NJMP Contract
Monday, March 30th, 2009The NJ Motor Sports Park contract.
The $600,000 no interest loan and the multimillion dollar 15 year tax break are only 2 of the many concessions and expenditures made by the City to, and on behalf of the NJMP. The NJMP was responsible for the environmental cleanup on the land it purchased. Instead the City spent $7 million doing it. In addition the City extended sewer and water lines to the NJMP at a cost of $5 million plus, but no cost to NJMP. The City built a new water storage tower adjacent to the NJMP to improve pressure for it and he City’s vacant airport industrial park. It agreed to sell NJMP City land for $5,000 an acre. The City, shortly thereafter, by resolution fixed the value at $40,000 an acre. The City gave NJMP until 2015 to buy more acres at the same deeply discounted price but, received no consideration for the option, not even the taxes. It is a one sided contract favoring the developer in many other respects, but the most glaring deficiency is the lack of any penalty, remedy, or consequence if the NJMP fails to live up to its obligations.
5.2.1 construction costs by independent architect and other costs by CPA w/in 90 days of completion was due Sept 30, 2008. This is important because the abatement payment is supposed to be 2% of the “Project Cost”. Phase I cost is $40,000,000 in financial agreement. $51,000,000 in Project description. But only $20,000,000 for tax assessment purposes?
5.2.2 Auditors report w/in 90 days every fiscal year. Due March 31, 2008, 2009
5.2.3 Ownership interest w/in 30 days of Mar 9 every year (start 2008)
Misc. Notes
The MDA calls for a $350,000 PILOT. It does not mention it will only be half of that or $175,000. Financial Agreement is first mention of $175,000
Job representations
The MDA does not mention the number of jobs anticipated. First appears in the financial agreement: 933 construction jobs. 500 to 1500 full and part-time jobs.
Reports filed by NJMP with UEZ show Current 2008 F/T jobs 9; P/T 16. Anticipated 2009 F/T 26; P/T 101
Misc.
City agrees not to contest the PILOT, but NJMP reserves the right to appeal land taxes.
First MDA required Union labor and wages. Amended MDA did not.