Authority by resolution. With respect to any such change that includes improvements or facilities or supports an expansion of space used for the conduct of casino gaming, the licensee shall provide to the Authority a detailed analysis and allocation of the costs reasonably related to the units and appurtenant facilities in the project and the costs reasonably related to space used for the conduct of casino gaming; and

2. Any other change to an approved hotel development project shall only be permissible by prior approval of the Executive Director.

(f) In order to implement the Casino Capital Construction Fund, the Authority is authorized to accept applications from licensees during the period July 1, 2004 through and including September 30, 2007 on forms to be provided by the Authority for the purpose of seeking approval of eligible capital construction projects and to enter into project grant agreements with licensees to develop approved projects for the following types of expansions: to increase the square footage of retail space, parking spaces or casino hotel rooms or to create a significant physical amenity or improvement. In addition to meeting the criteria for project approval established by the applicable provisions of N.J.A.C. 19:65-2.4, the Casino Capital Construction Fund Project(s) must meet the following additional criteria:

1. The reservation of funds from the Casino Capital Construction Fund for an approved Casino Capital Construction Fund project shall be subject to the following:

i. The approval of the execution of an agreement between the Authority and a licensee setting forth the terms and provisions by which the licensee's maximum share is to be calculated and distributed, terms and provisions covering all reporting requirements and such other terms and provisions as the licensee and the Authority shall deem necessary in order to implement the project;

ii. The amount of the reservation shall not exceed the costs incurred for the Casino Capital Construction Fund project excluding any such costs attributable to expansion or renovation of any casino space or facilities related thereto or components that are not eligible as set forth in paragraph (f)2 below;

iii. The receipt of financing or other commitments for the costs of the Casino Capital Construction Fund project in excess of those provided pursuant to (b) above; and

iv. The establishment of a schedule of the stages of pre-development and development of the Casino Capital Construction Fund project to provide for the completion of the casino capital construction project on or before a date established in the project grant agreement.

2. The following shall not be eligible as Casino Capital Construction Fund projects or as components of an approved Capital Construction project:

i. Back of the house facilities;

ii. Administrative or office space;

iii. Operating systems including, but not limited to, surveillance systems, computer systems and communications systems except as a component of an approved expansion project; and

iv. Costs incurred prior to July 1, 2003.

3. The reservations of funds from the Casino Capital Construction Fund for an approved Casino Capital Construction Fund project shall be subject to such other terms and conditions as the Authority shall deem necessary and appropriate.

4. The licensee shall submit an application for the Casino Capital Construction Fund project for approval by the Authority. The application submitted shall include, but not necessarily be limited to:

i. A description of the project, including identifying the development team members and the role to be played by each member;

ii. A detailed estimate of the cost of the project;

iii. A project schedule for the design phase, permit phase and construction phase;

iv. A statement of any other revenue sources to be used to finance the costs of the Casino Capital Construction Fund project; and

v. A statement of the impact that the Casino Capital Construction Fund project is expected to have on the City of Atlantic City, including the number of construction and permanent jobs.

(g) In order to implement the Atlantic City Expansion Fund, the Authority is authorized to accept applications from licensees during the period of July 1, 2004 through and including June 1, 2006 on forms to be provided by the Authority for the purpose of seeking approval of eligible expansion fund projects and to enter into project grant agreements with licensees to develop approved projects for the following types of expansions: to add hotel rooms, retail, dining or non-gaming entertainment venues, or other non-gaming amenities, in the City of Atlantic City. After June 1, 2006 and before June 30, 2014, the Authority is authorized to accept applications from licensees on forms provided by the Authority for the purpose of seeking approval of eligible expansion fund projects and to enter into project grant agreements with licensees to develop approved hotel room projects in the City of Atlantic City. In addition to meeting the criteria for project approval established by the applicable provisions of N.J.A.C. 19:65-2.4, the Atlantic City Expansion Fund project(s) must meet the following additional criteria:

1. The reservation of funds from the Atlantic City Expansion Fund for an approved Atlantic City Expansion Fund project shall be subject to the following:

ii. The amount of the reservation of funds shall not exceed the lesser of the amount of the licensee's maximum share of 25 percent of the costs incurred for the Atlantic City Expansion Fund project, excluding any such costs attributable to expansion or renovation of any casino space or facilities related thereto or components that are not eligible as set forth, in (g)2 below. Payments by the licensees and from the Fund shall be made equally and without preference;

iii. The receipt of financing or other commitments for the costs of the Atlantic City Expansion Fund project in excess of those provided pursuant to (b) above;

iv. The establishment of a schedule of the stages of pre-development and development of the Atlantic City Expansion Fund project to provide for the completion of the Atlantic City Expansion Fund project on or before a date established in the project grant agreement; and

v. The Authority shall not authorize a reservation of funds for a project that receives or is anticipated to receive funding pursuant to the Casino Reinvestment Development Authority Urban Revitalization Act, P.L. 201, c.221 (5:12-173.9 et seq.), or section 8 of P.L. 1993, c.159 (5:12-173.8 ), unless the casino licensee demonstrates to the satisfaction of the Authority that the funding from the Atlantic City Expansion Fund will result in a significant improvement in or expansion of that project.

2. The following shall not be eligible as Atlantic City Expansion Fund projects or as components of an approved Atlantic City Expansion Fund project:

i. Parking facilities, except if determined by the Authority to be an essential component of a comprehensive development plan;

ii. Back of the house facilities;

iii. Administrative or office space;

iv. Operating systems including, but not limited to, surveillance systems, computer systems and communications systems except as a component of an approved expansion project; and

v. Costs incurred prior to July 1, 2004;

3. The reservations of funds from the Atlantic City Expansion Fund for an approved Atlantic City Expansion Fund project shall be subject to such other terms and conditions as the Authority shall deem necessary and appropriate.

4. The licensee shall submit an application for the Atlantic City Expansion Fund project for approval by the Authority. The application submitted shall include, but not necessarily be limited to:

i. A description of the project, including identifying the development team members and the role to be played by each member;

ii. A detailed estimate of the cost of the project;

iii. A project schedule for the design phase, permit phase and construction phase;

iv. A statement of any other revenue sources to be used to finance the costs of the Atlantic City Expansion Fund project; and

v. A statement of the impact that the Atlantic City Expansion Fund project is expected to have on the City of Atlantic City, including the number of construction and permanent jobs.

N.J. Admin. Code § 19:65-2.5

Recodified from 19:65-2.6 by R.1992 d.383, effective 10/5/1992.
See: 24 New Jersey Register 1692(b), 24 New Jersey Register 3535(a).
Section was Reserved.
Prior rulemaking activity was as follows:
Repealed by R.1987 d.213, effective 5/4/1987.
See: 19 New Jersey Register 404(a), 19 New Jersey Register 775(a).
Section was "Final review."
Emergency Amendment, R.1993 d.478, effective 8/30/1993 (expired October 29, 1993).
See: 25 New Jersey Register 4514(a).
Adopted Concurrent Proposal, R.1993 d.605, effective 10/29/1993.
See: 25 New Jersey Register 4514(a), 25 New Jersey Register 5523(a).
Amended by R.1995 d.4, effective 1/3/1995.
See: 25 New Jersey Register 5455(a), 27 New Jersey Register 144(b).
Amended by R.1997 d.136, effective 3/17/1997.
See: 29 New Jersey Register 115(a), 29 New Jersey Register 934(a).
In (d)1, changed the required completion date of the construction, reconstruction or rehabilitation of any units; and added (d)4 through 6 and (e).
Amended by R.1997 d.452, effective 10/20/1997.
See: 29 New Jersey Register 3708(a), 29 New Jersey Register 4562(b).
In (b), inserted requirement that applicant meet the outlined criteria prior to commencement of the project; and narrowed the application of (b)2 to those projects involving the loan of Bond proceeds.
Amended by R.2005 d.205, effective 7/5/2005.
See: 37 New Jersey Register 767(a), 37 New Jersey Register 2559(a).
Added (f) and (g).