N.J. Admin. Code § 19:31AA-1.3

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31AA-1.3 - Eligibility criteria

(a) An applicant and co-applicant, if applicable, shall be eligible to receive an incentive award for a project only if the applicant demonstrates to the Authority, at the time of application, that:

1. Without the incentive award, the project is not economically feasible;

2. With the incentive award, the new supermarket or grocery store will operate on a full-time basis during both the eligibility period and commitment period, and will be economically and commercially viable by the last year of the commitment period;

3. The application is for a project located in a food desert community;

4. If the applicant is seeking a financing gap tax credit:

i. A project financing gap exists; and

ii. Except for demolition and site remediation activities, the applicant has not commenced any construction at the site of the project prior to submitting an application, unless the Authority determines that the project would not be completed without the award;

5. If the applicant is seeking an initial operating cost tax credit, an initial operating shortfall will exist;

6. The applicant will comply with the prevailing wage and affirmative action requirements at N.J.A.C. 19:31AA-1.13;

7. The supermarket or grocery store shall:

i. Accept benefits from Federal nutrition assistance programs, including, but not limited to: Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC);

ii. Maintain at least 10 percent of retail space dedicated to fresh and/or frozen fruit and vegetables;

iii. Meet the definition of new supermarket or grocery store; and

iv. Hold at least one public listening session annually in the food desert community in which the supermarket or grocery store is located about the supermarket or grocery store's product offerings and operations. Notice of the listening session shall be prominently displayed at the entrance of the supermarket or grocery store and provided to the Authority at least seven days in advance of the meeting. The applicant shall keep reasonably comprehensible minutes of all its listening sessions showing the time and place, the subjects discussed, and any public comment, which minutes shall be promptly made available to the public;

8. The opening of the supermarket or grocery store for business to the public shall be within the earlier of six months of the receipt of a temporary certificate of occupancy for the supermarket or grocery store or three years of executing the incentive award agreement corresponding to the project. The Authority may approve six-month extensions if the applicant is using best efforts, with all due diligence, to proceed with the project;

9. The applicant has complied with all requirements for filing tax and information returns and for paying or remitting required State taxes and fees by submitting, as a part of the application, a tax clearance certificate, as described at N.J.S.A. 54:50-39; and

10. If the application includes a co-applicant, the applicant and co-applicant must demonstrate the following:

i. The co-applicant has complied with all requirements for filing tax and information returns and for paying or remitting required State taxes and fees by submitting, as a part of the application, a tax clearance certificate, as described at N.J.S.A. 54:50-39;

ii. The co-applicant's organizational purpose encompasses the proposed participation;

iii. The co-applicant has the financial and operational capability to provide the proposed contribution or services;

iv. The co-applicant's proposed capital, real property, or services will materially affect and serve the anticipated customers or support the project or operation of the supermarket or grocery store; and

v. The co-applicant's receipt and sale of the tax credits is necessary to finance the project.

(b) The only costs incurred prior to application for a financing gap tax credit that may be included as project costs are demolition, site remediation, and acquisition of buildings or other site improvements not including any land acquisition costs incurred within two years prior to the date of application.

(c) The incentive award for an initial operating cost tax credit shall not include any initial operating shortfall incurred prior to the date of the application.

(d) To determine that the project has a project financing gap, the applicant shall demonstrate that the project has applicant-contributed capital of at least 20 percent of the total development cost.

(e) To demonstrate that the project will have an initial operating shortfall, the applicant shall submit a feasibility study(s) acceptable to the Authority that demonstrates that:

1. An initial operating shortfall is projected during the eligibility period;

2. The initial operating cost tax credit will be sufficient to fill the initial operating shortfall; and

3. The supermarket or grocery store is projected to operate on a full-time basis during both the eligibility period and commitment period and will be economically and commercially viable by the last year of the commitment period.

N.J. Admin. Code § 19:31AA-1.3

Recodified from 19:31-28.3 56 N.J.R. 807(a), effective 5/6/2024