N.J. Admin. Code § 2:76-16.1

Current through Register Vol. 56, No. 19, October 7, 2024

Section 2:76-16.1 - Project agreement

(a) The Committee shall send the project agreement to the nonprofit. The nonprofit shall ensure that the project agreement is approved and signed by the nonprofit's attorney, and executed by the person authorized under the resolution described at 2:76-13.3(a)2. The project agreement shall contain:

1. An identification of the parcels to be acquired or preserved as part of the project site;

2. The estimated cost of acquisition of the project site; and

3. The following conditions:

i. That the nonprofit shall, for lands acquired in fee simple title, ensure that the lands are maintained for agricultural use and production pursuant to 2:76-6.1 5;

ii. That the nonprofit shall, for lands acquired in fee simple title, agree not to sell, lease, exchange, or donate the lands unless:

(1) The lands will continue to be maintained for agricultural use and production pursuant to 2:76-6.1 5;

(2) The Committee is notified that the restricted farm is being offered for sale, exchange or donation; and

(3) The Committee approves the transfer in writing prior to the nonprofit's offering, for sale or conveyance, of any of its interest in the land. This requirement for written approval is met if an intended transferee is named in the project agreement executed under this section;

iii. That the nonprofit shall, in the case of the acquisition of a development easement, agree not to convey the development easement except to the Federal government, the State, a local unit of government, or another qualifying tax exempt nonprofit organization for farmland preservation purposes;

iv. That the nonprofit shall, at the time of acquisition of lands in fee simple title, agree to execute a deed of easement. The deed of easement shall be recorded in the same manner as a deed and shall run with the land. The deed of easement shall contain the following:

(1) Restrictions consistent with the provisions of 2:76-6.1 5 and approved by the Committee;

(2) The Committee's right to enforce the conditions of the restrictions;

(3) The remedies available to the Committee in the event the nonprofit does not comply with the conditions of the restrictions;

(4) A reimbursement provision which requires the nonprofit that sells or donates any interest in any lands acquired with a grant by the Committee, that the nonprofit shall pay to the Committee 50 percent of the net proceeds. For purposes of this section, "net proceeds" means the amount of compensation received by the nonprofit in excess of any unreimbursed costs; and

(5) Other special conditions as appropriate;

v. That the nonprofit shall, at the time of acquisition of a development easement, agree to execute a deed of easement. The deed of easement shall be recorded in the same manner as a deed and shall run with the land. The deed of easement shall contain the following:

(1) Restrictions consistent with the provisions of 2:76-6.1 5 and approved by the Committee;

(2) The Committee's right to enforce the conditions of the restrictions;

(3) The remedies available to the Committee in the event the nonprofit does not comply with the conditions of the restrictions; and

(4) Other special conditions as appropriate;

vi. The requirements for recordkeeping and project administration pursuant to 2:76-16.4; and

vii. Other terms and conditions, including a statement of the remedies described at (f) through (i) below.

(b) Upon receipt of the project agreement executed in accordance with (a) above, the Committee shall establish an account from which the grant shall be disbursed.

(c) The Committee and the nonprofit shall execute an amendment to the project agreement to:

1. Add a parcel to the project site if the nonprofit demonstrates that the parcel meets the project eligibility requirements at 2:76-12.3;

2. Extend the project period established in the project agreement if the nonprofit demonstrates that it is making a good faith effort to complete the project in an expeditious manner; or

3. Reflect any supplemental funding provided under 2:76-15.3.

(d) Upon receipt of notification from the nonprofit of the scheduled date of closing, the nonprofit shall forward a copy of the title commitment, survey, deed of easement and any other necessary documents to complete the closing.

1. The Committee shall review the closing documents and, if appropriate, send the executed deed of easement required under (a)3iv or v above to the nonprofit. The Committee shall forward the approved grant to the nonprofit. The nonprofit shall have the deed of easement recorded by the county clerk or registrar either when the deed for the project site is recorded or when the nonprofit receives the first disbursement of Committee funds.

i. A copy of the executed deed of easement shall be forwarded to the Committee.

ii. A copy of the recorded deed of easement shall be forwarded to the Committee when available.

(e) In addition to any other rights or remedies available to the Committee under law, if the nonprofit does not comply with any of the requirements of the project agreement, the deed of easement, this chapter, or the Committee laws, or if the nonprofit makes any material misrepresentation in the project application and/or the documentation submitted in support of the application, the Committee may take any of the following actions:

1. Issue a written notice of noncompliance directing the nonprofit to take and complete corrective action within 30 days of receipt of the notice.

i. If the nonprofit does not take corrective action, or if the corrective action taken is not adequate in the judgement of the Committee, then the Committee may take any of the actions described at (e)2 through 4 and (f) below;

2. Withhold a grant disbursement or portion thereof;

3. Terminate the project agreement; and/or

4. Demand immediate repayment of all Committee funds that the nonprofit has received.

(f) If the nonprofit fails to comply with any of the terms of the project agreement, the deed of easement, this chapter, or the Committee laws, the Committee may initiate suit for injunctive relief or to seek specific enforcement, without posting bond, it being acknowledged that any actual or threatened failure to comply will cause irreparable harm to the Committee and that money damages will not provide an adequate remedy.

(g) If the Committee incurs legal or other expenses, including its own personnel expenses, for the collection of payments due or in the enforcement or performance of any of the nonprofit's obligations under the project agreement, the deed of easement, this chapter, or the Committee laws, the nonprofit shall pay these expenses on demand by the Committee.

(h) The Committee is not required to mitigate any damages to the nonprofit resulting from the nonprofit's noncompliance with the terms of the project agreement, the deed of easement, this chapter or the Committee laws.

1. The nonprofit shall monitor lands from which a development easement was acquired or lands purchased in fee simple title pursuant to the provisions of 2:76-16.5.

N.J. Admin. Code § 2:76-16.1